Tax us, if you can : a game theoretic approach to profit shifting within the European Union
Autor(a) principal: | |
---|---|
Data de Publicação: | 2021 |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.5/22569 |
Resumo: | In this paper we theoretically analyse the European Union’s ongoing political impasse regarding the choice of a single method to allocate multinational enterprises’ profits across countries and we find that this strategic situation resembles a coordination game with distributional consequences. The two Nash equilibria involve no efficiency trade-off (only a movement along the Pareto frontier), but the conflictual distribution of welfare gains and the presence of heterogeneous preferences have been preventing the implementation of a new long-term comprehensive tax policy reform. A unitary taxation approach with formulary apportionment in the European Union is better suited to tackle artificial profit shifting via transfer pricing and would mean an evolutionary change without disrupting the current international tax policy environment. It would restore faith in fairness in the European tax system and allow for further coordination of the transfer pricing policies of the two main international political forces – the United States and the European Union. |
id |
RCAP_77b59e09b168af3748245d944d88f365 |
---|---|
oai_identifier_str |
oai:www.repository.utl.pt:10400.5/22569 |
network_acronym_str |
RCAP |
network_name_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository_id_str |
7160 |
spelling |
Tax us, if you can : a game theoretic approach to profit shifting within the European Unionbase erosion and profit shiftingCommon Consolidated Corporate Tax Basecoordination gamesEuropean Uniontransfer pricingIn this paper we theoretically analyse the European Union’s ongoing political impasse regarding the choice of a single method to allocate multinational enterprises’ profits across countries and we find that this strategic situation resembles a coordination game with distributional consequences. The two Nash equilibria involve no efficiency trade-off (only a movement along the Pareto frontier), but the conflictual distribution of welfare gains and the presence of heterogeneous preferences have been preventing the implementation of a new long-term comprehensive tax policy reform. A unitary taxation approach with formulary apportionment in the European Union is better suited to tackle artificial profit shifting via transfer pricing and would mean an evolutionary change without disrupting the current international tax policy environment. It would restore faith in fairness in the European tax system and allow for further coordination of the transfer pricing policies of the two main international political forces – the United States and the European Union.ISEG - REM – Research in Economics and MathematicsRepositório da Universidade de LisboaVicente, Joana Andrade2021-11-25T19:00:40Z2021-112021-11-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/22569engVicente, Joana Andrade (2021). "Tax us, if you can : a game theoretic approach to profit shifting within the European Union". Instituto Superior de Economia e Gestão – REM Working paper series nº 0206/20212184-108Xinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-06T14:52:06Zoai:www.repository.utl.pt:10400.5/22569Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:06:58.036189Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Tax us, if you can : a game theoretic approach to profit shifting within the European Union |
title |
Tax us, if you can : a game theoretic approach to profit shifting within the European Union |
spellingShingle |
Tax us, if you can : a game theoretic approach to profit shifting within the European Union Vicente, Joana Andrade base erosion and profit shifting Common Consolidated Corporate Tax Base coordination games European Union transfer pricing |
title_short |
Tax us, if you can : a game theoretic approach to profit shifting within the European Union |
title_full |
Tax us, if you can : a game theoretic approach to profit shifting within the European Union |
title_fullStr |
Tax us, if you can : a game theoretic approach to profit shifting within the European Union |
title_full_unstemmed |
Tax us, if you can : a game theoretic approach to profit shifting within the European Union |
title_sort |
Tax us, if you can : a game theoretic approach to profit shifting within the European Union |
author |
Vicente, Joana Andrade |
author_facet |
Vicente, Joana Andrade |
author_role |
author |
dc.contributor.none.fl_str_mv |
Repositório da Universidade de Lisboa |
dc.contributor.author.fl_str_mv |
Vicente, Joana Andrade |
dc.subject.por.fl_str_mv |
base erosion and profit shifting Common Consolidated Corporate Tax Base coordination games European Union transfer pricing |
topic |
base erosion and profit shifting Common Consolidated Corporate Tax Base coordination games European Union transfer pricing |
description |
In this paper we theoretically analyse the European Union’s ongoing political impasse regarding the choice of a single method to allocate multinational enterprises’ profits across countries and we find that this strategic situation resembles a coordination game with distributional consequences. The two Nash equilibria involve no efficiency trade-off (only a movement along the Pareto frontier), but the conflictual distribution of welfare gains and the presence of heterogeneous preferences have been preventing the implementation of a new long-term comprehensive tax policy reform. A unitary taxation approach with formulary apportionment in the European Union is better suited to tackle artificial profit shifting via transfer pricing and would mean an evolutionary change without disrupting the current international tax policy environment. It would restore faith in fairness in the European tax system and allow for further coordination of the transfer pricing policies of the two main international political forces – the United States and the European Union. |
publishDate |
2021 |
dc.date.none.fl_str_mv |
2021-11-25T19:00:40Z 2021-11 2021-11-01T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.5/22569 |
url |
http://hdl.handle.net/10400.5/22569 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Vicente, Joana Andrade (2021). "Tax us, if you can : a game theoretic approach to profit shifting within the European Union". Instituto Superior de Economia e Gestão – REM Working paper series nº 0206/2021 2184-108X |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
ISEG - REM – Research in Economics and Mathematics |
publisher.none.fl_str_mv |
ISEG - REM – Research in Economics and Mathematics |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
repository.mail.fl_str_mv |
|
_version_ |
1799131162931625984 |