Cost Sharing and the Acrobatics of Arm’s Length Taxation
Year: 2010
Type: article
Abstract: The cost sharing regime of the United States enables multinational enterprises (MNEs) to export US intangible property to low or no tax jurisdictions, essentially tax-free. This is in stark contrast to long-standing US policy and the explicit tax agenda of the Obama administration. Two recent cases have circumvented attempts by the Internal Revenue Service (IRS) to mitigate cost-sharing-based tax avoidance. This article explains the regime and how the insistence of the IRS on arm’s length-based transfer pricing rules contributed to the current non-taxation of foreign income of US MNEs and explores alternative reforms.
Source: Intertax
DOI: 10.54648/taxi2010059
Author: Yariv Brauner
Institution: University of Florida
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1542320214