How Would EU Corporate Tax Reform Affect US Investment in Europe?
This paper examines the likely impact of a proposed formula apportionment system for corporation tax in the EU on the inbound investment of US multinational companies. We pay attention to tax planning strategies that may be employed by US multinationals and investigate whether effective tax rates in Europe of US companies differ from those of European companies. The proposal is for an optional system: we estimate the extent to which both European and US companies would be likely to choose it taking into account their existing structures and future investment incentives. The relative position of US and European companies depends crucially on the taxation of foreign passive income.
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- Peter Egger & Simon Loretz & Michael Pfaffermayr & Hannes Winner, 2008.
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0811, Oxford University Centre for Business Taxation.
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0932, Oxford University Centre for Business Taxation.
- Clemens Fuest & Thomas Hemmegarn & Fred Ramb, 2007.
"How would the introduction of an EU-wide formula apportionment affect the distribution and size of the corporate tax base? An analysis based on German multinationals,"
International Tax and Public Finance,
Springer;International Institute of Public Finance, vol. 14(5), pages 627-629, October.
- Clemens Fuest & Thomas Hemmelgarn & Fred Ramb, 2007. "How would the introduction of an EU-wide formula apportionment affect the distribution and size of the corporate tax base? An analysis based on German multinationals," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 14(5), pages 605-626, October.
- Michael P. Devereux & Simon Loretz, 2010. "Evaluating Neutrality Properties of Corporate Tax Reforms," Working Papers 1007, Oxford University Centre for Business Taxation.
- Gordon, Roger H & Wilson, John Douglas, 1986. "An Examination of Multijurisdictional Corporate Income Taxation under Formula Apportionment," Econometrica, Econometric Society, vol. 54(6), pages 1357-73, November.
- Ruud A. de Mooij & Sjef Ederveen, 2008.
"Corporate Tax Elasticities A Reader’s Guide to Empirical Findings,"
0822, Oxford University Centre for Business Taxation.
- Ruud A. de Mooij & Sjef Ederveen, 2008. "Corporate tax elasticities: a reader's guide to empirical findings," Oxford Review of Economic Policy, Oxford University Press, vol. 24(4), pages 680-697, winter.
- Zimmerman, Jerold L., 1983. "Taxes and firm size," Journal of Accounting and Economics, Elsevier, vol. 5(1), pages 119-149, April.
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