Immobilizing Corporate Income Shifting: Should It Be Safe to Strip in the Harbor?

Konferenzbeitrag

Many subsidiaries can deduct interest payments on internal debt from their taxable income. By issuing internal debt from a tax haven, multinationals can shift income out of host countries through the interest rates they charge and the amount of internal debt they issue. We show that, from a welfare perspective, thin-capitalization rules that restrict the amount of debt for which interest is tax deductible (safe harbor rules) are inferior to rules that limit the ratio of debt interest to pre-tax earnings (earnings stripping rules), even if a safe harbor rule is used in conjunction with an earnings stripping rule.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2016: Demographischer Wandel - Session: Corporate Taxes in the International Perspective ; No. F10-V3

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Tax Evasion and Avoidance ; Business Taxes and Subsidies including sales and value-added (VAT) ; Tax Law

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Schindler, Dirk Steffen ; Gresik, Thomas ; Schindler, Dirk ; Schjelderup, Guttorm
• Ereignis: Veröffentlichung
• (wer): ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
• (wo): Kiel und Hamburg
• (wann): 2016

Weitere Informationen

• Handle: http://hdl.handle.net/10419/145477
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