The Resource Interest deductions in a multijurisdictional world

Interest deductions in a multijurisdictional world

Label
Interest deductions in a multijurisdictional world
Title
Interest deductions in a multijurisdictional world
Creator
Subject
Language
eng
Summary
This paper proposes and evaluates alternative methods for addressing the tax treatment of interest expenses in a multijurisdictional setting. The differential deductibility of debt entailed by various current tax law provisions leads to potential distortions in the patterns of asset ownership across multinational corporations and various proposed solutions have significant limitations. The authors suggest alternative regimes - a worldwide debt cap and a net financing deduction - to address the ownership distortions that they highlight along with other well-established problems of income-shifting through debt. These alternative regimes are extensions to a multinational setting of two general approaches to the neutral treatment of interest expenses - the comprehensive business income tax (CBIT) and allowance for corporate capital. While these regimes provide solutions to ownership distortions and to problems of base erosion and profit shifting, they have the potential disadvantage of restricting other policy parameters
Citation source
In: National tax journal. - Washington. - Vol. 68 (2015),
http://library.link/vocab/creatorName
  • Desai, M.A
  • Dharmapala, D
Geographic coverage
International
Language note
English
http://library.link/vocab/subjectName
  • interest deduction
  • international tax law
  • BEPS
  • CBIT
  • allowance for corporate equity
Label
Interest deductions in a multijurisdictional world
Instantiates
Publication
Label
Interest deductions in a multijurisdictional world
Publication

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