Collected References, available on-line as
References for: Gio Wiederhold: Valuing Intellectual Capital, Multinationals and Taxhavens Springer Verlag 2013
VIC Citations This list includes all the references cited, as well as others that I have persused. For general information, I chose a recent publication for citation, trusting that it will be easier to locate and cite earlier work. As is common in tax matters, opinions abound. Refereed material is italicized. Entries cited and listed in the Reference section of Valuing Intelectual Capital have [bold identifiers]; entries considered, but not cited are marked ‡. Entries marked † were used for [W:06] . Transcription into the spreadsheet for VIC are marked [xls/worksheet]. Shaded text is to be omitted in publication, but helpful for search or as an aide de memoire. I am dding {chapter.section} references
AAAAAAA [Aaron:13B] Henry J. Aaron: Tax Reform? Between a Rock and a Hard Place; Huffington Post, Brookings, 15 Jan. 2013. The 1986 reforms shifted $1T (adjusted) from individuals to Corportations over 10 years. Mobility of capital and the proliferation of multinatinal companies prevents such a solution now. Must raise personal income tax.{VIC Ch10.7.4} [Aaron:13G] Henry J. Aaron: You Get What You Pay For: Lessons From the IRS Scandal; Brookings, 31 May 2013. Only 1% of returns is audited. $450B is uncollected. Each dollar spent auditing yields $8. {VIC Ch8,7.3} [AbahoonieA:10]‡ Edward Abahoonie and Liah Alfonso: Deferred taxes on foreign earnings: A road map; Price Waterhouse Coopers (PwC), Dec.2010, updated 2012 www.pwc/us/tax. (with a nice picture of Luzern, Switzerland). {VIC Ch2.6} [Abba:97]† Wayne Abba: "Earned Value Management: Reconciling Government and Commercial Practices"; Program Manager, Vol.26, pp.58–69. {VIC Ch8.7.2} [AbramitzkyB:04] Ran Abramitzky and Fabio Braggion: Malthusian and Neo-Malthusian Theories; Oxford Encyclopedia of Economic History, Oxford University Press, 2004. At Stanford University.{VIC Ch9.4.5} [Acritas:10] Rankings of law firms employed for cross-border litigation and deals; BBW 27Sep.2010, p20. {VIC Ch8.7.4} [ACS360:09] Financial Accounting Standards Board: Property, Plant, and Equipment; Accounting Standards Codification 360-10-35-4, Depreciation, Version 3.0, 1 July 2009. Depreciation is a method of allocation, not of valuation. {VIC Ch3.4} [Actionaid:11] ActionAid: Addicted to tax havens, the secret life of the FTSE 100; ActionAid, UK, Oct.2011, http://www.actionaid.org.uk/doc_lib/addicted_to_tax_havens.pdfl. {VIC Ch8.5.3} [Adams:97] James D. Adams, 1997. "The Structure of Firm R&D and the Factor Intensity of Production“; NBER Working Papers 6099, National Bureau of Economic Research, Inc.; also Working Papers 97-15, Center for Economic Studies, U.S. Census Bureau. {VIC Ch5.7} [Adams:12] Scott Adams: Dilbert; Famous Quotes, Retrieved Jan. 2012. “There are many methods for predicting the future. For example, you can read horoscopes, tea leaves, tarot cards, or crystal balls. Collectively, these methods are known as `nutty methods.’ Or you can put well-researched facts into sophisticated computer models, more commonly referred to as `a complete waste of time’." {VIC Ch5.1} [ADLittle:85] ADLittle: Development of a Methodology for Estimating the Taxpayer Paperwork Burden; IRS, June 1988. Time cost for individual and business taxpayers $1813M, $3,614M = total 5,427M hours. [xls/irs] {VIC Ch8.2.2} [AF:04] The Appraisal Foundation: Uniform Standards of Professional Appraisal Practice; Standard 9, 2004 Edition. {VIC Ch.3.3}
1
[AgarwalG:99] Rajshree Agarwal and Michael Gort: First Mover Advantage and the Speed of Competitive Entry, 1887-1986; National Bureau of Economic Research (NBER), Sep.1999; SSRN library http://ssrn.com/abstract=167330. {VIC Ch7.4.1} [AghionH:94] Philippe Aghion and Peter Howitt: "Growth and Unemployment“; Review of Economic Studies, Wiley Blackwell, Vol.61 no.3), pp.477-494, July 1994; CEPR Discussion Papers 577. [AGN:08]‡ AGN International: The AGN European Region - 2008 Corporate Tax Survey, 2008 [alSayigh:78] Yusif al Sayigh: World Economic Outlook Conf.; Economic Advisor. Arab Fund for Social and Economic Development, 9-10 Nov 1978. Quotes Arab proverb: "Listen and you will be very happy, but look and you will be terribly sad". [VIC Ch.NNNNN] [Alter:11] Jonathan Alter: Coming Lobbyist Brawl May (Really) Fix Our Taxes; Bloomberg Businessweek, 5 Aug 2011. the author of “The Defining Moment: FDR’s Hundred Days and the Triumph of Hope” . On the supercommittee’s chances. [AltmanEa:12] Roger Altman, William Daley, John Podesta, Robert Rubin, Leslie Samuels,Lawrence Summers, Neera Tanden, and Antonio Weiss with Michael Ettlinger, Seth Hanlon, Michael Linden: Reforming Our Tax System, Reducing Our Deficit; American Progress, Dec. 2012 [Altshuler:10] Rosanne Altshuler: “Capital income taxation and progressivity in a global econmy”; Virginia Tax Review, 22 Sep.2010. see [AltshulerHT:10] [AltshulerACK:08] Rosanne Altshuler, Alan J. Auerbach, Michael Cooper, and Mathew Knittel: Understanding U.S. Corporate Tax Losses; NBER Tax Policy and the Economy Conference, Washington, DC, 6.Oct.2008. Tax expenditures , Many Graphs. Uses form 1120 data. Cooper and Knittel are with the Treasury.”...taxpayers can engage in .excessive. or in some other way unintended use of legal tax provisions to reduce tax liabilities.” [AltshulerG:01] Rosanne Altshuler and Harry Grubert: “Where Will They Go if We Go Territorial? Dividend Exemption and the Foreign Location Decisions of U.S. Multinational Corporations”; National Tax Journal, Vol.54 No.4, Dec.2001, pp.787-809. [AltshulerM:96]‡ Rosanne Altshuler and Jack M. Mintz: “United States Interest-Allocation Rules, Effects and Policy”; in [Slemrod:96] . [AltshulerHT:10] Rosanne Altshuler, Benjamin Harris, and Eric Toder: “Capital Income Taxation and Progressivity in a Global Economy”; Virginia Tax Review, Vol.30, Fall 2010, pp.355-388. Tax gains at 28% and dividends fully yields $87B to reduce corporate tax from 35% to 26%. [Amadi:02] Confidence W. Amadi: Double Taxation of Dividends: A Clarification 3 [AndersonC:00] Sarah Anderson and John Cavenaugh: Top 200: The Rise of Corporate Global Power; Institute for Policy Studies, 2000. Used wrong metrics [Woolf:04] [Andriessen:03] Daniel Andriessen: Making Sense of Intellectual Capital: Designing a Method for the Valuation of Intangibles; Butterworth-Heinemann, Dec. 2003. Ex KPMG author, 25 methods sketched covering Management, human resources, company performance, accounting, and business transactions. Methods are critiqued; no quantitative results. [AndrusP:09] Joseph L. Andrus and Irving H. Plotkin: PKN Alert United States – Prsident Obama’s proposal to limit shifting of income through intangible property transfers; Pricing Knowledge Network, PricewaterhouseCoopers, 22 May 2009. Calls §936(h)(3)(B) a laundry list, but laundry lists do not have an entry for `other similar items’ [AngusNSW:10] Barbara Angus, ToAndruem Neubig, Eric Solomon, and Mark Weinberger: “The U.S. International Tax System at a Crossroads”; Tax Analysts, E&Y, 2010. Companies will invest if taxed more. Tables of Fortune 500 global companies. importance of intangibles and services. “Changes to the international tax rules should not be undertaken piecemeal.” [AnkenB:11] F. Anken and J.E. Beasley: Corporate structure optimisation for multinational companies; Omega, 2011. [AnsonA:03] Weston Anson and Chaitali Ahya: How to Make Transfer Pricing Work for IP and Intangible Assets; Int'l Tax Rev., Vol.1514 (2003-2004) [Arnold M:93] Brian J. Arnold & Thomas E. McDonnell: Report on the Invitational Conference on Transfer Pricing: The Allocation of Income and Expenses Among Countries, 7 Tax Notes International, 1507 , 13 Dec.1993 . use of cost sharing by oil companies, equal risk. [ArnoldM:02] B.J. Arnold and, M.J. McIntyre: International Tax Primer; Kluwer Law International, 2002. [Aron:83]† J.D. Aron: The System Development Process, The Programming Team (Part II); Addison-Wesley, 1983. The input to software IP generation, a component of intelectual capital. Coherence and complementarity. [Arora:13] Jaime Arora: Negotiating Transfer Pricing Safe Harbors Will Take More Time, Maruca Says; Tax Notes Today, 5 Jun.2013. Unclear that the concept will be effective as long as sometax havens are left. [Arthur:83]† Lowell Jay Arthur: Programming Productivity; Chapter 8 on Maintenance, Wiley, 1983. [ArthurEa:12]‡ Brian P. Arthur: IRS Issues Final Regulations for Cost Sharing Arrangements; Baker & McKenzie, 9 Jan 2012. The platform approach to transfer pricing is now official. [ASCAP:10] The American Society of Composers, Authors and Publishers: Customer licensees; ASCAP, 2010, 5 [AudretschL:12] David B. Audretsch and Albert N. Link: “Valuing an Entreprneurial Enterprise”; Small Business Economics, Vol.38 2012, pp.139-145. Shows that 4 typical methods do not work. Says he offers a methodology, but only cestimates number of startups. [Auerbach:99] Alan J. Auerbach: “Measuring the impact of tax reform”; in [Slemrod:99], p.360 . Making incremental changes is more effective than grand ones. [AuerbachF:02] Alan J. Auerbach and Martin Feldstein, eds.: Handbook of Public Economics, Vol.4, North- Holland, 2002. [Auerbach:06] Alan Auerbach: Why have Corporate Tax Revenues Declined” Another Look; CESifo workshop, The Future of Capital Income Taxation, Venice, July 17-18, 2006, updated Dec.2006. Ignores effect of AJCA. [Auerbach:06F] Alan Auerbach: The Future of Capital income taxation ; 2006 Institute for Fiscal Studies Annual Lecture, Sept 2006. at the University of California at Berkeley. found that whereas in 1983 financial corporations accounted for only about 5% of all corporate-tax revenues in America, between 1991 and 2003 they made up roughly a quarter. Kep the Corporate income tax. [Auerbach:05] Alan Auerbach: Who Bears the Corporate Tax, A Review of What we Know; NBER’s Tax Policy and the Economy conference, Sep.2005. Different sizes of corporations, shareholders, and timing. Refers to Harberger. Consders intangible value, but at a modest (50%) increment. A corporate tax distorts, is not desirable. Too much individual capital is tied up in housing. [AuerbachDS:08] Alan Auerbach, Michael P. Devereux, and Helen Simpson: “Taxing Corporate Income”; Mirrlees Review, Reforming the Tax systems for the 21st Century; 2008. Focus on UK. What base, where. [August:13] Jerald D. August: G-20 Finance Ministers Recently Announce Continuing Efforts Towards Achieving Automatic Information Exchange; Mondaq, Fox Rothschild, 26 May 2013. Adopt the Mutual Assistance Convention of 1998, for automatic information exchange, not just TIEAs.? [Aujean:01] Michel Aujean (chair): Company Taxation in the Internal Market; Commission of the EC, 23 Oct 2001. Includes problems with Transfer pricing, and intangibles. [Auletta:09A] Ken Auletta: “Searching for Trouble, Why Google is on its Guard”; New Yorker Magazine, 12 Oct.2009, pp.46-56. Abstract or Audio: [Auletta:09B] Ken Auletta: Googled; 2009. Expands [Auletta:09A] On Kindle. [Austin:08] David Austin: Effects of Gasoline Prices on Driving Behaviour and Vehicle Markets; Congressional Budget Office, Congress of the United States, Jan.2008. [AviYonah:95] Reuven S. Avi-Yonah: “The Rise and Fall of Arm's Length: A Study in the Evolution of U.S. International Taxation”; Va. Tax Rev., Vol.15, 1995, p89. [AviYonah:02] Reuven S. Avi-Yonah: For Haven's Sake: Reflections on Inversion Transactions; University of Michigan Law School, Tax Notes, Vol.95 no.12, June 17, 2002. ??AAAA [AviYonahC:08]‡ Reuven S. Avi-Yonah and Kimberly Clausing: “Reforming Corporate Taxation in a Global Economy: A Proposal to Adopt Formulary Apportionment”; in Paths to Prosperity [FurmanB:08]‡, 2008, pp.319-344, 2008. [AviYonah:12]‡ Reuven S. Avi-Yonah: Statement to Congress; University of Michigan School of Law, Permanent Subcommittee on Investigations, U.S. Congress, 20 Sep.2012. Commensurate, was emphasized in 1986, ignored again by now. Cost-sharing rules, low payment for R&D, high income offshore. Split. CFC look-through regulation misused. Disregarded lower CFCs. Short term loan is only one ploy for repatriation. Blames IRS rules on RAB, override costsharing agreements, treat inatngibles properly. MisvaluationDo aawy with look-through rule and check the box..MS Puerto Rico where US IP rights reside earn on the average 45K/a. [Avril:11]‡ Hillaire Avril: Africa, Emerging Trend Towards Establishing Offshore Tax Havens; Interpress Service (IPS), 17 Aug.2011. [Ayal:75]† Igal Ayal: Simple Models for Monitoring New Product Performance; Decision Sciences, 1975, Vol.6, pages 221-236. Aggregation and repurchase. BBBBBBBB [B. ... ] are references to [W:13] Gio Wiederhold Valuing Intellectual Capital, Appendix B, Laws and Regulations. [B&McK:09] North American Tax Practice Group: Transfer Pricing, Managing Intercompany Pricing in the 21st Century; Baker & McKenzie, 2009. [B&McK:11] 2011 Aug.workshop materials in HMAT.references/2011 Aug.workshop materials in HMAT/references/Baker&McKenzie11 [Babcock:68,94] Henry A. Babcock: Appraisal Principles and Procedures; American Society of Appraisers, 1968, fifth edition 1994. [Bachman:10] Helana Bachman: “Why More U.S. Expatriates Are turning in their Passports; Time Magazine World, 20 March 2010. [Bachman:12] Helana Bachman: “Why U.S. Tax evaders Can no Longer Count on Swiss Secrecy; Time Magazine World, 15 March 2012. [BaerZ:09] Nikolaus Baer and Robert Zeidman @ Zeidman Consulting: Measuring Software Evolution with Changing Lines of Code; VIP-CATA conference 10 April 2009, 24th International Conference on Computers and Their Applications, New Orleans, LA. Cites [Wiederhold:2006] . [BahreeB:12] [xls/taxhavens] [BajajBN:99] : Mukesh Bajaj, Brian Becker, and Jonathan Neuberger: Transfer Pricing and Foreign Exchange Risk; Transfer Pricing Report, Vol.8 no.6, 15 July1999, pp.251-259. Have copy. Hedging, insurance, broaden the interquartile range to account for risk. [BajajDFS:01] : Mukesh Bajaj (Managing Director of Finance and Damages Practice of LECG, LLC), David J. Denis**, Stephen P. Ferris & Atulya Sarin: Firm Value and Marketability Discounts; working paper, SSRN. Managing Director of Finance and Damages Practice of LECG, LLC [Baker:05] Raymond W. Baker: Capitalism’s Achilles heel, Dirty Money and How to Renew the Free Market System; Wiley, 2005. [Baker:07] Leroy Baker: Halliburton Feels Democrat Wrath After Dubai Move; Tax-News.com, New York, 15 March 2007. [Baker:10] Raymond Baker: “Transparence First”; The American Interest, July-Aug.1010. [Baker:11] George Baker: “No Death, no taxes, The libertarian futurism of a Silicon Valley Billionaire”; The New Yorker, 28 Nov.2011. Peter Thiel’s background, attitudes, and plans. [BaldwinK:04] Agglomeration, Integration and Tax Harmonization; European Economic Review, vol.48 No.1 p-23. In [PalanMC:] . [BaltagiR:05] Badi H. Baltagi and Daniel P. Rich: "Skill-biased technical change in US manufacturing: a general index approach“; Journal of Econometrics, Elsevier, Vol.126 no.2), pp.549-570, June. 2005; IZA Discussion Papers 841, Institute for the Study of Labor (IZA). [Banks:10] Nancy Turner Banks: AIDS, Opium, Diamonds, and Empire: The Deadly Virus of International Greed; iUniverse, Kindle , May 2010 [Banner:80] Donald W. Banner: "Pricing the Technology"; Domestic & International Licensing of Technology 1980, T. Arnold and J.T. McCarthy, Eds., Practi(s/c)ing Law Institute, 1980. Not at SUL. The source appears to be an annual treatise by an institute within NYU, but is not now publicly available. ??VVVV [Baran:6x] Paul Baran Baran wrote about in the early 60's: that computer networking would bring about the decline of governments. JM had hoped to ask Kleinrock why it is that we so rarely hear of Paul Baran ("BEAR-en) NNNN [Baranson:78] Jack Baranson: Technology and the Multinationals; Lexington Books, 1978. p. 64. Cited by [Caves:83]‡. Offshore movement of IP. Have chapter around p. 33; also see p.64. [Barber:02] Benjamin R. Barber, A Failure of Democracy, Not Capitalism; The New York Times, July 29, 2002. [BarL:10]‡ Michael Bar and Oksana Leukhina: The Role of Mortality in the Transmission of Knowledge; Journal of Economic Growth, Vol 15 no.4 Dec.2010. Bar is at SFSU Historical study of the years of the plague: 1650-1880. 7 [Barthold:11] Thomas A. Barthold: Response to Lloyd Doggett, containing revenue estimates for a new repatriation under IRC 965; Joint Committee on Taxation, Congress of the United States, 15 April 2011. [BarIlanS:96]‡ Avner Bar-Ilan and William C. Strange: "Investment Lags"; American Economic Review, American Economic Association, Vol.86 No.3,1996, pp.610-622. [BarlettS:00] Donald L. Barlett and James B. Steel: The Great American Tax Dodge, How Spiraling Fraud and Avoidance Are Killing Fairness, Destroying the Income Tax, and Costing You; Little, Brown, and Co., 2000. Have. Diatribe. Belize IRS staff inadequate p.21. No resources to chck EITC. p.27 . IRS cannot track extraterritorial transfers p.55. effect of Vereinsgesetz p67. Few Shjam tranascations get caught p.73 IRS unable to deal with Internet transactions p89.Domonizing the IRS p119, Constraints on IRS personnel p.123.audits of HNWI slow p.164.. sales tax p246. [Barra:98]† BARRA: United States Equity Version 3 (E3); MSCI, BARRA, Berkeley, CA, 1998. [Barrett:12]‡ Paul M. Barrett: “White Shoe Blues”; Bloomberg Businessweek; 23 April, 2012. [Bartlett:81]‡ Bruce Bartlett: Reaganomics: Supply Side Economics in Action; Arlington House, 1981. [Bartlett:06]‡ Bruce Bartlett: Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy; Doubleday, 2006. [Bartlett:09]‡ Bruce Bartlett: The New American Economy, The Failure of Reaganomics and a New Way Forward; Palgrave McMillan, 2009. [Bartlett:12B] Bruce Bartlett: The Benefit and the Burden, Tax Reform, Why We Need It and What It Will Take; Simon and Schuster, 2012. Have. Excellent, covers all aspects of taxation and the imbalances created. But this three page proposal at the end has no numbers, exactly what he criticizes others about. [xls/taxes] [Bartlett:12G]‡ Bruce Bartlett, GOP: All Talk on Eliminating Tax Breaks – No Action, Fiscal Times, Aug. 24, 2012, http://www.thefiscaltimes.com/Columns/2012/08/24/GOP-All-Talk- on-Eliminating-Tax-Breaks-No-Action.aspx#page1. [Bartlett:12T] Bruce Bartlett: How to Avoid Reinventing the Wheel on Tax Reform; The New York Times, 24, 31 Jan.31, 2012. Avoid gimmicks, and focus on corporate taxation. [Basili:90]† Victor Basili: "Viewing Maintenance as Reuse-Oriented Software Development"; IEEE Software, Vol.7 No.1, Jan.1990, pp.19-25. [BassettCG:09] Barton W. Bassett, William F. Colgin jr., and Neal A Gordon: Veritas v. Commiossioner: Tax Court Decision Exposes Flaws in Common IRS Cost-Sharing Buy-in Theories, Morgan Lewios Tax Practice, Palo Alto, 16 dec. 2009. IRS includes workforce in place, goodwill, Going- concern value. Shows unpreparedness of IRS expert witness [Bastiat:xx] Frederick Bastiat: What is seen and What is Not seen; Essays in The economics of Freedom, What your Professors won’t tell you; Frederick A. Hayek have on Kindle [BathalaMR:84] C.T. Bathala, K.P. Moon, and R.P. Ramesh: “Managerial Ownership, Debt Policy, and the Impact of Institutional Holdings: An Agency Perspective”; Financial Management, Vol.23 no.3, Autumn 1994, pp 38-50. . Percentage of revenue spent on R&D and advertising = 3.5 percent in cross-section [Basse:11] Søren Hetland Basse: Science History and The Future; Royal Danish Library reg.1992, translated and updated 11 Feb.2011, [Baum:10] Caroline Baum: The Good Old Bad Days; Bloomberg Businessweek; 6 Sep.2010, pp.4-5. [Baumgarten:09] Daniel Baumgarten "International Outsourcing, the Nature of Tasks, and Occupational Stability – Empirical Evidence for Germany“; Ruhr Economic Papers 0108, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen, 2009. [Baumol:72]‡ William J. Baumol: "On Taxation and the Control of Externalities", American Economic Review, Vol.62 no.3, Jun.1972, pp.307–322, JSTOR 1803378 [Basel:06] Basel Committee on Bank Supervision: International Convergence of Capital Measurement and Capital Standards; Bank for International Settlements, June 2006 [Baxandall:12] Phineas Baxandall: Rogues Gallery of Major Corporate Legal Settlements; U.S. PIRG, 17 April 2012. [Baxandall FS:12] Phineas Baxandall, Abigail Caplovitz Field, and Dan Smith: Picking Up the Tab, Average Citizens and Small Businesses Pay the Price for Offshore Tax Havens; CALPIRG, April 2012. Names many companies and has good references. [Baz:09] Aureliano Gonzales Baz: Manufacturing in Mexico: The Mexican In-Bond (Maquila) Program; Banco Nacional de Comercio Exterior, 2009, 9 [Benioff:02]† Marc Benioff: "Salesforce.com: What Economic Downturn?; Destination CRM, www.destinationcrm.com/articles/default.asp?ArticleID=391, January 2002. [Benioff:09] Marc Beniff: Behind The Cloud, the Untold Story of how Salesforce Went From an Idea ... ; 2009. On Kindle [Bennett:11] Alison Bennett: Tax Regulations: 'Mayo' Ruling Raises Bar for Challenges To Tax Regulations, Practitioners Say; BNA Daily Tax Report, 14 Feb.2011. [Bennett:11D] Alison Bennett: IRS Unveils Bonus Depreciation Guidance Giving 2010 Election Flexibility; BNA Software, 30 March 2011. Revenue Procedure 2011-26, IRS offered guidance under the Small Business Jobs Act of 2010 (Pub. L. No.111-240), and the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Pub. L. No.111-312). In general, the two laws extend the time that taxpayers already could take 50 percent bonus depreciation and add additional 100 percent bonus depreciation in some cases. [Bennett:11U] Drake Bennett: “Do the Unemployed Get a Second Act”; Bloomberg Businessweek, 14 Sep.2011. HHHH, WS Taxrates [BennetW:13] Is College Worth it?: A Former United States Secretary of Education and a Liberal Arts Graduate Expose the Broken Promise of Higher Education; Thomas Nelson, 2013. [BenningaS:97]‡ Simon Z. Benninga and Oded H. Sarig: Corporate Finance: A Valuation Approach; McGrawHill, 1997. Gordon Model in Chapter 1. [BerleM:32]Adolf A. Berle, and Gardiner C. Means: The Modern Corporation and Private Property; Macmillan, 1932. Study about economic changes as property becomes primarily owned by corporations. [BerleMWJ:91] Adolf A. Berle, Gardiner C. Means, Murray L. Weidenbaum, and Mark Jensen: The Modern Corporation and Private Property; 1991. [BerleM:32] with a new introduction. [BermanKC:06] Karen Berman and Joe Knight, with John Case: Financial intelligence: A Manager’s Guide to Knowing what the Numbers Really Mean; Harvard Business School Press, 2006. Many warnings on how reports can mislead. [BernardJS:06] Andrew Bernard, J. Jensen and Peter Schott: “Transfer Pricing by U.S.–Based Multinational Firms”; NBER working paper 12493, Aug.2006. Y2000 data. Direct price methods from shipping data. [Bernasek:10E] Anna Bernasek: The Economics of Integrity; Harper Studio, 2010. Have. [Bernasek:10T] Anna Bernasek: “Should Tax Bills Be Public Information?”; The New York Times, 13 Feb.2010. Quotes Kotlikoss, lenterSS [xls/Forest] . [Berndt:91] Ernst R. Berndt: The practice of econometrics; Addison Wesley, 1991. Critical pages on file. Advertsing IP brand less than a year. [Bernstein:03]† Philip Bernstein: Remark at NLM/NSF planning meeting, Bethesda, MD, 3 Feb.2003. [Berry:99] Charles H. Berry: ” Berry ratios, their Use and Misuse”; Journal of Global Transfer Pricing, CCH Kluwers, 1999. [BettendorfEa09] Leon Bettendorf, Michael P. Devereux, Albert van der Horst, Simon Loretz and Ruud A. de Mooij: Corporate tax harmonization in the European Union; CPB Document 133, Netherlands Bureau for Economic Policy Analysis, Nov.2009. Have, EU prefers formulary apportionment to gain a common taxbase: sales, assets, & employment . No harmonized rates. [BettendorfGvdH:06] Leon Bettendorf, Joeri Gorter, and Albert van der Horst: "Who benefits from tax competition in the European Union?“; CPB Document 125, CPB Netherlands Bureau for Economic Policy Analysis, 2006. [BhattacharyaC:89]† S. Bhattacharya and G. M. Constantinides (eds.), Theory of Valuation: Frontiers of Modem Financial Theory, Rowman & Littlefield, Totowa, NJ.. 1989.. [BI:77] Business International: International Licensing: Opportunities and Challenges in World-WideTechnology Management, 1977, p. 121. Newsletters and reports published up to 1986 by Business International Corporation (BI) “a publishing and advisory firm dedicated to assisting American companies in operating abroad”. Not at SUL. Cited by [Caves:83] and [Contractor:81] . [Biddle:13] Sam Biddle : Apple's Irish Tax Stash Is Actually Hidden in New York City; ValleyWag blog, 22 May 2013. [ACM] [BittkerEa:3] Boris L. Bittker et al.: Summary of Testimony of Panelists on tax Reform Topics; House Joint Committee on Internal Revenue Taxation, March 1973, 148 pp. Needless complexity. Depletion, [Bickley:11] James M. Bickley: Tax Reform: An Overview of Proposals in the 112th Congress; Congressional Research Service, R41591, 20 April 2011. [BierceEa:11] Bierce et al.: `Startup America’, A Vision for American Entrepreneurs, What Role Global American Entrepreneurship?; Bierce & Kenerson. Outsourcing-Law.com, 11 Feb.2011. No capital gains tax. Limited to C-corporations. [Bingham:12] Amy Bingham: “Robin Hood Activists Look to Make Fairy Tale a Realty”; ABC News, 19 June 2012. [Birnbaum:06] Jeffrey H. Birnbaum: “Taxing Lessons, 20 Years in the Making”; The Washington Post, 22 Oct.2006. [BirnbaumM:87] Birnbaum and Murray, the tax reform act of 1986. [Birnkrant:10] H. Birnkrant: The Service's Approach to Transfer Pricing Takes a Drubbing from the Tax Court In Veritas; Journal of Taxation , Vol.112 no.4, 2010, page 197. [Bishop:08] Keith Paul Bishop: “Silver Standard”; Los Angeles Lawyer, Nov.2008, pp.32-42. California and Nevada corporate taxes. Nevada has 2.66% of out-of-state corporations, while Delaware has 91% of Calif. Corps, Local Ca. 0.19% only [BittkerEa:3] Boris L. Bittker et al.: Summary of Testimony of Panelists on tax Reform Topics; House Joint Committee on Internal Revenue Taxation, March 1973, 148 pp. Needless complexity. Depletion, [Bivens:11]‡ Josh Bivens: Failure by Design: The Story behind America's Broken Economy; Cornell University Press, Economic Policy Institute, 2011. Bought, past statistics, only vague recommendations. [Bizac:93] Rene Bizac: Transfers of Profits: The New Article 26 of the Belgian Income Tax Code and Article 57 of the French General Tax Code - Siamese Twins? (Part Two); INTERTAX 420, 430, Sep.1993. [Black:96] Fischer Black: Noise; Journal of Finance, July 1986 . Due to noise a range of two can be expected in the market [p.530-533] . [Blagdon:13] Jeff Blagdon: Twitter the latest Company looking to play the tax avoidance Shell game; The Verge, 19 Oct.2013, www.theverge.com/2013/10/19/4854306/.... [ACM]. [BlairM:06] David B. Blair and Dwight N. Mersereau: “Chief Counsel revamps case-specific advice procedures to match LMSB's new enforcement paradigms”; The Tax Executive, July-August, 2006. [Blake:10] Rich Blake: Smaller Fish to Fry – IRS targets self-Employed; ABC News, 9April 2010. $345B. In 2006, the IRS conducted around 1.2 million examinations of individuals who earned less than $200,000; last year, there were around 1.3 million of those types of examinations. Still, roughly 90 percent of the 1.4 million IRS audits conducted in 2009 involved persons earning under $200,000. By comparison, the IRS conducted just 28,349 examinations of individuals who earned more than $1 million. The bulk of the agency's audit resources are allocated to its Small Business/Self Employment division. 