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Economic substance requirements and multinational firm behavior

Author

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  • Aparna Mathur

    (American Enterprise Institute)

  • Kartikeya Singh

    (American Enterprise Institute)

Abstract

Singh and Mathur find that the emphasis on the OECD's concept of "economic substance" can have a significant impact on the scale as well as the location of economic activity and likely has highly unfavorable implications on economic activity for high-tax jurisdictions. Viewed from a U.S. perspective, this new international environment provides one more impetus to strive for a reform of the corporate tax code to make it more competitive.

Suggested Citation

  • Aparna Mathur & Kartikeya Singh, 2017. "Economic substance requirements and multinational firm behavior," AEI Economics Working Papers 918310, American Enterprise Institute.
    • Handle: RePEc:aei:rpaper:918310
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    References listed on IDEAS

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    1. Harry Grubert, 2003. "The Tax Burden on Cross-Border Investment: Company Strategies and Country Responses," CESifo Working Paper Series 964, CESifo.
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    Cited by:

    1. De Simone, Lisa & Klassen, Kenneth J. & Seidman, Jeri K., 2022. "The effect of income-shifting aggressiveness on corporate investment," Journal of Accounting and Economics, Elsevier, vol. 74(1).

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    • A - General Economics and Teaching

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