Tax Relief Mechanisms and the Least Taxed Path for Circulating Income within a Multinational Enterprise

31 Pages Posted: 1 Apr 2002

See all articles by Marcel Gerard

Marcel Gerard

Facultes Universitaires Catholiques de Mons (FUCAM); CESifo (Center for Economic Studies and Ifo Institute)

Marie-France Gillard

Facultes Universitaires Catholiques de Mons (FUCAM) - Department of Finance

Date Written: March 28, 2002

Abstract

When minimizing their overall tax liabilities, multinational enterprises exploit the various provisions of interjurisdictional tax arrangements, not hesitating to circulate flows indirectly and through multiple financial vehicles. This paper proposes to nest modelling such strategies into the graph theory and network analysis. Such an exercise first calls for an improved taxonomy of multiple tax relief mechanisms. Ultimately, it proves to be useful for investigating efficient design of interjurisdictional tax arrangements.

Keywords: taxation, multinational firms, application of graph and network theory

JEL Classification: H32, H73, C61

Suggested Citation

Gerard, Marcel and Gillard, Marie-France, Tax Relief Mechanisms and the Least Taxed Path for Circulating Income within a Multinational Enterprise (March 28, 2002). EFA 2002 Berlin Meetings Discussion Paper. Available at SSRN: https://ssrn.com/abstract=305463 or http://dx.doi.org/10.2139/ssrn.305463

Marcel Gerard

Facultes Universitaires Catholiques de Mons (FUCAM) ( email )

Chaussee de Binche, 151
Mons 7000
Belgium

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Marie-France Gillard (Contact Author)

Facultes Universitaires Catholiques de Mons (FUCAM) - Department of Finance ( email )

Chaussee de Binche, 151
Mons 7000
Belgium
+32 65 323 447 (Phone)
+32 65 323 223 (Fax)

HOME PAGE: http://staff.fucam.ac.be/~finance/finance_gillard.htm

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