ASSIGNMENT | Mulinationals Varied Tax Systems

How do MNE\’s utilize varied tax systems (Value-added, tax credits and tax treaties etc.), to lower their tax burdens.

Please use the below reference for the primary source with the additional references to strengthen/re-enforce the writers intent.

Moffett, M. H., Stonehill, A. I., & Eiteman, D. K. (2016). Fundamentals of multinational finance. Pearson Learning Solutions

SAMPLE SOLUTION

Globalization and progressive elimination of trade barriers have led to increased development of international activities by different companies across the world. To access overseas and foreign markets, companies are faced with an option of producing the goods domestically for export or setting up production firms abroad. The company also has to consider issues of tax and non-tax factors that are likely to affect the decision on whether to produce locally or abroad. Taxation policies have a huge impact on the foreign direct investment (Auerbach & Devereux, 2013).  A multinational company comprises of the parent firm and foreign subsidiaries in one or more country. This paper considers how multinationals utilize varied tax systems provided for international trade. There has been raging debate on how corporate taxation should be implemented without compromising the transnational policy agendas. The tax policy for a multinational organization is a complex and challenging issue because various nations want to ensure that companies submit a fair share of their proceeds to government…