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Borderline Case International Tax Policy, Corporate Research and Development, and Investment (1997) / Chapter Skim
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II Industry Perspectives on the Impact of International Tax Rules
5 IMPACT OF TAX INCENTIVES ON THE LOCATION OF INVESTMENT: A CORPORATE PERSPECTIVE
Pages 69-74

The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.


From page 70...
... I have never seen a minor tax benefit tip the scale in a major investment decision. Uncertainty about future tax law changes discounts the value of favorable tax regimes, often to the point that the perceived tax cost differential between locations is overwhelmed by the intuitive preferences of operating management.
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From page 71...
... I have never seen a minor tax benefit tip the scale in a major investment decision. Uncertainty about future tax law changes discounts the value of favorable tax regimes, often to the point that the perceived tax cost differential between locations is overwhelmed by the intuitive preferences of operating management.
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From page 72...
... multinational in a perpetual excess foreign tax credit position might very well locate a new world-class basic research facility outside the United States to avoid the unfavorable consequences of Treasury Department Regulations section 861-17 (allocation and apportionment of research and experimental expenditures)
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From page 73...
... Under section 904(g) if 10 percent or more of the earnings of a foreign subsidiary are derived from sources within the United States, a ratable portion of dividends paid by the subsidiary is treated as domestic source income.
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From page 74...
... Many large global companies have increasingly integrated their regional business activities. It is not uncommon that they conduct their businesses at a Pan-European, PanAmerican (especially after NAFTA [the North American Free Trade Agreementi)
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Key Terms

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  • internal revenue
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  • tax credit
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  • capital investment
  • global business
  • tax benefit
  • treasury department
  • department regulations

  • tax law
  • regulations section
  • research facility
  • foreign subsidiary
  • excess foreign

  • rules controlling
  • unfavorable consequences
  • blockbuster product
  • information repositories
  • rarely minor

  • perpetual excess
  • dramatically influence
  • dividends paid
  • dominant factor
  • facility outside

  • international operations
  • projected operating
  • formerly governed
  • business activities
  • controlling international


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