150000B for self-employed schedule C filers. [Blessing:09]‡ Peter H. Blessing: testimony, Hearing on Banking Secrecy Practices and Wealthy American Taxpayers; The Subcommittee on Select Revenue Measures of the House. Committee on Ways and Means, 111th Cong. 2, 2009 http://waysandmeans.house.gov/media/pdf/111/pbless.pdf (, Partner, Shearman & Sterling “It never will be possible to eliminate criminal or fraudulent behavior in respect of financial accounts, even such behavior on a very large scale.”). 11 [Block:09] Cheryl D.Block: “Corporate Taxation: Examples and Explanations 4th edition”; Aspen Publishers, 2004. [Bloomberg:12] Bloomberg View: “The Silliness of Soak-the-Rich Schemes”; Bloomberg Businessweek, 23 Mar 2012. Based on HM Treasury study the 50% tax would only collect £2.4 instead of £7.8. Better get original study. 91 [xls/taxproposals] [Bloomquist:03]‡ Kim M. Bloomquist: Tax Evasion, Income Inequality and Opportunity Costs of Compliance; 96th Annual Conference of the National Tax Association, 2003. Senior Economist, Internal Revenue Service Office of Research: widening income inequality contributes to the propensity to evade [Blouin:12]‡ Jennifer Blouin: “Taxation of Multinational Corporations”; Foundations and Trends® in Accounting: Vol.6 no.1, 2012, pp 1–64. http://dx.doi.org/10.1561/1400000017 Location affected by taxation. [BlouinKR:12]‡ Jennifer L. Blouin Linda P. Krull, and Leslie A. Robinson: Where in the world are `permanently reinvested’ earnings?; SSRN 2154662, Sept. 2012; The Accounting Review, Vol.87 no.5, Sept. 2012, pp.1463-1491. Regression on data from 1999 to 2004.. Uses permanent, although indefinitely is actually the expression used, refers to [BlouinKR:12A]‡ [BlouinKR:12A] : Jennifer L. Blouin Linda P. Krull, and Leslie A. Robinson “Is U.S. Multinational Dividend Repatrition Policy Influenced by Reporting Incentives?” [BLS:07]‡ Bureau of Labor Statistics: National Employment and Wage Data Survey; May 2007. [BLS:04?]‡ 4663 jobs lost 1Q94 [BLS:04]‡ News USDL 04-148 BLS releases 2002-12 Employment Projections. [BLS:11] Establishment Data Historical Employment (employees on nonfarm payrolls 1961 to April 2010, administered by states. Minus a prebate mailed monthly. Per {Bartlett:11]‡ a it is a flat like tax at 30% and rebates to individuals. Diatribe. Have. [xls/taxhavens] 91 [xls/taxproposals] [BorstellH:09] Thomas Borstell and John Hobster: 2009 Global transfer Pricing Survey, Tax Authority Insights, Perspectives, Interpretations, and Regulatory Changes; Ernst & Young, Sep.2009, 180 pp. [Boskin:10] Michael J. Boskin: “Time to Junk the Corporate Tax”; Wall Street Journal, 6 May 2010. Based on Robert Lucas. [BoultonLS:00] Richard Boulton, Barry Libert, and Steve Samek: Cracking the Value Code; Arthur Andersen. Harper Business, 2000. Bought on Amazon for $0.01! p.28: A company's value is determined daily as millions of shareholders buy and sell its stock. [BovenbergdM:94] A. Lans Bovenberg and Ruud A.. de Mooij: “Environmental Levies and Distortionary Taxation”; The American Economic Review, 1994, Vol.84 no.4 pp.1085-1089. Based on Baumal, . Considers affect on employment. [BowlesS:10] Erskine Bowles and Alan Simpson (co-chairs): The Moment of Truth; plan by The National Commission on Fiscal Responsibility and Reform, The White House, 9 Dec.2010, 66pp. Deficit reduction. Earmarks 16B 2015. home mortgage about 4% of revenues for individuals. [xls/taxexpenditures] [Bowley:13C] Graham Bowley: “Shaky Agreements Over Fixing the Corporate Tax System”; New York Times, 2 May 2013. [Bowley:13D] Graham Bowley: “In Tax Overhaul Debate, large vs. Small Comoanies”; New York Times, 23 May 2013. [BradfordS:77] David F. Bradford and William E. Simon: Blueprints for Basic Tax Reform; Office of Tax Analysis, US Dep. of the Treasury, 17 Jan.1977. Income , consumption tax. In the model tax system corporate taxation is eliminated, Making C-corporations like S-corporations. Very careful description and discussion of many specific issues. True depreciation is advocated, but would be even harder for intangible assets. [BracewellG:09] Proposed International Tax Reforms Open Critical Debate on Future of U.S. Competitiveness; Bracewell and Giuliani, 26May 2009. Check-the-box [BradfordEa:91] David Bradford (ed): NBER Book Series Tax Policy and the Economy; NBER, Vol.5, 1991. [BradshawP:13] Tim Bradshaw and James Politi: “Tim Cook: Apple’s Quitet leader”; Financial Times; 24 May 2013. Also many related pointers to Cook’s Senate testimony. Video. [Branch:74] Ben S. Branch: "Research and Development and Profits: A Distributed Lag Analysis"; Journal of Political Economy, September-Oct.1974, pp.999-1011. Uses patents as a metric of R&D, lead to short lags fom invention to sales. [Branch:02] Ben Branch: “The Flat Tax: How to Fix It”; Presented to the 1997 Eastern Finance Association meetings; Business Quest; http://www.westga.edu/~bquest/202/flattax.htm>. Useful justification of assumptions. 25%flat for income + SSn 4100 exemption. Taxes currently are NOT really progressive ! (U mass, finance), evasion and avoidance. [BranchC:10] Ben Branch and Cosette Chichirau: "Mispricing versus Risk Premiums in R&D Intensive Firms"; International Review of Financial Analysis. Vol.19, Issue 5, Dec.2010, Pages 358-367. [BranchT:05] Ben Branch and Gary Tameo: "Managing a Pension Plan Shutdown in Chapter 7"; Journal of Corporate Renewal, Vol.18 No.7, July 2005, July 2005, pp.8-13. [BranscombEa:91]† L. Branscomb (chair) et al: Intellectual Property Issues in Software; Computer Science and Telecommunications Board, National Research Council, National Academy Press, 1991, 13 [Brennan:10] Thomas J. Brennan: “What Happens After a Holiday?: Long-Term Effects of the Repatriation Provision of the AJCA”; Northwestern Journal of Law and Social Policy, Spring 2010. Research on repatriation. [BrewerB:09] Mike Brewer and James Browne: Can more income be raised by increasing income tax for the very rich?; Institute for Fiscal studies, 2009, [Browning:09]‡ Lynnley Browning: “A.I.G. Sues U.S. for Return of $306 million in Tax Payments”; The New York Times, 19 March 2009 . Ongoing suit with the IRS. Winning could open a big corporate tax loophole. [Brownlow:03]‡ Graham A. Brownlow: Fiscal Decentralization in Ireland; Instutut de Recherces Economiques et Fiscales (IREF), 2003. [Browning:07] Lynnley Browning: “Gimme Tax Shelter”; The New York Times, 4 Feb.2007, business section. Globalization. Netherlands, musicians. [Browning:07G] Lynnley Browning: “A designer handbag Amid the Briefcases on the Tax Beat”; The New York Times, blog, 31 Aug.2007. Article on Lee Sheppard of Tax Analysts.. [Browning:08]‡ Lynnley Browning: “A One-time tax break saved 843 U.S. Corporations $265B”; The New York Times, 24 June 2008 . [Not cited] [Browning:10] Lynnley Browning: “I.R.S. Shifts to Combat Tax Evasion”; The New York Times, 4 Aug.2010, business section. Centralization for LMSB information. Foreign Account Tax Compliance Act. [Browning:11] Lynnley Browning: “Microsoft’s Use Of Low-Tax Havens Drives Tax Bill to 7 Percent Of Profit”; Reuters / Huffington Post Business, 28 July 2011. Sales 14.4B, 30% increase in after in after- tax profit, 35% gain in earnings per share, 445M in taxes in the US 7% of 6.32 B in pre tax profit. With Dena Aubin, David Cay Johnston, Scott Malone and Bill Rigby, editing by Martin Howell). Puerto Rico: unusual credits. [xls/forest] ..[ACM]. [BruinsESS:23] M. Bruins, M. Einaudi, M. Seligman and Sir Josiah Stamp: Theoretical Study of Double Taxation; for League of Nations, report (document F.19) published in March 1923. [Brynjolfsson:98]† Erik Brynjolfsson and Lorin Hitt: "Beyond the Productivity Paradox"; Communications of the ACM, Vol.41, No.8, August 1998, pp.49-55. [Bucci:03] Alberto Bucci: "R&D, Imperfect Competition and Growth with Human Capital Accumulation“; Scottish Journal of Political Economy, Scottish Economic Society, Vol.vol.50 no.4, 2003, pp.417-439, 2009. Human resources will move to where it is most profitably employed, no tax effects, theroretical. [Buchheit:12] Paul Buchheit: Who Takes the Gold for Tax Avoidance in 2011?; Nation of Change, 9 Apr 2012 15 [Burback:98]† Ron Burback: The Water Sluice Method for Software Development; Stanford University CSD thesis, 1998. [Burman:89]‡ David Burnham: A Law unto Itself: Power, Politics, and the IRS; Random House, 1989. Documents improper behavior, motivated rrestructuring. [Burman:99]‡ Leonard E. Burman: The Labyrinth of Capital Gains Tax Policy; Brookings Institution, 1999. [Burman:03] Leonard E. Burman: Is the Tax Expenditure Concept Still Relevant?; National Tax Journal, Sep.2003. The author is with The Urban, The Tax Policy Center. Georgetown University. [xls/taxexpenditures] [Burman:11] Leonard E. Burman: Tax Reform Options: Marginal Rates on High-Income Taxpayers, Capital Gains, and Dividends; Statement before the Senate Committee on Fianace, 14 Sep.2011. Tax capital gains as income, use revenue to cut corporate tax. Nice graphs. [Burman:99] Leonard E. Burman: The Labyrinth of Capital Gains Policy: a Guide for the Perplexed; The Bookins Institution, 1999. [BurmanGT:08] Leonard E. Burman, Christopher Geissler, and Eric J. Toder: “How Big Are Total Individual Income Tax Expenditures, and Who Benefits from Them?”; American Economic Review, papers and proceedings, Vol.98 no.2, May 2008, pp.79-83. [BurnhamO:05] Paul Burnham and Larry Ozanne: Taxing Capital Income, Effective Rates and Approches to Reform; Congressional Budget Office, Congress of the United States, Oct.2005. Ignores IP, shows strong effect of borrowing versus equity financing. Proposes a.o non-deductabilty of interest and effect on effective tax rates, but not the amount lost. [Burns:12]‡ Alexander Burns: Romney Endorses Ryan Plan; Politico, 20 March 2012. [Bush:05] George W. Bush: President's Advisory Panel on Federal Tax Reform: "Simple, Fair, and Pro- Growth: Proposals to Fix America's Tax System"; 1 Nov. 2005, Doc 2005-22112, 2005 TNT 211-14. Comprehensive Business Income Tax (CBIT) proposal . To be applied to all businesses equally. Corporate intrest would not be deductinble, but taxed at 31.5% Eliminates taxation of dividendsd. Individual interest would not be taxed. [see Sullivan:11] ,[ Gideon:05] [BusinessWeek:05] BW: Taxes: A race to the bottom; 4 April 2005 [Butler:09] Eamonn Butler: "Save the tax havens – we need them"; The Times of London: 4 Dec 2009. [Byrne:12] Janet Byrne (ed.), The Occupy Handbook; Back bay Books, 2012. On Kindle [ByrnesL:03] Nanette Byrnes and Louis Lavelle: The Corporate Tax Game; Business Week, 31 March 2003. Marriott. Limited IRS capability. CCCCCCCCCC [Cairncross:97] Frances Cairncross: The Death of Distance; Orion, 1997. Have. [Camp:11] David Camp: Tax Reform Act of 2011; Ways and Means Discussion Draft, House of Representatives, 26 Oct.2011. Favors territorial taxation [Campbell:92] Charles G. G. Campbell: Availability and Effects of Host Country Transfer Pricing Administrative Rulings (France); Tax Mgm't. Int'l Forum; Vol.13 no.4, 1992. [CampbellW:12] Matthew Campbell and Zijing Wu: “Why Europe’s Tech Firms Love New York”; Bloomberg Businessweek, 9 April 2012, pp.56-57. Price/book value of MSCI US Information Technology Index is 3.7. Information on market to book ratio and IPO’s. 3.7 for MSCI index IT companies. [Canale:09] David Canale et al.: Global Transfer Pricing Survey Findings – Tax Authority Insights; Ernst & Young, Thought Center Podcast, 2 Oct.2009. IRS adding 350 people. Services being finalized. [Cantley:03] Beckett G. Cantley: “Corporate Inversions: Will the REPO Act Keep Corporations from Moving to Bermuda?”; Houston Business and Tax Law Journal, Vol.3, 2003. Available at SSRN: [Caplan:08] Bryan Douglas Caplan The Myth of the Rational Voter: Why Democracies Choose Bad Policies (New Edition) ; Princeton Univ. Press, 2008. [CaplowHW:05?] Theodore Caplow, Louis Hicks, and Ben J. Wattenberg: The First Measured century: An Illustrated Guide to Trends in Amaerica, 1900-2000; PBS. . Includes Middletown study < http://www.pbs.org/fmc/book.htm.> [Carl:06] Walter J. Carl: “What's all the buzz about? Everyday communication and the relational basis of world-of-mouth and buzz marketing practices”; Management Communication Quarterly, Vol.19 no.4, May 2006, pp.601-634. [CarlsonFG:06] Murray Carlson, Adlai Fisher, and Ron Giammarino: Corporate Investment and Asset Price Dynamics: Implications for SEO Event Studies and Long-Run Performance; The Journal of Finance, Vol.61, Issue 3, June 2006, pp.1009–1034. [CarmelA:02] Carmel, E. & Argawal, R. “The Maturation of Offshore Sourcing of InformationTechnology Work”; MISQ Executive, Vol.1 no.2, 2002, pp.65 – 77. Globalization. ??NNNN [CarmichaelEa:09]‡ Philip Carmichael, Brian A. Cromwell, Holly E. Glenn, Robert S. Kirschenbaum, Gregg D. Lemein, Marc M. Levey, Holly K McClellan, Margreet G. Nijhoff, John M. Peterson, and Salim R. Rahim: IRS Issues Long-Awaited Temporay Regulations on Cost Sharing Arrangements; Baker & McKenzie, 12 Jan 2009. Based on investor model issued 2005. uses platform contributions. (PCT) Ersn profit on R&D contribution. Temp. Treas. Reg. § 1.482-7T(c)(5) (Example 2). narrower range of deviations Temp. Treas. Reg. § 1.482-7T(c)(5). (Example 2). Now a finite period. Temp. Treas. Reg. § 1.482-7T(c)(5)(Example 2).. Temp. Treas. Reg. § 1.482-7T(c)(5) (Example 2).. Difference in risk. Moreover, the 2005 proposed regulations provided that external contributions may include an expert R&D team and suggested that an assembled R&D workforce may constitute a valuable intangible. The Preamble to the 2005 proposed regulations stated that “[T] he Treasury Department and the IRS believe that a contribution of such an experienced team in place would result in the contribution of intangible property within the meaning of §1.482-4(b) and section 936(h)(3)(B) (emphasis added).” The temporary regulations do not limit platform contributions that must be compensated in PCTs to the transfer of intangibles defined in section 936(h)(3)(B). If the PCT Payee contributes the services of its research team for purposes of developing cost shared intangibles pursuant to the CSA, the PCT Payor would owe compensation for the services of such team under Temp. Treas. Reg. §1.482-9T. The temporary regulations provide that treatment of the contribution of services of a research team as controlled services is without any inference concerning the potential status of workforce in place as an intangible within the meaning of section 936(h)(3)(B). Thus, the temporary regulations purport to decouple the compensation due for an assembled work force and the finding of an intangible transfer, perhaps recognizing that the definition of intangibles under section 936(h)(3)(B) is not as broad as the IRS might have wished. [Carney:13] Tim Carney: How corporate tax credits got into the `cliff’ deal; Tax Notes. 2 Jan .2013. Refers to the The Family and Business Tax Cut Certainty Act of 2012 [Carr:12]‡ Beth Carr:: Statement to Congress; International Tax Services, Ernst & Young LLP, Permanent Subcommittee on Investigations, U.S. Congress, 20 Sep.2012. Works for HP. [Carroll:32] Mitchell B. Carroll: Taxation of Foreign and National Enterprises; League of Nations Doc. C73M38.1932.II.A, 1932. [Carson:08] Ron Carson: “Intellectual Property Audit and Management”; Chapter 33B in [ParrS:05]‡, 2008 Cumulative Supplement, Wiley 2008. [CarterK:11]‡ Zach Carter and Sara Kenigsberg: Panama Trade Deal Would Undercut Efforts To Get Rich Americans To Pay Taxes; Huffington Post, 9 Aug.2011, also a video, Banking secrecy, $200 to set up a corporation. [xls/taxhavens] [Cassanos:03] Robert Cassanos: “Single Taxation of Publicly Traded Entities”; Tax Notes. Vol.99 June 16, 2003, pp.1663-1681. 17 [Cassidy:11] John Cassidy: “The Demand Doctor”; Annals of Economics, New Yorker Magazine, 10 Oct 2011 – What would John Maynard Keynes tell us to do now – and should we listen? “the main impediment [Cassidy:13] Mike Cassidy: Google sues IRS Over AOL In Today’s A;lphabet Soup Winner; Mercury News, 28 Jun 2013. [Castle:11] Stephen Castle: Europeans Introduce Corporate Tax Plan; The New York Times, 10 March 2011. Tension beween Ireland and the EU n 12.5% taxralte Ch.8. [CavalliSforzaF:81] Luigi Luca Cavalli-Sforza and Marcus W. Feldman: Cultural Transmission and Evolution: A Quantitative Approach; Princeton University Press, 1981. [CavenaughEa:04] John Cavenaugh, Jerry Mander, et al.: Alternatives to Economic Globalization, A better World Is Possible; Report of the International Forum On Globalization, 2nd Ed., Berrett-Koehler, 2004. Have, diatribe. $300B more outsourcing is possible for service jobs per McKinsey. [Caves:82] Richard E. Caves: Multinational Enterprises and Economic Analysis, 1st ed.; 1982 , have 3rd edition. [Caves:07] Richard E. Caves: Multinational Enterprise and Economic Analysis, 3rd Ed ; Cambridge University Press, 2007. Have. Many multinationals exist because of a failure in the market for intangibles. Intra-form transactions are more profitable [CavesCK:83] Richard E. Caves, Harold Crookell, and J. Peter Killing: "The Imperfect Market for Technology Licenses"; Oxford Bulletin of Economics and Statistics, 1983, pp.249-268. many multinationals exist because of a failure in the market for intangibles. Intra-firm transactions are more profitable [CBO:05] CBO: Corporate Income Tax rates: International Comparison; Congressional Budget Office, Congress of the United States, Nov.2005. Shifting sources. Ignores investments in intangibles. Companies will invest in countries with lower taxrates (Chap.6, <10>) benefits of high speed computing and communication. As an example, he sponsored hearings on how advanced technologies might be put to use in areas like coordinating the response of government agencies to natural disasters and other crises . [CeriB:12] Stefano Ceri and Marco Brambilla: Search Computing; Springer MNCS vol 7538, 2012. [CFRB:12]‡ Committee for a Responsible Fderal Budget: Raising Revenues from Higher Earners through Base Broadening; 15 Nov. 2012. Uses TPC data New rates anove 250K inconme. Dividends at 20% from 15% raises $1B/y, $7B/ 10y, at 39.6% versus 20% raises $10B/y,$104B/10y. Capgains 15% to 20% raises $7B, $57B/10y. Versus cap deduction to $25K progressive to $500K = $57B, 91 [xls/taxproposals] [Chaback:07] Patricia Chaback: Industry Directive #1 on Research and Experimentation (R&E) Credit Claims; IRS, 4 April 2007. IRS-RE07 [Chaback:07T] Patricia Chaback: Industry Directive #1 on Transfer of Intangibles Offshore ./ ¶482 Cost Sharing Buy-in Payment; IRS, 2 April 2007. [Chaback:08] Patricia Chaback: Tier 1, IRC 482 Cost-sharing Arrangements with Buy-in Payments; IRS IOE , April 2008. Directs use of cost-sharing per CIP, UIL, and taxregs 482-7. Best Method rule. [ChadwickEa:10]‡ Alex Chadwick, Marcello Distaso, Guilaume Le Camus, Philippe Lion, and Rodrigo Ogea (eds): European Tax Transactions Guide; Baker & McKenzie, Tax Europe, 2010. [Chamberlain:06] Andrew Chamberlain: Twenty Years Later: the Tax Reform Act of 1986; Tax Foundation, The Tax Policy Blog, 23 Oct 2006. [Chambers:10] John Chambers: U.S. Jobs, innovation, Growth and Investment; Cisco Blog, 5 November 2010. 1 Trillion $ offshore. Lobbies for repatriation. Wih Safra Catz of Oracle. It costs the U.SD. taxpayer nothing. Earlier:: “most people forget that in a high-tech acquisition, you really are acquiring only people”i. [ACM]. [Chan:01] Fei Mei Chan: “Generic Drug Firms Compete For Profits”; Forbes magazine , 12 Dec 2001. [ChapotonG:88] O. Donaldson Chapoton and Lawrence B. Gibbs: A Study of Intercompany Pricing; Claitor’s publishing; Discussion Draft, U.S. Treasury Department, 18 Oct.1988. Also referred to as the 1988 White Paper. page 121. Cost sharing was originally viewed as a way to allocate intangible income among related parties without requiring the complex determination of intercompany royalty rates. See also preamble to the 1995 cost sharing regulations. page10: thousands of different transactions. IRS p.14 Acces to pricing information p15: acess to foreigb accounts §982 for summons, p.21 Transfer of know how as services. p.54 Section 367. P:74 Safe Harbor p.109 Risk, History of Cost Sharing On PC Kindle as study of Intercomp00unit.azw. Ordered. Foreign source R&D, Questions validity or arm’s length (Chap.10). [ChatfieldG:73]† C. Chatfield and G.J. Goodhardt: “A Consumer Purchasing Model with Erlang Interpurchase times”; Journal of the American Statistical Association, Dec 1973, Vol.68, pp.828-835. [ChavezTW:98] Andrea Chávez, Catherine Tornabene, and Gio Wiederhold: "Software Component Licensing Issues: A Primer"; IEEE Software, Vol.15 No.5, Sept-Oct 1998, pp.47-52. [ChenWS08] Roger C.Y. Chen, Chao-Shi Wang, and Ru-Ping Shi:: “R&D intensity and the performance of IPOs “;International Journal of Innovation and Learning, Vol.5, no.3, 2008, pp.241-254. [ChennellsG:97] Lucy Chennells and Rachel Griffith Taxing profits in a changing world; London: Institute for Fiscal Studies, 1997. [Chittum:10] Ryan Chittum: “How 60 billion are lost in tax loopholes”; Bloomberg Business Week, 21 Oct.2010. based on [Drucker:10b] . [xls/forest] ..[ACM]. [Chittum:11] Ryan Chittum: “GE Flubs a Pushback Against The New York Times”; Columbia Journalism Review, 31 March 2011. ..[ACM]. [ChoiSW:97] Song-Yong Choi, Dale O. Stahl, and Andrew Whinston: The Economics of Electronic Commerce; Macmillan, 1997. [ChoiH:04] Eun Kwan Choi and James Hartigan (eds.): Handbook of International Trade, Vol.1; Basil Blackwell, 2004. don’t have? 19 [ChoiH:05]‡ Eun Kwan Choi and James Hartigan (eds.): Handbook of International Trade, Vol.2; Basil Blackwell, 2005. have. Disconnect of law and economics. [Clark:07] Gregory Clark: A Farewell to Alms: A Brief Economic History of the World; Princeton University Press, 2007, ISBN: 978-0-691-12135-2. [ClarkSP:99] Richard A. Clark, Hy Sanders, and Lawrence D. Powell: Global Transfer Pricing; TALS, Deloitte & Touche, Oct.-Nov.1999, pp.13-20. See D&T. [ClarkSP:99] Richard A. Clark, Hy Sanders, and Lawrence D. Powell: Global Transfer Pricing; Deloitte & Touche, October-November 2009, pp.13-20. [Clement:10] Douglas Clement (ed.): Interview with Robert Hall, 16 March 2010; The Region, The Federal Reserve Bank of Minneapolis, 10 June 2010. [Clevenger CS:03] Novella Clevenger, Martha Crumpacker, and Ray Siehndel: Corporate Inversion: A Symbol of a Changing Paradigm of Corporate Behavior? Balancing Global Competitiveness, Fiduciary Duty, and Ethical Behavior; Washburn University Working paper series no.2 - Nov.2003. [ClintonG] William Clnton and Albert Gore: Reinventing Envisonmental Regulations; EPA, 1995. [ChristensenCN:01] K. Christensen, R. Cline, and T. Neubig: “Total corporate taxation: `Hidden’”; National Tax Journal, Sep.2001, Vol.54 no.3, pp.495-506. above-the-line, non-income taxes [ChristensenR:03] Clayton M. Christensen and Michael E. Raynor: The Innovator's Solution: Creating and Sustaining Successful Growth; Harvard Business school, 2003. [Christians:09] Allison Christians: “Sovereignty, Taxation, and Social Contract”; Minnesota Journal of International Law, Vol.18, August 2009, p.99. < http://ssrn.com/abstract=1259975>. Global vs national issues. US tax initiatives, OECD. Good citations. Sovereign countries have the right not to tax. [Christians:10]‡ Allison Christians: Taxation in a Time of Crisis: Policy Leadership from the OECD to the G20; 5 Nw. J. L. & Soc. Policy. 2010, p.19, [Clarke:76]‡ Darral Clarke: Cumulative Advertising Effects, Sources and Implications, Report no.77-111, 1977, Marketing Science Institute, 1976. IP life, measuments varied from 1.3 to 1368 months, cigarettes 17-677 month, also to 90 total. [Clarke:99] William Clarke: How the City of London Works; Sweet and Maxwell, 1999. [ClarkEa:02] Richard A. Clark, Hy Sanders, and Lawrence D. Powell: "The Arm's length Standard"; Deloitte & Touche, Washington National Transfer Pricing Team, Washington DC, 2Q2002; Review of IRS procedure 2002-52. 