Arbeitspapier

Tax Spillovers under Separate Accounting and Formula Apportionment.

to connected objects

It is observed in the real world that taxes matter for location decisions and that multinationals shift profits by transfer pricing. The US and Canada use Formula Apportionment (FA) to tax corporate income, and the EU is debating a switch from Separate Accounting (SA) to FA. This paper develops a theoretical model that compares basic properties of FA to SA. The focal point of the analysis is on how changes in tax rates affect capital formation, input choice, and transfer pricing as well as spillovers on tax revenue in other countries. The analysis shows that a move from SA to FA will not eliminate such spillovers and will, in cases identified in the paper, actually aggravate them.

Language
Englisch

Bibliographic citation
Series: EPRU Working Paper Series ; No. 2001-07

Classification
Wirtschaft

Event
Geistige Schöpfung
(who)
Nielsen, Søren Bo
Raimondos-Møller, Pascalis
Schjelderup, Guttorm
Event
Veröffentlichung
(who)
University of Copenhagen, Economic Policy Research Unit (EPRU)
(where)
Copenhagen
(when)
2001

Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Show original at data provider

Object type

  • Arbeitspapier

Associated

  • Nielsen, Søren Bo
  • Raimondos-Møller, Pascalis
  • Schjelderup, Guttorm
  • University of Copenhagen, Economic Policy Research Unit (EPRU)

Time of origin

  • 2001

Other Objects (12)

Allowing Firms to Choose Between Formula Apportionment and Separate Accounting Taxation

Arbeitspapier

Allowing Firms to Choose Between Formula Apportionment and Separate Accounting Taxation

From separate accounting to formula apportionment: analysis in a dynamic framework

Arbeitspapier

From separate accounting to formula apportionment: analysis in a dynamic framework

Formula apportionment or separate accounting? Tax-induced distortions of multinationals' locational investment decisions

Arbeitspapier

Formula apportionment or separate accounting? Tax-induced distortions of multinationals' locational investment decisions

Fiskalische Externalitäten innerhalb des Europäischen Binnenmarktes: Separate Accounting und Formula Apportionment im Vergleich

Fiskalische Externalitäten innerhalb des Europäischen Binnenmarktes: Separate Accounting und Formula Apportionment im Vergleich

The choice of apportionment factors under formula apportionment

Arbeitspapier

The choice of apportionment factors under formula apportionment

Strategic consolidation under formula apportionment

Arbeitspapier

Strategic consolidation under formula apportionment

Asymmetric Tax Competition with Formula Apportionment

Asymmetric Tax Competition with Formula Apportionment

Asymmetric tax competition with formula apportionment

Arbeitspapier

Asymmetric tax competition with formula apportionment

Profit Tax Competition and Formula Apportionment

Arbeitspapier

Profit Tax Competition and Formula Apportionment

Profit Tax Competition and Formula Apportionment

Arbeitspapier

Profit Tax Competition and Formula Apportionment

Reforming multinational corporate income taxation in the European Union : the transition from separate accounting to formula apportionment from a tax competition perspective

Reforming multinational corporate income taxation in the European Union : the transition from separate accounting to formula apportionment from a tax competition perspective

Formula apportionment: Factor allocation and tax avoidance

Arbeitspapier

Formula apportionment: Factor allocation and tax avoidance

Related objects