On successful completion of this course, students will be able to:
- Acquire knowledge to understand and predict how taxes affect the behaviour of multinational firms.
- Acquire knowledge to understand how the decision-making processes of both the private sector and the public sector concerning international businesses can be improved when the factor taxation is taken into account together with economic considerations.
- Delimit and structure a research subject.
- Formulate a research design.
- Have an awareness of diverging disciplinary perspectives.
- Analyze different aspects of a research problem.
- Adequately use literature.
- Draw conclusions.
- Give an informed opinion on how the decision-making processes of both the private sector and the public sector concerning international businesses are improved when the factor taxation is taken into account together with economic considerations.
- Report in written form (a paper) on the results of a limited study in a structured and accurate fashion and in proper English (spelling, style and readability).
The course comprises four interrelated parts.
The first part of the course (five weeks) will discuss that multinationals not only have incentives to physically shift business to low-tax countries, but they may also have incentives to shift taxable income to low-tax jurisdictions. Whenever a transaction takes place between a parent and a subsidiary located in a foreign country, a transfer price is used to determine the amount of income that should be taxed by either tax jurisdiction.
The second part of the course (two weeks) will provide an introduction of the knowledge and skills of carrying out basic empirical research in the context of how decision-making processes of both the private sector and the public sector concerning international businesses can be improved when the factor taxation is taken into account together with economic considerations. The emphasis will be on how to read and interpret empirical literature.
The third part (three weeks) will discuss some selected current issues of international business taxation and the tax-related courses of both sub-tracks in an integrated way, showing the impact of these issues on decision-making processes in both the private and public sector. This approach also contributes to the integration of both sub-tracks (IBTE and Accounting and IBTE and Intra-Jurisdictional Competition) within the IBTE track.
In the fourth part, a student will do further research on one element of a certain current topic from both a tax and an economic perspective and will report on it through a paper.
This course is to be seen as a fundamental course for preparing students for a career in the discipline of international business taxation by providing them with system-based, interdisciplinary and academic international business tax knowledge. This means that, as an introduction, the course provides students in an integrated way with a system-based academic training in the field of international business taxation and economic disciplines closely related to international business taxation. Students will be introduced in selected current and main issues of international business taxation and economic theories that are used to address them. Students will be taught to think through micro and macro aspects and interrelationships between them and will learn how economic theories can be tested to establish their value for decision-making by multinational enterprises and government policymakers involving issues of international business taxation.