21 [Coglianese:11] Cary Coglianese: Federal Agency Use of Electronic Media in the Rulemaking process; Final Report to the Adminstrative Conference of the United States, Dec 2011; also “Enhancing Public Access to Online Rulemaking Information”; Michigan Journal of Environmental and Administrative Law, 2012. [Coglianese:11] Cary Coglianese: “Federal Regulations: Let's Review the Rules”; Los Angeles Times, 29 April 2011; RegBlog, Univ.of Pennsylvania Law School, 29 April 2011. [Coglianese:12] Cary Coglianese: Regulatory Breakdown: The Crisis of Confidence in U.S. Regulation; University of Pennsylvania Press, 2012. Have. Pigouvian taxation. 2Taxes vs. subsidies p.156. [Coglianese:12E] Cary Coglianese: “Enhancing Public Access to Online Rulemaking Information,” Michigan Journal of Environmental and Administrative Law, 2012. [CoglianeseK:07] Cary Coglianese and Robert A. Kagan: Regulation and Regulatory Processes; Ashgate, 2007. [CoglianeseN:01] , Cary Coglianeseand Kalypso Nicolaidis: “Securing Subsidiarity: The Institutional Design of Federalism in the United States and Europe”; in Kalypso Nicolaidis and Robert Howse (eds): The Federal Vision:Legitimacy and Levels of Governance in the United States and the EuropeanUnion, Oxford University Press, . 2001. [CohanA:12] William D. Cohan and Jonathan Alter: “A fair and Balanced Plan for Eliminating the Corporate Income tax”; Bloomberg Businessweek, 25 June 2012. [Cohen:11] Norma Cohen: Multinationals face more tax audits; Financial Times, 3 May 2011. [Cohn:12]‡ Michael Cohn: IRS Commissioner Shulman Addresses Tax Delays; Accounting Today, 22 Mar. 2012. Too may temporary provisons in the tax code.Bush tax cuts undecided. 2012 Budget cit by $300M [CohnC:11] Peter Cohn and Mathew Caminiti: The Multinational Advantage; Bloomberg Businessweek, 20 and 24 Jan 2011. Uses data from [MarkleS:09]‡ North Carolina study. [Collier:10, Paul Collie: The Plundered Planet; Oxford University Press, 2010. [Collier:10W] Paul Collier: The political Econmy of Natural Resources; Social Research, Vol.77 no.4 Winter 2010: , professor of economics, Oxford University, and Michael Spence, 2001 Nobel Laureate in economics . “‘Currently there is both an agency problem – ministerial corruption – and an information asymmetry: companies know better than governments what rights are worth. The consequences are often grotesque… In 2006 the Democratic Repub?> [Collins:11D] Chuck Collins: Stop Corporate Tax Dodging: Talking Points and Background Information; Institute for Policy Studies, 23 Mar.2011. Picture of Ugland house [Collins:11I] Lauren Collins: “House Perfect, is the IKEA concept comfy or creepy?”; The New Yorker magazine, 3 Oct.2011. Includes IKEA’s tax avoidance. [CollinsS:99] Julie H. Collins and Douglas B. Shackelford: Corporate Domicile and Average Effective Tax Rates; in [Slemrod:99] . Canada, Japan, UK, US. Does not consider Tax havens [Compustat:98]‡ Compustat: Tools for Tranfer Pricing Analysis Developed by the APA program, 5 Mar.1998. [Compustat:04] Compustat: Financial Results of Companies in SIC code 7372 for 1999 to 2002; obtained Nov.2004. [Conard:12] Edward Conard: “Unintended Consequences: Why Everything You’ve Been Told About the Economy Is Wrong”; Portfolio, 2012. Bain Capital participant [Conason:11] Joe Conason: Exclusive: John Kerry Says "Chinese Are Laughing All The Way To The Bank" Over Prospect Of U.S. Credit Downgrade; National Memo, Thu, 07/28/2011 - 5:15pm [ConconiPR:07]‡ Paola Conconi, Carlo Perroni, and Ryamond Riezamn: Is Partial Tax Harmonization Desirable?; European Center for Advanced Research in Economics and Statistics (ECARES), March 2007. [ConnerS:09] Patrick D. Conner, E. Andrew Southerling: New SEC Chairman Mary L. Schapiro Pledges Swift and Vigorous Enforcement; Morgan Lewis Litigation Practice, 12 feb 2009 [ConnicM:83] Connick v. Myers: 461 U.S. 138; United States Supreme Court 461 U.S. 138; 1983, 23 [Cowen:11G] Tyler Cowen: The Great Stagnation: How America Ate All The Low-Hanging Fruit of Modern History, Got Sick, and Will (Eventually) Feel Better; A Penguin eSpecial from Dutton [Kindle Edition] 2011. In Kindle [CowenT:11] Tyler Cowen and Alex Tabarrok: Modern Principles, Macro Economics, 2nd Ed.; Worth Publishers, 2011. Easy reading, have. Low level expectations. New Philosophy? Nothing on intangibles or taxhavens. [Cox:11] Patrick Cox: Taxmasters: We solve your Tax problems; [Cusumano:04] Michael A. Cusumano: The Business of Software; Free Press, 2004. Excellent review, with numbers and graphs. Favors synchronize and stabilize approach to software creation. [Cyprus:11] Cyprus tax: Taxation of Interest, Dividends and Capital Gains in Cyprus; DDDDDDDD [Dagan:00] Tsilly Dagan (Bar Ilan School of Law): The Tax Treaties Myth; NYU Journal of International Law and Politics , Vol.32, Oct.2000, p.939-996. 25 [DanowitzEa:12] Andrew Danowitz, Kyle Kelley. James Mao, John P. Stevenson, and Mark Horowitz: CPU DB: Recording Microproecessor History; CACM Vol.55 No.4, April 2012. [DarbyL:07] Joseph B. Darby IIII and Kelsey Lemaster: Double Irish More than Doubles the Tax Savings”; Practical US/International Tax Strategies, WorldTrade Executive, Vol.11 No.9, 15 May 2007. [dAroma:27] Pasquale d’Aroma, chair Committee of Technical Experts on Double Taxation and Tax Evasion: Double Taxation and Tax Evasion; League of Nations report G.261 M85, 1927.II. Geneva, April 1927, scanned and re-typeset by Michel J. McIntyre, 8 Feb.2004 at the University of Michigan. Section I, Impersonal taxes Article 4.Income from shares or similar interests shall be taxable in the State in which the real centre of management of the undertaking is situated. Article 5.Income from any industrial, commercial or agricultural undertaking and from any other trades or professions shall be taxable in the State in which the persons controlling the undertaking or engaged in the trade or profession possess permanent establishments. ... The real centres of management, affiliated companies, branches, factories, agencies, warehouses, offices, depots, shall be regarded as permanent establishments. Should the undertaking possess permanent establishments in both Contracting States, each of the two States shall tax the portion of the income produced in its territory.The fact that an undertaking has business dealings with a foreign country through a bona fide agent of independent status (broker, commission agent, etc.), shall not be held to mean that the undertaking in question has a permanent establishment in that country. Should the undertaking possess permanent establishments in both Contracting States, each of the two States shall tax the portion of the income produced in its territory. Article 7. Salaries, wages or other remuneration of any kind shall be taxable in the State in which the recipients carry on their employment. Salaries of officials and public employees who are serving abroad shall, however, be taxable in the State which pays these salaries. [DARPA:07] DoD: Research, Deve,opment, Test, and Evaluation, Vol.1 Defense Advanced Research Projects Agency; Budget, Feb.2007. [DauchyN:09] Estelle Dauchy and Tom Neubig: "President Obama's Business Tax Proposals: Industry Effects"; Tax Notes, 19 Oct. 19, p. 314. Doc 2009-21147, or 2009 TNT 202-8 . Ernst & Young LLP Quantitative Economics and Statistics calculations. U.S.-headquartered global companies pay a little more than half of the total U.S. corporate income taxes. Quotes rules for new Japan deduction. [Daum:01] Juergen Daum: The New DASB rules for reporting in Intangible Asset – The U.S. Versus the European way; The new New Economy Analyst Report, 10 Nov.2001. Scandinavian countries report IP. [Davidoff:11] Steven M. Davidoff: DealBook: The Benefits of Incorporating Abroad in an Age of Globalization; The New York Times, 20 Dec.2011. The successful public offering of Michael Kors Holdings offers a case study on how globalization increasingly allows companies to avoid taxes and regulation in the United States. JPMorgan Chase estimates that American multinationals have $1.375 trillion in cash sitting overseas. [ACM] [Davidson:11]‡ Adam Davidson: “Can Anyone Really Create Jobs?”; The New York Times, 3 Nov. 2011. [Davidson:12] Adam Davidson: “The Purpose of Spectacular Wealth, According to a Spectacularly Wealthy Guy”; The New York Times, 1 May 2012. Preview of Conard, defending the 1%. [Davis:09] Manny Davis: Symantec Wins Tax case – Not responsible for IRS Back Taxes ; BackTaxHelp.com , 11 Dec.2009, retrieved 11 Oct 2011. $545M savings. [xls/forest] [DavisRKM:11] Benjamin Davis, Elizabeth Ridlington, Gary Kalman, and Jeffrey Musto: "Tax Shell Game: How much did Offshore Tax havens Cost you in 20102?"; U.S. Public Research Interest Group , 18 April 2011. http://www.uspirg.org/reports/usp/tax-shell-game-how-much-did- offshore-tax-havens-cost-you-2010>. Annual loss is $100B. Tax Evasion: Tens of Billions in Taxes Avoided Through Offshore Activity, Havens, U.S. PIRG Says. [xls/taxrates] [DavisM:97] Shelley L. Davis and Mary Matalin: Unbridled Power: Inside the Secret Culture of the IRS. Harper Collins, 1997. ISBN 0-88730-829-5. Former IRS historian. [DavydenkoSZ:12] Sergei A. Davydenko, Ilya A. Strebulaev, and Xiaofei Zhao: , A Market-Based Study of the Cost of Default; to appear, 2012. University of Toronto, Rotman School of Management (D&Z), Stanford University, Graduate School of Business, and NBER (S) [deGrootE:11] Gaby de Groot and Siem Eikelenboom: “Fiscale BV’S onder de loep genomen”; Het Financieele Dagblad, 19 Jan.2013. Problems with resolving Enron’s bankrupt shell operations in the Netehrlands, Enron used Dutch rulings to avoid reporting. Chnges as of 2004. But still, shells gew from 9000 in 2004 to 1400 in 2010. Dutch report due in march/April 2013. [DeHoon:12] Iven de Hoon: Tax advice is our passion, our passion is your benefit; Brochure, Antwerp, Belgium. 2012. Straightforward information on Hong Kong, Curacao, Isle of Man, Luxembourg. [delaVega:1668] Joseph Penso de la Vega: Confusión de Confusiones; 1668, reprint Wiley, 1996. The stock market, trading in shares of the second multinational, after the British East India Company. [DelMonte:10] James Del Monte: IT Employer Information, Cost of Hiring/Turnover (CoH); JDA professional Services, 2010, 27 [Denning:12]‡ Peter Denning: “The Idea Idea”; Communications of the ACM; Vol.55 No.3, March 2012, pp.30-32. [Denning:12M] Steve Denning: What Every Compamy Must Understand; Forbes, 8 Aug.2012. Comment on[ Rubin:13] Scrum book. “All firms are software firm nowe” [Denning:13C] Steve Denning: Did Ronald Coase Get Economics Wrong; Forbes, 25 Sep..2013. Now we have the creative econmy. .Cites Andrew Hill (no, due to C-suite compensation, Oligogolies, getting government breaks, finacial engineering, hiding low RoI), Vitari (yes, diseconomies), Hagel (scalable learning, decentralize organizations around employees, needs paradigm shift) , Roger Martin (distinguishes algorithmic versus heuristic work – requring smarts, often from external Sources) [Denniston:11P] Lyle Denniston: Argument preview: Corporate “personhood” – again; 18 Jan.2011. [DesaiFH:04W]‡ Mihir A. Desai, C. Fritz Foley, and James R. Hines Jr. "Foreign Direct Investment in a World of Multiple Taxes“; Journal of Public Economics 88 no.12 (Dec.2004): 2727-2744. (This paper is a revised version of HBS Working Paper 03-047 and NBER Working Paper no.8840.) [DesaiFH:05D] Mihir A. Desai, C. Fritz Foley, and James R. Hines jr.: "The Demand for Tax Haven Operations“; Journal of Public Economics, Vol.90, Elseviers, Feb.2006, pp.513-531; SSRN No.593546, March 2005. Who uses taxhavens?. Multinationals, companies with R&D. does not distinguish types of taxhavens. [DesaiFH:05E] Mihir A. Desai, C. Fritz Foley, and James R. Hines jr.: “Do Tax Havens Divert Economic Activity?”; Economics Letters, Vol.90, Elseviers 2006, p.219-224. [DesaiFH:05I]‡ Mihir A. Desai, C. Fritz Foley, and James R. Hines Jr. "Foreign Direct Investment and the Domestic Capital Stock“; American Economic Review Vol.95 no.2, May 2005, pp.33-38. [DesaiFH:06A] Mihir A. Desai, C. Fritz Foley, and James R. Hines jr.: "Taxation and Multinational Activity; New Evidence, New Interpretations“; Survey of Current Business, Vol.82 no.6 Feb.2006, pp.16-22. Indirect foreign taxes do not receive tax credit. [DesaiFH:06E] Mihir A. Desai, C. Fritz Foley, and James R. Hines jr.: "Do Tax Havens Divert Economic Activity?“; Economics Letters, Vol.90, Elseviers 2006, p.219-24; also Ross School of Business Working paper Series no.1024S, University of Michigan; SRN No.704211, April 2005. Increases FDI in other offshore activities. [DesaiFH:07] Mihir A. Desai, C. Fritz Foley and James R. Hines jr.: "Economic Effects of Dorgan, Levin, & Feingold, Deficit Reduction. Senate Bill 110, Subtitle B, Section 212. R 25 Jan.2007. 29 19.8%Japan 36%, Canada 25.7% US 34.98, India 29.5Germany 27% UK.26.3%. Still based on reported taxable earnings. [Dey:89] Richard Morris Dey: In the Way of Adventure: The Story of John Caldwell and Palm Island; Offshore Press, 1989, 35pp.Out of print. [Dharan:02] Bata G. Dharan: Enron’s Accounting Issues – what we can learn to Prevent Future Enrons; Testimony prepared to US House Energy and Commerce Committee’s Hearings on Enron’s Accounting, Feb.2002. [DharmapalaH:06] Dhammika Dharmapala and James R. Hines jr.: Which countries became Tax Havens? National Bureau of Economic Research, 2006, Cambridge; revised May 2009. [Dharmapala:08] . Dhammika Dharmapala: “What problems and opportunities are created by tax havens?”; Oxford Review of Economic Policy, Oxford University Press, 2008. [DharmapalaFF:09] Dhammika Dharmapala, C. Fritz Foley, and Kirstin J. Forbes: `Watch what I do, Not what I say’: The unintended Consequences of the Homeland Investment Act; NBER working paper 15023, June 2009. HIA is an alternate for the AJCA. $300B repatriated the same amount paid out in dividends. [DiamondZ:08] John W. Diamond and George R. Zodrow (eds): Fundamental Tax Reform: Issues, Choices and Implications; MIT Press, 2008. Foreword by James Baker III. Have. [DickinsNW:05] Denise Dickins, Thomas G. Noland, and Kenneth M. Washer: “Primer on Partnership- Compensation Models”; The CPA Journal, Aug.2005. [Dijkstra:72]† O. J. Dahl, E. W. Dijkstra, and C. A. R. Hoare, Structured Programming, Academic Press 1972. [Dingh:10] Leuyen Dingh: Transfer Pricing: IRS Disagrees With Tax Court's Findings, Legal Interpretations in 'Veritas' Ruling; BNA Daily Tax Report, 12 Nov.2010. [DinopoulosT:99] Elias Dinopoulos & Peter Thompson:. "Scale effects in Schumpeterian models of economic growth“; Journal of Evolutionary Economics, Springer, Vol.9 no.2, , 1999, pp.157-185. [DinopoulosS:99] Elias Dinopoulos, and Paul Segerstrom: "The dynamic effects of contingent tariffs“; Journal of International Economics, Elsevier, Vol.47 no.1, , Feb. 1999, pp.191-222. [Dionne:12] E.J. Dionne: Ideological Hypocrites; The National Memo, 20 Feb.2012. Earmarks and bailouts. [Ditmer:11] Philip Dittmer: "U.S. Corporations Suffer High Effective Tax Rates by International Standards"; Tax Foundation Special Report No.195, Sep.2011. [Doebele:04] Justin Doebele: “Flex Forward: Flextronics' Michael Marks says that outsourcing can only get much, much bigger”; Chief Executive, 1 July 2004. [Doernberg:08] Richard L. Doernberg: International Taxation in a Nutshell, 8th edition; Thomson West Law, 2008, 612pp.On Kindle [Doggart:02] Caroline Doggart: Tax Havens and Their Use; Economist Intelligence Unit, 2002. Quotes Powell defintiom. [Dohmen:09] Joep Dohmen: “Multinationals betalen vrijwel geen belasting”; NRC Handelsblad, 21 Feb.2008, updated 25 Nov.2009, [Dooley:11] Brian Dooley: International Taxation in America; Authorhouse, 2010. Non-professional writing. [Dorgan:07] Dorgan et al.: US senate Deficit Reduction Bill of 2007, Senate Bill 681, Subtitle B, S. 212, 110th Cong., 1st Sess. 2007. Radical changes of legislation are being proposed to change taxation rules for CFCs both within countries, as the U.S., and among OECD members. [DossaniK:??] Rafiq Dossani and Martin Kenney: “The relocation of Service provision to Developing Nations, The Case of India”; pp.193-217. Year? [DoT:07] Department of the Treasury: Treasury Conference on Business Taxation and Global Competitiveness; background paper, 23 Jul.2007, 54pp. 31 [Drum:11] Kevin Drum: Chart of the Day, Corporate Taxation in America; Mother Jones, 17 Nov, 2011. Chart used in Ch10.3 [DuhiggB:12] Charles Duhigg and Keith Bradsher: How the U.S. Lost Out On iPhone Work, Apple’s Experience Shows Why Jobs Are Flowing to China; The New York Times, Economic View 22 Jan.2012. [ACM] [DuhiggK:12] Charles Duhigg and David Kocieniewski: How Apple Sidesteps Billions in Taxes; The New York Times, 28 April 2012. [xls/forest] [ACM] [DukeU:13] Simon Duke and Jon Ungoed-Thomas: “Google insider exposes ‘immoral’ tax scam”; The Sunday Times, 19 May 2013. Barney Jones: UK deals were booked in Dublin..[ACM]. [Dumagan:95] Jesus C. Dumagan: Examining the Cost-Effectiveness of the Research and Experimentation Tax Credit; Office of Business and Industrial Analysis, US Department of Commerce, June 1995. Corporate R&D spending increased by $2 for every $1 tof tyax credit. Excludes work done outside the US governmental sponsored research, and social sciences research. [xls/taxexpenditures] [Dunn:11] Catherine Dunn: Greenlining Institute Report Looks at Effects of Corporate Tax Havens; Corporate Counsel Magazine, 29 July 2011. Based on [KangN:11] report . data on repatriation sources, subsidiearies companies. Used Federal contract obligations can be found at USA Spending, www.usaspending.gov NNNNN [DunneHT:96] Timothy Dunne, John Haltiwanger, and Kenneth R. Troske: "Technology and Jobs: Secular Changes and Cyclical Dynamics“; NBER Working Papers 5656, National Bureau of Economic Research, Inc. , 1996. ; Working Papers 96-7, Center for Economic Studies, U.S. Census Bureau; Carnegie-Rochester Conference Series on Public Policy, Elsevier, Vol.46 no.1), pp.107- 178, June. [DuPont:79] E.I. DuPont de Nemours & Co. v. United States, 608 F.2d 445 (Ct. Cl.1979). The basis for use of the Berry ratio. [Durden:10] Tyler Durden: HR 2487 = Capital Controls Act (Read Subtitle A—Foreign Account Tax Compliance); 29 March 2010 , http://www.picassodreams.com/picasso_dreams/2010/03/hr- 2487-capital-control-act-read-subtitle-aforeign-account-tax-compliance.html. [DurlaufB:08] Steven N. Durlauf and Lawrence E. Blume: The New Palgrave Dictionary of Economics, 2nd edition” ; 8 Vol.set, Palgrave MacMillan, 2008; also available on-line at [Dyson:12] George Dyson: Turing’s Cathedral, The Origins of the Digital Universe; Pantheon, 2012. EEEEEEEEE [E:09] Lean Startup: Debunking Myths of Entrepreneurship; Stanford Video 4:28min 30 Sep 2009. [E&Y:xx] Ernst & Young License Agreement Library. [EatwellMN:89] John Eatwell, Murray Milgate, and Peter Newman (eds.): Money; The New Palgrave; W.W. Norton Publishers, 1989.330pp. Excerpt of a 4-Vol.Dictionary of economics. About 40 entries, most around 5 pages, Friedman has 40 pages. Classical macroeconomics”. [EatwellEtAl:89] John Eatwell et al. (eds.): Finance: The New Palgrave; W.W. Norton Publishers, 1989.Excerpt of a 4-Vol.Dictionary of economics. 1300 entries. Classical macroeconomics”. Recent The fall and rise of Keynesian Economics? 2011“ 25 books total. [Ebert:11} Natalie Ebert: Netherlands Antilles; 33 [Economist:12T] Economist: Another Game of Thrones; Economist, 1 Dec.2012. Google, Apple, facebook and Amazon. [Economist:13] Economist: Tax havens, The missing $20 trillion, How to stop companies and people dodging tax, in Delaware as well as Grand Caymans; Economist special report, 16 Feb.2013. Ten articles: Storm survivors; Enduring charms; The good, the bad and the Ugland; Not a palm tree in sight; Automatic response; The price isn’t right; The merry enablers; Rise of the midshores; Who’s the criminal?; Sunshine and shadows. Excellent bibliography. [Economist:13C] Economist: After the personal computer; The Economist, 6 Jul.2013, pp.60-61. Useful quantitative data about the PC industry, Taiwan, China, and the move to mobile. [Economist:13M] Economist: plumbers in suits; The Economist, 6 Jul.2013, pp.63-64. Markit, a company controlled by banks, serving banks. Tried to buy LCH.Clearnet in 2011. [Economist:13P] Economist : “The new American capitalism_ Rise of the distorporation; The Economist, 26 Octl.2013, pp.63-64. The rise of Master Limited Partnerships, which are able to circumvent rules placed on cporoporations. Another reason for abloshing corporate taxation [Ch10.5] [EdenK:05] Lorraine Eden and Robert T. Kudrle: “Tax Havens: Renegade States in the International Tax Regime”; Law & Policy, Vol.27 no 1, January 2005, pp.100-127. On subpart F [Edgar:10] U.S. Securities and Exchange Commission: Company Search; [ElitzurM:96] Ramy Elitzur and Jack Mintz: “Transfer Pricing Rules and Corporate Tax Competition”; Journal of Public Economics,Vol.60 no.3, 1996, pp.410-422. [Elias:11] Christopher Elias: MF Global and the great Wall St re-hypothecation scandal; Thomson Reuters News & Insight, 12 July 2011. Earlier in Thomson Reuters’ Business Law Currents, [Elliott:12D] Justin Elliott: when the GOP Tried to ban Dark Money; proPublica, 8 March 2012. Quote in comment: John - Walter, you’re right on target regarding the founders, but metaphors aside, money is not speech. Especially in a world that includes the Internet and volunteers, it’s entirely feasible to put a strict limit on campaign spending across multiple organizations. And whether or not a corporation is a person, it absolutely isn’t a citizen, and we explicitly ban non-citizens from political speech to sway campaigns. So the infrastructure already exists to limit any of these corporate entities the way we’d limit a Chinese millionaire. [Elliott:12] Amy Elliott: International Practice Networks Differ from Issue Practice Groups, Danilack Says; BNA Daily Tax Report, 4 Oct..2012. [Ellis:77] Arthur K. Ellis: Elementary Social Studies, 6th edition; Allyn & Bacon 1977. Source for some quote. [Elsayyad K:11] May Elsayyad and Kai A. Konrad: Fighting multiple tax havens. Journal of International Economics, 2011. [Engle:96] L. Eric Engle: Law and Economics; J. Jurispridence, Elias Clark, Australia publ., Vol.32, 2009, p.61. Sect. III.critiques [Posner:81] . [Ensinger:10] Dustin Ensinger: Multinational Corporations Creating Jobs...Overseas; Economy in Crisis, 4 Nov.2010. Based on [Sulivan:10] Tax Notes. [xls/GNP&GDP [EntinM:12] Stephen Entin and Will McBride: Simulating the Economic Effects of Romney’s Tax Plan; Tax Foundation Fiscal Fact No.330, 3 Oct.2012. http://taxfoundation.org/article/simulating- economic-effects-romneys-tax-plan. Data in HMAT [xls/taxproposals] [Erb:13] Kelly Phillips Erb: “How Twitter Hopes to Reduce Its Tax Bill (in 140 charckters or less”; Forbes, 19 Oct.2013. [ACM] [Erlich:94] Jacob Erlich: "Royalty Rate Basics for U.S. Transactions"; Les Nouvelles, Licensing Executive Society, June 1964, pp.86-88. See 35 [EU:03]‡ Council of the European Union: Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments; [EU:08} Council of the Eurpean Union: Proposal for a Council Directive amending Directive 2003/48/EC on taxation of savings income in the form of interest payments; 23 Nov.2008. [EU:10]‡ [xls/GNP&GDP [Everson:11] Mark W. Everson: “Lawyers and Accountants Once Put Integrity First”; The New York Times, 18 June 2011. See [Barnes:11] [EzraitiMcM:12]‡ Lester Ezrati and John N. McMullen: Statement to Congress; Senior Vice Presidents Hewlett-Packard Company, Permanent Subcommittee on Investigations, U.S. Congress, 20 Sep.2012. HP has 320,000 employees, 80,000 in US. 10.3B us wages. $3.3B R&D, 2/3 in US. ETR 21.2% 656 role of alternating short term loans. $1.9B average. 