International Tax Avoidance: Clarifying Multinational Company Tax Issues

© 2015 Prof. Farok J. Contractor, Rutgers University

The question of multinational companies avoiding taxes is inevitably going to become a hot issue for the US, Europe, and other major economies. Voices from both the political left and right have an ax to grind. Moreover, three separate tax issues—(1) the average tax US-based multinationals actually pay, (2) accumulated, but not repatriated, profits of US-based multinationals’ foreign affiliates, and (3) inversions—are often conflated, creating muddled perspectives. The observations below may help to separate and clarify the issues.CONTINUED ON ARCHIVE

Also see updated post on this site May 5, 2016:

Tax Avoidance by Multinational Companies: Methods, Policies, and Ethics

A version of this article was also published in AIB Insights, Vol. 16, No. 2 (2016). 

Recommended Citation: 

Contractor, Farok J. Tax avoidance by multinational companies: methods, policies, and ethics. Rutgers Business Review, Vol. 1, No. 1, pp. 27–43 (2016).

Also see other posts: The [2016] G20 Summit in China: An Annual “Talking Shop”? Or a Potential Bedrock of Global Civilization? and Tax “Amnesty” for Multinationals—But Not for Illegal Immigrants.

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