Index
A
-
Access charges, 214
-
Accounting standards, 255
-
Active financing exception, 114
-
Adjustment methods, 238–39
-
Advertising
-
sealed-bid auctions, 197n8
-
taxes on, 218
-
user data value and, 197–98
-
-
AdWords, 197n8
-
Affiliates
-
cash-box, 66
-
cost-sharing arrangements between, 42, 53
-
internal debt and, 73
-
risk allocation among, 64, 66, 68
-
-
Agency
-
dependent agents, 148
-
independent agents, 149
-
permanent establishment and, 148–49, 233
-
-
Aggregate risk, 59–60
-
Aiken Industries, Inc. case, 166
-
Alberta, Canada, independent corporate income taxes in, 294
-
Alienation
-
of shareholdings, 161, 234
-
of ships or aircraft, 160
-
-
Allocation by formula, 259–60
-
Alphabet, 39
-
Alternative tax systems, 80
-
Amazon, 44, 51, 200
-
Amazon laws, 206
-
Andean Community, 347
-
Anti-avoidance regulations, 51, 175, 236, 341
-
deductibility limits, 243–44
-
proliferation of, 355–56
-
residence-based taxation and, 114–20
-
strengthening, 254–57
-
thin capitalization rules, 241–43
-
-
Antifragmentation rules, 317
-
Anti-inversion rules, 7, 118
-
Anti-Tax Avoidance Directive (ATAD), 94, 117, 119, 242, 243, 244t, 254, 342
-
Antitrust regulation, 200
-
Apple, 39, 44
-
Apportionment formula, extractive industries, 298–99
-
Arbitrage, 343t
-
between gross and net taxation, 158
-
between labor and capital, 12
-
-
Arm’s length pricing, 236, 236n17
-
alternatives to mechanisms using, 246–47
-
prescriptive approaches, 240–41
-
verification challenges, 230
-
-
Arm’s length principle, 5, 23, 26, 29, 35, 59
-
applying, 67
-
commercially legitimate transactions test and, 64
-
digitalization and, 208, 210, 222
-
extractive industries and, 235n16
-
financial transactions and, 73
-
interest rates and, 73–74
-
intragroup loans and, 76
-
risk deconstruction and, 62–64
-
services and, 42
-
strengthening, 236–41
-
tax avoidance and, 236
-
violations of, 34, 39–40
-
-
Artificial structures, 236
-
Assistance-in-collection clauses, 143
-
ATAD. See Anti-Tax Avoidance Directive
-
Auditing
-
local capacity gaps and, 320
-
ownership-based taxation and, 261
-
transfer pricing, 239
-
-
Australia, 240, 246, 333n41, 345
-
Austria, 238
-
Austro-Hungarian Empire, 123
-
Average returns, risk and, 65, 69
B
-
Back-to-back financing, 315
-
Bank of Scotland case, 166
-
Base case fiscal regime, 336
-
Base erosion, 314n11, 318–19
-
Base Erosion and Profit Shifting (BEPS), 35, 44n14, 53, 80, 175, 305, 341
-
Action 1, 154
-
Action 2, 116
-
Action 3, 116, 117
-
Action 4, 79
-
Action 5, 53, 87, 89, 94, 96t, 97–100
-
Action 7, 205, 233
-
Action 13, 240n22
-
agency-permanent establishment concept and, 149
-
CFC rules and, 116–17, 254
-
cooperation for reform and, 351
-
country-by-country reporting and, 239
-
Forum on Harmful Tax Practices, 94, 96
-
hybrid entities and, 118–19
-
hybrid instruments and, 72n21
-
impacts of, 342, 343t–44t
-
independent agents and, 149
-
intellectual property and, 89
-
interest deduction rules, 79
-
legitimate and artificial transactions, 64
-
limiting risk assumption, 66–67
-
non-cooperative jurisdictions list and, 89
-
norms embedded in, 354
-
risk allocation and, 76
-
tax competition and, 87
-
tax coordination and, 94
-
tax transparency and, 98
-
tax treaties and, 130–33
-
transfer pricing documentation, 240n22
-
transfer pricing guidance, 61, 62
-
treaty abuse and, 146, 168–69
-
-
Base Erosion Anti-Abuse Tax (BEAT), 244, 345, 346, 353n5
-
Beneficial ownership, 256n5
-
registers of, 256
-
treaty shopping and, 165–66
-
-
Benefit principle, 14n1, 207–8
-
BEPS. See Base Erosion and Profit Shifting
-
Bilateral tax treaties, 8, 109
-
number of, 133–34, 133f, 134f
-
OECD and UN model influences on, 126
-
-
Border adjustments, 265, 266t, 268
-
Brazil, 110, 245
-
Brown Tax, 323n34
-
Bureau van Dijk, 237
-
Business decision-making, 68
-
Business income
-
OECD and UN model differences, 128
-
tax treaties and, 147–51
-
-
Business income tax, 11
-
comprehensive, 16–17
-
C
-
Cadbury Schweppes case, 118
-
Canada, 100, 144, 144n35, 166
-
departure taxes, 120
-
extractive industries, 297
-
financial sector, 297
-
formulary apportionment in, 210, 284, 294
-
-
Capital
-
destination-based allowances for, 273–74
-
expensing, 19
-
exporting, 139, 141–42
-
heterogeneous, 182–84
-
importing, 151
-
intangible, 43, 43f
-
mobile, profit shifting and, 176–82
-
rent tax and allowances for, 19–20
-
-
Capital-exporting countries, 110f
-
Capital gains, 160–63, 231
-
OECD and UN model differences, 128
-
Source-based taxation and, 234–35
-
-
Capital income, 21
-
defining, 11
-
taxing, 11–14
-
withholding tax rates on, 49
-
-
Carryforward, 272
-
Cash-box affiliates, 66
-
Cash-flow taxes, 17–20, 324
-
destination based, 266–73
-
CDIS. See Coordinated Direct Investment Survey
-
CFCs. See Controlled foreign corporations
-
Check-the-box rules, 115
-
China, 212
-
formulary apportionment in, 295
-
secret comparables and, 238
-
-
Code of Conduct for Business Taxation, 88, 249, 347
-
Commercially legitimate transactions, 64
-
Commercial rationality problem, 74
-
Commissionaire arrangements, 149n44, 233
-
Committee on Fiscal Affairs, OECD, 125
-
Common Consolidated Corporate Tax Base (CCCTB), 211, 284, 295, 297
-
extractive industries, 297
-
-
Comparability analysis, 67
-
Competition, 47–48
-
Comprehensive business income tax, 16–17
-
Conduit arrangements, 163, 164
-
Conduit companies, 49
-
Conduit structures, 164
-
beneficial ownership and, 165
-
-
Consolidated financial statements, 255
-
Consolidated tax base, 285–86
-
Construction sites, 148, 232
-
Contract manufacturing, 63
-
Contractors
-
job transformation to, 37n7
-
production sharing and, 337
-
rules regarding, 317
-
-
Contracts
-
intragroup, 68
-
permanent establishment and, 148, 233
-
production-sharing, 322n30, 325
-
production sharing, 337
-
risk allocation via, 64, 65
-
risk aversion and, 65
-
-
Controlled foreign corporations (CFCs), 7, 254–56, 263, 344t
-
development of, 114–15