9% of capital. Rule avoisds BCC Belgian coordination center is its bank, also has a similar Cayman subsidiary. Reasons fro indefintly reinvested. Indefinte reinvestment APB 23 temporay outside basis differences, has an exceptions. Section 956. FFFFFFFFF [F ... ] are references to Appendix F, Formulas in [W:13] Gio Wiederhold: Valuing Intellectual Capital, Multinationals and Taxhavens; series Management for Professionals, Springer Verlag, New York, to appear 2013. [FaderHH:03]† Peter S.Fader, Bruce G.S. Hardie, Chun-Yoa Huang: A Dynamic Changepoint Model for New Product Sales Forecasting; Wharton School of Business, Univ. of Pennsylvania, On-line reports, July 2003. [Faiferlick:01] Christopher J. Faiferlick: Transfer Pricing of Computer Programs; Chapter 45 in [Feinschreiber:01] Transfer Pricing Handbook, 3rd Edition, Wiley, 2001. [Faiferlick:06] Chris Faiferlick, Robert Miall, And Paul Balkus: Response of members of Ernst & Young’s Global Transfer Pricing Team to the OECD’s Invitation to Comment on Transactional Profit Methods; OECD, Paris, 2006. In [OECD:06] In OECD: TransactionalProfitMethods- ResponsesToTheOECD InvitaiontoComment. [Fallon:12] Padraic Fallon; (ed):; Euromoney magazine. On iPad [FamaF:98] E.F. Fama, and K.R. French: “Taxes, Financing Decisions and Firm Value”; Journal of Finance 53, 1998, pp 819-843. Data 1963 to 1998, found that companies that paid dividends provided a higher rate of return. (7.8 % versus 5.4%) than those companies that did not pay dividends. [FarhangDR:07] Ali R. Farhang, Tim Deeter, and Sunit Rikhi: “Co-optimization of Product Design and Semiconductor Process Technology: The Core of a Winning DFM Strategy”; Future Fab International, Vol..22, Chapter 3, 9 Jan. 2007. Design for Manufacturability, Intel’s Tick-Tock approach to the synchronizationof the life cycle. Received from Gupta, Intel Oregon `Fabless does only Tock, using existing libraries’. [Farrell:12] Maureen Farrell: “Calpers: We’re getting even more activist”; CNNMoney, 2 May 2012. [FarrellKS:05] Diana Farrell, Noshir Kaka, and Sascha Stürze: “Ensuring India's offshoring future”; McKinsey Quarterly, Sep.2005. <200,000 jobs gained 2004 by Indian NAS&S companies> [FASB:85] Financial Accounting Standards Board: Accounting for the Costs of Computer Software to be Sold, Leased, or Otherwise Marketed - FAS 86; 1985. The capitalization of external use software development costs is required once functionality is demonstrated. Customer maintenance and support costs for computer software should be expensed when related revenue is recognized or when those costs are incurred, whichever occurs first, of the CICA Handbook) goes further to require the deferment of certain development expenditures. The International Accounting Standard, IAS 9, is generally in line with the Canadian standard with respect to R&D capitalization. [FASB:01] Statement 142: Annual statement required re impaired intangibles 37 [FeldsteinHH:95-1] Martin Feldstein, James R. Hines Jr. and R. Glenn Hubbard eds.: The effects of taxation on multinational corporations; Chicago: University of Chicago Press, 1995. HD2753.A333 ISBN 0- 226-24094-9. [FeldsteinS:78] Martin Feldstein and Joel Slemrod: "Inflation and the Excess Taxation of Capital Gains on Corporate Stock"; National Tax Journal Vol.31, 1978, pp.107–118; [Felt:76] Mark Felt (Deep Throat): Discussion with Bob Woodward; All the President’s Men, Warner Brothers, 1976. True identity on revealed in 2006. [FentonP:92]† Norman E. Fenton snd, Shari Lawrence Pfleeger: Software Metrics; Less (11 pages, 3 pages of criticism: 15, 97,148,259-265, 326, 413-414, 453) on Function Points. See FentonPages.jpg. [Fernandez:09] Pablo Fernandez: “Market Risk Premium Used in 2008 by Professors: A Survey with 1,400 Answers”; SSRN [FisherS:09] William W. Fisher & Talha Syed: A Prize System As A Partial Solution To The Health Crisis In The Developing World ; Discussion Paper No.5 10/2009 Harvard Law School Cambridge, MA 02138. An alternative to patent protection, but the government pays the prize for success. [Fishman:12] Stephen Fishman:: Amortizing Patents. Copyrights and Other Intangible Property; http://www.intellectualpropertylawfirms.com/resources/invention-law/amortizing-patents- copyrights.htm , 2012.. Simplistic, incomplete. [FishmanW:01] Raymond Fishman and ShangYu Wei: Tax rates and Tax Evasion: Evidence from `Missing Imports’ in China; National Bureau of Economic Research (NBER), working paper 8551, Oct.2001. [FlignorO:06] Paul Flignor and David Orozco: Intangible Asset & Intellectual Property Valuation: A Mutidisciplinary Perspective; WIPO , Kellogg School of Business, June 2006. Exclusive licenses. [Folbre:11] Nancy Folbre: Tax Havens and Treasure Hunts; The New York Times , 4 April 2011. Shows Corporate tax revenue/ GDP. [Fornito:05] Roberto Fornito: Haftung imVerein; Müller-Eckstein Rechtsanwälte, Staad, Switzerland, 2005. [Fors:97]‡ Gunnar Fors: “Utilization of R&D Results in the Home and Foreign Plants of Multinationals”; The Journal of Industrial Economics, Vol.45 Issue 3, pages 341–358, September 1997. R&D is used by CFCs, but not the other way around. [Foster:12] Noel Foster: Africa, report 2012. [xls/taxrates] [Fowler:99] Martin Fowler and Kent Beck: Refactoring: Improving the design of existing code;14th edition, 1999, [Fox:09] Justin Fox: The Myth of the Rational Market: A History of Risk, Reward, and Delusion on Wall Street; Harper Business, 2009. On Kindle and hardcover. [Foxman:12] Simone Foxman, 21 mar.2012: Citi’s Chief Econmist Rips the US Tax system For Almost Giving Him `a Nervous Breakdown’” Business insifer, 21.Mar21012. Buiter:12] “Citigroup’s chief economist Willem Buiter said on Bloomberg Radio Tuesday, fiscal policy at the federal level we're talking about now is a complete disaster. “As a U.S. citizen, I had to try and get the data together to give to the person who prepares my tax returns, and I almost had a nervous breakdown collecting the data! The US tax system is completely incomprehensible! My wife and I are both PhD’s in economics—both of us!—and we can’t make head or tails of it.”’ [FPA:11] Fiscal Policy Associates: Developing Consistent Tax bases for Broad-based Reform ; Sep.2011. Also good summary data. Includes a national sales tax. Support for Herman Cain 9-9-9 proposal. Run by Gary Robbins. [Fram:12] Alan Fram: Simpson-Bowles Plan rejected by the House; AP 29 mar 2012? 382-38. [Frank:05] Steven J. Frank: "Source Out, Risk In"; IEEE Spectrum, April 2005. pp.60,62. Outsourcing, Globalization risk. [Frank:11] Robert Frank: Are Taxes Causing the Rich to Renounce Their Citizenship?; The Wealth report, The Wall Street Journal, 13 June 2011. 499 left in 1q2011. No indication if they are rich. [FrankOW:09] Peter B. Frank, Vincent E O'Brian, and Michael J. Wagner: "Patent Infringement Damages"; Chapter 22 in Roman Weil, Michael J. Wagner, and Peter B. Frank: Litigation Services Handbook, 2009 cum. Supplement, Wiley. [FreemanAB:09] Nick J. Freeman, George Abonyi, and Atipol Bhanich Sipapol: Globalization of Production and the Competitiveness of Small and Medium-sized Enterprises in Asia and the Pacific: Trends and Prospects; United Nations Economic and Social Commission for Asia and the Pacific, Studies in Trade and Investment No.65 (ST/ESCAP/2540). 2009. [Friedman:62] Milton Friedman: Capitalism and Freedom, The Distribution of Income; University of Chicago Press, 1962. "All things considered, the personal income tax structure that seems to me best is a flat-rate tax on income above an exemption, with income defined very broadly and deductions allowed strictly for defined expenses of earning income”; [p.174.] . [Friedman:86]‡ Milton Friedman: On the 1986 Tax Reform; Wall Street Journal: 7 July 1986. The end result is a tax system so complex that literally no one can master it in full detail. --From the citizens' 39 point of view, the function of tax legislation is to decide who shall pay how much to finance government spending. But from Congress's point of view, tax legislation has an additional and very important function: It is a way to raise campaign funds. Why is it that hardly a year passes without a new tax bill? The reason is that so long as a tax bill is under consideration, with many billions of dollars at stake, lobbyists are actively pressing for the introduction or retention of special provisions to benefit their clients. And so long as lobbyists are active, thousand-dollar-a- plate dinners and similar devices will tap them for campaign funds. That is why members of Congress put such a high value on being assigned to the Ways and Means or Finance committees. And that is also why Congress has denied the citizenry the benefit of a GGGGGGGGGG [Gabriel:10] Caroline Gabriel: 3G Americas remaned for the 4G era; Retink Wireless, 28 Sep.2010. [Gabriel:11] Trip Gabriel: “Gingrich Strikes Economic Themes in Hitting Romney”; New York Times, 27 Dec.2011. Supply side invokes Arthur Laffer curve , Jude Wanniski [GabrielS:11] Trip Gabriel and Susan Saulny: “With Just Three 9s, Cain Refigured Math for Taxes”; New York Times, 12 Oct.2011. computed by adviser, Rich Lowrie, for Hermann Cain, uses Laffer curve. [Gaetan:06] Nicodaeme Gaetan: "Corporate tax competition and coordination in the European Union: What do we know? Where do we stand?“; European Economy - Economic Papers 250, Directorate General Economic and Monetary Affairs, European Commission, 2006. [Galandak:13] John Glandak: Uncertainty: Good for Science, Bad for Bisiness; Commerece, The Business of New Jersey, www.commercemagnj.com, Jun.2013. .. 23% of small business owners cite taxes as the single most important problem [NFIB].. it costs small businesses 76% more (basis?) yo comply with the tax code than larger competitors, 2 billion hours or ~$18B annually, corporate only would increase taxes paid by individual owners of pass-through usinesses by 8% or $27B annually. 77$% are organized as S-corps, LLCs. LLPs, or Sole Proprietor ships. [Gale:99] William G. Gale: What can America Learn from the British Tax System: in [Slemrod:99] . tax expenditures in the US 1993 $403B, stable laws. The UK provides no tax relief on second homes. Ref to effect of changes in capital gains. [GaleH:10] William G. Gale and Benjamin H. Harris: A Value-Added Tax for the United States: Part of the Solution; Economic Studies, Brookings Institution, 22 July 2010. VAT [GaleH:11]‡ William G. Gale and Benjamin H. Harris: Don’t Fall for Corporate Repatriation; Politico, Brookings Institution, 27 June 2011. 1.5Trillion offshore. [ACM]. [Gale:11O] William G. Gale: The Big Hidden Tax Ideas In Obama’s Budget; Brookings Institution, 22 Sep.2011. Buffet Rule instead of AMT. 28% limit to itemized deduction. Affects excessively high mortgage deductions. No AMT and 30% tax rate for income above $1M, “raising taxes is a better way to control spending -- making the cost of spending clear and current” [Galor:04] Oded Galor: From Stagnation to Growth: Unified Growth Theory; Handbook of Economic Growth, Vol.1, 2004, pp.171-293 . 41 [GAO:08] GAO: Comparison of the Reported Tax Liabilities of Foreign- and U.S.-Controlled Corporations, 1998-2005; Government Accountability Office report GAO-08-957, July 2008. [GAO:08F] GAO: Tax Compliance: Businesses Owe Billions in Federal Payroll Taxes; GAO-08-617, 23 July 2008). uncollectible. gaO noted that the IRS assigned to revenue officers about $7 billion, and about $9 billion remained in the queue awaiting assignment.In addition, GAO’s analysis found that the number of businesses with more than 20 quarters of tax debt (five years of unpaid payroll tax debt) more than doubled between 1998 and 2007 [GAO:09] GAO, International Taxation: Large U.S. Corporations and Federal Contractors with Subsidiaries in Jurisdictions Listed as Tax Havens or Financial Privacy Jurisdictions; U.S. Government Accountability Office report GAO-09-157, Dec.2008, 63pp.Of the 100 largest US corporations 83 have taxhaven subsidiaries. [GAO:12] GAO: Internal Revenue Service, Interim Results of 2012 Tax Filing Season and Summary of the Fiscal Year 2013 Budget Request; US Government Accountability Office report GAO-12-566, 20 Mar.2012, 33pp. 2012 budget %305M less than 2011. Worse performance due to other finding peiorities. Requested increase $944.5M (8%) + 2.5B + 330M for modernization . Reduced performance goals. Data in VIC spreadsheet. [GAO:13] GAO: Corporate Income Tax, Effective Tax rates an Differ Significantly from the Statutory Rate; US Government Accountability Office report GAO-13-520, May 2013, 38pp. 13%, of world- wide, 17% with local taxes, 22.7 with unprofitable filers. [GarciaUW:01]† Hector Garcia-Molina, Jeffrey Ullman, and Jenifer Widom: Database Systems, The Complete Book ; Prentice-Hall, 2001. [GarciaZambranoRG:13] Lidia Garcia-Zambrano, Arturo Rodriguez-Castellanos and Jose Domingo Garcia-Merino: Effect Of Investments On Training And Advertising On The Market Value Relevance Of Intangibles; University Of The Basque Country, Spain, 5th European Conference on Intelectual Capital, Bilbao, April 2013. [GardnerR:98]† William Gardner and Joseph Rosenbaum: Intellectual Property: Database Protection and Access to Information; Science, Vol.281, Issue 5378, pp.786-787 , 7 Aug.1998. [GarmusH:01]† David Garmus and David Herron: Function Point Analysis: Measurement Practices for Successful Software Projects; Addison-Wesley Information Technology Series, 2001. [Garofalo:12] Pat Garofalo: CEOs of Tax Dodging Corporations Want to Cut Their Own Taxes Too; Nation of Change, 15 May 2012. In Obama’s plan for incomes over $250,000. [Gates:98]‡ Bill Gates: "Compete, don't delete"; Economist, 11 June 1998. [Gates:00] Bill Gates: Business @ the Speed of Thought: Succeeding in the Digital Economy; Warner books, 2000. [Gates:04] Bill Gates: "Losses due to copying must be balanced with disincentives and costs of protection methods"; quote during a discussion on "Building Confidence in a Connected Marketplace", 1 Oct 2004, Computer History Museum, Mountain View, CA. [GathmannS:07] Christina Gathmann and Uta Schönberg: "How General Is Human Capital? A Task- Based Approach“; IZA Discussion Papers 3067, Institute for the Study of Labor (IZA), , 2007; Journal of Labor Economics, University of Chicago Press, Vol.28 no.1, pp.1-49, 2010. [GaukeEa:10] David Gauke et al.: Corporate Tax Reform: delivering a more comprehensive System; HM Revenue and Customs, 20 Oct. 2010. Planning By moving to full deductabilty of dividends for corporate profits, territorial taxation becomes closer. But taxhavens can stll be addressed. [Gauzente:02] Claire Gauzente: “Ethical marketing for competitive advantage on the Internet”; Academy of Marketing Science Review, vol.2001 no.10, 2002, http://www.amsreview.org/articles/gauzente10- 2001.pdf. from Sonny Chan CS207. [Gay:02] Joshua Gay: Free Software, Free Society, selected essays of Richard M. Stallman; GNU Press, 2002; reprinted with a foreword by Lawrence Lessig, 2009. Does not try to deal with software in general, but focuses on compilers, editors, and opeationg systems, while implying more [ACM]. [Garst:11] Huntsman Plan Targets Double Taxation. Posted by Brian Garst on Aug.31, 2011; Eliminate The Taxes On Capital Gains And Dividends In Order To Eliminate The Double Taxation On Investment. Capital gains and dividend taxes amount to a double-taxation on individuals who choose to invest. Because dollars invested had to first be earned, they have already been subject to the income tax. Taxing these same dollars again when capital gains are realized serves to deter productive and much-needed investment in our economy. [George:08] J. Russell George: Treasury Inspector General for Tax Administration Seminanual Report to Congress, Oct.2001 –March 2008; Inspector General for Tax Administration, TIGTA, 2008. Focus on intermnal audits. Acount Managment Servives (AMS). Tax gap of self-emplyment tax is $39B! Security. Tax law complexity. Excess IRA contributions. Idnty theft causing misreporting of income. [George:11] J. Russell George: Management and Performance Challenges Facing the Internal Revenue Service for Fiscal 2012; Inspector General for Tax Administration, TIGTA, 14 Oct.2011. Tax l;aw changes, specically from the affordable Health care Act (HHS), includes tax credits. Earned Income Tax Credit EITC payment, Additional Child Tax Credit, Hope Scholarship cridt (dep.education) , Refundable adption credits, Electric vehicle credit (transporation) ,Hombuyer credit, Globalization Holdings have grown from $188B to in 1976 to 14.5T in 2007. Lack of information. Dealing with differing jurisdictions. Focus on-highrisk cases. FATCA, Significant foreign opposition to FATCA. Solution is to withhold 30% of apyments to forieign finacoal institution - but does not address IP. .. Effort needed to implement changes. Hunman capital “attempts by taxpayers and tax practitioners to evade compliance with the tax laws become more sophisticated.” Globalization US businesses from 368B (1996)to nearly 15T (2007) “The IRS is still challenged by a lack of information reporting on many cross-border transactions. In addition, the varying legal requirements imposed by different jurisdictions result in complex business structures that make it difficult to determine the full scope and effect of cross-border transactions.”, “The IRS expects that these efforts will improve international tax compliance by allowing it to focus on high-risk issues and cases with greater consistency and efficiency.”, “Taxpayers with undisclosed foreign accounts and assets who do not submit a voluntary disclosure run the risk of detection by the IRS. If caught, these taxpayers face the imposition of substantial penalties, including the fraud and foreign information return penalties, as well as an increased risk of criminal prosecution. “, “According to the IRS Commissioner, “FATCA is an important development in U.S. efforts to combat offshore noncompliance. At the same time, the IRS recognizes that implementing FATCA is a major undertaking for financial institutions.”1[32] Based on the initial feedback from foreign financial institutions as well as foreign governments, the IRS will continue to face significant opposition from abroad in implementation of this Act.” [GerdesS:09]‡ Lindsey Gerdes and Louis Lavelle: “Best Places to Launch a Career”; Business Week, 14 Sep.2009. [GerthMH:11] Jeff Gerth, Megan Murphy, and Vanessa Houlder: Corporations Couldn’t Wait to `Check the Box’ on Huge Tax Break; Probublica, Nation of Change, 27 Sept.2011. [Gibbs:09] Robert Gibbs: Leveling the Playing Field: Curbing Tax Havens and Removing Tax Incentives For Shifting Jobs Overseas; The White House, 4 May 2009. US multinationals paid 2.3% tax in 2004. [xls/pointers] [Gideon:05] Kenneth W. Gideon: The Comprehensive Business Income Tax; presentation slides, Skadden, Arps, Slade, Megher and Flom, 13 May 2005, 43 [Gigerenzer:08] Gerd Gigerenzer: Gut Feelings: The Intelligence of the Unconscious; Penguin 2008. Behavioral economics is often used as a club to declare that people are irrational. But many forms of allegedly rational behavior are actually efficient. Real people are better at cooperating than Homo economicus. [Gigot:12] Paul Gigot?: Obama’s Dividend Assault; WSJ editorial, 22 Feb.2012. Diatribe.bad arithmetic at 20% actual the shareholder receives 80%, and at 39.6% pays a total 48.3% + 3.8healthcare =52%, much but not 64% now 32% Increase is x 1.63, much, but not 3 x as claimed . Interesting graph. [Gilb:05]† Tom Gilb: Competitive Engineering; Elsevier, 2005. [Gladstone:1898] William Gladstone: Notes from a Diary ; Sir Mountstuart Elphinstone Grant Duff, 1851-1901 (1898), p. 140: To be engaged in opposing wrong affords but a slender guarantee of being right. [Gladwell:07] Malcom Gladwell: Open Secrets; The New Yorker Magazine, 8 Jan.2007; also in What the Dog Saw; Little Brown and Company, 2009. [Gladwell:11] Malcom Gladwell: The Creation Myth; The New Yorker Magazine; 16 May 2011. Xerox, Parc, Apple, and the truth about innovation. [Box] [Glass:98]† Robert L. Glass: In the Beginning: Recollections of Software Pioneers; IEEE Press, 1998. [Glass:98] [Parr:07] . Based on a 1950 study of a Swiss subsidiary of a U.S. company. Three year renewable terms, 20% profit, 5% royalty on revenues. IP was being maintained. Mentions that [Lee:92] , among many others, cites that rule. ] . Fig 3 vs 6 shows general unreliability of royalties based on profit, as [Parr:07 warns] . It appears that the summaries do not consider that many semiconductor products require multiple licenses. 0% licenses are likely for association members. [Gooch:00] Lawrence Gooch: "In-Process R&D"; Chapter 9, p.176, Handbook of Advanced Business Valuation, McGraw-Hill, 2000. "... the cost approach is generally not a good measure of IPRG 9in- process R&D) value”; 45 (Chicago: University of Chicago Press, 1995). A 10% reduction in non-corporate income tax only shifted 0.2% of assets out of corporation form.[deMooij:07]‡ risk is more important. , but see [Goolsbee:04]‡ [GriffithMO:11] Rachel Griffith, Helen Miller and Martin O'Connell: "Corporate taxes and the location of intellectual property," CEPR Discussion Papers 8424, 2011. C.E.P.R. Discussion Papers. [GriffithS:09] Cara Griffith and Stephanie Stewart: Drop shipments and flash title: establishing sales tax nexus in complex commercial transactions; The Tax Adiser, Vol.40 No.9 American Institute of CPAs, 22 Sep.2009. On Amazon bookshelf. Defines, but applies it to State taxes. More description in [Waters:09]‡. [GriffithsT:93]† Thomas Griffiths and Joshua Tenenebaum: Teacakes, Trains, Taxicabs, and Toxins: A Bayesian Account of Predicting the Future; Stanford Business School report, 1993. [Grilliches:67] Zvi Grilliches: paper on measuring current effects and future effects of IGE. [Grilliches:84] Zvi Grilliches: R&D, Patents, and Productivity; Univ. of Chicago Press, 1984. [Grimes:11] Seamus Grimes: Can China become an Innovation Hub?; East Asian Bureau of Economic Research, 47 Pottelsberghe de la Potterie, 2000. "The Impact of Public R&D Expenditure on Business R&D“; OECD Science, Technology and Industry Working Papers 2000/4, OECD Publishing. [GuL:11]‡ Feng Gu and Baruch Lev: “Overpriced Shares, Ill-Advised Acquisitions and Goodwill Impairment”; The Accounting Review, Nov.2011, Vol.86 no.6, pp.1995-2022. HHHHHHHH [H&W:49]‡ "The intangibles being not reducible to statistics, the food of all bureaucracy, count for nothing"; Here And Now, 30 Oct 1949. [Haass:13] Richard Haass: Foreign Policy Begins at Home; Basic Books, 2013. Cannot separate domestic and foreoign plocy in modern economics. Coeps are as big as middle-sized countries. have. [HackerL12] Jacob S. Hacker and Nate Loewentheil: Prosperity Economics, Building an Economy for all; Yale University, 2012. Myths. Worker productivity vs compensation. Effective tax ratw low (p.59), Deferral . Low receipts. Stock option graph p.63 [HackerP:10] Jacob S. Hacker and Paul Pierson: Winner-Take-All Politics: How Washington Made the Rich Richer--and Turned Its Back on the Middle Class; Simon and Schuster, 2010. Entertaining diatribe, blames politics, uninformed electorate. Have. [Haldane:09] Andrew G. Haldane: Rethinking The Financial Network; Executive Director, Financial Stability, Bank of England, Speech delivered at the Financial Student Association, Amsterdam, April 2009, http://forallsaints.wordpress.com/2011/09/21/saint-matthew-apostle-and-evangelist/ Matthew appears in the Gospels as a tax collector for the Roman government in the city of Capernaum. [HallC:10]‡ Robert Hall and Douglas Clement: “An Economist’s Economist”; Hoover Digest, Stanford University, 2010 No.4, 29 Sep.2010. 49 [Harberger:95] Arnold V. Harberger: “The ABC’s of Corporation Tax Incidence, Insights into the Open- Economy Case”; Tax Policy and Economic Growth , Vol.51, 1995, p 51-73 [Harberger:08] Arnold V. Harberger: “Corporate Tax Incidence, Reflections on What is Known, Unknown, and Unknowable”; in [DiamondZ:08] , p.297-299. [Hardy:03]‡ David R. Hardy: Assignment of Corporate Opportunities -- The Migration of Intangibles; Tax Notes, 145-33, July 28, 2003, p. 527. Author is with McDermott, Will & Emery. Globalization. {Hargreaves:11]‡ Steve Hargreaves: “Big Oil’s 4$ billion tax break is in doubt”; CNNMoney, 29 April 2011. [Harlan:1886] John Marshall Harlan: Santa Clara County v. Southern Pacific Railroad; US Supreme Court, Session 228, 394, 1886. Corporate person hood [Harlon:66] Willard Harlon: Essentials of the Stock market; Vantage Press, 1966. Definitions, Back to Stanford. [HaroffSV:97] Dietmar Harhoff. Frederic M. Scherer, and Katrin Vopel, 1997. "Exploring the Tail of Patented Invention Value Distributions“; CIG Working Papers FS IV 97-27, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG); also Scherer, Frederic M. & Harhoff, Dietmar & Vopel, Katrin, 1997. "Exploring the Tail of Patented Invention Value Distributions“; ZEW Discussion Papers 97-30, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. Patent office fees for non- exclusive licensing are reduced by 50%. based on a syrvey 21 years after issuance, [HarperM:13] Christie Harper and Michael J. Moore: At Banks, the Balance shifts to Shareholders; BBW, 7 Jan 2013. Balancing costs in public companies, lowering compensation and reducing jobs. Pareto balancing? [Harris:09]‡ Harris: Corporate Tax Incidence and Its Implications for Progressivity”; Urban-Brookings Tax Policy Center, Nov.2009. [Harrison:03] Bonnie Harrison: “Intangible Assets”; Chapter 10 in Weygandt, Kieso and Warfield: Fundamentals of Intermediate Accounting, Wiley 2003. Intangibles are written off over their useful lives, where the assets have determinable useful lives. Where the intangibles have indefinite useful lives, they are not amortized. Trademarks and Trade names are renewable indefinitely by the original user in periods of 10 years each. Goodwill has an indefinite life and should not be amortized. Impairment test performed at least annually, If applicable, loss recorded. No impairment if sum of expected future net cash flows from use and disposal of asset is equal to or more than the carrying amount [HarsenC:11] Brett Harsen and Alex Cwirko-Godychi: Equity and Executive Compensation at Recently Public Companies in the Technology and Life Sciences Sector; Radford Research. 2011. Data on Pre-IPO pay and derived early market value. [Hart:10] Robin Hart (CRAI): Landmark US Transfer Pricing ruling is a victory for the taxpayer; Financier Worldwide Magazine, CRA, Feb.2010. [Harvey:11] J. Richard Harvey: “Offshore Accounts: Insider’s summary of FATCA and Its Potential Future; Villanova Law Review, Vol.57 no.3, Dec. 2011”; Villanova Public Law and Legal Theory Working paper series, No.2011-24, Dec. 2011. Success of FATCA depends on other countries cooperating. Focus on Finacial institutions. Recommendations: Fix 1 Incomplete reporting depends on due diligence, 2 passthru, requires multilateral coppration. Now it’s unilateral. [Harvey:12] J. Richard Harvey: FATCA and Schedule UTP, Are these unilateral US actions doomed unless adopted by other countries?; Villanova Public Law and legal Theory Working paper series, No.2012-2005, Mar.2012. FATCA requires multilateral coppration. UYTP disclousure Now it’s unilateral [HassettB:07] Kevin A. Hassett and Alex Brill: “Revenue-Maximizing Corporate Income Taxes: The Laffer Curve in OECD Countries”; AEI Working Paper 137, Washington, DC, July 31, 2007, www.aei.org/paper/26577. NNN [HassettM:10] Kevin A. Hassett and Aparna Mathur: Spatial Tax Competition and Domestic Wages; American Enterprise Institute for Policy Research (AEI), Working paper, 1 Dec 2010. Update of a 2006 paper Taxes and Wages. If capital stocks are depleted investment shifts to lower wage countries, depressing wages [HassettM:11] Kevin A. Hassett and Aparna Mathur: Report Card on Effective Corporate Tax rates: United States Gets an F; Tax Policy Outlook 2011,No.1, American Enterprise Institute for Policy Research (AEI) no.1 Feb.2011. Statuary tax rates versus actual distribution. [HauflerS:00] Andreas Haufler and Guttorm Schjelderup: “Corporate Tax Systems and Cross Country Profit Shifting”; Oxford Economic Papers, vol.2, 2000, pp.306-325. Chap.9 [Hawkes:08] Alex Hawkes: Isle of Man urged to rebrand; Accountancy Age, 18 Jun 2008, 51 [HendelMT:08] Anja Hendel, Wolfgang Messner, and Frank Thun (eds.): Rightshore! - Successfully Industrialize SAP® Projects Offshore; 2008, XVIII, 292 p. 74 illus., Hardcover, ISBN: 978-3-540- 77287-3. Have. Comprehensive general quantitative data and experience from CapGemini on globalization. [Hendler:02]† James Hendler et al.: Report on Database Migration for Command an Control; United States Air Force Scientific Advisory Board, SAB-TR-01-03, Nov. 2002. [HennessyP:90]† John Hennessy and David Patterson: Computer Architecture; Morgan Kaufman, 1990 (3rd Edition 2002). has H&P rule 5 (factor 1.5-2.0 growth per year) . [Henry:12] James S. Henry: The Price of Offshore revisted; The Tax Justice Network USA, Jul.2012, [Hines:08] James R Hines, jr.: "Tax Havens." In The New Palgrave Dictionary of Economics. 