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International taxation and corporate strategy: evidence from British overseas business, circa 1900-1965

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  • Simon Mollan
  • Kevin D. Tennent

Abstract

In this article we establish the impact and importance of international taxation on British overseas business circa 1900 to 1965. As the levels of national taxation rose across the twentieth century, different states began to compete for taxable income. This created international double taxation whereby taxation was due twice on the same income or profit. We examine the difficulties that this caused and the responses of firms to this challenge, through the adoption of tax-minimisation strategies, alterations to corporate structure, and the relocation of corporate domicile. We discuss how international taxation was one of the secular changes in the international business environment that contributed to the rise of large-scale multinational enterprises. We conclude by making a call for greater consideration of international taxation in international business history.

Suggested Citation

  • Simon Mollan & Kevin D. Tennent, 2015. "International taxation and corporate strategy: evidence from British overseas business, circa 1900-1965," Business History, Taylor & Francis Journals, vol. 57(7), pages 1054-1081, October.
    • Handle: RePEc:taf:bushst:v:57:y:2015:i:7:p:1054-1081
    DOI: 10.1080/00076791.2014.999671
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    1. Assaf Razin & Joel B. Slemrod, 1990. "Introduction to "Taxation in the Global Economy"," NBER Chapters, in: Taxation in the Global Economy, pages 1-8, National Bureau of Economic Research, Inc.
    2. Fischer, C.S., 1995. "Historical Sociology and Sociological History: Theory and Practice," Papers 95/4, European Institute - Political and Social Sciences.
    3. Simon James, 2017. "Taxation and nudging," Chapters, in: Morris Altman (ed.), Handbook of Behavioural Economics and Smart Decision-Making, chapter 17, pages 317-330, Edward Elgar Publishing.
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    Cited by:

    1. Ryo Izawa, 2018. "Corporate Structural Change for Tax Avoidance: British Multinational Enterprises and International Double Taxation between the First and Second World Wars," Discussion Papers CRR Discussion Paper Series A: General 33, Shiga University, Faculty of Economics,Center for Risk Research.
    2. Sol Picciotto, 2022. "Technocracy in the Era of Twitter: Between intergovernmentalism and supranational technocratic politics in global tax governance," Regulation & Governance, John Wiley & Sons, vol. 16(3), pages 634-652, July.
    3. Ryo Izawa, 2017. "Under Political Uncertainties:Organisational Changes in the Imperial Continental Gas Association, 1824?1987," Discussion Papers CRR Discussion Paper Series A: General 24 Classification-, Shiga University, Faculty of Economics,Center for Risk Research.

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