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The Role of Allocation in a Globalized Corporate Income Tax


  • Jack M. Mintz


The internationalization of business activity has created significant pressures on national corporate tax systems. Rather than abandon the corporate tax field, this paper predicts that governments will develop arrangements to further globalize the corporate income tax. The paper assesses the merits and limitations of allocation methods for attributing income to different jurisdictions according to formulas measuring business activity. Such methods are being used as part of transfer pricing regimes and are likely to be enhanced over time. Whatever international arrangements develop in the future, there is a role for new institutions to improve cooperative discussions among governments.

Suggested Citation

  • Jack M. Mintz, 1998. "The Role of Allocation in a Globalized Corporate Income Tax," IMF Working Papers 98/134, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:98/134

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    11. Tenhofen Jörn & Wolff Guntram B. & Heppke-Falk Kirsten H., 2010. "The Macroeconomic Effects of Exogenous Fiscal Policy Shocks in Germany: A Disaggregated SVAR Analysis," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(3), pages 328-355, June.
    12. repec:pri:cepsud:100blinder is not listed on IDEAS
    13. Dennis P Botman & David Rose & Douglas Laxton & Philippe D Karam, 2007. "DSGE Modeling at the Fund; Applications and Further Developments," IMF Working Papers 07/200, International Monetary Fund.
    14. Adam S. Posen, 1998. "Restoring Japan's Economic Growth," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 35.
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