The OECD has published a new report MNE Business Functions and Corporate Taxation which looks at the responses of large multinationals to taxation policy by assessing their global allocation of business functions (e.g. manufacturing sales finance/treasury). Perhaps unsurprisingly the report suggests that ‘higher average effective tax rates are associated with a lower prevalence of functions related to holding or the provision of internal group finance’ whereas sales and manufacturing are ‘less sensitive’ to effective tax rates. ‘The results offer valuable insights into the structure of MNEs global value chains as well as the real economic impacts of corporate taxation’ says the report. Interesting reading for the Chancellor perhaps.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
The OECD has published a new report MNE Business Functions and Corporate Taxation which looks at the responses of large multinationals to taxation policy by assessing their global allocation of business functions (e.g. manufacturing sales finance/treasury). Perhaps unsurprisingly the report suggests that ‘higher average effective tax rates are associated with a lower prevalence of functions related to holding or the provision of internal group finance’ whereas sales and manufacturing are ‘less sensitive’ to effective tax rates. ‘The results offer valuable insights into the structure of MNEs global value chains as well as the real economic impacts of corporate taxation’ says the report. Interesting reading for the Chancellor perhaps.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
2734558d-601b-48a3-8ae3-ae3513a00429.tmb-editorspic.jpg?sfvrsn=1fc4692d_1)