-
improving rules for, 116–18
-
minimum tax differences from, 257–58
-
profit shifting and, 178
-
-
Cookie nexus law, 206–7
-
Coordinated Direct Investment Survey (CDIS), 83–84, 144
-
Copyrights, 219
-
Corporate equity
-
allowances for, 19–20
-
destination-based allowances for, 273–74
-
-
Corporate income tax, 4, 11, 13–15, 34, 101f, 266t, 336
-
DBCFT and resource rent tax compared to, 334t
-
debt ratio elasticity to, 71
-
destination-based, 28–30, 274–75
-
under formulary apportionments, 287
-
fundamentals of international, 5
-
international arrangements and, 88
-
paper profits reacting to, 91
-
problems in international, 5–7
-
reform options for international, 7–8
-
resource rent replacing, 325
-
routine profit and, 302f
-
sales-based residual profit and, 303f
-
spillovers from competition in, 91–92
-
standard, 15–16
-
trends in rates, 87, 88f
-
-
Corporate income tax/resource rent tax regime, 336–37
-
Corporate inversions, 113–14, 118
-
Corporate residence, 24–25, 26t
-
Corporate taxation, 290–91
-
“Corporate Taxation in the Global Economy” (IMF), 4
-
Cost-sharing arrangements
-
between affiliates, 42, 53
-
risk allocation and, 66
-
-
Country-by-country reporting, 239
-
COVID-19, 3, 35
-
Credit rating agencies, 193n5
-
Cross-border information sharing, 93
-
Cross-border payments, 233
-
Cross-border production chains, 27
-
preferential tax regimes and, 88
-
-
Cross-border profit shifting
-
countering, 71
-
intragroup services and, 154
-
relocation of intangibles for, 97
-
-
Cross-border royalties, 43
-
Cross-border services, 157
-
Cross-border spillovers, 91–92
-
Cross-border supply chains, 265
-
Cross-border trade
-
Source-based taxation and, 229
-
withholding taxes and, 151
-
-
Cross-border withholding tax rates, 49
-
Customer information, 47
-
Cyclicality, 311
D
-
Data analytics firms, 193n5
-
Data breaches, 192
-
Data brokerages, 193, 197
-
Data collection
-
recognizing economic activity of, 204
-
separate accounting and, 209–10
-
-
Data collection and processing capabilities, 194
-
Datacoup, 197
-
Data mining, 193, 193n5
-
Data privacy rights, 194
-
Data valuation, 216
-
Data warehousing, 204
-
DBACC. See Destination-based version allowance for corporate capital
-
DBACE. See Destination-based allowance for corporate equity
-
DBCFT. See Destination-based cash-flow tax
-
Debt
-
booking in low-tax jurisdictions, 73
-
equity disguised as, 71–72
-
profit shifting with, 60
-
-
Debt bias, 16, 70, 77
-
income tax and, 71
-
-
Debt financing, 70t
-
globalization and, 73
-
profit shifting and, 70–81
-
tax revenue impact of, 80–81
-
transfer pricing and, 73–77
-
-
Debt leverage, 317
-
vulnerability of different options, 336–38
-
-
Debt ratio, 71, 241–43
-
thin cap rules and, 78
-
-
Decision-making, 68
-
Decolonization, 214
-
Deductible expenses, 285
-
Deductions
-
for business expenses, 11
-
depreciation and interest, 16
-
-
Deep Offshore Act (2019), 314n12
-
Deferral, 343t
-
tax avoidance through, 110–12
-
-
Deferred earnings, 112
-
De jure reciprocity, 135–36
-
Demographic trends, 212
-
Denmark, 256n5
-
Departure taxes, 119–20
-
Dependent agents, 148, 233
-
Depreciation, 272
-
Depreciation allowances, 285
-
Destination-based allowance for corporate equity (DBACE), 273–74, 277
-
Destination-based apportionment schemes, 300–301
-
Destination-based cash-flow tax
-
(DBCFT), 266, 266t, 277, 333–34, 334t, 346, 349, 357
-
corporate income tax and resource rent tax compared to, 334t
-
design of, 267
-
double tax agreement renegotiation and, 350
-
economic implications of, 268–69
-
international revenue and incidence implications, 278–81
-
location of sales and production impacts, 278–79
-
natural resources sector and, 272
-
ownership impacts, 279
-
revenue impact of, 269, 270f, 271f, 272
-
R+F and S-base, 272
-
untaxed assets and, 279–80
-
VAT similarities and differences, 275–76
-
-
Destination-based corporate income taxes, 274–75
-
Destination-based taxation, 7, 8, 18, 23, 89, 265, 267f
-
of corporate income, 28–30
-
user data and, 201
-
-
Destination-based version allowance for corporate capital (DBACC), 274, 277
-
Developing countries
-
extractive industries revenue, 312–13
-
formulary apportionment and, 290, 304, 334–35
-
tax incentives in, 103
-
tax treaties and, 133–39, 169–70
-
treaty shopping and, 164
-
withholding taxes and, 152, 153
-
-
Digital advertising, 45
-
Digital barter, 192, 194, 203
-
Digital companies, 45, 46f
-
Digitalization, 189–90, 222–24, 250, 260, 345
-
data value and, 195
-
empirical observations about, 45–47
-
formulary apportionment and, 210–13
-
incentives of, 200
-
income sources and, 231–32
-
investment-or asset-based approaches, 207–9
-
network effects and, 198–99
-
permanent establishment and, 204–9
-
profit allocation and, 209–13
-
service permanent establishment and, 158
-
tax challenges and, 7
-
user data and, 191, 195
-
-
Digital permanent establishment, 233
-
Digital service taxes, 3, 220–21, 232
-
Digital trade, growth of, 45–47, 46f
-
Direct conduits, 165
-
Dispute resolution
-
BEPS and, 130
-
double taxation and, 139, 348
-
-
Distribution mechanism, 286–87
-
Diverted profits taxes, 246, 345
-
Dividends, 49
-
withholding taxes and, 152
-
-
Dodd-Frank Act, 298, 298n11
-
Double Irish, 113
-
Double taxation, 8, 123, 343t, 344t
-
DBCFT and, 349, 350
-
dispute resolution and, 139
-
economic, 139
-
forms of, 139–40
-
juridical, 140
-
League of Nations and, 124
-
Mongolia canceled treaty on, 318
-
residence-based taxation and, 107
-
structured approach to treaties, 246
-
tax avoidance strategies exploiting, 236
-
taxing rights and avoiding, 6, 49
-
-
Draft Double Taxation Convention, 125
-
Dual citizenship, 262
-
Dual income tax, 12
-
Dual residencies, 119, 142
-
Dutch East India Company, 36n6
E
-
Earnings before interest, taxes,
-
depreciation, and amortization (EBITDA), 78–79, 241
-
-
Earnings before interest and taxes (EBIT), 241–42
-
Earning stripping rules, 78–79, 116n13, 241
