Minimum Global Effective Corporate Tax Rate as General Anti-Avoidance Rule
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How to Cite

Azam, R. (2017). Minimum Global Effective Corporate Tax Rate as General Anti-Avoidance Rule. Columbia Journal of Tax Law, 8(2), 5–55. https://doi.org/10.7916/cjtl.v8i2.2841

Abstract

More than $2 trillion of foreign profits generated by American multinationals is purposefully locked out of the United States in order to avoid U.S. taxation upon repatriation and to benefit from the deferral rule of the U.S. Internal Revenue Code, which allows U.S. corporations with controlled foreign corporations (CFCs) to defer taxation of the foreign-sourced active income of the CFC subsidiary until it is repatriated through dividend distributions to the U.S. parent company.  Several American multinationals, including Apple and Google, used Irish and Dutch and tax haven subsidiaries in tax planning schemes to reduce their American and Worldwide tax liability substantially. Just recently, The European Commission has concluded that Ireland violated the EU state aid rules by granting undue tax benefits of up to €13 billion to Apple, allowing Apple to pay substantially less tax than other businesses. The Commission determined that Ireland must recover the illegal aid. The U.S. responded by supporting Apple and all U.S. Multinationals in this litigation.

https://doi.org/10.7916/cjtl.v8i2.2841
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