Abstract
International trade has more than doubled over the last 25 years and continues to grow [HinesS:09]. More than 70 % of US international trade is now in the hands of multinational corporations, companies that have operations and legal residences in more than one country [Clausing:06]. More than half of the trade of those multinational corporations, and about half of all US international trade, is shipped among their international divisions [Economist:11]. Intra-firm trading is not as visible as external sales. Trading among corporate divisions has given multinational companies ample opportunities to minimize taxes by adjusting prices for transfers of their goods [Kopits:76]. What’s more, establishing fair transfer prices is especially difficult when dealing with intangible goods and assets [Harrison:03]. Those intangible assets are the principal component of today’s knowledge-based industries [Nakamura:99].
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsReferences
Lynnley Browning: “I.R.S. Shifts to Combat Tax Evasion”; New York Times, 4 Aug.2010.
Kimberly Clausing: “International Tax Avoidance and U.S. International Trade”; National Tax Journal, Jun.2006.
Juergen Daum: The New DASB rules for reporting in Intangible Asset – The U.S. Versus the European way; The new New Economy Analyst Report, 10 Nov.2001.
Robert Gibbs: Leveling the Playing Field: Curbing Tax Havens and Removing Tax Incentives for Shifting Jobs Overseas; The White House, 4 May 2009.
Amar Gupta, Gio Wiederhold, David Branson Smith, and Devin Sreecharanai: Outsourcing from the Perspectives of International Protocols, Law, Intellectual Property, and Taxation; Arizona Legal Studies Discussion Paper 09-18, 7 Jan.2009, <http://ssrn.com/abstract=1324242>.
John Hand and Baruch Lev (eds.): Intangible Assets, Values, Measures. and Risks; Oxford University Press, 2003.
Bonnie Harrison: “Intangible Assets”; Chapter 10 in Weygandt, Kieso and Warfield: Fundamentals of Intermediate Accounting, Wiley 2003.
James R Hines, jr. and Lawrence H. Summers: “How Globalization Affects Tax Design”; in Jeffrey R. Brown and James M. Poterba (eds.): Tax Policy and the Economy, Vol.23, University of Chicago Press, 2009, pp.123-157.
Charles Hulten: Intangible Capital and Economic Growth; NBER working paper 11948, Jan.2006, <papers.nber.org/tmp/16760-w11948.pdfl>.
John Kao: Innovation Nation, How America Is Losing Its Innovation Edge, Why It Matters, and What We Can Do to Get It Back; Free Press, 2007.
G. Kopits: “Intra-firm Royalties Crossing Frontiers and Transfer-Pricing Behavior”; The Economic Journal, Dec.1976, pp.791-803.
Leonard Nakamura: “Intangibles: What put the New in the New Economy”; Federal Reserve Bank of Philadelphia Business Review, Jul.1999.
Karl-Erik Sveiby: The New Organizational Wealth; Berrett-Koehler Publishers, 1997.
U.S. Census Bureau: Facts about the Census 2010 Residence rule; US Department of Commerce, 2010.
U.S. Chamber of Commerce: Jobs Agenda, Intellectual Property; <www.uschamber.com/ip>, 2011.
Gio Wiederhold, Amar Gupta, and Erich Neuhold: "Offshoring and Transfer of Intellectual Property”; Information Resources Management Journal (IRMJ); Vol.23 no.1, Jan.-Mar.2010, pp.74-93.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2014 Springer Science+Business Media New York
About this chapter
Cite this chapter
Wiederhold, G. (2014). International Corporations and Taxes. In: Valuing Intellectual Capital. Management for Professionals. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-6611-6_1
Download citation
DOI: https://doi.org/10.1007/978-1-4614-6611-6_1
Published:
Publisher Name: Springer, New York, NY
Print ISBN: 978-1-4614-6610-9
Online ISBN: 978-1-4614-6611-6
eBook Packages: Business and EconomicsBusiness and Management (R0)