-
East India Company, 33, 36n6
-
EBIT. See Earnings before interest and taxes
-
EBITDA. See Earnings before interest, taxes, depreciation, and amortization
-
E-commerce, 45
-
Economic and Monetary Community of Central Africa, 347
-
Economic double taxation, 139
-
Economic profiles, user data value and, 196
-
Economic rents
-
capital income and, 12–13
-
extractive industries and, 194, 298, 310–11
-
foreign capital owners and, 15
-
monopoly rent taxes and, 47
-
nonrenewable resource extraction and, 194
-
R and R+F cash-flow taxes and, 18, 273
-
-
Effective tax rates
-
average, 101f
-
of multinational enterprises, 39
-
-
Emden Company, 36n6
-
Emerging economy tax treaties, withholding tax rates, 339t
-
Employment
-
digitalization and, 45–47
-
formulary apportionment and, 284, 290, 291f
-
by multinational enterprises, 37–38, 38f
-
profit shifting costs and, 185
-
self-employed entrepreneurs, 12
-
-
Enron, 255
-
Entrepreneurial income, 12
-
Equalization levy, 244
-
Equity
-
allowances for, 19–20
-
DBACE, 273–74, 277
-
destination-based allowances for, 273–74
-
disguising as debt, 71–72
-
inter-nation goals, 290
-
private, 72
-
-
EU. See European Union
-
EU Accounting and Transparency
-
Directive, 298, 298n12
-
European Commission, 347
-
digital economy taxation expert group, 221
-
Google and, 200
-
-
European Court of Justice, 78
-
European Economic Area, 119
-
CFC rules in, 115
-
-
European Union (EU)
-
Anti-Tax Avoidance Directive, 94, 117, 119, 242, 243, 244t, 254, 342
-
beneficial ownership registers i, 256
-
CFC rules in, 115–17, 254
-
Code of Conduct for Business Taxation, 88, 98, 249, 347, 351
-
Common Consolidated Corporate Tax Base, 211
-
exit taxes, 119
-
formulary apportionment in, 284, 295–96
-
non-cooperative jurisdictions list, 89, 99, 351
-
tax coordination and, 94
-
tax directives, 8
-
tax reform and, 347
-
-
Exchange-of-information clauses, 143
-
Exchange rates, 29
-
Exit taxes, 7, 119–20, 344t
-
Expected returns, risk and, 63
-
Expensing, of capital, 19
-
Exploration, 310
-
Exporting capital, 139
-
Exports, 204–5
-
Extractive industries, 210
-
activities defined, 298
-
apportionment formula, 298–99
-
arm’s length standard and, 235n16
-
challenges, 313–14
-
design and implementation issues for tax reform, 323–26
-
developing countries revenue from, 312–13
-
fiscal regimes for, 311–12
-
formulary apportionment, 297–99
-
income subject to taxation, 298
-
new fiscal regime for resource-rich countries, 321–22
-
resource rent tax for, 324–25
-
safeguards to reduce risk of undervalue, 316–17
-
structural characteristics, 310–11
-
taxation in, 213–15
-
tax implications and characteristics of, 310–13
-
tax reform proposal for, 320–31
-
valuation methods in, 216
-
F
-
Facebook, 46f, 51, 197, 197«8
-
Factor distortions, 287–88
-
FARI. See Fiscal Analysis of Resource Industries
-
Federal equalization program, in Canada, 294
-
Financial Action Task Force, 98
-
Financial innovation, 71–72
-
Financial Secrecy Index, 256n5
-
Financial sector, formulary apportionment in, 296–97
-
Financial transactions
-
arm’s length principle and, 73
-
profit shifting with, 74
-
recharacterizing, 75
-
-
First mover advantages, 189
-
Fiscal Analysis of Resource Industries (FARI), 336
-
Fiscal Committee of League of Nations, 124–25
-
Fiscal Committee of Organisation for
-
European Economic Cooperation, 125
-
Fiscal regimes
-
country level reform, 332–33
-
for extractive industries, 311–12
-
profit shifting in, 326
-
profit shifting risks alternatives, 337, 338f, 338t
-
vulnerability to tax competition, 332
-
-
Fixed margins, 240
-
Flow-based data valuation, 216
-
Force-of-attraction, 150, 232
-
Foreign direct investment, 38–39
-
CDIS data, 83
-
funding, 82
-
low-tax jurisdictions role in, 44–45
-
Sources of, 70t
-
tax revenue impact of debt financing of, 80–81
-
tax treaties and, 136, 139, 142
-
-
Foreign-earned income
-
CFCs and, 254
-
GILTI and, 258
-
information exchange on, 262
-
subsidiaries and, 140
-
taxation of, 28
-
-
Foreign investment, 37
-
Foreign profits, 109–10
-
territorial systems for taxes on, 111
-
-
Foreign tax credits, 29
-
Formulary apportionment, 223, 266t, 346, 348
-
in Canada, 294
-
in China, 295
-
consolidated tax base, 285–86
-
digitalization and, 210–13
-
direct revenue implications, 289–90
-
distribution mechanism, 286–87
-
efficiency implications, 287–89
-
elasticity and, 291
-
in European Union, 284, 295–96
-
extractive industries, 297–99
-
factor distortions, 287–88
-
financial sector, 296–97
-
indirect revenue implications, 290–92
-
international tax reforms, 334–35
-
residence-based taxation and, 259–60
-
residual profit allocation, 299–304
-
revenue implications, 289–92, 291f
-
sector-specific formulae, 296–99
-
subnational and surpranational experiences, 292–99
-
tax avoidance and, 288–89
-
tax competition, 290–91
-
theoretical and practical design considerations, 285–92
-
in United States, 292–93
-
user-based royalties and, 220
-
-
Forum on Harmful Tax Practices, 93, 94, 96–99, 103, 249
-
Freelancers, 37n7
G
-
G20, 3, 35, 44n14, 53, 80
-
tax cooperation and, 352
-
-
GAAR. See General anti-avoidance rule
-
General anti-avoidance rule (GAAR), 344t
-
Ghana, 241
-
Gig economy, 37n7
-
GILTI. See Global Intangible Low Taxed Income
-
Global corporate tax system, weaknesses of, 304
-
Global enterprises, 35
-
Global financial crisis, 3
-
Global firms, 33, 35–37
-
international tax arrangements and, 48–49
-
organizational structure of, 51, 51f
-
source-residence principle and, 51–53
-
-
Global formulary apportionment, 290
-
Global Forum on Transparency and Exchange of Information for Tax Purposes, 89, 98, 261, 262
-
Global gearing ratio, 77
-
Global income tax, 12
-
Global Intangible Low Taxed Income (GILTI), 248, 258–59, 345, 346
-
Globalization, 27, 37
-
debt financing and, 73
-
-
Global market, 37
-
Global residual profits, 301–2
-
Global supply activities, 37
-
Global trade, 41
