Suchergebnisse

In this article, I propose to add a new provision to the U.S. Internal Revenue Code that adopts a minimum global effective corporate tax rate that will serve as a general anti-avoidance rule and is targeted toward international corporate tax avoidance. According to this proposed new section, if the global effective corporate tax rate of any American Multi-National Corporation (MNC) is below 15%, the MNC will then be required to close the gap and pay the U.S. Treasury up to the minimum.[28] For purposes of my proposal, the global effective corporate tax rate will be calculated according to the ratio between the global corporate tax paid and the global earnings and profits (E&P) in the financial statements of the MNC.[29] The tax imposed according to my proposed rule is an interim liability that serves to limit tax avoidance schemes on international transactions. I argue that this rule is expected to reduce the incentives for international tax avoidance because all MNCs will be liable for the minimum global effective corporate tax rate no matter which tax-planning scheme is used. In my opinion, this regime improves the fairness and efficiency of the U.S. international corporate tax regime while protecting and maintaining the competitive position of American MNCs in the global digital economy. I contend that my proposal is politically feasible in the U.S. because the U.S. must act in order to protect its base and its multinationals in the new international environment. Without U.S. response, other unilateral or international responses are likely to negatively affect U.S. interests as the State Aid Cases of Apple and other U.S. multinationals reveal. My proposal is feasible since it is consistent with the ideology and interests of both Democrats and Republicans. Furthermore, the Obama Administration has already proposed a similar minimum tax, and the similarities between my proposal and that of the Administration outweigh the differences.[30] I use Former President Obama's minimum taxation proposal to support the political feasibility of my minimum taxation proposal, but at the same time, I argue that my proposal is distinct and more appropriate than Former President Obama's proposal and other proposals of minimum taxation such as the Shay, Fleming and Peroni interim minimum tax[31] and the Grubert, Altshuler minimum tax versions.[32] If the United States adopts this proposed rule, it will substantially contribute, through "constructive unilateralism", to international tax reform that will better equip the global community to meet the challenges of a twenty-first century digital economy. [33] This article contributes to a timely issue of international taxation. It brings a fresh perspective on the debate about international corporate tax avoidance. My proposal is innovative and distinct from current discourse and other proposals. Little attention has been given by scholars of international corporate tax avoidance to the extensive literature and comparative experience available that addresses: (i) the impact of corporate tax avoidance at the national level and (ii) the government's attempts to limit such behavior, particularly through regulatory reform.[34] My proposal deviates from the current puzzling situation in that it utilizes the significant insights that this literature provides in order to improve reform efforts at the international level. Therefore, rather than proposing an entirely new scheme that addresses the challenges presented by international corporate tax avoidance in an isolated manner, my proposal uses relevant experiences at the domestic level in the United States and in other countries as a foundation. Following this introduction, Part II describes the current U.S. rules of international taxation on outbound and inbound transactions as well as the interaction between these rules and (i) the bilateral rules provided by the U.S. treaty network and (ii) the international norms such as the OECD norms. Furthermore, Part II analyzes the challenges faced by the U.S. and the global tax regime as a result of international corporate tax avoidance. Data is provided to illustrate the impact. Part III explores the current American responses to this challenge. Part IV briefly describes the OECD international response through the BEPS project and examines the interactions between the American responses and the OECD responses. In Part V, I present my proposal in detail, as well as the philosophy and justifications behind it. I compare my proposal to other proposals of minimum taxation, and I respond to counterarguments. I end my article with a brief conclusion.

The aim of this research is to analyses the government challenge to simplify tobacco excise rate structure to minimize excise avoidance potentially performed by Cigarette Manufacture in Indonesia. Indonesia government manages to simplify the structure of tobacco excise rate from previously 12 layers into 5 layers as planned in 4 years roadmap (2018 - 2021). The aim of this initiative is to minimize excise avoidance practices, that is expected to optimize tobacco excise revenues. This policy involves various actors and gets the pros and cons of stakeholders. Basically, simplifying tobacco rate structure objective should be to discourage cigarettes consumption. This research is descriptive qualitative research, data was collected through desk study and field study through in-depth interview with key informants. The results showed that consumption control before and after the initiatives (regulated by 146 /PMK.10 /2017) did not show a positive trend. Meanwhile, there was an intervention from the tobacco industry on the process of policy formulation and the difficulty of getting agreement in the policy formulation process from related stakeholders. Finally, the initiative to further simplifying the layers has been decided to postpone in 2019.This research clearly shows that competition among stakeholders exists. The government even on the difficulty and dilemma situation to make policy decision on what priority it should undertake firstly.

Persistent differences in the level of business ownership across countries have attracted the attention of scientific as well as political debate. Cultural as well as economic influences are assumed to play a role. This paper deals with the influence of cultural attitudes towards uncertainty on the rate of business ownership across 21 OECD countries. First, the concepts of uncertainty and risk are elaborated, as well as their relevance for entrepreneurship. An occupational choice model is introduced to underpin our reasoning at the macro-level. Second, regression analysis using pooled macro data for 1976, 1990 and 2004 and controlling for several economic variables, yields evidence that uncertainty avoidance is positively correlated with the prevalence of business ownership. According to our model, a restrictive climate of large organizations in high uncertainty avoidance countries pushes individuals striving for autonomy towards self-employment. Regressions for these 3 years separately show that in 2004, this positive correlation is no longer found, indicating that a compensating pull of entrepreneurship in countries with low uncertainty avoidance may have gained momentum in recent years. Third, an interaction term between uncertainty avoidance and GDP per capita in the pooled panel regressions shows that the historical negative relationship between GDP per capita and the level of business ownership is substantially weaker for countries with lower uncertainty avoidance. This suggests that rising opportunity costs of self-employment play a less important role in this cultural environment, or are being compensated by increasing entrepreneurial opportunities.

Persistent differences in the level of business ownership across countries have attracted the attention of scientific as well as political debate. Cultural as well as economic influences are assumed to play a role. This paper deals with the influence of cultural attitudes towards uncertainty on the rate of business ownership across 21 OECD countries. First, the concepts of uncertainty and risk are elaborated, as well as their relevance for entrepreneurship. An occupational choice model is introduced to underpin our reasoning at the macro-level. Second, regression analysis using pooled macro data for 1976, 1990 and 2004 and controlling for several economic variables, yields evidence that uncertainty avoidance is positively correlated with the prevalence of business ownership. According to our model, a restrictive climate of large organizations in high uncertainty avoidance countries pushes individuals striving for autonomy towards self-employment. Regressions for these three years separately show that in 2004, this positive correlation is no longer found, indicating that a compensating pull of entrepreneurship in countries with low uncertainty avoidance may have gained momentum in recent years. Third, an interaction term between uncertainty avoidance and GDP per capita in the pooled panel regressions shows that the historical negative relationship between GDP per capita and the level of business ownership is substantially weaker for countries with lower uncertainty avoidance. This suggests that rising opportunity costs of self-employment play a less important role in this cultural environment, or are being compensated by increasing entrepreneurial opportunities.