2nd ed., L.E. Blume and S.N. Durlauf (eds.), Palgrave Macmillan, 2008. [HinesS:09] James R Hines, jr. and Lawrence H. Summers: “How Globalization Affects Tax Design”; Tax Policy and the Economy, Vol.23. Ed. Jeffrey R. Brown and James M. Poterba. University of Chicago Press, 2009, 123-157. Small countries (not taxhavens) had to adapt already to deal with mobility of economic activity, and rely less on income taxes. During the period from 1950 to 2004, total world exports and imports grew by an average of 5.9 percent a year. From 1975 to 2004 the rate of growth of international trade relative to world output quickened for all goods to 2.3 percent a year, and for manufacturing to 3.0 percent a year. “given the looseness of the resulting legal restrictions, it is enterily possible for firms to adjust transfer prices in a tax-sensitve fashion without violating any laws” [p.7] . [HirscheyW:85] Mark Hirschey and Jerry J. Weygandt: Amortization Policy for Advertising and Research and Development Expenditures; Journal of Accounting Research, Vol.23,No.1, Spring, 1985, pp.326- 335. 5. R&D amortization 10-20% advertising 10-20 for non-durable goods and 30-60% for durable goods, also later [HirscheyW:98] R&D has double the life of Marketing. [Hirst:02] Clayton Hirst: “Silicon fen `needs £2bn’ to stop business exodus”; The Independent, 21 Sep.2002. .. urgent need for the UK Government to throw money at the road network. [HirtlHK:09] Peter B. Hirtle, Emily Hudson, and Andrew T. Kenyon: Copyright and Cultural Institutions; Cornell University Library, 2009, 53 [HoopesMP:12]‡ Jeffrey L. Hoopes, Devan Mescall, and Jeffrey A. Pittman: “Do IRS Audits Deter Corporate Tax Avoidance?”; The Accounting Review, Sep 2012, Vol.87 no.5, pp.1603-1639. doi: http://dx.doi.org/10.2308/accr-50187. [Hoppel:13] Adrian Hoppel: Law and defense: Rand Paul Comes to the defense of Apple; MacLife, 22 May 2013. [Hosaka:11]‡ Tomoko A. Hosaka: Olympus Chairman Stepping down amid Scrutiny; Bioscience Technology, 26 Oct.2011. Advisors normally get 102% of a deal, Olympus UK paid over a third of $2B. [Howard:03]‡ Philip K. Howard: “Yes, It’s A Mess- But Here’s How to Fix it"; Time Magazine, June 2, 2003. CWD-grassroots: The Truth About Philp Howard’s “Common Good”; The Foundation for Taxpayer and Consumer Rights, 14 Jan.2004. Howard only wants to get rid of Lawyers and Juries. Directorate General Economic and Monetary Affairs, European Commission; European Economic Review, Elsevier, Vol.50(5), pp.1223-1244, July. [HuizingaN:97] Harry Huizinga and Soren Bo Nielsen: “Capital income and profit taxation with foreign ownership of firms”; Journal of International Economics, Feb.1997, 42 (1-2), 149-165. [Hulten:06] Charles Hulten: Intangible Capital and Economic Growth; National Bureau of Economic Research (NBER), Working Paper 11948, Jan.2006, IIIIIIIIII [IASB:10] International Accounting Standards Board: Who we are and what we do; IFRS Foundation, March 2010. [IATI:12] IATI: The Israeli Success Story; Israel Advanced Techmnogy Industries, 2012, < http://www.iati.co.il/high-tech-in-israel/the-israeli-success-story>. [IBA:04]‡ Institute of Business Appraisers: Glossary. 55 [ILO:11] International Labour Organization: Key Indicators of the Labour Market, 7th Edition; ILO Publications, Geneva, Switzerland, 2011. [Immelt:11] Jeffrey H. Immelt: Growth Starts Here, GE 2010 Annual Report; General Electric Corporation, 25 Feb.2011. [Immelt:11I]‡ Jeff Immelt: GE’s interview; 20 Oct. 2011, [IRS-901:11] IRS: U.S. Tax Treaties; Publication 901; IRS, 2011 57 [IRS-PR:10] IRS: Fiscal Year Return Projections for the United States: 2010-2017; IRS Statistics Office, IRSDocument 6292, Jun.2010.. [IRS-PS:96] IRS: Internal Revenue Service Simplification of Entity Classification Rules ; PS-43-95, 9 May 1996. This document contains proposed regulations that would replace the existing regulations for classifying certain business organizations with an elective regime. These proposed regulations simplify the existing classification rules. Pertains to Check-the-box rules [IRS-QV:11] IRS: Qualified Alternative Fuel Motor Vehicles (QAFMV) and Heavy Hybrid Vehicles; IRS, Businenss Topic, 10. Jan 2011. [IRS-RRA:98] Internal Revenue Service, Restructuring and Reform Act of 1998 (RRA 98), Pub. L. No.105- 206, 112 Stat. 685, 1998. changed allocation. [IRS-SC:12] IRS: SOI Tax Stats – Corporation Source book; IRS Statistics Office, for 2009 and prior years, 26 Apr.2012, http://www.irs.gov/taxstats/article/0,,id=165716,00.html [IRS-SI:12] IRS: SOI Tax Stats – Individual Income Tax Returns; IRS Statistics Office, report 1304 for 2009 and prior years, 3 Aug.2012, [IRS-TS:06] IRS: Final report on Treatment of Services under Section 482--9T; Aug.2006, 189pp. CostPlusMethod, [IRSregs482-1:94]‡ Internal Revenue Service: Regulations on Transfer Pricing, Allocation of income and deductions; Title 26 Chap.I Subchap.A Part 1 §1.482-1, 1994. [IRSregs482-3:95]‡ Internal Revenue Service: Regulations on Transfer Pricing, Methods to determine taxable income in connection with a transfer of tangible property; Title 26 Chap.I Subchap.A Part 1 §1.482-3, 1995. [IRSregs482-4:94]‡ Internal Revenue Service: Regulations on Transfer Pricing, Methods to determine taxable income in connection with a transfer of intangible property; Title 26 Chap.I Subchap.A Part 1 §1.482-4, 1994b. [IRSregs482-5:94]‡ Internal Revenue Service: Regulations on Transfer Pricing, Comparable profits method; Title 26 Chap.I Subchap.A Part 1 §1.482-5, 1994. [IRSregs482-6:95]‡ Internal Revenue Service: Regulations on Transfer Pricing, Profit split method; Title 26 Chap.I Subchap.A Part 1 §1.482-6, 1995. [IRSregs482-7(c):96]‡ T.D. 8670; 18 Sep.1996 Revision of Section 482 Cost Sharing Regulations. These regulations eliminate the active conduct rule of _1.482-7(c) as a requirement for qualification as a controlled participant in a qualified cost sharing arrangement. Section 1.482-7(c)(1) of these regulations substitutes a general rule that a controlled taxpayer may be a controlled participant in a cost sharing arrangement only if it reasonably anticipates that it will derive benefits from the use of covered intangibles. In addition, _1.482-7(f)(3)(ii) provides that if a controlled participant transfers covered intangibles to another controlled taxpayer, the participant's benefits will be measured with reference to the transferee's benefits rather than with reference to any consideration paid by the transferee. (This gives rise to results similar to those under the subgroup rules of the proposed regulations by different mechanics.) Finally, _1.482-7(f)(3)(ii) continues to provide that the amount of benefits that each of the controlled participants is reasonably anticipated to derive from covered intangibles must be measured on a basis that is consistent for all such participants. [IRSregs482-7:01]‡ Internal Revenue Service: Regulations on Transfer Pricing, Sharing of costs; Title 26 Chap.I Subchap.A Part 1 §1.482-7, 2001. [IRSregs482-8:94]‡ Internal Revenue Service: Regulations on Transfer Pricing, Examples of the best method rule; Title 26 Chap.I Subchap.A Part 1 §1.482-8, 1994. [IRSregs936-6b:96]‡ Internal Revenue Service: T.D. 8669 10/8/1996 Computation Of Combined Taxable Income Under the Profit Split Method When the Possession Product Is a Component Product or an End-Product Form for Purposes of the Possessions Credit Under Section 936 [ITEP:00]‡ (ITEP) Institute on Taxation and Economic Policy, Study Finds Resurgence in Corporate Tax Avoidance, 19 Oct.2000, pp.1-3. JJJJJJJJJ [Jackson:10] James K. Jackson: Outsourcing and Insourcing Jobs in the U.S. Economy: Evidence based on Foreign Investment; Congressional Research Service, Report for Congress, Cornell University, 15 59 April 2010. Data specific for multinational corporations and their affiliates, outsourcing, productivity, employment over time, intrafirm trade, sales, R&D, [xls/pointers] [Jacobs:10]‡ Vernon K. Jacobs: The Tax Reform Alternative, Txation, Inflation, and Expatriation; Offdshore Press Incs, Prarie Village KS. Discrimnatory taxes. Elimnate all income taxes, Move to a consumption tax. No double tax on cororate profits. Discusses Flat, fair, Sales taxes (best?) VAT taxes, The solution is to move offshore! [Jacobs:12] Deborah L. Jacobs: The Best Foreign Retirement Havens; Forbes, 21 Nov 2012 [JanebaP:99]‡ Eckhard Janeba and Wolfgang Peters: “Tax Evasion, Tax Competition, and the Gains from Nondiscrimination: The Case of Interest Taxation in Europe”; The Economic Journal, Vol.109:, 199, pp.93-101. [JanebaS:03] Eckhard Janeba and Michael Smart: “Is Targeted Tax Competition Less Harmful than its Remedies?”; International Tax and Public Finance, Vol.10, 2003, pp.259-280. Uses immobile for tangible and mobile for capital and intangible assets. [Jayson:10] Seth Jayson: Here’s How Flextronics International May be Failing You; The Motley Fool, 30 Nov 2010. [xls/forest [JCT:84]‡ Joint Committee On Taxation: General Explanation of the Revenue Provisions of the Deficit Reduction Act of 1984; US Congress, JCS-41-84, 31 Dec.1984 ([Rostenkowski84]). [JCT:03] JCT: Report of the Joint Committee on Taxation Relating to the Internal Revenue Service as Required by the IRS Reform and Restructuring Act of 1998; Joint Committee on Taxation, 20 May 2003, 174pp., Modernization, recruitment, staff p.64, p160. Corporate Tax shelters p.5-6, Audit 5,7 32, 36, 85, unauthorized inspection of returns (§1203) p.9, 128-129, p.156 tax gap $280B and growing, Data on hrs/return corps and large corps p106 , Cycle days large corps 567 p.140. 80% need change p.141. appeals 250, tax court p151. Top salaries, with priors. p132. Tenure p.134. [JCT:06] Joint Committee on Taxation: The Impact of International Tax Reform: Background and Selected Issues Relating to U.S. International Tax Rules and the Competitiveness of U.S Businesses; JCT report JCX-22-06, 21 June 2006. World-wide vs. Territorial. [JCT:08]‡ Joint Committee On Taxation: A reconsideration of Tax expenditure Analysis ; JCX 37-08, 12 may 2008. Tax subsifies are tax provisons that are “deliberately inconsistent with an identifiable general rule of the present tax law” quted by Hungerford:11]‡ [JCT:10] Joint Committee on Taxation: Present Law and Background Related to Possible Income Shifting and Transfer Pricing; JCT report (JCX-37-10, 20 July 2010. Section 936 Conversions-p.37. [JCT:11] JCT: Tax Incentives for Research, Experimentation, and Innovation; Joint Committee on TaxationR&E §174. Compares other countries.forms get most (table 3) Complex, compliance cost.; and JCT: Background Information on TaxExpenditure Analysis and Historical Survey of Tax Expenditure Estimates; Joint Committee on Taxation JCX-15-11, 28 Feb.2011, 37pp. and JCX-45- 11, 16 Sep.2011. [JCT:11P]‡ Joint Committee On Taxation: Description of Revenue Provisions Contained in the President’s Fiscal Year 2012 Budget Proposal; US Congress, JCS-3-11USPO, June 2011. Deferral (p.161, property transfers p.218. [JCT-12:12] JCT: Selected Issues Relating to Choice of Business Entity; Joint Committee on Taxation, 27 July 2012, JCX 66-12, 88pp.C-corps vs LLCs , pass-throughs . data 22.6 soleprops, 1.7M C-corps, 1.9m farms, 3.1 LLC, 4.1m S-corps.(since 1958) . Growing in all sizes, but more stable since 2003. In HMAT.xlx Corptax, Uniform pass-through. Large c-corp – large S corp by 2003 [JCT-18:12] JCT: Overview of the Federal Tax System as in Effect for 2012; Joint Committee on Taxation, 24 Feb.2012, JCX 66-18, 32pp. Good description with data. [Jefferson:1816]‡ Thomas Jefferson, 1816 “I hope we shall... crush in its birth the aristocracy of our moneyed corporations which dare already to challenge our government in a trial of strength, and bid defiance to the laws of our country”; < [Jenkins:11]‡ Holman W. Jenkins, jr.: “Chicago Economics on Trial”; WSJ, 25 Sep.2011. Talk be Robert Lucas. [Jensen:10]‡ Cheryl Jensen: Toyota’s Image Falls in J.D. Power Survey; The New York Times, 17 June 2010 [JensenM:76]‡ Michael Jensen and William Meckling: “Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure”; Journal of Financial Economics, 1976. Deinning:11: shareholders are the principals of the firm—i.e., they own it and benefit from its prosperity, while the executives are agents who are hired by the principals to work on their behalf. [JensenM:11] Mathew H. Jensen and Aparna Mathur: “Corporate Tax Burdens on Labor: Theory and Empirical Evidence”; Tax Notes, 6 June 2011. Employees’s wages are lowered because of the CIT per [Harris:09]‡. Critiques many prior analyses and observations. Mixed results, but employees seem to be affected. [Johnson:01]† Justin P. Johnson: The Economics of Open Source Software; MIT, http://opensource.mit.edu/papers/johnsonopensource.pdf., retrieved 2001. [Johnson:05R]‡ Calvin H. Johnson: Can the IRS be well liked?, Rossotti’s Many Unhappy Returns; Tax Notes, Tax Analysts, 2005. Remaining problems not addressed [Johnson:05S] Calvin H. Johnson: Tales from the Skunk Works: The Basis-Shift or Defective Redemption Shelter; Tax Analysts, Special report, 2005. “Complexity has a tendency to intimidate and deter any outside review. “ Individual tax shelters promoted are FLIP — short for ‘‘Foreign Leveraged Investment Program’ using a Cayman corporation, ’; later OPIS — short for ‘‘Offshore Portfolio Investment Strategy’’ using a Cayman partnership and derivatives. [Johnson:05V] Erinn R. Johnson: "A $13.5 billion merger between Symantec Corp. and VERITAS Software Corp"; Black Enterprise, 2005. 13.5M , later valued at 11B, actually paid 13.2 [Johnson:07] Calvin H. Johnson: “Replace the Corporate Tax with a Market Capitalization Tax”; Tax Notes, Vol.117, 10 Dec. 2007, pp.1082. [Johnson:12]‡ Sarah Johnson: “More Vitriol Aimed at Obama’s Tax Plan”; CFO magazine, 7 Mar.2012. Changes in taxation of pass throughs may again reconsider their structure. Also LIFO. ransfer pricing. [Johnston:98]‡ David Cay Johnston: Behind IRS hearings, a GOP plan to End the Tax Code; The New York Times, 4 May 1998. Quotes Harberger and later papers that put more of the burden of the corporate tax on labor. [Johnston:02]‡ David Cay Johnston: “IRS audits of Working poor increase”; NYT , 1 March 2002. [Johnston:03] David Cay Johnston: Perfectly Legal; Portofolio Publishers, 2003, Penguin 2005. IRS unaware of many tax fraud techniques p2. Audit as an option value p 168. Inversion p238. Jonathan Blattmachr p264. Congress unaware p294. Rossotti final report on audits p296. Audits down p298. Trust in ATA p300. Archer: pull it out by its roots p.301. [Johnston:03E]‡ David Cay Johnston: “Tax Moves by Enron Said to Mystify the I.R.S.”; The New York Times, 13 Feb.2003. The IRS and Enron "Enron and other big companies have escaped taxes in recent years through financial maneuvers so complex that the Internal Revenue Service has been unable to understand them," and that these transactions, while legal, "create [undisclosed] risks for shareholders" [Johnston:07]‡ David Cay Johnston: Free Lunch: How the Wealthiest Americans Enrich Themselves at Government Expense, (and StickYou with the Bill); Reed Elsevier, 2007, Portfolio Trade, 30 Dec.2008. Remy Welling, an Internal Revenue Service investigator who blew the whistle on improper tax breaks for the wealthy and lost her job. Review: no solutions at all. Settlemnts sealed p.198. [Johnston:09] David Cay Johnston: Donald C. Alexander, 87, Who Resisted Nixob at I.R.S., Is Dead; NYT, 8 Feb. 2009. IRS Commissioner 1973 to 1977. “prissy about legal procedure”. [Johnston:11]‡ David Cay Johnston: First Look at US Pay data, it’s awful; Reuters, 19 Oct 2011, based on [SSN:11]‡; Reuters Video: U.S. median wage lowest since 1999; 20 Oct 2011, 61 [Johnston:12] David Cay Johnston: “Congress’ Potential Faulty Tax Logic”; The National Memo, 3 March 2012. Lowering corporate tax should cause dividend rates to go up to counteract wage depression per [HasettM:10]‡. [Johnston:12B]‡ David Cay Johnston: The Richest get Richer; The National Memo; also Reuters,15 March 2012. Compares 1933 and 2010. [JohnstonW:11] Louis Johnston and Samuel H. Williamson: What Was the U.S. GDP Then?; MeasuringWorth, 2011. URL: KKKKKKKK [Kahn:12] Jeremy Kahn: Malta Lures Hedge Funds with 300 Days of Sunshine; Bloomberg Markets Magazine, 10 Jan 2012. As of early November, the number of funds located in Malta had grown to more than 500 with 8 billion euros ($10.7 billion) under management from 165 funds with less than 5 billion euros under management in 2006, according to the Malta Financial Services Authority(MFSA). {VIC Ch6.3.1} [Kaiser:09] Robert G. Kaiser: So damn Much Money; Knopf, 2009. On lobbying, lobbyists and Congress. {VIC Ch8.2.2} [KakaKS:06]‡ Noshir F. Kaka, Shailesh S. Kekre, and Saipriya Sarangan: “Benchmarking India's business process outsourcers”; McKinsey Quarterly, July 2006. {VIC Ch6.4} [KamiyamaSM:06]‡ S. Kamiyama, J.Sheehan, and C.Martinez: “Valuation and Exploitation of Intellectual Property”; STI Working Paper 2006/5, 2006, Statistical Analysis of Science, Technology and Industry. 63 [Kemerer:93]† Chris Kemerer: "Reliability of Function Points Measurement: A Field Experiment"; Comm. ACM, Vol.36 no.2, Feb.1993, pp.85-97. [Kennedy:06] : Garcetti v. Ceballos, 547 U.S. 410; Supreme Court of the United States, 2006. First Amendment free speech protections for government employees. The plaintiff in the case was a district attorney who claimed that he had been passed up for a promotion for criticizing the legitimacy of a warrant. The Court ruled, in a 5-4 decision, that because his statements were made pursuant to his position as a public employee, rather than as a private citizen, his speech had no First Amendment protection. [Kennedy:07] Justice Anthony Kennedy: Microsoft Corp. v. AT&T Corp.; Supreme Court of the United States 30 April 2007. Manufacturing CD copies offshore from a Golden master disk supplied from the US does not infringe US patent rights. [KenneyD:05] Martin Kenney and Rafiq Dossani: “Offshoring and the Future of U.S. Engineering: an Overview”; The Bridge, National Academy of Engineering, Fall 2005. Introduction to related articles in the issue. Closing Article by William Wulf: “A Disturbing Mosaic”. [Kenny:11] Charles Kenny: Small Isn’t beautiful; Bloomberg Businessweek, 3 Oct.2011. Only a very small fraction of small businesses innovate and grow. Based on [HurstP:11] [KerriganHWLW:03] Shawn Kerrigan, Charles Heenan, Haoyi Wang, Kincho Law, and Gio Wiederhold: "Regulatory Information Management and Compliance Assistance"; NSF's National Conference on Digital Government Research (dg.o2003) (under Panels/E-rulemaking), Boston, May 2003. [KesslerE:06] Wolfgang Kessler and Rolf Eicke: “Closer to Haven? New German Tax Planning Opportunities; Tax Notes International, Vol.42 no.6, 8 May 2006. Dutch Sandwiches are called and illustrated as Hilversum 1 & 2. [KesslerE:10] Wolfgang Kessler and Rolf Eicke: “The New German GAAP – the Gap Between Commercial and Tax Accounting”; Tax Notes International, Vol.59 no.7, 16 Aug), 2010. For more than 100 years the principle of strict book-tax conformity (or the authoritative principle, or Maβgeblichkeitsprinzip) ("§ 5 exp. 1 P. 2 EStG “) was the most striking feature of German tax accounting. In fact, since the enactment of the German Commercial Code (Handelsgesetzbuch, or HGB) on Jan.1, 1900, this principle was a pillar that survived all storms of reforms until the last reform, the Accounting Modernization Act (Bilanzmodernisierungsgesetz) went into force on May 29, 2009. [Ketsdever:10]‡ Nathan Ketsdever: The US should ablish agricultural subsidies; IDEA discussion, 27 Aug.2010, Services, disks, WD? 4. Internet business model, 5 assets with embedded IP. 6 CDN services, Akamai, 7 global commodity trading, 8. Decentralized IP ownership. [KingEa:07] Steve King, Dan Burton, John Culberson, John Linder, Jeff Miller, Thomas Tancredo, and David Weldon: Proposing an amendment to the Constitution of the United States to repeal the sixteenth article of amendment; H.R. Resolution 16, 110th US Congress, 17 Jan 2007, 65 1950s. That rate had fallen to 6.6 percent by 2009. 975 employees in tax department. Some later corrections re state and future taxes. GE has $90B offshore. graphics. ..[ACM]. [Kocieniewski:11T]‡ David Kocieniewski: “Companies Push for Tax Break on Foreign Cash,” The New York Times, June 19, 2011. Repatriation. {VIC Ch7.6} ..[ACM]. [Kocieniewski:11V] David Kocieniewski: “Rich Tax Breaks Bolster Makers of Video Games”; The New York Times, 10 Sep.2011. Interaction of R&E credits and taxhavens. Tax 98M, Profits 1.2B over 5 years, net loss this year. Burman: Capital Gains Tax Rates, Stock Markets, and Growth; Tax Facts, Tax Analysts , July 2005. On JGTRRA . relate cap gains rate to S&P/GDP. Correlation -.35 = weak negative. Realization ~3% of GDP. [Kroll:06] Karen M. Kroll: “IRS seeks Truth in Veritas Deal”; CFO magazine, 20 Sep.2006. arbitrary, capricious, or unreasonable’ [Kroon:00] Andries Kroon: The Netherlands and Netherlands Antilles in International Tax Planning; in [Ogley:00] , pp.32-46. [Krouse:12] Sarah Krouse: “Budget day scramble for estate agents and lawyers”; Financial News, DowJones, 23 March 2012. [KruchtenOS:06]† P. Kruchten, H. Obbink, J. Stafford: "The Past, Present, and Future for Software Architecture"; IEEE Software, v. 23 no.2, pp.22- 30. [Krugman:94] Paul Krugman: “Competetiveness: A dangerous obsession”; Foreign Affairs, Vol.73, March /April 1994, pp.28-44. [Krugman:07] Paul Krugman: The Conscience of a Liberal; W.W. Norton, 2007. Also The New York Times blog. [Krugman:08] Paul Krugman: “What to do”; The New York Review of Books, Vol.55 no.20, 18 Dec. 2008. More stimulus [Krugman:09] Paul Krugman: A Country is not a Company; Harvard Business School Press, Nov.2009. Was on Kindle, now in references Reprint of 1996 Harvard Business school paper. Balance among countries; advice ignores stemming the identified current outflow of Treasury bills. It’s all tangibles. [Krugman:12] Paul Krugman: End The Depression Now!; W.W. Norton , 2012. At EPI.(VIC Ch.10) [Krym:13] Nick Krym: Outsource It! A No-Holds-Barred Look at the Good, the Bad, and the Ugly of Offshoring Tech Projects; The Prgamtic Bookshlf, O’Reilly Media, Feb. 2013. [KueblerE:01] D. Kuebler and W. Eibach: Metering and Accounting for Web Services, A dynamic e- business solution: IBM Developer Works, 2001. [KumraS:05] Gautam Kumra and Jayant Sinha: "The next Hurdle for Indian IT"; McKinsey Quarterly, Issue 4 (Premium) 2003 Special Edition: Interview with Naranay Murthy (IIT Kanpur MS 1969): Global directions and Infosys, LLLLLLLL [LafferM:10] Arthur B. Laffer and Stephen Moore: Return to Prosperity; Threshold Publications, Simon & Schuster, 2010. Good governance proposals in intro. Trade recommendations ignore IP. Proposes a flat tax in individuals and businesses with few deductions, only labor. Fixed rate for corporations. Many data points, not systematically organized. Have. [xls/taxes] [LaMonica:05] Martin LaMonica: “Open source reshaping services market”; CNET News, 10 Jan.2005. [LandsbaumG:85]† Jerome B. Landsbaum and Robert L. Glass: Measuring and Motivating Maintenance Programmers; Prentice-Hall, 1985. 67 [Langbein:86] Stanley I. Langbein: The Unitary Method and the Myth of Arm's Length; Tax Notes 625, 17 Feb.1986, Vol.30, 1986. Cited by Durst for early arms length [Larcker:04]† David Larcker: in "Back to the Drawing Board: Is the Traditional Theory of the Firm Obsolete?"; Strategic Management, Wharton On-line report 1047, Sep.2004 [LecuyerB:10] Christophe Lécuyer and David C. Brook: Makers of the Microchip, A Documentary History of Fairchild Semiconductor; MIT Press, 2010. Documents the details of the path from innovation to commerce. Also see [Lojek:07]. [Lederberg:78] Joshua Lederberg: "Digital Communications and the Conduct of Science: the New Literacy"; Proc. IEEE., Vol.66 No.11, 1978. p.1314--1319. [Lee:92] Wm. Marshall Lee: "Determining Reasonable Royalty"; Les Nouvelles, Licensing Executives Society , Vol.27 No.3, Sep.1992, pp.124-128. See Liberman: 69 (p.62-66). Customer acquisition (p.67). Workforce (p.73-76). Write off of acquired R&D, but capitalization of software after the point of technical feasibility (p.85-95). Have. [LeveyEa:01]‡ Marc M. Levey, Victor H. Miesel, William S. Garofalo, Michael F Patton, Kenneth J. Krupsky, and Karl L. Kellar: Transfer Pricing: Alternative Practical Strategies; Tax Management, BNA 2001. [not cited] [LeveyW:07] Marc M. Levey and Steven C. Wrappe: Transfer Pricing, Rules, Compliance and Controversy, second edition; CCH, Wolters Kluwer, 2007, 798pp. “’Commensurate with income’ … for intangibles” [p.6, 121] . ” Ownership [p.7] , Control [p.9] . Aribitrary, Capricuos, or ureasonable [p12] , DHL case, withholding documents [p.12, 110] , Formulary apportionment, multistate, global [p.14, 387] . Commensuratewith income [p.15] . BALRM with profit split [p.16] . Defer foreign payments [p.18] . Relationship to customs [p.24, 225] 40 countries now have transfer pricing rules [p.26] . Arm’s length [p.32, 149, 378] ., nearshor [p.63] . Disallowed repatriation [p.67] . Cost sharing [p.106,] . Services provided with IP [p.108] . Marketing intangibles, compustati [p.110, 118] . Buyout , difficulties in allocation, market valuations, goodwill, [p.129, p.139] . Market cap, purchase price [p.135] . p/e [p.137] . IRS uses TP method , IP life [p.138] . Stock options [p.151] . Section 361, 367 transfers [p.153] . temporary regs [p.156] . Loans, safe harbor [p.201] . penalties [p.209] . Statute of limitation [p.223] . Planning for exam, outside advisors, use of appeals [p.277] . IDRs [p.297] . R&D sources [p.303] , unusual patterns [p.303] . Embdeed sW [p.306] . High case loads and scrace resources interfere with the work of economists [p.307] . Strategic disadvantage in TP preparing a detailed rebuttal, may help the IRS [p.309] . Settlement [p.314] . limited communication between exam and appeals [p.315] . Stutute of limitation p245, the IRS attempts to understand the function and the risks of the business, and attempts to understand the effect of the intangibles on the transactions [p.304] . Keep the IRS examiner on track 305. If the IRS team were to misconceive the benefit contributed by an intangible 306. High case loads and scarce resources interfere with the work,mof IRS econmists. P307.