Papers & Reports

This study investigates U.S. multinational firms’ relative use of foreign and/or U.S. domestic tax havens (i.e., Delaware) and the determinants of these choices. The authors find that a surprisingly high percentage of U.S. multinationals (around 25 percent) choose to utilize only domestic tax havens and that state tax planning opportunities are the most important driver of this choice. The authors also find that greater financial constraints, lower income mobility, and more frequent foreign losses increase firms’ propensity to use domestic tax havens. Finally, the authors provide evidence on how the array and determinants of foreign and domestic tax havens changed following the Tax Cuts and Jobs Act of 2017 (TCJA). The authors find some weak evidence that firms increased their use of domestic tax havens after TCJA, but very little change in the determinants of firms’ tax haven choices in the post-TCJA period.

This article argues that the United Nations ad hoc committee on international tax cooperation should focus on the structural aspects of artificial intelligence (AI) to create a more inclusive, equitable, and effective global tax system. The complexities of the AI-driven economy, such as issues related to data, intellectual property, and the fragmentation of the AI value chain, must be addressed in their work.

This article explores whether tax scholarship can be separated from tax activism by identifying the technical and political elements of international tax policy. It examines the appropriate roles of legal scholarship, economics, political science, and political philosophy in shaping the international tax debate.

This paper addresses the definition of a foreign income tax, including an in-lieu-of tax, for which a credit is allowable; the interaction of the FTC with U.S. income tax treaties; the extent of the relief granted by the credit; the creditability of certain foreign income taxes related to tested losses as determined under the section 951A global intangible low-taxed income rules; the treatment of foreign tax redeterminations under section 905; the statute of limitations for matters concerning the decision to deduct or credit a foreign income tax; and the so-called FTC splitter rules under section 909.

This paper examines the economic impact of climate policies on different regions and countries, focusing on external adjustments. It finds that climate policies, such as a globally coordinated carbon tax, would decrease current account balances in greener advanced economies while increasing them in fossil-fuel-dependent regions due to reduced investment in the latter. Green supply-side policies, like subsidies and infrastructure investments, would boost investment and saving but have less effect on the external sector. Country-specific factors, like carbon intensity and fossil fuel exports, shape current account responses. A coordinated global climate policy would shift capital to advanced economies, with global interest rates initially rising but decreasing over time as carbon taxes increase. These effects depend on international policy coordination and credibility.

This paper explores the power dynamics between developed and developing countries in shaping international tax policy. It proposes the creation of a World Tax Authority (WTA) or transferring authority to a more politically balanced body, such as the WTO or World Bank, to resolve global tax conflicts. Additionally, it suggests the establishment of a World Tax Court (WTC), with judges representing both high- and low-income countries, to issue binding or declaratory rulings to ensure consistent interpretation of tax treaties worldwide.

This document includes draft terms of reference for a United Nations framework convention on international tax cooperation.

The COVID-19 pandemic significantly impacted the global economy, pushing over 100 million people into extreme poverty and creating a $500 billion funding gap for low-and-middle-income countries (LMICs) to catch up with advanced economies by 2025. The pandemic also accelerated digitalization, leading to the rapid growth of the digital economy, including e-commerce and digital services. LMICs face challenges in taxing this new economy due to corporate tax competition and base erosion. The OECD's multilateral tax approach addresses issues like physical establishment and nexus but has limited impact on LMICs and threatens their tax sovereignty. In contrast, unilateral measures taken by countries like Nigeria and Kenya have successfully taxed certain multinationals, though they risk trade sanctions from high-income countries. The essay concludes that efforts are being made to tax the digital economy without violating tax principles, but it recommends redesigning current tax deals to better address LMICs' concerns and implementing a United Nations tax convention to ensure neutrality and reduce OECD control over international taxation.

Globalization has led to tax base erosion due to capital mobility and increased international tax competition. This has prompted governments in developing Asia to seek alternative, nontraditional revenue sources. This paper examines the potential of using the region's growing excess foreign exchange reserves to offset tax base erosion. The analysis suggests that managing these reserves through profit-maximizing sovereign wealth funds can significantly contribute to the region's nonconventional fiscal revenues.

The UF Tax Incubator examines the background and current statutory and regulatory regime for section 367 and recommends potential modifications to reduce complexity and address substantive issues.