-
digital, 45–47, 46f
-
low-tax jurisdictions role in, 44–45
-
in services, 44–45
-
-
Global Witness, 256, 256n5
-
Google, 46f, 47, 51, 197n8, 200, 207
-
Graetz, Michael, 25
-
Graham Bell, Alexander, 33
-
Greenfeld investments, 39
-
Gross-net taxation arbitrage, 158
H
-
Habitual abode, 132
-
Harmful tax practices
-
criteria for identifying, 96t
-
international initiatives on, 94–99
-
-
Heterogeneous capital, profit shifting with, 182–84
-
Holding companies, 52
-
Homeland Investment Act of 2004, 112
-
Horizontal firms, 38
-
Hostile takeovers, debt as defense against, 72
-
Hybrid entities, 118–19
-
Hybrid fiscal regimes, 311
-
Hybrid mismatches, 344t
-
Hybrid security instruments, 72, 72n21
-
Hydrocarbon assets, 311
I
-
IMF
-
Coordinated Direct Investment Survey, 83–84, 144
-
Fiscal Analysis of Resource Industries, 336
-
international tax issues role of, 4
-
-
Implicit support, 76
-
Imputing data value, 197–98
-
Inbound investment, 346, 353
-
Inclusive Framework (OECD), 3, 233, 248, 258, 341, 351
-
Income
-
digitalization and sources of, 231–32
-
foreign-earned, 28, 140, 254, 258, 262
-
shiftable taxable, 27
-
sources of, 26–27, 231–32
-
stateless, 113
-
types of, for source-based taxation, 231
-
-
Income-inclusion rules, 249
-
Income shifting, 73
-
Income tax, 276, 276f
-
debt bias and, 71
-
reallocation of tax base among countries, 290
-
-
Income Tax Act of 2016 (India), 257
-
India, 146
-
equalization levy, 244
-
formulary apportionment in, 211
-
Income Tax Act of 2016, 257
-
permanent establishment and, 206
-
residence definitions and, 257
-
-
Indirect transfer of assets, 49
-
Industrial Revolution, 33
-
Inefficiently low tax rates, 90–91
-
Information and communications technology, 189
-
Innovation
-
financial, 71–72
-
intellectual property box and, 89
-
tax incentives and, 44
-
-
Instagram, 197, 207
-
Insurance companies, formulary apportionment for, 294n7
-
Intangible capital, 43, 43f
-
Intangibles, 189
-
allocation by formula and, 259
-
arm’s length principle and, 210, 222
-
intragroup transactions of, 53
-
marketing, 208
-
minimum taxes and, 258
-
residence-based taxation and, 248
-
royalties and, 219
-
transfer price and, 59
-
-
Integration system, 14
-
Intellectual property, 189
-
allocation by formula and, 259
-
arm’s length principle and, 210
-
risks and, 66
-
royalties and, 219
-
taxation and, 44
-
-
Intellectual property assets, 43
-
Intellectual property box, 89, 97, 101f
-
shortcomings of, 102–3
-
See also Patent box regimes
-
-
Interest, 49
-
controlling excess payments of, 71
-
DBCFT and, 268
-
restricting deductibility of, 77–79
-
withholding taxes and, 152
-
-
Interest limitation rule, 317, 344t
-
Interest rates
-
arm’s length principle and, 73–74
-
internal debt and, 73
-
intragroup loans and, 76
-
-
Internal debt, 241
-
affiliates and, 73
-
-
Internal debt funding, 60
-
Internal lending, 60
-
Internal transactions, 5
-
arm’s length pricing and, 230
-
mispricing for profit shifting, 236
-
-
international business income taxation, 11
-
International business rents earned, 15
-
International companies, 36
-
international tax arrangements and, 48–49
-
-
International minimum taxes, 257
-
International tax arrangements, international companies compared with global firms in, 48–49
-
International taxation, hybrid instruments and, 72n21
-
International tax challenges, 332
-
profit shifting, 314
-
-
International tax law
-
cooperation to implement global reform, 351–52
-
current state of framework, 342
-
future reform options and directions, 346–51
-
low-income country impact of reforms in, 352–55
-
shortcomings in current system, 342, 345–46
-
-
International tax planning, 39
-
International tax reforms
-
DBCFT, 333–34, 334t
-
formulary apportionment, 334–35
-
minimum tax, 333
-
residual profit allocation, 335–36
-
for resource-rich developing countries, 333–36
-
vulnerability of debt leverage options, 336–38
-
-
International trade, 33–34
-
empirical observations about, 40–45
-
proportion of firms engaged in, 40–41
-
in services, 41–42, 41f, 42f
-
-
International Trade Commission, 45
-
Inter-nation equity goals, 290
-
Intra-company royalties, 215
-
Intrafirm trade, 41
-
Intragroup contracts, 68
-
Intragroup loans, 73
-
arm’s length principle and, 76
-
foreign direct investment through, 81
-
interest rates of, 73
-
-
Intragroup operations, 26
-
Intragroup payments, 151
-
Intragroup prices, tax-minimizing by manipulating, 34
-
Intragroup services, 158
-
Intragroup transactions, 53, 245
-
risk allocation and, 64
-
-
Inversion, 113–14, 118
-
Investment
-
DBCFT and, 272
-
profit shifting impacts on, 176, 179, 184–85
-
tax differences and, 184–85
-
tax treaties promoting, 140–41
-
-
Investment flows
-
tax treaties and, 136, 139
-
treaty shopping and, 146
-
-
Investment income
-
OECD and UN model differences, 128
-
passive, 160
-
-
Investments, comprehensive business tax discouraging, 17
-
Investment tax credits, 44
-
Ireland, 100, 113
J
-
Japan, participation exemption system, 111
-
Joint Committee on Taxation, US, 72
-
Juridical double taxation, 140
K
-
Kane, Mitchell, 27
-
Kenya, 241
-
Key life events, user data value and, 196
-
Kleinbard, Ed, 113
L
-
League of Nations, 3, 49, 51
-
double taxation report, 124
-
Fiscal Committee of, 124–25
-
Model Tax Convention of, 109
-
-
Legal incorporation, 28
-
Leveraged buyouts, tax impact of, 72
-
License fees, DBCFT and, 272
-
Limitation-on-benefits provision, 166–67
-
Limited force-of-attraction rule, 150
-
Limited liability, 14n1
-
Limited-risk distributors, 204
-
LinkedIn, 197
-
Location-specific assets, 246
-
Location-specific rents, 13, 310, 346, 354
-
monopoly power and, 47
-
user data and, 194
-
-
Location-specific rent tax (LSRT), 355
-
Lockout effect, 111
-
Look-through rules, 114
-
Low-income economies
-
extractive revenue from, 312
-
international tax reform impact on, 352–55
-
-
Low-tax jurisdictions
-
booking loans in, 73
-