(Have) Double taxation, [LeveyW:08] Marc M. Levey and Steven C. Wrappe: Practical Guide to Transfer Pricing, Rules and Compliance, second edition; CCH, Wolters Kluwer, 2008. [LeveyW:10] Marc M. Levey and Steven C. Wrappe: Transfer Pricing Rules Compliance, and Controversy; CCH, Wolters Kluwer Pub., 2010, 912pp. Have 2007 edition. [LeveyWC:06] Marc M. Levey, Steven C. Wrappe, and Kerwin Chung: Transfer Pricing Rules and Compliance Handbook; CCH, Wolters Kluwer, 2006, 224pp. “Given the potential for transfer pricing decisions to globally impact tax, financial and operational results, it is unfortunate that relatively few persons at multi-national corporations [MNEs] possess significant experience with transfer pricing issues”;[p.v.] , “absent transfer pricing rules MNEs could intentionally or unintentionally use transfer pricing to shift large amounts of income from one tax jurisdiction to another.. that benefit could be used to reduce the MNE’s overall tax rate” [p.2] , Shifting tax avoidance example as M&C [p.3] . `double taxation’ computation [LeveyW:10] Marc M. Levey, Steven C. Wrappe, and Kerwin Chung: Transfer Pricing Rules and Compliance Handbook; CCH, Wolters Kluwer, 2010. Bierce & Kenerson [LevinEa:11] Carl Levin et al.: Repatriating Offshore Funds: 2004 Tax Windfall for Select Multinationals; United States Senate Permanent Subcommittee on Investigations, 11 Oct.2011. [Levin:12] Carl Levin: Opening Statement; Permanent Subcommittee on Investigations, U.S. Congress, 20 Sep.2012. Microsoft Singapore, Ireland, Hewlett Packard, $1.7T offshore. Short-term loan trick by loaning from CFCs. to effectively repatriate. Section 206. 956 For the full hearing see. 71 [LII:92C]‡ Legal Information Institute: US code; in [LLI:92] , for a US tax code section `§’ use [Lowry:08]‡ Reported by Reuters: Executive Refuses to Answer Tax Haven Questions; The New York Times, Peter S. Lowry, 26 July 2008. Westfield CEO , based in Liechtenstein at. LGT bank, loss $100 annually . Is 1/147 US account holders. UBS has 190,000 US accounts. Covering $18B. Loss $100 annually. US has no subpoena powers, [LowTax:11] Lowtax: Global Tax & Business Portal; BSiMedia, Hastings, East Sussex, UK, 2011, [Luce:07] Edward Luce: In Spite of the Gods, The Strange Rise of Modern India; Doubleday, 2007. 470M workers, 35M pay income tax – work in a formal setting, 21M are civil servants, 14M private organized sector (POS); 1M in IT, 1-2M in foreign companies. 7M in Manufacturing. Productivity of employees in POS was 6x in 1983, in 2000 9x employees in unorganized private sector. Had. [LundSS:11] Mass Soldal Lund, Bjørnar Solhaug, Ketil Stølen: Model-Driven Risk Analysis - The CORAS Approach; Springer 2011, XVI, 400 p., [Lynch:08] David J. Lynch: Does Tax Code send U.S. jobs offshore; USA Today, 20 March 2008. MMMMMMMM [Maarsen:12] Hans Maarsen: Trustkantoren zien hun positie bedreigd: FD 17 Sep 2012. Per Andre Nageklmaker, director of ANT. Competion for Dutch CFIs from Cyprus. Annusal growth in Cyprus is 20,000; while Holland is steady at 20,000, inclusing HP and Coca-Cola, 100 majors. In 2010 NL business was 10,000 billion (10.200 mrd) euros. [Mackay:1841] Charles Mackay: Extraordinary Popular Delusions and The Madness of the Crowds; 1841, reprint Wiley, 1996. Invalidation of Business patents [MackEa:05] Connie Mack III, chair, et al.: Simple, Fair, and Pro-Growth: Proposals to Fix America’s Tax System; Report of the President’s Advisory Panel on Federal Tax Reform; Nov.2005. Also Levin, Dorgan and: The deficit reduction act; 2005 .Two proposed plans, never enacted. One is The Simplified Plan, the other. an extension, The Growth and the Investment Taxplan. RRRR wrong. [xls/taxes] [MackieMason:90] Jeffrey K. Mackie-Mason: “Do Taxes Affect Corporate Financing Decisions?”; The Journal of Finance, Blackwell Publishing, Vol.45 no.5., Dec.1990, pp.1471-1493. [Mackie:90]‡ James B. Mackie III: “Unfinished Business of the Tax Reform Act of 1986” ; National Tax Journal, Vol.55 no.2 June 2002. Considers the effect of ignoring intangibles minor [BurnhamO:05]‡ [Madison:11]‡ Lucy Madison: Bachmann `open’ to eliminating corporate taxes; CBS News, 4 Sep 20111. Zero corporate tax. [not cited] [Madoff:10] Ray Madoff: Immortality and the Law: The rising Power of the American Dead; Yale University Press, 1010. Estate taxes and trusts. [Madoff:12] Ray Madoff: Two Tricks to Raising Capital-Gains Taxes Fairly; The National Memo, 16 Feb 2012. the lower rates cost the government a significant amount of revenue. In 2008, if capital gains had been taxed at 35 percent instead of 15 percent, the federal treasury would have received an additional $100 billion. (Capital gains were unusually low that year; in 2007, the increase would have been closer to $200 billion.) In the next five years, the capital- gains preference will cost the government more than $450 billion, according to estimates from Congress’s Joint Committee on Taxation. ... the special capital-gains rate makes it difficult to simplify the tax code. Much of its complexity is due to the myriad rules that are meant to ensure that income is properly categorized as ordinary income or capital gains. Eliminate the rate differential, and the tax code could become far less complex. Fix for gains due to inflation (mainly real estate) up to death. 73 Thus, if a taxpayer invested $100,000 in Apple Inc. in 2006 and died in 2012 when the stock was worth $1 million, that $900,000 profit is never subject to tax. The decedent is not taxed because he didn’t sell the stock, and the heirs are not taxed because they are treated as if they had purchased it for $1 million. Even at 15 percent capital-gains rates, this angel of death loophole costs the federal government about $60 billion each year. It also creates a powerful incentive for people to hold on to their appreciated property until death. This so-called lock- in effect impedes the efficient flow of capital. {ACM] [Magrassi:85?] Paolo Magrassi: A Taxonomy of Intellectual Capital, Stamford: Gartner. 18 July 2002?. Gartner Research Note COM-17-1985. He also published several books in Italian, including Digitalmente confusi (2011), La good-enough society (2010), Difendersi dalla complessità (2009), Il filo conduttore (2006), 2015 Weekend nel futuro (2005). [Magrassi:02] Paolo Magrassi: A Taxonomy of Intellectual Capital, Stamford: Gartner. 18 July 2002?. Gartner Research Note COM-17-1985. Cites Sveiby. He also published several books in Italian, including Digitalmente confusi (2011), La good-enough society (2010), Difendersi dalla complessità (2009), Il filo conduttore (2006), 2015 Weekend nel futuro (2005). [MahajanMW:00]† Vijay Mahajan, Eitan Muller, and Yoram Wind (eds.): New-Product Diffusion Models; International Series in Quantitative Marketing, Kluwer, 2000. [Mahoney:92] Joseph T. Mahoney: “The Choice of Organizational Form: Vertical Financial Ownership Versus Other Methods of Vertical Integration; Strategic Management Journal, Vol.13 No.8, Nov.1992, pp.559-584. [Makhlouf:02] Gabriel Makhlouf: List of Uncooperative Tax Havens; Committee on Fiscal Affairs, OECD, Paris, France, April 19, 2002. List has been removed from the OECD web page. [Malm:13] Elisabeth Malm: Colorado Aamndement 66: A $1 Billion Tax Increase on Small Business and Individual Taxpayers; The Tax Foundation, 17 Oct.2013. The tax is to benefit education – how is that measured? [MalmK:13]‡ Elisabeth Malm and Ellen Kany: The Sources of State and local revenues; The Tax Foundation, 29 Jan.2013. [Malthus:26] Thomas Robert Malthus: An Essay on the Principle of Population: A View of its Past and Present Effects on Human Happiness; with an Inquiry into Our Prospects Respecting the Future Removal or Mitigation of the Evils which It Occasions (Sixth ed.); John Murray, 1826. [Manoogian;12] John Manoogian III: “How free apps can make more money than paid apss”; Techcrunch, 26 Aug. 2012, http://techcrunch.com/2012/08/26/how-free-apps-can-make-more-money-than- paid-apps/. . from Sonny Chan CS207 [MarceauMW:06] Nicolas Marceau, Steve Mongrain, and John D. Wilson.: “On the Efficiency of Tax Havens”; Mimeo, Michigan State University, 2006. [Marcus:04]‡ Rosemary Marcuss, “Corporate Profits in the GDP Accounts,” Bureau of Economic Analysis, Presentation at Conference for National Association of Business Economics, Kissimmee, Florida, May 2004, http://www.bea.gov/papers/pdf/nabeprofits_fv.pdf. Corporate Surplus (OECD term) versus Corporate Profit. [Maremont:12] Mark Maremont: Romney IRA’s Offshore Investments: Helping His Tax bill; The Wall Street Journal, 19 Jan.2012. Refers to [MoskRC:12] [Marisec:06] Marisec: International Shipping, Carrier of World Trade; Maritime International Secretariat Services Ltd, London, 2006, 75 volatility in the expectations market, which is dangerous for us but lucrative for them. Have on Kindle. [Martin:13A] Julie Martin: Amazon fighting IRS over cost-sharing Buy-in payment; Tax Notes Today, 15 Jan 2013. $1B at stake. Amazon refers to Verita, [Martin:13B] Julie Martin: Maruca Outlines IRS Approach to Transfer Pricing; Tax Notes Today, 19 Feb. 2013. Do not accept taxpayer results that are too good to be true. [MartinsSP:96] Joaquim Oliveira Martins, Stefano Scarpetta ,and Dirk Pilat: "Mark-Up Ratios in Manufacturing Industries: Estimates for 14 OECD Countries“; OECD Economics Department Working Papers 162, , 1996, OECD Publishing. [Downloadable!] [Maraia:05]† Vincent Maraia: The Build Master: Microsoft's Software Configuration Management Best Practices; Addison-Wesley Microsoft Technology, 2005. [Marciniak:94]† John J. Marcianak: Encyclopedia of Software Engineering; Wiley, 1994. [MarksM:10] Mitchell Lee Marks and Philip H. Mirvis: Joining Forces: Making One Plus One Equal Three in Mergers, Acquisitions, and Alliances, Revised and Updated; Jossey-Bass, Wiley, July 2010. [Markusen:90] James R. Markusen: First Mover Advantages, Blockaded Entry, And the Economics of Uneven Development; NBER Working Paper No.3284* Issued in March 1990. RB case. [Marlow:78] Marlow, Richard: “Matrix Approach to Pricing”; Les Nouvelles, March 1978, p.11. Method based on Nabisco license estimation. [MartinsonEM:99] O.B. Martinson, T.D. Englebrecht, and C. Mitchell: "How multinational firms can profit from sophisticated transfer pricing strategies"; Journal of Corporate Accounting & Finance, Vol.10 no.2, 1999, pp.91-103. [Marx:1867] Karl Marx: Das Kapital; 1867. On Kindle [Mathur:12]‡ Aparna Mathur: How Taxing the Rich Harms the Middle Class; The American, the Online magazine of AEI, 15 Feb.2012. [MathurK:10] Aparna Mathur and Kevin Hassett, AEI., same as [HassettM:10] . [Matsunaga:83] Yoshio Matsunaga: Determining reasonable royalty rates”; Les Nouvelles, Journal of the Licensing Executives Society, Dec.1983, pp.216–219. (App.G) [MatternSS:03]‡ Frank Mattern, Stephan Schönwälder, and Wolfram Stein: "Fighting Complexity in IT"; McKinsey Quarterly, April 2003. [Matthews:06] Dylan: Matthews: In-House Critic Holds IRS Feet to the Fire; Wall Street Journal, 2006. $2T collected, 130M individual, 25M corporate taxapyers Tax gap $290B.0 . Confused with Robert Guy Matthews on data disclosure. [Matthews:10] Dylan Matthews: The corporate tax shuffle ; Washington Post, 6 April 2010. Comments on [Hellman:10] [MauboussinJ:97] Michael Mauboussin and Paul Johnson: “Competitive Advantage Period”: The Neglected Value Driver”; Financial Management, Vol.6 No.2, Sum.1997. Life of non-routine returns. [MauldinA:08] Tiffany Mauldin and Edward Abahoonie: More likely than not: A comparison of FIN 48 and the tax penalty standard; The Tax Executive, March 2008; Price Waterhouse Coopers (PWC), 2008. [Mauer:04] Hermann Maurer: Das ParaNetz; Der Zusammenbruch des Internets; Freya Pub., Austria, 2004; English translation: The ParaNet (breakdown of the Internet); booklocker.com, 2004. Science Fiction attacks Globalization. [Maxton:11] Graeme Maxton: The End of Progress; How Modern Economics Has Failed us; Wiley, 2011. Growth, responsibility, economic rape. [MaydewS:05] Edward L. Maydew and Douglas A. Shackelford: The Changing Role of Auditors in Corporate Tax Planning; University of North Carolina and NBER, WP2005-10, June 2005. Fee data, many good references [Mayshar:91] Joram Mayshar: “Taxation with Costly Administration”; Scandinavian Journal of Economics, Vol.93 no.1 1991., pp 75-88. [Mazarov:12] Michael Mazarov: `Digital Goods and Services Fairness Act’ Would Impair Funding for Education, Health care, and Other Stte and Local Services; Center for Budget and Policy Priorities. 29 May 2012. [Mazza:03] S Mazza: The Interplay Between Norms and Enforcement in Tax Compliance ...; . Mar 28, 2003 –ssrn.com/sol3/papers.cfm?abstract_id=391133. A number of scholars have suggested that vigorous enforcement of the tax laws may be counterproductive because it may suggest that ... (Chap.8) [MazzolariR:07] Francesca Mazzolari and Giuseppe Ragusa, 2007. "Spillovers from High-Skill Consumption to Low-Skill Labor Markets“; IZA Discussion Papers 3048, Institute for the Study of Labor (IZA) and UC Irvine. Wage inequality, increase in US service jobs. US focus, data. [McAfee:83] R.Preston McAfee: “American Economic Growth and the Voyage of Columbus”; American Economic Review, Vol.73, 1983. The misuse of hypotheticals or counterfactuals: “If the world were flat, Columbus would certainly not have observed masts rising over the horizon as ships came in. As a result, he would have not believed the earth to be round, and would never have sailed. Hence he could not have fallen off the edge”. [McAfeeL:09] R.Preston McAfee and Tracy R. Lewis: Introduction to Economic Analysis; Flatworld knowledge, IEA, Feb.2009. [McBride:11]‡ William McBride: "Beyond the Headlines: What Do Corporations Pay in Income Tax?"; Tax Foundation Special Report No.194, Sep.2011. Foreign taxes explain most of the difference beween statutory and effective tax rates. In 2008 the 1,937 largest cos paid 68% of corp tax revenues. If taxes on foreign income are included the effective rate becomes 32.1 to 32%. Not used. [McBride:13N] William McBride: "New Zealand’s experience with Territorial Taxation"; Tax Foundation, 19 Jun. 2013. "; Tax Foundation, 19 Jun. 2013. see [GAO:13], flaws indicated, but no fix [McBride:13O] William McBride: " GAO Compares Apples to Oranges to Find Low Corporate Effective Tax Rate"; Tax Foundation, 3 Jul. 2013. [ACM} [McBride:13T] William McBride: " A brief History of Tax expenditures"; Tax Foundation, 22 Aug. 2013. Considers coirporate taxation a reverse Tax expenditures , because of doubl taxation. Other corporate Tax expenditures are modest. [McCabe:09] Cynthia Kopkowski McCabe: Education Funding, Follow theMoney; National Education Association, Feb.2009. [McCarthy:zz] John McCarthy: It is a folly to think that things can be improved by forbidding something” [McCloskey:97] Deirdre N. McCloskey: “The Good Old Coase Theorem and the Good Old Chicago School, a comment on Zerbe and Medema”; in Medema (ed), Coasean Economics, Kluwer, 1997, pp.239-248. Transaction costs versus Pareto Optimality when participants are independent. [McDonald:98] Chris McDonald: “The Evolution of Intel’s Copy Exactly! Technology Transfer Method”; Intel Technology Journal, Q4 1998. [McDonald:08] Michael McDonald: Income Shifting from Transfer Pricing: Further Evidence from Tax Return Data; US Department of the Treasury, Office of Tax Analysis, OTA Technical Working Paper 2, July 2008. [McGee:12] Robert W. McGee (ed.): The Ethics of Tax Evasion, Perspectives in Theory and Practice; Springer, 2012, 704pp. Little on corporate tax evasion. From Springer site: Why do people evade paying taxes? This is the central question addressed in this volume by Robert McGee and a multidisciplinary group of contributors from around the world. Applying insights from economics, public finance, political science, law, philosophy, theology and sociology, the authors consider the complex motivations for not paying taxes and the conditions under which this behavior might be rationalized. Applying theoretical approaches as well as empirical research, The Ethics of Tax Evasion considers three general arguments for tax evasion: (1) in cases 77 where the government is corrupt or engaged in human rights abuses; (2) where citizens claim inability to pay, unfairness in the tax system, paying for things that do not benefit the taxpayer, excessively high tax rates, or where taxes are used to support an unpopular war; and (3) through philosophical, moral, or religious opposition. The authors further explore these issues by asking whether attitudes toward tax evasion differ by country or other demographic variables such as gender, age, ethnicity, income level, marital status, education or religion. The result is a multi- faceted analysis of tax evasion in cultural and institutional context, and, more generally, a study in ethical dilemmas and rational decision making. [McIntyre:08]‡ Robert S. McIntyre: Time to Stop Subsidizing Wall Street, Eliminate Loopholes for Capital Gains and Dividends; Citizens for Tax Justice, 1 Oct.2012. capital gain. Data based on Institue on Taxation and economic Policy. [McIntyre:11] Robert S. McIntyre: “Remembering the 1986 Tax Reform Act”; Tax Notes, 17 Oct.2011. Corporate taxes only. [McIntyreGWP:11] Robert S. McIntyre, Matthew Garner, Rebecca J. Wilkins, and Richard Phillips: Corporate Tax Dodgers, 2008-2011; Citizens for Tax Justice & Institute on Taxation and Economic Policy, Nov.2011. Survey of 280 companies on the Fortune 500. Earnings (in the US?) $1,400B. 25% < 10%, 111/280 < 17.5%, 25% 32.3%; average ~17.5% over 3 years. By 2011 income tax only 1.16% of GDP, Disclosure needed. [McKendrickDH:00] David McKendrick, Richard Doner, and Stephen Haggard: From Silicon Valley to Singapore, Location and Competitive Advantage in the Hard Disk Industry; 2000. on Kindle. [McKenney:12]‡ Michael E. McKenney: Final Audit Report ROTER; TIGTA, 7 Aug.2012 [MellahiJ:00] Kamel Mellahi and Michael Johnson: “Does it pay to be a first mover in e.commerce? The case of Amazon”; Managment Decision, Vol.38 no.7, pp.445-452. MCB University Press, now Emerald Press UK, July 2000. [MelnikB:06]‡ Steven V. Melnik and Bernard Baruch: Corporate Inversion Strategies; American Institute of CPAs, 14 July 2006. [MergesML:06] Robert P. Merges, Peter S. Menell, Mark A. Lemley: Intellectual Property in the Technological Age, 3rd ed.; Aspen, 2006. Have (Case studies, incl. International). prior editions 2003, 1997. I have also 2005 Case and Statutory Supplement. Software chapter 7 focuses on protection. Versions substitute. Trade secrets dominate (p.995+). Nothing on Life. [MetropolisW:80] Nicholas Metropolis and J. Worlton: "A Trilogy on Errors in the History of Computing"; Annals of the History of Computing, Vol.2 No.1, Jan.1980, pp.49–55. Replaced by Dyson [Michael:13] Gabriel J. Michael: Anarchy and Property Rights in the Virtual World: How Disruptive Technologies Undermine the State and Ensure that the Virtual World Remains a 'Wild West'; SSRN 2233374, 1 Mar.2013. Focus on entertainment IP, impossibility to enforce regulations. {VIC Ch3.1} [Michaelsen:93] Ulrik Fleischer-Michaelsen: “Denmark's Transfer Pricing System is Attractive to Foreign Corporations”; J. INT'L TAX'N ; Vol.226, May 1993. {VIC Ch..6.4} [Michie:92] Ranald C. Michie: The City of London; Basingstoke, 1992. {VIC Ch..6.6} [MeyerK:04] David Meyer and Martin Kenny: “Economic action does not take place in a vacuum: Understanding Cisco’s acquisition and development strategy”; Journal of industry and Innovation, Dec.2004. [Mihaly:93] S. Mihaly: “United States: How to Escape the Wrath of Thrasbulus’ Sword and Establish Reasonable Royalty Rates in Intercompany Licensing of Intangibles Under the `Best Method Rule’of the New Section 482 Regulations; Bulletin for International Fiscal Documentation, Vol.47 No.309, June 1993. [Miles:05] Miles: ‘‘Intermediary Dutch Holding Company Qualifies for Parent/Subsidiary Directive Relief’’; Tax PlanningInternational Review, Vol.32, 2005, pp.16, 17. {VIC Ch..6.3} [MillerVC:10] Keith W. Miller, Jeffrey Voas, and Tom Costello: “Free and Open Source Software”; IT Professional, IEEE , Nov.2010, p.14-17. {VIC Ch..3.3.4} [MinittiPS:08] A. Minniti, C.P. Parello, and P.S. Segerstrom: "A Schumpeterian Growth Model with Heterogenous Firms“; Working Papers 645, Dipartimento Scienze Economiche, Universita' di Bologna; MPRA Paper 13674, University Library of Munich, Germany, 2008. R&D success is highly skewed, long tail of high profits. Parameters for subsidy decisions. {VIC Ch8.7} [Milsted:12] Carl Milsted jr.: The Limits to the Laffer Curve, National Debt Solutions, 2012, 79 [Mitchell:10L] Dan Michell: What is Ideal Point on the Laffer Curve; Center for Freedom and Prosperity, 18 Aug.2010. Does not trust JCT estimates. Supports Mankiw, Feldstein. Has 3 videos attached. [Mitchell:11] Rick Mitchell: At G-20, Sarkozy names Switzerland, Liechtenstein among 11 Tax havens; BNA Daily Tax Report; 7 Nov.2011. [Miyatake:09] Toshia Miyatake: Japan’s Foreign Subsidiaries’ Dividend Exclusion; Proceedings from the 2009 Sho Sato Conference on tax Law, Social Policy, and the Economy, March 2009. By moving to full deductabilty of dividends for corporate profits, territorial taxation becomes closer. But taxhavens can stll be addressed. [MoellerLK:09]‡ Volatility in leverages. Replaced by {Wilson:11]‡. [Moody:09] Glynn Moody, Rebel Code: Linux and the Open Source Revolution; Basic Books, 2009. Covers many project,, large and small. on Kindle [ACM]. [MoodyWH:05] J. Scott Moody, Wendy P. Warcholik & Scott A. Hodge: Special Report: The Rising Cost of Complying with the Federal Income Tax; Tax Foundation, Dec. 2005, http://www.taxfoundation.org/research/show/1281.html> [Morgan:99] R. William Morgan: “Buy in payments and Market Valuations”; Transfer Pricing Reportf BNA, 15 Sep.1999, pp.449-454. [Mookerjee:05]† Radha Mookerjee: "Maintaining Enterprise Software Applications"; Comm. ACM, Vol.48 no.11, Nov.2005. [Morgan:10] R. William Morgan: “Testimony Before the Committee on Ways and Means”; Joint Committee on Taxation (JCT), 22 July 2010. Author is with Horst Frisch, Inc. Income shifting by one company forces others to follow. Need for IP valuation. Veritas was a bad deal for US shareholders. [Morgan:12] Mary S. Morgan: The World in the Model, How Economists Work and Think; Cambridge University Press, 2012. Wordy history of economic modeling. No mention of intangibles. [MorgensonR:11] Gretchen Morgenson and Joshua Rosner: Reckless Endangerment: How Outsized Ambition, Greed, and Corruption Led to Economic Armageddon; Times books, May 2011. Legislation and Regulation. Trust Preferred Securities Mortgage lenders. Focus on FannieMae [Morgenthau:09] Robert M. Morgenthau: Cayman Islands hold $1, 900B; Charlie Rose Interview, 8 April 2009. D.A. NY 1975 year2009 (Son of Henry M. Treasury Sec. 1934-1945?. [Moore:91] Geoffrey A. Moore: Crossing the Chasm; Harper Business, 1991. [Moore:95]† Geoffrey A. Moore: Inside the Tornado: Marketing Strategies from Silicon Valley's Cutting Edge; Harper Business, 1995. [Moore:12]‡ Jack Moore: 2012 budget ups IRS funding; Federal News Radio, 20 August 2012. [xls/irs] [Moorehead:84] Donald V. Moorehead: Selected Current Developments in Subchapter C; William and mary Annual Tax Confrence, paper 547, 1984. Tainted assets are subject to a stauutory toll charge, i.e. erxport taxation.. [MoriartyMW:97] Sandra Moriarty, Nancy D. Mitchell, William D. Wells: Advertising; Prentice Hall, 2008. Poor reviews . Many stories. Little quantification. [Mortished:06] C. Mortished: "GSK settles largest tax dispute in history for $3.1B"; Times Online 12 09.2006. Business. 