More on the profit shifting costs function. Analysis of the literature and other modelling approaches

Autor:	Mohamed Rachidi, Abdeslam El Moudden
Jazyk:	angličtina
Rok vydání:	2023
Předmět:	Profit shifting costs modelling approach transfer price profit shifting tax uncertainty developing countries Finance HG1-9999 Economic theory. Demography HB1-3840
Zdroj:	Cogent Economics & Finance, Vol 11, Iss 1 (2023)
Druh dokumentu:	article
ISSN:	23322039 2332-2039
DOI:	10.1080/23322039.2023.2181603
Popis:	AbstractIn this paper, we study another approach to the profit shifting costs function of multinational profit shifting. First, we describe the modelling approaches of such costs functions and provide a synthesized analysis. More precisely, we investigate the involved resource costs that multinational firms incur through a tax-motivated reallocation of profit across tax jurisdictions. Second, we set up a simple theoretical model of a representative multinational firm within which we conceptualize our new cost function. We expand the literature by including a relationship between profit shifting costs and tax uncertainty. Furthermore, we describe the costs split, the property of our costs function and we express its parameters. Finally, we discuss our results in conjunction with the literature, emphasizing that profit shifting costs and tax uncertainty cause more concerns for developing countries than advanced economies.
Databáze:	Directory of Open Access Journals
Externí odkaz:	https://doaj.org/article/a32904f685864cfeb37e42e2e0b63223 Zobrazit plný text záznamu View record in DOAJ Plný text ve formátu PDF Plný text ve formátu HTML
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