Document Type
Article
Publication Date
1-2-2018
Journal / Book Title
International Journal of Financial Studies
Abstract
The problems of tax evasion and tax avoidance are as old as taxes themselves. Between 2015 and 2016 alone, many U.S. multinational corporations were involved in tax disputes with the European Commission. From a historical perspective, these disputes are unprecedented as they have resulted in tremendous amount of tax penalties. The most notable case was Apple for €13 billion of unpaid tax. This article discusses what tax strategies these corporations used that caused such disputes. It specifically investigates seven corporations: Apple Inc., McDonald’s, Starbucks, Fiat, Amazon, Google, and Ikea, and elaborates on the following tax strategies: high royalties, intercompany transfer pricing, intercompany loans, and source of income in a high-tech industry. This article also discusses the European Commission’s charges of tax evasion and how these corporations defend against them. When multinational corporations are operating abroad, they must observe not only domestic tax law but also international law.
DOI
10.3390/ijfs6010006
MSU Digital Commons Citation
Yang, James G. and Metallo, Victor N.A., "The Emerging International Taxation Problems" (2018). Department of Accounting and Finance Faculty Scholarship and Creative Works. 148.
https://digitalcommons.montclair.edu/acctg-finance-facpubs/148
Published Citation
Yang, J. G. S., & Metallo, V. N. A. (2018). The Emerging International Taxation Problems. International Journal of Financial Studies, 6(1), 6. https://doi.org/10.3390/ijfs6010006
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Comments
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).