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US Multinational Tax Reform Options: Taxation of US Multinationals

US Multinational Tax Reform Options: Taxation of US Multinationals
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Companies with foreign-based employees can reap tax benefits artificially, NCSU study finds

by Matt Shipman April 12, 2021 . RALEIGH – A recent study finds U.S. companies that have a substantial number of employees in foreign jurisdictions with lower tax rates are more likely than their peers to “artificially” locate earnings in those jurisdictions – and the Internal Revenue Service (IRS) is less likely to challenge these complex tax-planning activities. “Many politicians seek to encourage domestic employment and discourage sending jobs overseas,” says Nathan Goldman, co-author of the study and an assistant professor of accounting in North Carolina State University’s Poole College of Management. “To do that, they’ll need to address elements of corporate tax policy that effectively encourage corporations to ramp up their percentage of foreign employees.”

Companies with foreign-based employers can reap tax benefits artificially, NCSU study finds

by Matt Shipman April 12, 2021 . RALEIGH – A recent study finds U.S. companies that have a substantial number of employees in foreign jurisdictions with lower tax rates are more likely than their peers to “artificially” locate earnings in those jurisdictions – and the Internal Revenue Service (IRS) is less likely to challenge these complex tax-planning activities. “Many politicians seek to encourage domestic employment and discourage sending jobs overseas,” says Nathan Goldman, co-author of the study and an assistant professor of accounting in North Carolina State University’s Poole College of Management. “To do that, they’ll need to address elements of corporate tax policy that effectively encourage corporations to ramp up their percentage of foreign employees.”

Having employees overseas helps companies reap US tax benefits

 E-Mail A recent study finds U.S. companies that have a substantial number of employees in foreign jurisdictions with lower tax rates are more likely than their peers to artificially locate earnings in those jurisdictions - and the Internal Revenue Service (IRS) is less likely to challenge these complex tax-planning activities. Many politicians seek to encourage domestic employment and discourage sending jobs overseas, says Nathan Goldman, co-author of the study and an assistant professor of accounting in North Carolina State University s Poole College of Management. To do that, they ll need to address elements of corporate tax policy that effectively encourage corporations to ramp up their percentage of foreign employees.

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