Defining a Unitary Business: An Economist's View
AbstractThe definition of a unitary business has figured prominently in several recent decisions of the U.S. Supreme Court on the constitutionality of state corporate income taxes. This paper employs economic analysis to frame a three part test of whether a unitary business exists. Underlying the tests is the notion that a unitary business exists when separate accounting can not satisfactorily isolate the profits of individual firms. The first test is common control. The second is whether transfer prices on transactions within the group could be manipulated or are diificult to verify or substantial vertical integration, shared costs,economies of scale or scope, or other forms of economic interdependence make isolation of profits of affiliated firms impossible.The third test is one of substantiality.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 1125.
Date of creation: May 1983
Date of revision:
Publication status: published as McLure, Charles E. Jr. "Defining a Unitary Business: An Economist's View." The State Corporation Income Tax: Issues in Worldwide Unitary Combination,edited by Charles E. McLure, Jr., pp. 89-124. StaStanford: Hoover Institution Press, (1984).
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Luca Gandullia, 2012. "The role of direct taxes in fiscal decentralization," DEP - series of economic working papers 6/2012, University of Genoa, Research Doctorate in Public Economics.
- Jens Ludwig & Dave E. Marcotte & Karen Norberg, 2007.
"Anti-depressants and Suicide,"
NBER Working Papers
12906, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.