Formulary apportionment is an intensively debated mechanism for allocating tax base within
multinational groups. Systems under which the formula is identical in all jurisdictions and systems
under which jurisdictions can determine the weights on the formula factors individually can be
observed. The latter systems produce uncertainty about the overall tax-liable share of the future group
tax base. Counter-intuitively, I identify scenarios under which increased uncertainty leads to higher
expected future group income. My results provide helpful insights for firms and policy makers
debating the specific design of a formulary apportionment system. (author's abstract) / Series: WU International Taxation Research Paper Series
| Identifer | oai:union.ndltd.org:VIENNA/oai:epub.wu-wien.ac.at:4609 |
| Date | January 2015 |
| Creators | Ortmann, Regina |
| Publisher | WU Vienna University of Economics and Business, Universität Wien |
| Source Sets | Wirtschaftsuniversität Wien |
| Language | English |
| Detected Language | English |
| Type | Paper, NonPeerReviewed |
| Format | application/pdf |
| Relation | http://epub.wu.ac.at/4609/ |
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