Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/96270
Authors: 
Davies, Ronald B.
Year of Publication: 
2013
Series/Report no.: 
Working Paper Series, UCD Centre for Economic Research 13/14
Abstract: 
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.
Subjects: 
Common Consolidated Corporate Tax Base
Vertical FDI
Formula Apportionment
Transfer Pricing
JEL: 
F24
F36
H25
H87
Document Type: 
Working Paper

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