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Tariff-induced transfer pricing and the CCCTB
Davies, Ronald B.
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. Not applicable kpw22/10/13
Keyword(s): Common Consolidated Corporate Tax Base; Vertical FDI; Transfer pricing; Formula apportionment
Publication Date:
2013
Type: Working paper
Peer-Reviewed: Unknown
Language(s): English
Institution: University College Dublin
Publisher(s): University College Dublin. School of Economics
First Indexed: 2013-10-24 05:40:30 Last Updated: 2018-10-11 16:54:11