By Pascalis Raimondos, Professor of Economics, Head of School, Queensland University of Technology & Sara L. McGaughey, Professor of International Business, Griffith University The recently released Paradise Papers have again turned the media spotlight on small tax havens. The only difference from last year’s Panama Papers is that the contracts leaked to the public are […]
President Donald Trump has proposed cutting the US corporate tax rate from 35% to 15% and ending the practice of taxing the foreign income of US businesses. Trump may be hoping that such a massive corporate tax cut will result in new investment. Indeed, historical data suggests companies will respond by shifting profits to where the tax is low.
The current international company taxation system goes all the way back to 1923 and a ‘Report on Double Taxation’ solicited by the League of Nations. It was a time when the word “wireless” described radio communication and air travel was still not a regular means of transport. Most firms were national, and value chains were concentrated in one place.