Tariff-induced transfer pricing and the CCCTB

Arbeitspapier

The common consolidated corporate tax base has been suggested as a way to curb tax avoidance by allocating profits across borders via a formula. This paper demonstrates that when transfer pricing occurs both for tariff and tax minimization, that moving from separate accounting to formula apportionment can actually increase transfer pricing. This, combined with arm's length pricing regulations, can result in lower revenues for high-tax countries and lower overall revenues. This casts additional doubt over whether such a move would have its intended, revenue-enhancing effects.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: UCD Centre for Economic Research Working Paper Series ; No. WP13/14

Classification and Topics

• Classification: Wirtschaft ; Remittances ; Financial Aspects of Economic Integration ; Business Taxes and Subsidies including sales and value-added (VAT) ; International Fiscal Issues; International Public Goods
• Subject: Common Consolidated Corporate Tax Base ; Vertical FDI ; Formula Apportionment ; Transfer Pricing

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Davies, Ronald B.
• Event: Veröffentlichung
• (who): University College Dublin, UCD School of Economics
• (where): Dublin
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/96270
• Last update: 10.03.2025, 11:46 AM CET