Taxation and Valuation of International Real Investments

Jouko Ylä-Liedenpohja
Authors registered in the RePEc Author Service: Seppo Kari

No 1013, CESifo Working Paper Series from CESifo

Abstract: The study analyses the incentives for multinationals caused by linking different national tax systems. The dividend tax capitalization hypothesis is extended to include taxes during the repatriation and onward distribution (as equalization tax) to derive the relevant cost of capital formulae for each source of finance. No clear tax advantage of using debt from the parent to the foreign subsidiary is found. Tax conditions are derived for finance companies in third countries used by multinationals to park and rotate profits such as realization gains from trade sales of their subsidiaries. The same tools are applied to analyse corporate inversions.

Keywords: multinational taxation; equalization tax; profit valuation (search for similar items in EconPapers)
Date: 2003
New Economics Papers: this item is included in nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo1_wp1013.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_1013

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().