FDI Implications of Recent European Court of Justice Decision on Corporation Tax Matters
AbstractCorporation tax rates significantly influence the location of foreign direct investment (FDI) as well as company decisions on corporate borrowing, transfer pricing, dividend and royalty payments, and research and development. While direct taxation remains within the competence of individual EU member states, the European Court of Justice (ECJ) has faced an increasing number of corporation-tax-related cases over recent years and its judgements have significantly redrawn the European tax landscape. The present paper reviews and synthesises these ECJ decisions and analyses their implications for the FDI decisions of Multinational Corporations.
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Bibliographic InfoPaper provided by IIIS in its series The Institute for International Integration Studies Discussion Paper Series with number iiisdp270.
Date of creation: 14 Nov 2008
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ACC-2008-11-25 (Accounting & Auditing)
- NEP-ALL-2008-11-25 (All new papers)
- NEP-EEC-2008-11-25 (European Economics)
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