Value Creation As the Fundamental Principle of the International Corporate Tax System
European Tax Policy Forum Policy Paper, 2018
12 Pages Posted: 25 Nov 2018
Date Written: July 31, 2018
It is now widely taken as axiomatic that the existing international corporate tax system is based on the principle that corporate profits are taxed where value is created (the “value creation principle”). There also appears to be widespread agreement, at least amongst policymakers, that the system should be based on this principle. This policy paper disputes both these descriptive and normative claims.
Keywords: Value Creation, International Tax, Corporation Tax, International Tax Reform, BEPS
JEL Classification: K34, H25
Suggested Citation: Suggested Citation