The CCCTB Option – An Experimental Study

65 Pages Posted: 3 Jun 2014

See all articles by Claudia Keser

Claudia Keser

University of Goettingen (Göttingen)

Gerrit Kimpel

University of Goettingen (Göttingen) - Department of Finance, Accounting, and Taxes

Andreas Oestreicher

University of Goettingen (Göttingen)

Multiple version iconThere are 2 versions of this paper

Date Written: April 2, 2014

Abstract

The objective of this paper is to look into the probability that, given the choice, corporate groups would opt for taxation on a consolidated basis. Consolidation would allow them to offset losses crossborder but remove the opportunity to exploit international tax-rate differentials between entities via transfer pricing. We present a laboratory experiment in which we investigate to what extent a corporation would be inclined to take up the consolidation option and how this would impact on the corporation’s location of investment and its transfer pricing activities involving locations outside the consolidated group. We use a 2-by-2 treatment design with two levels of tax-rate differential between two investment locations, and two different remuneration functions allowing the participants to act as owners or managers of a company.

Keywords: International company taxation, separate accounting, formula apportionment, transfer pricing, experimental economics

JEL Classification: C91, H25, M41

Suggested Citation

Keser, Claudia and Kimpel, Gerrit and Oestreicher, Andreas, The CCCTB Option – An Experimental Study (April 2, 2014). CIRANO - Scientific Publications 2014s-24, Available at SSRN: https://ssrn.com/abstract=2444982 or http://dx.doi.org/10.2139/ssrn.2444982

Claudia Keser (Contact Author)

University of Goettingen (Göttingen) ( email )

Platz der Göttinger Sieben 3
Göttingen, 37073
Germany

Gerrit Kimpel

University of Goettingen (Göttingen) - Department of Finance, Accounting, and Taxes ( email )

Germany

Andreas Oestreicher

University of Goettingen (Göttingen) ( email )

Platz der Gottinger Sieben 3
Gottingen, D-37073
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
145
Abstract Views
2,022
Rank
299,076
PlumX Metrics