At A Cost The Real Effects Of Thin Capitalization Rules

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At A Cost: The Real Effects of Thin Capitalization Rules
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Thin capitalization rules (TCRs) aim to mitigate profit shifting by multinational corporations (MNCs) but, by raising the cost of capital for affected affiliate
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Escape clauses, where small firms are exempt from particular tax rules, is a crucial feature of a number of corporate tax schemes, but creates incentives to avo
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Tax provisions favoring corporate debt over equity finance (“debt bias”) are widely recognized as a risk to financial stability. This paper explores whether
Capital Structure and International Debt Shifting
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This paper presents a model of a multinational firm''s optimal debt policy that incorporates international taxation factors. The model yields the prediction tha
Why Countries Differ in Thin Capitalization Rules
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In the absence of financial frictions, the purpose of thin capitalization rules is to limit multinational firms' possibilities of engaging in tax planning via d