International business taxation and the business cash flow tax

Schreiber, Ulrich

Document Type: Article
Year of publication: 2013
The title of a journal, publication series: Review of Managerial Science : RMS
Volume: 7
Issue number: 3
Page range: 309-326
Place of publication: Berlin [u.a.]
Publishing house: Springer
ISSN: 1863-6683 , 1863-6691
Publication language: English
Institution: Business School > ABWL u. Betriebswirtschaftliche Steuerlehre (Schreiber 1999-2019)
Subject: 330 Economics
Abstract: Investments and business profits are internationally mobile. Countries respond by tackling international profit shifting. As a result, the international allocation of taxable profits becomes an increasingly complex and costly issue. Reform proposals either address the Organisation of Economic Co-operation and Development approach to international profit allocation or target tax bases that are less mobile than profits. This paper investigates cash flow as a tax base. A business cash flow tax abolishes current accrual accounting and has the potential to block international profit shifting. Financing vanishes to become a tax-planning tool because the investments’ market return is tax free under a cash flow tax. Profit shifting via intra-group transactions is eliminated if the business cash flow tax is based on the country of destination principle. However, a destination-based business cash flow tax might distort the investment decisions of international groups.

Dieser Eintrag ist Teil der Universitätsbibliographie.

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