foreign direct investment and, 44–45
-
services trade and, 44–45
-
welfare effects of shutting down, 92–94
-
-
LSRT. See Location-specific rent tax
-
Luxembourg, 96
-
Lux Leaks, 35
M
-
Market countries, 293
-
Marketing intangibles, 208
-
Market prices, 59
-
Massachusetts, three-factor formula, 293
-
Mauritius, 135–36, 146
-
Meeco, 197
-
Microsoft, 197, 200
-
Microtransactions, 203
-
Middle-income economies, 139
-
extractive revenue from, 312
-
-
Mineral assets, 311
-
Minimum tax, 89, 251, 257–59, 333, 346
-
inbound, 353
-
outbound, 352
-
residence-based, 348
-
-
Mining fiscal regimes, 311, 313f, 329, 330t–31t, 336n46
-
royalty on, 321
-
withholding tax rates in emerging economy tax treaties, 339t
-
-
Mining operations, 161
-
MLI. See Multilateral instrument
-
Mobile applications, 192
-
Model Tax Convention, 109
-
Model tax treaties, 325n38
-
Mongolia, 144, 144n35
-
canceled double tax treaties, 318
-
taxing rights, 318
-
-
Monopoly power
-
multinational enterprises and, 47–48
-
natural, 194, 200
-
royal charters granting, 33
-
-
Mozambique, 135–36, 146
-
Multilateral Convention on Mutual
-
Administrative Assistance in Tax
-
Matters, 143
-
-
Multilateral instrument (MLI), 130, 131t–32t, 132, 205
-
Multinational Anti-Avoidance Law (Australia), 345
-
Multinational corporations, 5, 6
-
national identity of, 108
-
profit shifting by, 175
-
residence, 25
-
-
Multinational enterprises, 33, 35, 51
-
business risk of investment in, 82
-
CFCs and, 114–15
-
commercially legitimate transactions test, 64
-
commercial rationality problem and, 74
-
country-by-country reporting and, 239
-
digitalization and, 231–32
-
employment by, 37–38, 38f
-
evolution of, 36–37
-
global consolidated gearing ratio, 77
-
intangible capital and, 43
-
intellectual property and, 43
-
internal debt and, 60
-
intragroup transactions, 245
-
monopoly power and, 47–48
-
physical presence avoidance, 246
-
profit allocation and, 64
-
profit shifting and, 315
-
related-party debt financing of, 315
-
research and development expenditures, 43–44
-
residence manipulation by, 113
-
risk allocation and, 62, 64, 66
-
source-based taxation and, 229–30, 236
-
taxation and, 38–40, 48–53
-
tax avoidance techniques, 236
-
tax treaties exploitation by, 236
-
value added by, 37–38, 38f
-
withholding taxes and, 151
-
-
Multinational subsidiaries, 39
-
Mutual agreement procedure, OECD and UN model differences, 128
N
-
Nash equilibrium, tax competition and, 90
-
Natural monopoly, 194, 200
-
Natural resources, 235
-
allocation formula and, 287
-
DBCFT and, 272
-
offshore indirect transfers and, 161
-
permanent sovereignty principle and, 214, 214n22
-
special tax treatment for activities
-
related to, 321
-
taxation of rents and, 15
-
tax challenges and, 8
-
user data differences from, 203
-
-
Negative cash flow, uplifting on, 323
-
Netback deduction, 216, 217
-
Net basis taxation, 285–86
-
Netflix, 39, 47
-
Netherlands, 146
-
substance requirements, 164n79
-
-
Network effects, 198–99
-
Network externalities, 198–99
-
Nexus, 23, 28, 48, 88, 102, 343t
-
cookie, 206–7
-
corporate residence and, 25
-
expanding definition of, 232–33
-
permanent establishment and, 205
-
preferential tax regimes and, 89
-
user-based approaches and, 205–6
-
-
1920s compromise, 23
-
Noncooperative jurisdictions, 89, 98–99
-
Nonfinancial firms, debt ratio, 16
-
Nonrenewable resources, 310
-
Nonresident entities
-
service providers, 158
-
Source-based taxation and, 147
-
-
Norm pricing
-
profit sharing scope reduced by, 325
-
for royalty and tax calculations, 322
-
-
North German Confederation, 123
O
-
OECD. See Organisation for Economic Co-operation and Development
-
OECD/G20 Project, 94
-
OECD Model Double Taxation Convention on Income and on Capital (OECD Model), 125, 128–30, 132, 256
-
beneficial ownership, 165
-
capital gains and, 160
-
influence of, 126–27
-
limitations-on-benefits provisions, 167
-
offshore indirect transfer provisions, 161–63
-
permanent establishment and, 147–48, 150, 205
-
principal purpose test provision, 168
-
service fee provision, 160
-
service permanent establishment provision, 155
-
services and tax treaties and, 154–55, 157
-
withholding taxes and, 152–53
-
-
OECD Transfer Pricing Guidelines, 61–64, 66, 67
-
financial transaction recharacterization and, 75
-
-
Offshore indirect transfers, 161–63, 162f
-
Online customers, 189
-
Operating expenses, 236
-
Optimal tax, 12
-
ORBIS database, 237–38, 238f
-
Organisation for Economic Co-operation and Development (OECD), 23, 28, 35, 44n14, 53, 80
-
corporate tax income rates in, 103
-
formation of, 125
-
Forum on Harmful Tax Practices, 93, 94, 96, 249
-
harmful tax practice initiatives, 94–98, 95f
-
hybrid entities and, 119
-
Inclusive Framework, 3, 233, 248, 258, 341, 351
-
Pillar One proposal, 204–5
-
Pillar Two approach, 244, 258
-
on ring-fencing, 221
-
Taskforce on the Digital Economy, 233
-
tax transparency standards, 98
-
territorial and worldwide tax systems in, 28, 29
-
transfer pricing guidelines, 60, 61, 70
-
See also Forum on Harmful Tax Practices
-
-
Organisation for European Economic Cooperation (OEEC), 125
-
Origin-based profit taxes, 265
-
Origin-based sales factors, 210
-
Outbound investment, 255, 346, 352
-
Outsourcing, 36
-
Ownership-based taxation, 260–63
-
Ownership structure
-
consolidated tax base, 285
-
formulary apportionment and, 289
-
P
-
Paid-on-behalf production sharing, 329
-
Papua New Guinea, 333n41
-
Paradise papers, 3
-
Passive income payments, 48, 231
-
residence-based taxation and, 53
-
source countries of, 109
-
taxing, 28
-
-
Pass-through entities, 115
-
Pass-through treatment, 261
-
Patent box regimes, 44, 53, 89
-
Patents, 219
-
Peer-to-peer exports, 204–5
-
Pension funds, 17
-
Permanent establishment, 28, 147–51, 158, 231
-
agency and, 148–49, 233
-
artificial structures for avoiding, 236
-
commissionaire arrangements and, 149n44, 233
-
digital, 233
-
