Article about the constant concern of governments around the world about international taxation. Th current tax rules assign the tax rights of companies to the country where they report their profits. A global or territorial tax system applies to repatriated profits from foreign subsidiaries.
Research from the RSM and the ESE shows that a global tax system reduces the incentives for multinational corporations to participate in the tax management of their subsidiaries. This implies that multinationals subject to a global tax system, obtain worse competitive advantages than competitors with a territorial tax system.
Dr. Saskia Kohlhase, Professor Assistent in the Department of Accounting and Control at the RSM conducts this research on economic and societal consequences of taxation. In particular, she investigates consequences of taxing cross-border economic activities, tax incentives of loss-making firms, and how taxation influences the allocation of funds within firms.