Transfer Pricing Policy and the Intensity of Tax Rate Competition

Becker, Johannes and Fuest, Clemens (2012) Transfer Pricing Policy and the Intensity of Tax Rate Competition. Economics Letters, 117 (1). pp. 146-148.

Abstract

This note provides a novel argument why countries may have incentives to allow for some profit shifting to low-tax jurisdictions. The reason is that a tightening of transfer pricing policies by high-tax countries may lead to more aggressive tax rate competition by low-tax countries.

Item Type: Article
Keywords: corporate taxation; profit shifting; tax competition
Subject(s): Taxation
Centre: Oxford University Centre for Business Taxation
Date Deposited: 15 Aug 2012 10:51
Last Modified: 23 Oct 2015 14:07
URI: http://eureka.sbs.ox.ac.uk/id/eprint/4048

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