investment-or asset-based approaches, 207–9
-
project-based, 232
-
remittances by, 234
-
servers as, 206
-
services and, 154–55, 159, 232
-
user-based approaches, 205–7
-
user data and, 204–9
-
-
Permanent home available, 132
-
Permanent sovereignty principle, 214, 214n22
-
Personal income taxes, 261–62
-
Petroleum fiscal regimes, 311, 313f, 326, 327t–28t, 336n46
-
revenue through royalties, 329
-
royalty on, 321
-
-
Petroleum products, mispricing of, 313
-
Pillar One proposal, 204–5
-
Pillar Two approach, 244, 258
-
Platform-based digitalized businesses, 200
-
Platform for Collaboration on Tax, 4
-
Platform revenue, 218
-
Preferential tax regimes, 235
-
categories of, 97–98
-
initiatives to limit, 88
-
nexus and, 89
-
profit shifting and, 182, 183t
-
source-based taxation and, 230
-
tax competition harm reduction and, 92
-
welfare and, 92
-
-
Prévost case, 166
-
Primary taxing rights, 6
-
Principal purpose test provision, 168
-
Private equity, 72
-
Production-based instruments, 214, 214n24
-
Production sharing contract regime, 337
-
Production-sharing contracts, 322n30, 325
-
Profit allocation, 64, 250–51
-
digitalization and, 209–13
-
strengthening, 235–47
-
-
Profit attribution, 7
-
Profit-based instruments, 214
-
Profit margins, 82
-
determining, 68–69
-
risk aversion and, 65
-
royalties and, 217n27
-
services and, 158, 159
-
-
Profit shifting, 7, 8, 27, 39, 61, 103, 158, 175, 314
-
CFCs and, 178
-
costs of, 180–81
-
countering, 71
-
DBCFT and, 268
-
with debt, 60
-
debt financing and, 70–81
-
evidence of impacts, 184–86
-
financial transactions for, 74
-
in fiscal regimes, 326
-
government behavior and, 179–80
-
heterogeneous capital and effects of, 182–84
-
internal transaction mispricing and, 236
-
intra-company royalties for, 215
-
intragroup loans and, 73
-
investment and, 176, 179, 184–85
-
limits of, 176–77
-
mobile capital and effects of, 176–82
-
modeling, 177–79
-
preferential tax regimes and, 182, 183t
-
production-based instruments to protect from, 214n24
-
research and development and, 52
-
safe-harbor limits to safeguard, 326
-
tax competition and, 92
-
tax rate impact on, 181–82
-
thin capitalization rules and, 177–78
-
transfer pricing and, 177, 185
-
vulnerability, 322
-
-
Programme of Work (OECD), 305
-
Project-based permanent establishment, 232
-
Project profits, price sensitivity, 311
-
Prussia, 123
-
Public beneficial ownership registers, 256, 256n5
-
Publicly listed firms, consolidated tax base, 285
-
Pure cash-flow tax, 323n34
Q
-
Quasi rents, 13
-
Quebec, Canada, independent corporate income taxes in, 294
R
-
RadioShack, 197
-
R-base cash-flow tax, 17–20
-
DBCFT and, 267
-
-
Reciprocity
-
de jure, 135–36
-
tax treaties and, 135–36, 139
-
treaty shopping and, 163
-
-
Redomiciling, 118
-
Related-party dealings, 26
-
Related-party debt financing, 315
-
Related-party loans, 241
-
Related-party trade, 40–41
-
Related-party transactions, 245
-
Relocation, 287
-
Remittances, 234
-
Rents, 12–13
-
royalties as tax on, 218
-
-
Rent taxes, 11, 17–21, 324, 324n37
-
corporate equity or capital allowances, 19–20
-
monopoly and, 47
-
practical experiences with, 20–21
-
-
Repatriations, 111, 112
-
Report on Double Taxation and Tax Evasion (League of Nations), 124
-
Research and development activities, 52
-
Research and development expenditures, 43–44
-
Residence, 343t
-
capital gains and, 160
-
corporate, 24–25, 26t
-
definitions of, 256–57
-
determining, 107
-
manipulation of, 113–14
-
-
Residence-based minimum tax, 348
-
Residence-based taxation, 6, 7, 23, 107, 253
-
allocation by formula and, 259–60
-
anti-avoidance rules and, 114–20
-
challenges of, 110–14
-
conduit arrangements and, 164
-
current context of, 109–10
-
deferral and, 110–12
-
historical background for, 108–9
-
hybrid entities and, 118–19
-
intangibles and, 248
-
passive income payments and, 53
-
taxing owners of corporations and, 260–63
-
-
Residence-residence double taxation, 140
-
Residual profit, 299, 343t, 346, 348
-
Residual profit allocation, 213
-
efficiency aspects of, 304
-
formulary apportionment, 299–304
-
international tax reforms, 335–36
-
potential revenue impact of, 301–4, 302f, 303f
-
-
Resource charges, 214
-
Resource extraction, 311–12
-
Resource rent cash flow tax, 324
-
Resource rent tax, 321
-
backloading, 323
-
corporate income tax replaced by, 325
-
DBCFT and corporate income tax compared to, 334t
-
design of, 323
-
royalty offset by, 322
-
-
Resource rent tax regime, 337
-
Resource revenue collections, 313f
-
Resource-rich countries
-
new fiscal regime for, 321–22
-
tax reforms and, 309
-
-
Resource-rich developing countries
-
base erosion and tax competition, 318–19
-
extractive industries and tax implications, 310–13
-
gaps in local capacity, 319–20
-
international tax challenges of, 314–20
-
international tax reforms for, 333–36
-
minimum tax for, 333
-
protecting taxing rights, 318
-
tax reform design and implementation issues, 323–26
-
tax reform for extractive industries, 320–29
-
-
Restructuring, 245
-
Revenue attribution, user data and, 217
-
Revenue foregone approach, 144–45, 144n32, 145t
-
Revenue implications, formulary apportionment, 291f
-
Revenue mobilization, 70, 356
-
R+F cash-flow tax, 18
-
destination base, 272
-
-
Ring-fencing, 208, 221
-
Risk
-
aggregate, 59
-
allocation of, 60, 62, 64–66, 68
-
analysis in transfer pricing, 60–70
-
average returns and, 69
-
deconstruction of, 62–64
-
defining, 61–62
-
expected returns and, 63
-
intellectual property and, 66
-
intragroup loans and, 76
-
tax planning and allocation of, 69–70
-
-
Risk aversion, implicit assumption about, 65–66
-
Routine profit, 299–301
-
Royalties, 43, 49, 51, 214n24
-
DBCFT and, 272
-
designing, for user-generated value, 215–18
-
formulary apportionment and user-based, 220
-
intangibles and, 219
-
intellectual property and, 219
-
intra-company, 215
-
petroleum fiscal regimes revenue through, 329
-
profit margins and, 217n27
