Tax treaties and the international allocation of production the welfare consequences of tax credits Nigar Hashimzade and Gareth D. Myles
By: Hashimzade, Nigar
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Contributor(s): Myles, Gareth D.
Material type: 
ArticlePublisher: 2018Subject(s): BENEFICIOS | IMPUESTOS | EMPRESAS MULTINACIONALES | OPERACIONES TRANSFRONTERIZAS | INCENTIVOS FISCALES | TRATADOS INTERNACIONALES | AUSTRALIA
In:
Australian Tax Forum: a journal of Taxation Policy, Law and Reform v. 33, n. 1, 2018, p. 163-180Summary: The international taxation of profit is regulated by numerous tax treaties that describe the treatment of cross border flows. A common feature of these treaties is tax credits for multinationals when they repatriate profit. The tax credits eliminate the double taxation of profit and the disincentive this causes for overseas investment and distribution of profit to home shareholders. The article investigates the welfare impact of tax credits. The impacts of the tax credit operate through two channels: an efficiency channel that increases the tax base and a distributional channel that allocates the tax base between countries. The distributional effect works against the residence country so it will generally suffer a welfare loss unless source countries react to the tax credit by cutting tax rates.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 1867/2018/1-6 (Browse shelf) | Available | OP 1867/2018/1-6 |
Disponible también en formato electrónico a través de la Biblioteca del IEF.
Resumen.
The international taxation of profit is regulated by numerous tax treaties that describe the treatment of cross border flows. A common feature of these treaties is tax credits for multinationals when they repatriate profit. The tax credits eliminate the double taxation of profit and the disincentive this causes for overseas investment and distribution of profit to home shareholders. The article investigates the welfare impact of tax credits. The impacts of the tax credit operate through two channels: an efficiency channel that increases the tax base and a distributional channel that allocates the tax base between countries. The distributional effect works against the residence country so it will generally suffer a welfare loss unless source countries react to the tax credit by cutting tax rates.
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