Arbeitspapier
Profit shifting and 'aggressive' tax planning by multinational firms: Issues and options for reform
This paper discusses the issue of profit shifting and 'aggressive' tax planning by multinational firms. The paper makes two contributions. Firstly, we provide some background information to the debate by giving a brief overview over existing empirical studies on profit shifting and by describing arrangements for IP-based profit shifting which are used by the companies currently accused of avoiding taxes. We then show that preventing this type of tax avoidance is, in principle, straightforward. Secondly, we argue that, in the short term, policy makers should focus on extending withholding taxes in an internationally coordinated way. Other measures which are currently being discussed, in particular unilateral measures like limitations on interest and license deduction, fundamental reforms of the international tax system and country-by-country reporting, are either economically harmful or need to be elaborated much further before their introduction can be considered.
- Language
-
Englisch
- Bibliographic citation
-
Series: ZEW Discussion Papers ; No. 13-044
- Classification
-
Wirtschaft
Taxation, Subsidies, and Revenue: General
Business Taxes and Subsidies including sales and value-added (VAT)
Multinational Firms; International Business
Tax Law
- Subject
-
tax avoidance
profit shifting
multinational firms
intellectual property
tax policy
tax reform
- Event
-
Geistige Schöpfung
- (who)
-
Fuest, Clemens
Spengel, Christoph
Finke, Katharina
Heckemeyer, Jost
Nusser, Hannah
- Event
-
Veröffentlichung
- (who)
-
Zentrum für Europäische Wirtschaftsforschung (ZEW)
- (where)
-
Mannheim
- (when)
-
2013
- Handle
- URN
-
urn:nbn:de:bsz:180-madoc-339460
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Fuest, Clemens
- Spengel, Christoph
- Finke, Katharina
- Heckemeyer, Jost
- Nusser, Hannah
- Zentrum für Europäische Wirtschaftsforschung (ZEW)
Time of origin
- 2013
Other Objects (12)
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Profit shifting and 'aggressive' tax planning by multinational firms: Issues and options for reform
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Vorschläge für eine Reform der Immobilienbesteuerung
Konzernsteuerquote und Invesitionsverhalten
Was taugen die OECD-Vorschläge zur weltweiten Reform der Unternehmensbesteuerung?
Reforming economic governance in the Eurozone: Shifting spending instead of expanding debt margins
The Impact of ICT on Profit Allocation within Multinational Groups: Arm's Length Pricing or Formula Apportionment?
The effective tax burden of companies in the member states of the EU : the perspective of a multinational investor
Effective marginal tax rates for US investors in Germany and Europe : an analysis of recent tax reforms in Germany
Kollektivversagen: Cum/Cum, Cum/Ex und Hopp!
Steuerliche Förderung von Forschung und Entwicklung in Deutschland – Handlungsbedarf und Reformoptionen
Inwieweit eignen sich die International Accounting Standards für die steuerliche Gewinnermittlung?
Profit shifting and 'aggressive' tax planning by multinational firms: Issues and options for reform
Extending taxation of interest and royalty income at source: An option to limit base erosion and profit shifting?
Vorschläge für eine Reform der Immobilienbesteuerung
Konzernsteuerquote und Invesitionsverhalten
Was taugen die OECD-Vorschläge zur weltweiten Reform der Unternehmensbesteuerung?
Reforming economic governance in the Eurozone: Shifting spending instead of expanding debt margins
The Impact of ICT on Profit Allocation within Multinational Groups: Arm's Length Pricing or Formula Apportionment?
The effective tax burden of companies in the member states of the EU : the perspective of a multinational investor
Effective marginal tax rates for US investors in Germany and Europe : an analysis of recent tax reforms in Germany
Kollektivversagen: Cum/Cum, Cum/Ex und Hopp!
Steuerliche Förderung von Forschung und Entwicklung in Deutschland – Handlungsbedarf und Reformoptionen