-
resource extraction and, 323
-
as tax on rents, 218
-
on user-based revenues, 219–21
-
user-based revenues and, 219–20
-
on user-generated value, 213–18
-
withholding taxes and, 152
-
S
-
Safe harbor limits, 326
-
Safe harbor rules, 218, 240
-
Sales by destination, as apportionment factor, 287
-
Sales tax, 265, 266, 266t
-
in South Dakota, 293
-
-
SAP, 39
-
S-base cash-flow tax, 18, 20
-
destination base, 272
-
-
Scale effects, 199
-
Sealed-bid auctions, 197n8
-
Search engines, 192
-
Secrecy jurisdictions, welfare effects of shutting down, 92–94
-
Secret comparables, 238
-
Sector-specific formulae
-
extractive industries, 297–99
-
financial sector, 296–97
-
-
Self-employed entrepreneurs, 12
-
Separate accounting, 26, 209–10
-
Service and management fees, OECD and UN model differences, 128
-
Service fee provisions, 158–60
-
Service permanent establishment, 155, 156f, 157, 159, 232
-
Services
-
arm’s length principle and, 42
-
cross-border, 157
-
international trade in, 41–42, 41f, 42f
-
intragroup transactions of, 53
-
low-tax jurisdictions and global trade in, 44–45
-
nonresident providers of, 158
-
permanent establishment and, 148, 154–55
-
tax treaties and technical, 154–60
-
transfer pricing rules and, 42
-
user data exchanged for, 203
-
-
Shareholdings, 160–61
-
Shiftable taxable income, 27
-
Shocks, offsetting, 59
-
Silk Road, 34
-
Simple-tax royalty regime, 337
-
Sixth method, 325n40
-
Smile curve, 43, 43f
-
Snapchat, 207
-
Social media, 45, 192
-
user data and, 203
-
-
source-based taxation, 6, 7, 23, 107, 109
-
capital gains and, 234–35
-
conduit arrangements and, 164
-
expanding definitions, 231–35
-
expanding nexus, 232–33
-
income types in, 231
-
legal definitions in, 229
-
multinational enterprises and, 229–30, 236
-
nonresident entities and, 147
-
strengthening profit allocation, 235–47
-
tax competition and, 230, 247–51
-
user data and, 201, 204
-
-
Source-based taxes, 13
-
Source-country taxation, 343t
-
of nonresident service providers, 158
-
tax treaties reducing, 140
-
-
Source-country withholding, 151
-
Source principle, 343t
-
Source-residence double taxation, 140
-
Source-residence principle, 49
-
global firms and, 51–53
-
-
Sources of income
-
defining, 26–27
-
digitalization and, 231–32
-
-
Source-source double taxation, 140
-
South Dakota, sales tax in, 293
-
South Dakota vs. Wayfair, Inc., 205–6
-
Southern African Development Community, 347
-
Special apportionment formulae, 296n10
-
Special economic zones, 235
-
Special purpose vehicles, 255
-
Special resource revenue taxes, 272
-
Specific comprehensive business income tax, 16n3
-
Spillovers, 91–92
-
Spotify, 46f
-
Standards-of-secrecy rules, 239
-
Stateless income, 113
-
Stepping-stone conduits, 165
-
Strategic tax interactions, 90–92
-
Subcontractors, 315–17, 320
-
Subsidiaries, 255
-
Substance-over-form test, 166
-
Substance requirements, 164, 164n79
-
Substantial activity, 88
-
Substantial capital outlay, 311
-
Sustained user relationship, 208
-
Switzerland, 96, 100
T
-
Taskforce on the Digital Economy, 233
-
Tax
-
on capital income, 12–13
-
on saving, 12
-
See also specific topics
-
-
Taxation
-
foreign direct investment sensitivity to, 39
-
intellectual property and, 44
-
multinational enterprises and, 38–40, 48–53
-
-
Tax avoidance, 190
-
arm’s length principle and, 236
-
costs of, 175
-
through deferral, 110–12
-
disguising equity as debt, 71–72
-
formulary apportionment and, 288–89
-
perceived, 3
-
related-party loans and, 241
-
residence-based taxation and, 107
-
transfer pricing rules to limit, 235
-
treaty-related, 130
-
-
Tax base
-
allocation by formula, 259–60
-
corporate income taxes and, 274–75
-
debt financing and erosion of, 70
-
debt ratio elasticity and erosion of, 71
-
international allocation of, 253
-
locating, 27–28
-
measures to broaden or narrow, 100
-
mobile and immobile, 89, 92, 182
-
ownership and, 260–63
-
-
Tax certainty, 345
-
Tax competition, 7, 11, 52, 87, 176, 190, 290–91, 345, 355–56
-
becoming less harmful, 99–103
-
DBCFT and, 268
-
EU and, 89
-
harmful practices in, 90–94
-
inefficiently low rates and, 90–91
-
initiatives to reduce harmful forms of, 87
-
minimum taxes and, 257
-
nexus approach and, 102
-
preferential tax regimes and reducing harm of, 92
-
profit shifting and, 92
-
residence-based taxation and, 107
-
of resource-rich developing countries, 318–19
-
shortcomings of existing standards, 102–3
-
source-based taxation and, 230, 247–51
-
spillovers from, 91–92
-
welfare reduction and, 88
-
-
Tax compliance, 239, 320
-
tax treaties and, 141
-
-
Tax coordination, 94
-
reform implementation and, 351–52
-
-
Tax Cuts and Jobs Act of 2017 (US), 29, 112, 118, 244, 258
-
Tax directives, 8
-
Tax havens, 35, 93
-
Tax incentives, 143
-
in develop countries, 103
-
innovation and, 44
-
-
Taxing rights, 23
-
allocation of, 48–49
-
assigning, 23
-
differences across countries and, 49
-
user data and, 201–4
-
users as basis for, 201–13
-
-
Tax Justice Network, 263n18
-
Tax legislation, 317
-
Tax-minimizing practices, 34
-
Tax planning, 82
-
difference concerns for, in developed and developing countries, 69–70
-
-
Tax rates
-
average effective, 101f
-
profit shifting impact of, 181–82
-
tax competition and inefficiently low, 90–91
-
-
Tax royalty regime, 336
-
Tax secrecy rules, 238
-
Tax transparency, 98
-
Tax treaties, 8, 23, 49, 50f, 109, 318–19, 343t
-
benefits of, 139–43
-
costs of, 143–47
-
developing countries and, 133–39, 169–70
-
development of network of, 127f
-
foreign direct investment and, 142
-
history of, 123–26
-
interpretation of, 128–29
-
investment flows and, 136, 139
-
key allocative provisions, 147–63
-
legal considerations in, 127–30
-
MLIs and, 132
-
model, of 2017, 130–33
-
multinational enterprises exploiting, 236
-
OECD and UN model influences on, 126
-
permanent establishment and, 147–51
-
policy challenges, 169
-
reciprocity agreements, 135–36, 139
-
