Does More Sophisticated Mean Better? A Critique of Alternative Approaches to Sourcing the Interest Expense of American Multinationals
83 Pages Posted: 6 Feb 2001
Date Written: December 2000
Abstract
This article discusses, from an economic perspective but with considerable legal detail, the United States income tax rules for "sourcing" deductions for interest expense incurred by American multinationals. Among other points, it shows that the "fungibility" standard for interest allocation that has been unquestioned for several decades lacks any persuasive normative foundation.
JEL Classification: H20, H21, H25
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Why are Foreign Firms Listed in the U.S. Worth More?
By Craig Doidge, George Andrew Karolyi, ...
-
Why are Foreign Firms Listed in the U.S. Worth More?
By Craig Doidge, George Andrew Karolyi, ...