Digital Commons Network^™

Lower-Income Countries’ Ongoing Quest For International Tax Justice: A Case Study Of The Oecd’S Tax Allocation Proposal, Okanga Ogbu Okanga, Kim Brooks

Articles, Book Chapters, & Popular Press

The viability of our international tax system hinges on two things: (1) safeguarding the effective flow of international activities and (2) ensuring that countries can adequately collect tax on the income derived from those activities. Each of these fundamentals relies on a defensible/fair allocation of taxing rights between countries with competing tax jurisdiction (inter-nation equity).

The recent Organisation for Economic Co-operation and Development (OECD)-led multilateral effort to transform international tax rules to ensure that countries can adequately tax multinational enterprises (MNEs) operating in the global digital economy (OECD proposal) has reignited inter-nation equity conversations. Although important to all countries, inter-nation …

Transfer Pricing, Business Restructurings And Intangibles - Case Studies: Ups V. Commissioner; Dsg Retail Ltd. V. Hmrc, Richard Thompson Ainsworth

Faculty Scholarship

United Parcel Service of America, the largest motor carrier in the US, and DSG Retail the largest retailer of electrical goods in the UK, restructured operations and established captive insurance companies in offshore tax havens. In both instances, these restructurings removed sizeable amounts of income from the domestic tax base.

The IRS and HMRC opened transfer pricing audits. The UPS case involved tax year 1984 and was settled in 2003; DSG Retail involved 1997 through 2005 and was settled in 2009. Both settlements came on the heels of government-favorable court decisions, and prior to the addition of Chapter IX to …