service permanent establishment provisions, 155
-
Source-country taxation reduction and, 140
-
structured approach, 246
-
tax compliance and, 141
-
technical services and, 154–60
-
withholding taxes and, 151–54
-
-
Tax wars, 3
-
Tech giants, 189
-
Technical services, tax treaties and, 154–60
-
Telecommunications Act of 1996, 201
-
Territorial tax systems, 28, 29, 111, 118, 253, 344t
-
Tin capitalization rules, 77–78, 241–43, 242f
-
profit shifting and, 177–78
-
-
Third-party sales, 287
-
Tree-factor formula, in Massachusetts, 293
-
Tracking cookies, 192
-
Trade
-
cross-border, 151, 229
-
DBCFT and balance of, 270f
-
digital, 45–47, 46f
-
global, 41, 45–47, 46f
-
international, 33–34, 40–45, 41f, 42f
-
intrafirm, 41
-
related-party, 40–41
-
tax treaties promoting, 140–41
-
-
Trade deficits, 269
-
Trademarks, 219
-
Trading companies, 36
-
Transfer mispricing, 39, 40t
-
Transfer pricing, 8, 59, 152, 222
-
commercial rationality problem and, 74
-
data sources for, 237–40
-
debt financing and, 73–77
-
documenting, 239–40
-
legislation for, 236–37, 237f
-
manipulation of, 27, 255
-
OECD guidelines, 60, 61
-
prescriptive approaches, 240–41
-
profit shifting and, 177, 185
-
risk allocation and, 64
-
risk analysis in, 60–70
-
services trade and, 42
-
tax avoidance limiting with rules for, 235
-
-
Transparency, 98, 261
-
welfare and, 93
-
-
Treaty-related tax avoidance, 130
-
Treaty shopping, 130, 145–46, 236, 343t
-
beneficial ownership and, 165–66
-
conduit structures and, 164
-
limitation-on-benefits provision, 166–67
-
principal purpose test provision, 168
-
as treaty abuse, 163–64
-
-
Turnover taxes, 219–21
-
Twitter, 207
U
-
Uganda, 146
-
UNCTAD. See United Nations Conference on Trade and Development
-
UNIDO. See United Nations Industrial Development Organization
-
Unitary taxation, 348
-
Unitary tax formula, factor distortions and, 287–88
-
United Arab Emirates, 146
-
United Kingdom
-
beneficial ownership registers, 256, 256n5
-
diverted profits taxes, 246, 345
-
residual profit allocation, 300
-
territorial tax system, 111
-
-
United Nations (UN), 23
-
permanent sovereignty principle and, 214n22
-
Treaty Model, 125
-
-
United Nations Conference on Trade and Development (UNCTAD), 40
-
United Nations Industrial Development Organization (UNIDO), 143
-
United States
-
anti-treaty-shopping efforts, 166–67
-
CFC rules, 114–15
-
DBCFT and, 268
-
Dodd-Frank Act, 298, 298n11
-
earning stripping rules, 241
-
equity disguised as debt and, 72
-
exit taxes, 119
-
extractive industries, 297, 298
-
formulary apportionment in, 210, 212, 292–93
-
Global Intangible Low Taxed Income, 248, 258–59, 345, 346
-
legal force of treaties in, 127n9
-
market power and competition in, 47
-
minimum taxes and, 258
-
personal income taxes and, 262
-
residence definitions and, 256
-
residual profit allocation, 300
-
secret comparables and, 238
-
tax avoidance costs to, 175
-
tax competition and, 100
-
territorial tax systems and, 111, 118
-
worldwide tax system, 114
-
-
UN Model Double Taxation Convention between Developed and Developing Countries (UN Model), 125, 128–30, 132–33
-
beneficial ownership, 165
-
capital gains and, 160, 235
-
influence of, 126–27
-
limitations-on-benefits provisions, 167
-
offshore indirect transfer provisions, 161–63
-
permanent establishment and, 147–48, 150
-
principal purpose test provision, 168
-
service fee provision, 160
-
services and tax treaties and, 154–55, 157
-
withholding taxes and, 153
-
-
UN Model Double Tax Treaty, 312n6
-
Untaxed assets, 279–80
-
Uplift, 323, 324n35
-
User-based approaches to permanent establishment, 205–7
-
User-based revenues, royalties on, 219–21
-
User countries, 201
-
User data, 222, 223
-
collection of, 193–95
-
compensation for, 202–3
-
custody of, 203
-
determinants of value of, 196–97
-
extraction of, 214
-
imputing value of, 197–98
-
investment-or asset-based approaches, 207–9
-
network externalities and value of, 198–99
-
ownership and access to, 194
-
permanent establishment and, 204–9
-
production and ownership of, taxing rights and, 201–4
-
revenue attribution and, 217
-
sale of, 193
-
sovereignty and, 214
-
taxation or regulation questions for, 199–201
-
uses of, 193
-
value of, 195–201, 224
-
-
User-generated content, 207
-
User-generated value, 191–201
-
approximating, 216
-
royalties on, 213–21
-
-
User jurisdictions, 205
-
User participation, 190
-
Users
-
as basis for taxation rights, 201–13
-
data generation by, 191–93
-
volume and intensity of, 211
-
-
User value proposal, 233
-
US Treasury report, 16
V
-
Value-added tax (VAT), 14, 20–21 249–50, 265, 266, 266t, 349, 357
-
DBCFT similarities and differences, 275–76
-
rates, 276, 276f
-
-
Value creation
-
alternative tax systems and, 80
-
digital companies and, 45
-
global firm challenges for locating, 52
-
locating, 35
-
user role in, 190
-
-
VAT. See Value-added tax
-
Vertical firms, 38
-
Vertically integrated businesses, 63
-
Vienna Convention, 129
-
Vietnam War, 34
-
Virtual access, 206
-
Volume-based data valuation, 216
-
Voluntary secrecy countries, 263n18
W
-
Water’s edge system, 286
-
Common Consolidated Corporate Tax base as, 295
-
-
Wayfair, 205–6
-
Web applications, location data from, 192
-
Web scraping, 193n5
-
Welfare
-
preferential tax regimes and, 92
-
shutting down low-tax and secrecy jurisdictions and, 92–94
-
transparency and, 93
-
-
West African Economic and Monetary Union, 94, 347
-
Western and Central African Economic and Monetary regions, 250
-
WhatsApp, 197
-
Withholding taxes, 231, 236, 236n18, 244–45, 325
-
on capital income, 49
-
DBCFT and, 350
-
in emerging economy tax treaties, 339t
-
expanding, 233–34
-
statistics on, 153t
-
tax treaties and, 151–54
-
-
Withholding tax rates, 135–36
-
World Intellectual Property Organization, 43
-
World Trade Organization (WTO), 40–41, 347, 349, 357
-
Worldwide tax system, 28, 29
-
WTO. See World Trade Organization
X
-
X tax, 18
Y
-
YouTube, 207