Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: due date for vat payment :: empanelment :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: VAT Audit :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: TDS :: ACCOUNTING STANDARDS
 
 
General »
  Withdrawal of Legal Tender Character of the existing Bank Notes in the denominations of ₹ 500/- and ₹ 1000/- (Updated as on November 30, 2016)
 Cases for tax scrutiny will be selected by machines
 Time to revisit 1997 direct tax rates, says P Chidambaram
 Lok Sabha passes Bill to tax black money deposits post demonetisation
 Last day to pay property tax with old notes
 Income tax department asks IDS declarants to pay tax by 30 November
 Why PM Narendra Modi must beware of the breathtaking Arthakranti tax
 Japanese firms seek easing of restrictions on funding in India
 Tax on black money: How the cookie will crumble
 Income tax officials say raids on jewellers based on 'credible intelligence' proving fruitful
 Exchange window being misused, government forced to reduce limit to Rs 2000, says Arun Jaitley

MNCs lower tax burden by swopping domicile
May, 14th 2011

Does domicile affect a multinational's total worldwide taxes? Yes, says a recent NBER paper that looks at effective tax rates (ETRs) across countries and estimates the extent to which the location of a firm's operations affects its global corporate income taxes.

Scholars have long argued that multinationals are adept at arranging their affairs to undo differences in taxation across countries. By shifting income from high-tax to low-tax countries through transfer pricing, using hybrid entities that are treated as corporations in some countries and flow-through entities in others, stripping profits from high-tax countries through intra-company financing, repatriating under favourable tax conditions, and other tax avoidance mechanisms, multinationals mitigate the impact of domicile in a high-tax centre.

The paper corroborates this. It finds that over the last two decades, ETRs steadily declined as companies took to domicile-swopping with gusto. For nine countries with enough observations to report annual ETRs in both 2009 and 1989, all had lower ETRs in 2009 than in 1989 with a mean and median decline of 12 percentage points. The largest ETRs drops were 22 percentage points for Japan and 15 percentage points for Switzerland and the UK. The US had a decline of 12 percentage points to 20% in 2009.

For more informatin click below

Source:http://economictimes.indiatimes.com/policy/mncs-lower-tax-burden-by-swopping-domicile/articleshow/8309924.cms

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Team

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions