A Plan to Minimize a Multinational Technology Company's Taxes

Abstract:     
The existence of different tax regimes and corporate rates of income tax between countries has given rise to international tax arbitrage and transfer pricing schemes. The objective of these schemes has been to minimize income tax expense and tax liabilities of multinational enterprises (MNEs). This paper considers the activities undertaken by these MNEs and the issues presented by these activities. A high-level tax plan is outlined for the fictional, multinational technology company GlobalTec to consider in its quest to minimize the company’s consolidated effective income tax expense.

Number of Pages in PDF File: 24

Keywords: Tax arbitrage, transfer pricing, international taxation, tax planning

JEL Classification: F23, K33, K34, M16

working papers series