16 09.2006 [Mulally:11] Alan Mulally (CEO of Ford): `70 % of R&D is associated with manufacturing’; conversation with Charlie Rose; Bloomberg Businessweek, 1 Aug.2011. [Mulligan:09] Mark Mulligan: “Spotify: why it’s been so successful and what it needs to do”; Music Industry Blog, 6 Feb. 2009, http://musicindustryblog.wordpress.com/2009/02/06/spotify-why- it's-been-so-successful-and-what-it-needs-to-do-next. . from Sonny Chan CS207 [Mulligan:12] Casey B. Mulligan: Will the I.R.S. be busy next Year?; The New York Times, 1 Feb.2012. Differences in audit rates under democratic versus Republican administrations. [Mundstock:87] George Mundstock: Taxation of Business Intangible Capital; 135 U. Pa. L. Rev. 1179 (1986-1987) [Murphy:12] Richard Murphy: The Courageous State, Rethinking Economics, Society, and the Role of Goverment; 2012. [Murphy:09] Richard Murphy: The language of Tax; Mapping the Fault Lines, Tax Justice Network, Nov.2009, NNNNNNN [NadiriP:96] Ishaq M. Nadiri and Ingmar R. Prucha: “Estimation of the Depreciation Rate of Physical and R&D Capital in the U.S. Total Manufacturing Sector”; Economic Inquiry, Vol.XXXIV, Jan.1996, pp.43-56. Based on NBER Working Paper No.W4591. The model was estimated for the U.S. total manufacturing sector. “Our estimate for the depreciation rate of physical capital is 0.059 and that for R&D capital is 0.12” . Gives an `average” R&D life of 7 years and a total life 18 years to the 10% level based on a geometric (proportional) depreciation model. For linear depreciation life would be 8.3 years. An interesting observation from the paper is that 1. U.S. industry manufacturing industry now spends 5% annually on IP reinvestment, i.e., maintenance. 2. Spending 13.75% would avoid keep the value of the IP investment constant according to my spreadsheet based on [NadiriP:96]‡’s equations. That number is very close to the 15% maintenance cost I assume in my software models. [Nakamura:98] Toru Nakamura: “Profit Theorioes in Ptasnfer Pricing; Transfer Procing Report, Vol.6, 25 Feb 1998, p. 673. [Nakamura: 99] Leonard Nakamura: “Intangibles: What put the New in the New Economy”; Federal Reserve Bank of Philadelphia Business Review, July 1999. corporate investments in tangible assets have stagnated while corporate value creation has surged at the same time. The S&P 500 index, reflecting the market value of the major U.S. corporations, surged between 135.76 at the end of 1980 to 1342.62 on Nov.20, 2000 – a ten fold increase. In the same period investments into tangible assets in the U.S. (as a percentage of corporate GDP) decreased from 14.1% in the 1980s to 12.6% in the 1990s [Nakamura:01]‡ Leonard Nakamura: “ Investing in Intangibles, is a Trillion Dollars missing from GDP”; Federal Reserve Bank of Philadelphia Business Review, Q4, 2001, p27-37, Philadelphia Fed.org, [Nakamura:08 ] Leonard Nakamura: “ Intangible Assets and National Income Accounting”; Federal Reserve Bank of Philadelphia Woking paper 08-23, 16 Oct 2001, SSRN#1285048. 81 [NakamuraS:11] Emi Nakamura and Jón Steinsson: Fiscal Stimulus in a Monetary Union: Evidence from U.S. Regions; NBER Working paper No.17391, Sep. 2011, SRN#1931161. Uses military contracts to firms in US staes as a model for Stimulus. 1.5 leverage. Also data on goods vs servoces [Nakaso:12] Dan Nakaso: U.S. tax shelter appears secure; San Jose Mercury News, 25 Dec. 2012, p.1,5. [NYSE:11]‡ NYSE-Euronext: History of the component stock exchanges; OOOOOOO [Oates:72]‡ Wallace Oates: Fiscal Federalism; Harcourt Brace Jovanovich, 1972. Introduces tax competition. [OatesO:03] Mark A. Oates and James O’Brien: “For Settlement Purposes Only”; Transfer Pricing , Taxation of Global Transaction, CCH Wolters, Summer 2003, pp.31-34. Taxpayers should settle if favorable terms can be negotiated. Settlement analyses are less precise. Information from failed settlements or APAs is not admissible evidence at a trial [OatesO:09] Mark A. Oates and James O’Brien: “The Arms-length Standard: Why it Matters”; Transfer Pricing , International Tax Journal, CCH Wolters, July 2009. Double taxation. Xlinx case arms- length versus formulary apportionement. Parochial interest of nations. Regulatory History. [OatesO:11] Mark A. Oates and James O’Brien: “Lux et Veritas: IRS’s Actions Speak Loader Than its Words”; Transfer Pricing, International Tax Journal, CCH Wolters, Jan.2011. Veritas case. “Judge Foley rejected the IRS theories, ruled the IRS original and trial positions to be arbitrary, capricious and unreasonable, and accepted the taxpayer’s comparables-based theory of the case with minor modifications.”. “In order to win a Code Sec. 482 case, a taxpayer must show that the IRS’s position in the notice of deficiency was arbitrary, capricious or unreasonable.” “having lost badly, the IRS’s angst and anger over the decision is understandable.” “To be absolutely clear, the IRS in the AOD is saying that, given the facts found by Judge Foley, the IRS too would have ruled for the taxpayer in VERITAS.” “Dr. John Hatch was the principal expert advanced by the IRS at the trial in VERITAS. The original notice of deficiency sported an amount 50 percent higher ($2.5 billion buy-in value) than the IRS trial position based on Hatch’s analysis and opinion ($1.675 billion buy-in value). The prior notice of deficiency buy-in value was based on the analysis and opinion of Dr. Brian Becker. Prior to trial, the IRS abandoned Becker’s opinion, and, at trial, “without meaningful explanation, conceded $825 million of the [Becker] buy-in amount” and “failed to offer even a token defense in response to petitioner’s critique of Becker’s conclusions.” Not surprisingly, Judge Foley found the IRS notice position based on Becker to be arbitrary, capricious or unreasonable.” “In addition, respondent infl ated the determination by valuing short-lived intangibles as if they have a perpetual useful life and taking into account income relating to future products created pursuant to the [cost sharing agreement] .” “hinges primarily on the testimony of Hatch. Put bluntly, his testimony was unsupported, unreliable, and thoroughly unconvincing. Indeed, the credible elements of his testimony were the numerous concessions and capitulations.” “Hatch further agreed that his discount rate used to value VERITAS’s earnings into perpetuity, to a reasonable degree of economic certainty, could not possibly be correct.”” Based on the failure to appeal VERITAS, the authors believe that Appeals will continue to assign very high hazards to the IRS in litigation of the buy-in issues and thus to continue to settle these cases on terms highly favorable to taxpayers.” [Obama:08] Barack Obama 2008 ran on a tax plan that included “…reforming deferral to end the incentive for companies to ship jobs overseas”; deferring some deductions until repatriation and curbing the “check the box” regulations that enable multinationals to structure their foreign operations in a tax-favorable manner, Obama-type policy statements imply that multinationals somehow benefit unfairly from a tax system with perverse incentives.4. ( 83 [OBrienC:90] James O’Brien and Robert J. Cunningham: “Protecting Against the Disclosure of Trade Secrets to Independent Experts and Third-Party fact Witnesses During an Internal Revenue Service Audit”; Tax Executive, Vol.42, March 1990, pp.99-108. Considers that trade secrets, once obtained by an IRS agent are not protected when disclosed to third parties hired by the IRS. [OBrienEa:98] James M. O’Brien, Karen A. Kunster, David A. Waimon, John McDonald, David D. Noren, and Ryan R. Brenneman: U.S. Corporations Doing Business Abroad; Baker McKenzie, Vol.28 of a series on Tax Advisors Planning, Research Institute of America, (RIA) Checkpoint, 1 Jan.1, 1998, 376 pp. Have. [OBrienO:99] James M. O’Brien and Mark A. Oates: Caveat Expert: Let the Expert Witness Beware; Taxes, CCH, Vol.77 no.11, July 1999. A report should be filed 60 days prior to a trial. Those lead to rebuttals. Up to a dozen witnesses in some cases. Experts are easily damaged. Use of junk science. Facts are better than opinions. [OBrienO:02] James M. O’Brien and Mark A. Oates: “Common Sense and the Art of Transfer Pricing”; Transfer Pricing, Taxation of Global Transaction, CCH Wolters, Winter 2002, pp.33-34, 63-64. The arms-length standard is understandable to all and matches market experience. Good motivation. [OBrienO:02M] James M. O’Brien and Mark A. Oates: “Musing on Transfer Pricing Developments”; Transfer Pricing, Taxation of Global Transaction, CCH Wolters, Summer 2002, pp.19-24, 70-71. DHL case. UPS insurance payments, Xlinx stockoptions. APa program. [OConnor:08] Kevin J. OConnor: Statement before the Senate Committee on Homeland Security and Governmental Affairs’ Permanent Subcommittee on Investigations Hearing on Tax Haven Financial Institutions: Their Formation and Administration of Offshore Entities and Accounts for Use by U.S. Clients , July 17, 2008. Offshore tax evasion. Shell entities. Often fraud has to proven before it can be investigated. Not all witnesses called for the hearing showed up. [OdagiriEa:10] Hiroyuki Odagiri, Akira Goto, Atsushi Sunami , and Richard R. Nelson. (eds.): Intellectual Property Rights, Development, and Catch Up: An International Comparative Study; Oxford University Press, 2010. At Abe books 45+8.91. And Amaxon $38 Patents may promote innovation and catch up, and they may foster formal technology transfer. Yet they may also prove to be barriers for developing countries that intend to acquire technologies through imitation and reverse engineering. The current move to harmonize the IPR system internationally, such as the TRIPS agreement, may thus have unexpected consequences for developing countries. For most countries, economic development involves 'catching up' with leading countries. This needs more than physical assets and labour: it requires technological capabilities, educational attainment, entrepreneurship, and development of the necessary institutional infrastructure, including intellectual property rights, particularly patents. [OECD:86] OECD Committee on Fiscal Affairs: Double Taxation Convention and the use of Conduit Companies; OECD, Paris, 1986. [OECD:98] OECD Committee on Fiscal Affairs: Harmful Tax Competition, An Emerging Global Issue; Organisation for Economic Co-operation and Development (OECD), Paris, April 1998. [OECD:87]‡ Committee on Fiscal Affairs, International Tax Avoidance and Evasion, Four Related Studies, Issues in International taxation Series no.1, OECD, Paris, 1987. [OECD:00]‡ OECD CFA: Clarification on the Application of the Permanent Establishment Definition in E- Commerce: Changes to the Commentary on the Model Tax Convention on Article 5; Committee on Financial Affairs Report, 22 Dec.2000, 7pp.= Just having a server in X does not in itself constitute having a permanent establishment in X. An ISP is not an agent. Have. [OECD:01]‡ OECD TAG: Attribution of Profit to a Permanent Establishment Involved in Electronic Commerce Transactions; Technical Advisory Group on Monitoring the Application of Existing Treaty Norms for the Taxation of Business Profits , Draft Report for Discussion, Feb.2001, 34pp.=Example. Focuses on e-tailing (p.5). In most condition under arms-length principles having a server in X leaves all substantial assets and risks with the head office (p.4). If services are provided by an Independent Service Provider (ISP) the conclusion would be similar (p.4. 19-. ). If there is personnel and X assumes sufficient development risk to be considered an economic owner, then commensurate profits are to be attributed to X (p.21,28). Comparables (p.23), Problems (p.27) 85 [Olson:10O] Nina E. Olson: National Taxpayer Advocate: Fiscal Year 2012 Objectives, Report to Congress, IRS, 30 June 2010, 158pp, [OTP:07] Office of Tax Policy: Approaches to Improve the Competiveness of the U.S. Business Tax system for the 21st Century; U.S, Department of the Treasury, 20 Dec.2007 . Importance of recognizing global flow. Coniders effect of depreciation. Business Activities Tax (BAT) (not BATSA ) Repeal the corporate tax and replace it with a VAT of 5 to 6%. Graph shows lead of smaller OECD countries. [Overby:07] Stephanie Overby: “ABC: An Introduction to Outsourcing”; CIA magazine, 9 March 2007, www.cio.com/article/40380/ Outsourcing_Definition_and_Solutions#1. [Owens:07] Jeffrey Owens Hearing on Offshore Tax Evasion: Stashing Cash Overseas; S. Finance Comm. on Offshore Tax Evasion, 110th Cong. 5, 2007, available at http://www.ceff.univ- cezanne.fr/documents/owen.doc>. Jeffrey Owens, Director, OECD Center for Tax Policy and Administration; Our research reveals that only four OECD countries (Mexico, Sweden, the United Kingdom and the United States) regularly publish estimates of the tax gap. . . One reason why countries are reluctant to calculate any possible tax gap is that there is no agreed methodology to measure the gap. OECD is currently undertaking work in this area. [Oxfam:00] Oxfam: Tax Havens: releasing the hidden billions for poverty eradication, Oxfam UK All--‐ Party Parliamentary Group on Africa, 2000, From Vaibhav CS207 [Oxford:13] Cliff Oxford: “Why the Tumblr Deal Is a Disaster for Entrepreneurs”; You’re the Boss Blog, NYTimes.com.htm, 6 Jun.2013. At $1.1B, just eyballs, hard to montize for Yahoo. [OzimT:10] Tola Ozim and Edward Tanebaum: H.R. 5328: International Tax Competitive Act of 2010; International Tax Advisory, Allston+Bird, 15 July 2010. Provisions of the Stop Tax Haven Abuse Act have been picked up in the Bill. PPPPPPPP [PackmanC:11] Andrew Packman and Augusto Lopez Claros: Paying Taxes 2012, the Global Picture; Price Waterhouse Coopers and the World Bank, 2011. www.pwc.com/payingtaxes. Also John Preston, Neville Howlett, Sylvia Solf, Tea Trumble. Focus on small and medium sized businesses in 183 economies. . Companies consider tax rates. Tax cost world wide 44.8% of its commercial profits. 277 hours to comply for sample company. Average total tax rate has fallen by 8.5%, > 1%/yesr. 10 economies do not levy a corporate tax, and in 3 no tax is paid because of reliefs and allowances. Income tax represents just 12% of all corporate taxes. US effective tax rate 27.6%, average global rate 16% (weighted?) [PakesS:79] Ariel Pakes and Mark Schankerman: Rate of Obsolescence of Knowledge, Research Gestation Lag, and the Private Rate of Return to Research Resources; NBER working paper no.346, May 1979. In [Grilliches 84, pp.73-88] as Rate of Obsolescence of Patents, Research Gestation Lag, and the Private Rate of Return to Research Resources. Lag is 6 month a [Palan:02] Ronen Palan: “Tax Havens and the Commercialization of State Sovereignty”; International Organization; Vol.56 no.1, 2002., pp.151-176. [Palan:06] Ronen Palan: The Offshore World: Souvereign markets, Virtual Places, and Nomad Millionaires; Cornell University Press, 2006. Have - <+ch10> [PalanMC:10] Ronen Palan, Richard Murphy, and Christian Chavagneux: Tax Havens: How Globalization Really Works; Cornell Studies in Money, 2010, www.cornellpress.edu. Tax havens are continually evolving. Covers criminality, transfer pricing, but not IP. Corporations owning other corporations first in Holland, 1893, and then in New Jersey 1899. [Palda:64] “Classic work on the cumulative effects on advertising” used as test Lydia Pinkham’s tonic data, a company which spent some years 85% of its sales on advrtisment, but was 87 [PanditS:08] Vivek Pandit and Rajesh Srinivasaraghavan: ”A fresh wind for offshoring infrastructure management”; McKinsey Quarterly, Oct.2008. [PapadimitriouEa:11] Panagiotis Papadimitriou, Hector Garcia-Molina, Prabhakar Krishnamurthy, Randall A. Lewis, and David H. Reiley, "Display Advertising Impact: Search Lift and Social Influence"; Proceedings of the 17th ACM SIGKDD Conference on Knowledge Discovery and Data Mining [KDD'11] , 2011 pp.1019-1027. Read the abstract. Download the manuscript. [Parker:87] Rachel Parker: “’Secured facility’ solves compatibility Conflicts; Info World, 28 Sep.1987 – reference for clean room softwar e. I used a better one once? in lag paper [ParilloE:12] Kirsten A. Parillo and Amy S. Elliott: IRS to withdraw Coordinated Issue Paper on Cost- Sharing Arrangement Buy-in Adjustments; Tax Notes Today, Tax Analysts, TNT 13-2, 19 Jan 2012. [Parnas:94]† David Parnas: "Software Aging"; 16th Conf. on Software Engineering, May 1994, pp.279-287. [Park:92]† Robert E. Park: "Software Size Measurement: A Framework for Counting Source Statements"; Software Engineering Institute, Technical Report CMU/SEI-92-TR-20. [Parr:07] Russell Parr: Royalty Rates for Licensing Intellectual Property; Wiley, 2007; Kindle edition, 2007. On Kindle. Reports royalties/op. profit margins for SW 6.8/18.8%, for electronics, 4.0/8.8%, for computers 4.0/6.9%, and for healthcare 4.8/14.8% in terms of revenues. Trademark royalty are a median of 5%. Also reports that 88% of licenses have underreported royalties [Ex.14.1] , and that internal royalties rates are typically meaningless because of manipulation for tax reasons [ch.4] . Rambus charges 3.5% of DR DRAM technology use [Chap.3] . Cites Royalty Source statistics. [xls/comparables] [ParrS:96] Russell L. Parr and Patrick H. Sullivan: Technology Licensing: Corporate Strategies for Maximizing Value; Wiley 1996. Chap.14 for IC, IP definitions cited in [SmithP:05] . [ParrS:05] Russell L. Parr and Gordon V. Smith: Intellectual Property; Valuation, Exploitation, and Infringement Damages, 4th Edition; Wiley; Adobe E-book, May 2005. [Paschall:00] C. Thomas Paschall: U.S. Capital Gains Taxes: Arbitrary Holding periods, Debatable Tax rates; USC Law Revue, Vol.73, 2000. /073404.pdf>. [Paul:10] Ron Paul: The Case for Gold, A Minority Report of the U.S. Gold Commission; Laissez Faire books, 2001, reprint of a 1983 report. [Paul:12] Ron Paul: Plan to Restore America; Ron Paul Presidential Campaign Committee, 2012. Actually has numbers and totals. [xls/taxproposals] [PaulEa:03] Lindy L. Paul (chief of Staff) et al.: Report of Investigation of Enron Corporation and Related Entities Regarding Federal Tax and Compemsation Issues, and Policy Recomendations; Joint Committee on Taxation, Senate Committee on Finance, JCS-3-03, Feb.2003, 385pp.3,500 subsidiuaries. Taxes only in 2000, $62M on 101B in revenues. [Paulette:09] Paulette: President Obama cracks Down on Off Shore Tax havens; Let us Talk, 5 May 2009. [Patrick:13] Josh Patrick: “Business for Sale Putting a Price on an I.T. Company”; You’re the Boss Blog, NYTimes.com.htm, 11 Jun.2013. Nice question, no answer. [Payne:93] James L. Payne: Costly returns; The Burdens of the U.S. Tax System; Institute for Contemporary Studies (ICS) press, Jan. 1993. Have. Refers [ADLittle:85]‡. Adds many more amounts [W:12, IRSdata]‡. Estimates total cost of tax preparation at $159B or 65% of actual collections. Diatribe. [xls/irs] [Pearlman:11] David Pearlman, on Charlie Rose Friday night 7 Jan 2011: In the global economy there is no assured connection between income growth of Multinational Corporations and job growth in any particular country. [Pearlstein:11] Steven Pearlstein: Charlie Rose Interview: Facebook, jobs; at 40 min, Audio Books, Audible.com, 10 Jan 2011. Have [Pearlstein:13] Steven Pearlstein: “Marty Sullivan figured out how the world’s biggest companies abvoided billions in taxes. Here’s how he wants to sop thwm”; Wonkblog, Washington Post, 26 Oct. 2013. .[ACM]. [PearS:11] Robert Pear and Jennifer Steinhauer: “Senate Approves Two Pieces of Jobs Bill”; The New York Times, 10 Nov 2011. Veterans jobs [Pearson:06] Thomas C. Person: “Preparing Multinational Companies for Tranfer Pricing Audits of Intangibles”; International Law & Management Revirew, BYU, Vol.2, pp.159-200, 2006. “While most multinational companies will usually not disregard the law, some believe their business strategies may place them dangerously close to questionable areas that exploit legal loopholes.84 The natural, but unfortunate, result is that governments require more detailed transfer pricing audits to ensure that multinational companies comply with a country’s transfer pricing legal requirements and the spirit of its law.” Risks among parties. Clauses for comparables. Identify tax-planning opportunities. Division of intangibles is likely an improper pricing tactic. 361 deals with spit intangibles only. APA program. Mutual concession settlements. Location savings. Significant taxpayer victories. Compamy will usually achieve partial success in litigation. [Peel:11]‡ Michael Peel: Tax Havens: In a sea of trouble; Financial Times, 12 Jan.2011. On BOTs [PeppardD:07] J. Peppard and E. Daniel: “Managing the Realization of Business Benefits from IT Investments”; Management Information Systems Quarterly Executive (MISQE); Vol.6 no.1, March, 2007. [Perry:11] Rick Perry: “My Tax and Spending Reform Plan: Cut, Balance, and Grow”; Wall Street Journal; 26 Oct 2011. Corp tax 20% [PfatteichervTF:07] Linda Pfatteicher, Bernhard von Thaden, and Paul Flignor: IRS again attempts to rein in cost-sharing arrangements; DLAPiper International Tax Newsletter, Oct.2007. [Philips:89] Louis Philips: The Economics of Imperfect Information; Cambridge Univ. Press, 1989. Predatory pricing and Foregone profits pp212-242 for a monopoly versus a prey.. [Philips:12] Mathew Philips: “Time to Head Home for Some Manufacturers”; Bloomberg Business Week, 6 Feb 2012. Total cost differential is reducing. Consider risk of IP loss – still not quantified. [Phillips:11] Michael R. Phillips: Reducing the Processing Time Beteween Balance Due Notices Could Increase Collections; IRS, TIGTA , 26 sep. 2011. Obvious, already stated by Rossotti. After 12 months, collectability falls to 23 percent. The notice stream could potentially collect an additional $363.4 million, based on the 11.6 million balance due modules that entered the notice stream during FY 2010. [Pickle:92] J.J. Pickle: Tax Underpayments by U.S. Subnsidiaries of Foreign Companies; Hearings before the Oversight Committee of the House Committee on Ways and Means, 102 Congr, 2nd session, 1992. “The IRS was simply oputgunned and out maned” [PierceS:09] Justin R. Pierce and Peter K. Schott: A Concordance Between Ten-Digit U.S. Harmonized System Codes and SIC/NAICS Product Classes and Industries; Center for Economic Studies, U.S. Bureau of the Census, Nov.2009. [Pigoski:97]† Thomas M. Pigoski: Practical Software Maintenance - Best Practices for Managing Your Software Investment; IEEE Computer Society Press, 1997. [PimentelG: 94] David Pimentel and Mario Giampietro: Food, Land, Population and the U.S. Economy ;Nov.21, 1994. Carrying Capacity Network, in [Hanson:11] , dieoff, resource depletion [PiotrowskaV:08] Joanna Piotrowska and Werner Vanborren: "The corporate income tax rate-revenue paradox: Evidence in the EU“; Taxation Papers 12, Directorate General Taxation and Customs Union, European Commission, revised Oct 2008. [PisanoS:09] Gary P. Pisano and Willy C. Shih. "Restoring American Competitiveness"; Harvard Business Review 87, nos. 7-8 ,July – August 2009. [Pitzke:13] Marc Pitzke: “Offshore-Leaks: Gigantisches Netzwerk der Steuerhinterzieher enthüllt”; Spiegel OnLine, 4 Apr.2013. [PMI:00] Project Management Institute: Project Management Body of Knowledge Guide; Project Management Institute, 2000. [Polanyi:44] Karl Polanyi: The Great Transformation; Boston: Beacon press, 1944. unfettered free trade is fundamentally incompatible with social order and stability. On Kindle 89 [Politi:11] James Politi: “White House chief defends `Buffet rule’”; Financial Times, 19 Sep.2011. [Polk:06] Michael Polk: "It's all about Dislocationg Ideas"; Knowledge@Wharton, 15 Nov 2006, [Pressman:01]† Roger Pressman: Software Engineering, A Practioner's Approach; 5th edition; McGrawHill, 2001. [Protalinski12] Emil Protalinski: Last Facebook Pre-IPO Valuation is Biggest yet: $102.8 billion; ZDNet, 30 Mar.2012. [PrzysuskiL:05] Martin Przysuski and Srini Lalapet: “A Comprehensive Look at the Berry Ratio in Transfer Pricing”; Tax Notes International, Tax Analysts, Vol.40 no.8, 21 Nov.2005, p.759. Comments on US and OECD expectations. History of the Berry ratio and the 1979 Dupont case, [PSoI:03] Permanent Subcommittee on Investigations: U.S. Tax Shelter Industry: The Role of Accountants, Lawyers, and Financial Professionals, Four KPMG Case Studies, FLIP, OPIS, BLIPS, and SC2; Report on Hearings held 18&20 Nov.2003, U.S. Senate Homeland Security and Governmental Affairs Committee, on the Role of Professional Firms in the U.S. Tax Shelter Industry’’ US Senate S402-21, 130 pp. Focus on US individual returns. Fees min$ 0.5M to 2M for an S-corporation! Some fees contingent on tax savings. Mentions “more- likely-than-not”. “the penalties would not be greater than $14,000 per $100,000 .. fees”. Uses Tax shelter states and the Cayman islands. [PugsleyH:11] Pugsley, Benjamin and Erik Hurst: “Wealth, Tastes, and Entrepreneurship”; University of Chicago, Mimeo, 2011. Non pecuniary benefits in small businesses QQQQQQQQ [QFA:11] QFA: Global Finacial Centers; Qatar Finacial Authoritity, Sep.2011. Much data. 91 "Fiscal protectionism is bad policy, and the Center for Freedom and Prosperity will oppose and work vigorously to defeat any legislation introduced to stifle tax competition. Tax competition is a liberalizing force in the world economy. It should be celebrated to persecuted”; Quinlan explained that, "High-tax California should not be allowed to stop companies from moving to low-tax Nevada, and Washington politicians likewise should not be able to stop companies from escaping bad U.S. tax law”; Tax Reform, not Fiscal Protectionism, is the Right Response to Corporate Flight: CF&P Reiterates Call for Territorial Taxation RRRRRRR [Radaelli:03]‡ Cladio M. Radaelli: The Code of Conduct Against Harmful Tax Competion: Open Method of Coordination In Disguise; Public Administration, Vol.81, no.3, 2003. Draft 1999. OMC. [RaedlerJ:84] Albert J. Raedler and Friedhelm Jacob: German Administrative Principles Concerning Transfer Pricing; English translation; 1984. [Raensch:10] Ullrich Raensch: Handling Tax Controversies in Europe; Baker & McKenzie, Tax Europe, Frankfurt 2010. [RajaHH:10] Uzma Raja, Joanne Elaine Hale, David Peter Hale: “Temporal Patterns of Software Evolution Defects: A Comparative Analysis of Open Source and Closed Source Projects”; Journal of Software Engineering and Applications, 2011, 4, 497-511. Shows defect and repair rates in 5 open source and 5 closed SW projects. [Rajan:11] Raghuram G. Rajan: Fault Lines, How Hidden Fractures Still Threaten the World Economy; Princeton University Press, Aug.2011 . On Kindle & Paper. Good description of interaction of Government, private initiatives, and politics. [RRRR] . Organizational capital. Have on Kindle. [Rahn:09] Richard W. Rahn: "In Defense of Tax Havens"; Wall Street Journal, 17 March 2009. [RamelliEa:12] Rudolph Ramelli et al.: Comments and Recommendations for Guidance to the Transfer Pricing of Related Party Guarantees; American Bar Association, letter to Commissioner Shulman, 13 Sep. 2012, 93 pp. For related party guarantees “market-based pricing should always be the starting point”. Better than yield. ~income. Should apply to loans guaranteed by parent. 