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

See all articles by Michael P. Devereux

Michael P. Devereux

Centre for Business Taxation, Oxford University; CESifo (Center for Economic Studies and Ifo Institute); Institute for Fiscal Studies (IFS); Centre for Economic Policy Research (CEPR); University of Oxford - Said Business School; University of Oxford - Said Business School

John Vella

Oxford University Centre for Business Taxation; University of Oxford - Faculty of Law

Date Written: July 31, 2018

Abstract

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

Devereux, Michael P. and Vella, John, Value Creation As the Fundamental Principle of the International Corporate Tax System (July 31, 2018). European Tax Policy Forum Policy Paper, 2018. Available at SSRN: https://ssrn.com/abstract=3275759 or http://dx.doi.org/10.2139/ssrn.3275759

Michael P. Devereux

Centre for Business Taxation, Oxford University ( email )

Said Business School
Park End Street
Oxford, OX1 1HP
United Kingdom
+44 1865 288507 (Phone)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London, WC1E 7AE
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain

John Vella (Contact Author)

Oxford University Centre for Business Taxation ( email )

Saïd Business School
Park End Street
Oxford, OX1 1HP
United Kingdom

HOME PAGE: http://www.sbs.ox.ac.uk/community/people/john-vella

University of Oxford - Faculty of Law ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

HOME PAGE: http://www.law.ox.ac.uk/profile/john.vella

Register to save articles to
your library

Register

Paper statistics

Downloads
306
Abstract Views
1,201
rank
99,861
PlumX Metrics