93 pp.[xls/irs] [Ramos:07] Joanne Ramos: “A survey of offshore finance”; The Economist, 22 Feb 2007. Offshore financial centres, Macau Bermuda, Liechtenstein, Guernsey , are booming as thanks to their easy-going tax regimes. But the best of them are more than tax havens: they are good for the global financial system. Now also Dubai, Kuweit, SaudiArabia, Shanghai (China), Khartoum (Sudan). [Randolph:06] Randolph: International Burdens of the Corporate Income Tax; CBO Working Paper 2006- 09, Aug.2006. Employees bear the burden of corporate tax in proportion to their shares of revenues. [RanganathanB:07] , C. Ranganathan and S. Balaji: “Critical Capabilities for Offshore Outsourcing of Information Systems” Management Information Systems Quarterly Executive (MISQE), Vol.6 no.3, Sep.2007. [Rao:04] M.T. Rao: “Key Issues in Global Outsourcing: Country and Individual Factors”; Information Systems Management, Summer 2004, pp 16-21. [Rashkin:07] Michael Rashkin: Practical Guide to Research and Development Tax Incentives: Federal, State, and Foreign, 2nd Edition; CH Wolters Kluwer Publications, 2007. "The Joint Committee on Taxation estimates that in 2004 U.S. corporations will use the research credit and R&D expensing to reduce their tax liabilities by 9.2 billion dollars. The perception used to be that the high-tech sector was the only heir to this tax fortune. But the Treasury Department liberalized the rules, as reflected in the 2001 proposed regulations, and now even traditional manufacturing industries are capitalizing on the research credit and R&D expensing. While maximizing these tax incentives saves companies huge sums of money, the credit in particular can represent a very confusing area of law. Both business people and their tax advisors may be unclear about the rules and how to use them to secure the greatest tax savings. Michael Rashkin, J.D., LL.M., (General Tax Counsel for Marvell Semiconductor, Inc.) provides something that has been missing in professional tax literature--authoritative, comprehensive coverage of this complex and evolving topic. It explains the elements of qualified research, exclusions, computational rules, and basic research payment credits. Historically, the IRS has been vigilant in denying R&D credits. This resource explains how to satisfy the IRS's requirements, document the credit, and defend against IRS challenges. It also examines research incentives offered by individual states and describes the R&D incentives available in the major economies of the world, offering helpful charts that show the key differences among the various countries”; [xls/taxexpenditures] [Rasmus:06] Jack Rasmus: the War at Home: the Corporate Offensive from Ronald Reagan to George W. Bush; Kyklos Productions, San Ramon, 2006. Have. Corporate America versus the Unions. [RauG:12] Aswath Rau and Pallabi Ghosal: “Entering the Tiger’s Den: Foreign Investment in India through Mauritius or Singapore”; Singapore Law Gazette, Feb.2012. Roundtripping cases. [Rauch:92] Jonathan Rauch: ; I found a 1992 < 93 Reich:11] Robert B. Reich: Aftershock, The Next Economy & America’s Future; First Vintage Books, 2010, updated 2011. Only 1 cite for tax haven – individual. None for IP. Loopholes. Middle class income drives consumption and the economy. Strong reverse tax for low income, carbon tax. College loans to match expected earnings, universal Medicare. Capital gains tax. Have. Competing authors have used the term Aftershock and claimed NY times bestseller status. 91 [xls/taxproposals] [Reich:11T] Robert Reich: The truth about the Economy In 2 Minutes; Move-on video, 14 Jun 2011, [RIA:91] RIA: Research Institute Master Federal Tax Manual with Federal Tax Coordinator 2d edition; Research Institute of America, inc., 1991. [RIA:03] RIA federal tax handbook, 2004; Research Institute of America, inc., 2003. [Ricardo:1817] David Ricardo: The Principles of Political Economy and Taxation; 1817; Kindle edition, 2010. On Kindle [Ricardo:08] David Ricardo: Free trade, from USA Today blog of 21 March 2008 by econ_girl: See Ricardo.docx [Ricardo:13] Lorenzo Ricardo: Chinese Tax Law and International Treaties, Springer, 2013, 282pp.. Covers 1 Jan.2008 laws on Corporate (Enterprise) taxation. Rate is moving to 25%. Also 3% VAT, There is a 5% Business tax on sales of intangibles and Real estate. Has 13 pages on transfer pricing. [RICS:04] The Royal Institution of Chartered Surveyors: The Value of Intellectual Property, Intangible Assets And Goodwill, 26 Oct.2004, 95 [Rodrick:98] Dani Rodrik, Why do more open economies have bigger governments? Journal of Political Economy, Oct.1998, 106 (5), 997-1032. Open economies , with more trade, (e.g., Austria, Netherlands, Norway) have larger government sectors than closed economies, which he attributes to their greater demand for public expenditures that cushion the effects of globalization. Based on correlation. [RoederKE:02] A. Roeder, H. K.Kroppen, &A. Eigelshoven: (2002). Chapter 24: Germany. In Robert Feinschreiber (Ed.), Transfer pricing handbook (3rd ed.). New York: John Wiley & Sons. [RoessnerAFP] David Roessner, Catherine P. Ailes, Irwin Feller, and Linda Parker: How Industry Benefits rom NSF’s Engineering Research Centers”; p.40-44. [Rosato:07]‡ Donna Rosato: File a squeaky clean 1040 tax form; Moey magazine, 23 Feb.2007. Random tax audits. $345B uncollected. [Rose:13] Charlie Rose: Interview with Bart Chilton, CFTC Commissioner; BBW, 6 May 2013.p.48. Commisioner thinks a transaction fee would be hepful. [Rosen:10] William Rosen: The Most Powerful Idea in the World; Random House, 2010, ISBN 978-1-4000- 6705-3. [Rosenbaum:95] David E. Rosenbaum: Chairman Proposes Redefining Tax Code; New York Times, 7 Jun.1995. Bill Archer `Our Challenge is to do no less than pull the current income tax code out by its roots’] [Rosenberg:98] Barr Rosenberg: United States Equity Version 3 (E3); BARRA, Berkeley, CA, 1998. includes USC Title 26 §367: Foreign Corporationd, Dec. 1984., used USC 936 (h)(3)(B) for the defintion of intangle property. [RostenkowskiEa:86] Dan Rostenkowski et al.: Tax Reform Act of 1986, Conference report, HR 3838; 22 Nov.1985. Sponsor’s summary. Introduces many changes to corporate taxation, including Subpart F in Title IV. Addresses personal holding companies. About 400 distinct provisons. [RothEa:98] William V. Roth, jr. (chairman): IRS Restucturing and Reform Act of 1998, Conference Report; US Congress, to accompany Bill H.R. 2676, Apr.1998. [RothN:99] William V. Roth, jr. and, William H. Nixon: The Power to Destroy; Atlantic Monthly Press., (1999). ISBN 0-87113-748-8. Leakage of tax information. [Rottman:06]† Joseph P. Rottman: "Successfully Outsourcing Embedded Software Development"; IEEE Computer; Vol.39 no.1, Jan.2006, pp.55-61. [Roux:97] David Roux: Statement about software growth; 1997, Silver Lake Partners. [RoyaltyStat:10] database of royalty agreements with rates or fees and conditions. $4,500/year for 100 downloads. 97 Foley held the IRS improperly valued the buy-in payment in the cost-sharing agreement between VERITAS, a U.S.-parented software company, and its Irish subsidiary (236 DTR K-1, 12/11/09). [Ryan:11] Paul Ryan: The Path to Prosperity, Restoring America’s promise; US Congress, House Budget Committee, 5 April 2011 proposal. A GOP budget. “Article I of the U.S. Constitution grants Congress the power to appropriate funds from the Treasury, pay the obligations of and raise revenue for the federal government, and publish statements and accounts of all financial transactions. By law, Congress is also obligated to write a budget representing its plan to carry out these transactions in the forthcoming fiscal years. While the President is required to propose his administration’s budget requests for Congress’s consideration, Congress alone is responsible for writing the laws that raise revenues, appropriate funds, and prioritize taxpayer dollars within an overall federal budget. [Rykers:09] Darren Rykers: A Critical Analysis of how Double Tax Agreements can facilitate Fiscal Avoidance and Evasion; The Taxpayer and the Lotus, 17 Nov.2009. SSSSSSSS [SAB114:11] SEC: Staff Accounting Bulletin 114; U.S. Securities and Exchange Commission, Division of Corporate Finance, 28 March 2011 . staff: 20%, multiplied for lower levels. . http://www.sec.gov/interps/account/sab114.pdf. [Sachs:05] Jeffrey Sachs: The End of Poverty: Economic Possibilities for Our Time; Penguin Press, 2005. Needs in India, ability to change things. Nothing on taxhavens etc. have. [Sadowski1:11] Robert Sadowski: “A Cash Buildup and Business Investment”; Federal Reserve Bank of Cleveland: Economic Trends, Jan.10, 2011, http://www.clevelandfed.org/research/trends/2011/0111/01regact.cfm . the primary reasons firms are not investing more are lack of demand and uncertainty about the health of the economy [Sah:83] Raaj Kumar Sah: How much redistribution is possible through commodity taxation?; Journal of Public Economics, Feb.1983, 20 (1), 89-101. [Sahadi:11] Jeanne Sahadi: “Corporate tax reform: Talk grows louder”; CNNMoney, 14 Jan. 2011. [xls/taxexpenditures] [Sahadi:12] Jeanne Sahadi: “Business Tax breaks booted from Payroll Deal”; CNNMoney, 17 Feb. 2012. [Saini:11] Angela Saini: A formula for Justice; The Manchester Guardian, 2 Oct 2011. bayes rule. Comment: A`well funded prosecution or defence will always be able to buy expert opinion. Justice should be better than this. Indeed if we are to have any confidence in our system of justice it HAS to be better than this. The Court should provide an unbiased expert. [SaintMatthew: 0042] Honoring the Patron Saint of Accountants on All Saints' Day; [Sample:12]‡ Bill Sample: Statement to Congress; Corporate Vice President for Worldwide Tax, Microsoft Corporation, Permanent Subcommittee on Investigations, U.S. Congress, 20 Sep.2012. Has 54,000 emp in US. Half is US revenue and growing, regions. WW OEM of windows from US. WW rate ios 24%. Taxed on buy-in and costsharing Legal ownership mainly in US. Ireland, spore, Puerto hold license rights. Sold from Nevada. $7% of Us income goes to Puert Rico. CSA with MS PR in 2005 Not risky. No know-how contributed. Money for PR came from MS Got 1.6B^ Round Island. Build a product release lab there. $6.3B reveenu, 1.9 goes to the U.S. Plus a 4.5B buy in payments Total buy-in now $17B. [ACM] [Samuelson:83]† Paul A. Samuelson: Foundations of economic analysis. Cambridge; Harvard University Press, 1983. [Sanchirico:12] Chris William Sanchirico: Optimal Tax Policy and Symmetries of Ignorance; Wharton School, 2012, SSRN-id1856123. What should be taxed? labor, capital, High-level simulation. Cocludes that labor-earnings only taxation, as proposed by [AtkinsonS:76] is not proably optimal. What happens to generated IP? Very extensive foot notes. [Sanders:81] Hyman Sanders and Treasury Staff: A review of the Accuracy of Treasury Revenue Forecasts, 1963-1978; CBO, , Alice M. Rivlin , Feb.1981, 99 [Savodnik:13]‡ Peter Savodnik: “Gimme Shelter”; Blomberg Business Week, 21 Jan.2013, pp.66.67. Examples of some of 70 taxhavens sheltering $21xto $32T: Delaware, Cayman Islands, Belize, Jersey, Norway, Cyprus, Dubai.. [Saxton:99] Jim Saxton: Tax Expenditures: A Review and Analysis; Joint Economic Committee, United States Congress, Aug.1999. [xls/taxexpenditures] [Schachter:09] Harvey Schachter: Adapting for success on foreign shores; The Global Mail, Nov.2009. [Schaeffer:04]‡ Bernie Schaeffer: Dynamic Market Opportunities; PRNnewswire, 17 Dec.2004. “2004 certainly seems to be the `Year of the merger’.. with over 9800 deals concluded so far. The combined total is $789M, a 43% surge over the 552B last year”. Attached to Johnston:05 [SchanfeinEa:10] M. Schanfein, F. Gouveia, C. Crawford, C. Pickett, and J. Jay: The International Safeguards Technology Base: How is the Patient Doing? An Exploration of Effective Metrics; Idaho national labs (INL), doc. INMM 2010, July 2010 . A definition of technology base. [Schapiro:09] Mary L. Schapiro: Address to Practising Law Institute's "SEC Speaks in 2009" Program; U.S. Securities and Exchange Commission, Ronald Reagan International Trade Center, Washington, D.C., Feb.6, 2009. The SEC's budget in 1994 was $260 million, less than one-third of what it is today ($906 million). U.S. mutual fund assets, which totaled $2 trillion in 1994, have grown to nearly $10 trillion today. = .01% [Scheer:10] Robert Scheer: The Great American Stickup: How Reagan Republicans and Clinton Democrats Enriched Wall Street While Mugging Main Street ; Nation Books, 2010. [Scheier:11] Bruce Scheier: Do Corporations have a Right to Privacy?; Scheier on Security, 20 Jan.2011. [Scholte:97] J. A. Scholte: Global capitalism and the state; International Affairs, Vol.73. no.V, pp.427-452. [Schreiber:12]‡ Ulrich Schreiber: International Company Taxation, An Introduction to the Legal and Economic Principles; Springer, 2012. All the formulas you’d want, little semantcs [SchumanO:93] David Schuman and Dick W. Olufs III: Public Administration in the United States; Lexington, 1993,2nd Edition, D. C. Heath and Company. ..discuss several principles that can guide the choice of who should pay taxes. These principles range from benefits received from government services, ability to pay as measured by their income, to the concept of tax policies that change people's economic behavior (“sin” taxes). Corporations, as beneficiaries of public goods, are, therefore, required to pay for the services the government provides. P., 414-420). [Schumpeter:12] Joseph Alois Schumpeter: The Theory of Economic Development, an inquiry into profits, capital, credit, interest, and the business cycle; 1912, translated from the German Theorie der wirtschaftlichen Entwickling, 1911, by Redvers Opie; Harvard University, 1934; Oxford University Press, 1961; reprinted by Transaction Publishers, 1983. All goods have their origin in labor or nature. Obviously ignores intelectual output. Demand for new goods, profit, and value, ignoring the cost of production – non-routine profits. Effect of transport costs -- before containerization. [Schuster:11] Steve Schuster: “Samuel Maruca: Strategic Case Selection Key Aspect of Transfer Pricing Practice; BNA Daily Tax Report, 29 July 2011. Report on speech by Sam Marucca. [SchuylerE:13] Michael Schuyler and Stephen Entin: The Economics of the Blank Slate: Estimating the Effects of Eliminating Major Tax Expenditures and Cutting Tax Rates; Tax Foundation Fiscal Fact No.378, 26 July 2013, http://taxfoundation.org/article/economics-blank-slate-estimating-effects- eliminating-major-taxexpenditures-and-cutting-tax-rates. [Schwartz:13] Nelson D. Schwartz: ”Web of Tax Shelters Saved Apple Billions. Inquiry Finds”; The New York Times, 20 May 2013. $74B offshore. Ireland tax 1% on $22B income [ACM] [Schwarcz:04] Steven L. Schwarcz: “Rethinking the Discourse Paradigm in a World of Complexity”; Univ. of Illinois Law Review, Vol.2004, Duke University, 2004. Enron [Schweizer:13E] Peter Schweizer: Extortion: How Politicians Extract yopur Money, Buy Votes, and Line Their own Pockets Racket; Houghton Mifflin Harcourt, Oct.2013. A valid diatribe, accuses Obama as well. [Schweizer:13P] Peter Schweizer: “Politician’s Extortion Racket”; New York Times, 21 Oct.2013. Pointer provided by Jake Feldman. Comapaipaign contributions fror corporate tax benefits. Milker bills and double milker bills [ACM] [Schwinn:98] E. Schwinn: “No Easy Solutions seen for Problems Arising from the Use of Secret Comparables”; Tax Management Transfer Pricing Report no.6, 22 April 1998, p.907-911. [Scott:11] Robert E. Scott: Growing U.S. trade deficit with China cost 2.8 million jobs between 2001 and 2010; Economic Policy Institute, 20 Sep.2011. [Scott:13] Robert E. Scott: Trading Away the Muafacturing Advantage: China trade drives down U.S. wages and benefits and eliminates good jobs for U.S. workers; Economic Policy Institute, 30 Sep.2013. Detailed data by worker sector. Ignores US IP contribution in Chines exports. [SEC:03] U.S. Securities and Exchange Commission: Strengthening the Commission's Requirements Regarding Auditor Independence; Supporting USC Title 15, Chapter 2 , and regulations as Title II of SOX, Title 17 CFR PARTS §210, §240, §249 and §274, final rule, 27 March 2003, 101 [SeshasaiG:09] Satwik Seshasai and Amar Gupta: ”The 24-hour Knowledge Factory”; ACM Transactions on Internet Technology, Aug.2009. [Seymour:12] Jim Seymour et al.:4G Mobile Broadband Evolution:3GPP release 10 and Beyond, HSPA+_, SAE/LTE and LTE-Advanced; Jan.2012 update, 210pp.4gamericas.org/ [SGO:98] Senior German Tax Officials: Transfer Pricing: German Positions Shifting on Profit Split And Comparable Profit Methods; International Tax review, 1 Oct 1998. Senior German tax officials responsible for Germany's international tax policies have consistently stated in public that comparable profit methods and transactional net margin methods will not be accepted by the German tax authorities, and that profit splits are only acceptable in rare instances as a method of last resort. They have also frequently expressed their opposition to US-style economic analysis and voiced serious reservations concerning Advance Pricing Agreements (APAs). The rapid globalization of the world's economies and the trans-nationalization of most major.. [Shakespeare:1597] William Shakespeare: Romeo and Juliet; first quarto edition, 1597. [Shah:09] Anup Shah: Tax havens, undermining democracy; Global issues, 12 July 2009. [ShahS:11] Vishal Shah and Smit Sheth: Getting a handle on the Mauritius Tax Treaty; Reuters, 11 July 2011 [ShaneB:11] Scott Shane and Penn Bullock: “Group in U.S. Saw Qaddafi as Big Payday; The New York Times, 18 Nov.2011. It takes $10M to get anything done in Washington. [Shapiro:08] Glen Shapiro: US Treasury Praises IoM For Role In Fight Against Financial Crime; Law and Tax News, 18 June 2008. William F. Baity - Deputy Director of FinCen, the Financial Crimes Enforcement Network says Isle of Man cooperates. [Sharman:06] Jason C. Sharman: Havens in a Storm: The Struggle for Global Tax Regulation; Cornell Univ. Press, 2006. [Sharpe:85] William F. Sharpe: Investments; Prentice-Hall, 1985. Capital asset Pricing Model (CAPM). Expected Rate of Return on Equity Capital RREC = RiskFreeRate + beta * (BroadStockPortfolioReturn - RiskFreeRate). In 2000 the RiskFreeRate based on U.S.Treasury Bonds was 6.13%. The BroadStockPortfolioReturn in 2000 was 11.1%, Beta for SW was 1.31, making RREC= 12.68. Per PWC a small company premium, to be added for startups is 4.4% giving 17%. Without the small-business correction the beta would be 2.174 versus the broad portfolio, less for better matching portfolio. [Shaviro:11] Daniel Shaviro: "The Rising Tax-Electivity of U.S. Corporate Residence"; Tax law Review, Vol.64 no.3 , Spring 2011,p.333; NYU Law and Economics Research Paper No.10-45, 2010, 66 pp., [Shay:11] Stephen E. Shay: Jobs, Deficit Reduction Revenues and Fundamental Tax Reform; Tax Notes Vol.133 no.2, 10 Oct.2011, pp.213-216. Advocates a mixed policy. Politically wise to be against taxation.. many tax breaks not labeled as tax expenditures. No specific recommnedations. [Shay:12] Stephen E. Shay: Testimony to Congress; Permanent Subcommittee on Investigations, U.S. Congress, 20 Sep.2012. Harvard Law School, Retained income 8% of corporate income is deferred. Data on Ireland MS consol 69.9B 17,5% tax 90,000 emplu, offshore 55.5% earnings $15B – 4% tax, 1900 employees. $8M/employess vs 312 for Ms employees overall. Not consistent with common sense understanding. Offshore is a firewall only. 2009 guidance to subsidiary – should be independent subsidiaries, seems to be ignored. Staes effective US rate is 27%. Multiple layers of valuation issues. Only successful IP gets transferred. Accounting does ot match tax and intangible value. Anti-abuse rules (956) arr drafted to narrowly, and their intent can be easily subverted. “Prior to my current position, I was the Deputy Assistant Secretary for International Tax Affairs at the Department of the Treasury. Before my most recent government service, I was a tax partner at Ropes & Gray LLP for 22 years specializing in U.S. international income taxation before retiring to serve in government in 2009. I have provided a copy of my biography to the Subcommittee. I occasionally consult for Ropes & Gray LLP on mutually agreed projects. 3 I first served in the U.S. Treasury Department’s Office of Tax Policy from 1982 to 1987. I was actively involved in the development through 1984 of the Reagan Administration’s international tax reform proposals and the legislative consideration of the proposals through signing of the legislation on October 22, 1986. The process took almost three years in total”. [Shaxson:11] Nicholas Shaxson: Treasure Islands, Tax Havens and the Men Who Stole the World; The Bodley Head, London, 2011. Offshore sites and tax havens, including the US to hide and profit from corruption. Focus on personalities. Africa. Less well referenced than it appears. 103 Permanent Subcommittee on Investigations Hearing on Tax Haven Financial Institutions: Their Formation and Administration of Offshore Entities and Accounts for Use by U.S. Clients , July 17, 2008. Individuals, Complexity. Intermediaries insecrecy jusrisdictions. Switching jusrisdictions. Aggressive tax palnning by multinationals. QIs , tax treaties, but still bank secrecy laws and lack of information of beneficial owners. Complex transaction not fully understood. More time needed. Subpart F. Imbalance of domestiv corporations. [Shulman:09]‡ Douglas H. Shulman: Prepared remarks of Commissioner Douglas Shulman before the 22nd Annual George Washington Univeristy International Tax conference, IR-2006-116, 10 Dec 2009. Progress in a muklti-year international compliance strategy. Focus on tyransfer pricing, hybrid structures, and withholding taxes. Transfer pricing needs more people. Industry groups, including global wealth.. [Shulman:10C]‡ Douglas H. Shulman: Prepared Remarks of Commissioner of Internal Revenue to New York State Bar Association Taxation Section Annual Meeting in New York City; IRS, Jan. 26, 2010, [Simpson:02a] Glenn R. Simpson: "Glaxo in Major Battle With IRS Over Taxes on Years of U.S. Sales"; Wall Street Journal, 2114 June 2002, Page A1. Cited by Durst, magnitude and tedium of trials. $5B in taxes and interest are involved Glaxo. [Simpson:05]‡ Glenn R. Simpson: "Irish Subsidiary Lets Microsoft Slash Taxes in U.S. and Europe"; The Wall Street Journal, 7 Nov.2005, p. A1. < References for Guidance /Simpson05>.[ACM]. [Singhvi:10] : Aashish Singhvi: Global Semiconductor Alliance Chain Practices Report; Global Semiconductor Alliance (GSA), 2010. [Sinclair:35] Upton Sinclair: I, Candidate for Governor: And How I Got Licked ; 1935; University of California Press, 1994. ISBN 0-520-08198-6, p. 109: “It is difficult to get a man to understand something, when his salary depends upon his not understanding it” (applies to IP valuation) quoted by Gillian Tett in [Byrnes:12] [Slaughter:08] Matthew Slaughter, Dartmouth Univ.: The Immigrant gap; Wall street Journal, 1 April 2008. Cited by [Wessel:11] . 2004 study, for 1991-2004 2 US jobs for every foreign job, later about equal 3.8M versus 3.6M. 2000-2005 2.1M jobs eliminated, 784,000 foreign jobs added. [Bureau of Economic analysis] In 2005 9M foreign employees. Also Prof. Clausing Reed college. Also "Economic Insecurity and the Globalization of Production”; with Kenneth F. Scheve, American Journal of Political Science, Vol.48 no.4, 2004. Globalization and the Perceptions of American Workers, with Kenneth F. Scheve, Washington , DC: Institute for International Economics, 2001. [SlavinK:06]‡ Nathan S. Slavin and Abu Ryan Khan: ”In-Process R&D in Business Acquisitions More Disclosure Needed for Transparency and Comparability”; The CPA Journal, August, 2006. Changes in handling of IPR&D handling are due. Watch FASB. SFAS 141 and 142. 28% discount rate used. Comment on Levitt (SEC) 1998 talk. [Slemrod:88] Joel B. Slemrod: Progressive taxes; The Concise Encyclopedia of Economics, Library of Economics and Liberty, 105 [SlemrodW:09] Joel Slemrod, and John D. Wilson: “Tax Competition with Parasitic Tax Havens”; Journal of Public Economics, Vol.93 no.11–12, 2009, pp.1261–70. Draft 2006. [Slim:12] Richard Slim: Patent, Copyright & Trademark, 12th edition; NOLO puvlishing, March 2012. [Small:03] Garrick Small: The Dimensions of Human Action and Property; Pacific Rim Property Research Journal Vol.9 No.3 Dec.2003; also at www.rics- foundation.org/publish/download.aspx?did=3125 . [Smil:00. ] Vaclav Smil: Feeding the World: A Challenge for the Twenty-First Century ; MIT Press, 2000. [Smil:04] Vaclav Smil: Fritz Haber, Carl Bosch, and the Transformation of World Food Production; MIT Press, 2004. ISBN 0262693135. Focus on fertilizer. [Smith:1759] Adam Smith: The Theory of Moral Sentiments; Uplifting Publications, Amazon Kindle edition, 2010. On Kindle. Deals with “sympathy”, “propriety”, “happiness”, “compassion”, “To what purpose is all the toil and bustle of this world? What is the end of avarice and ambition, the pursuit of wealth, of power, and preeminence” [Smith:1776] Adam Smith: The Wealth of Nations; Amazon Kindle edition, 2009. On Kindle “The directors of such [joint-stock] companies, ... being the managers of other people’s money that their own, it cannot well be expected that they should watch over it with the same anxious vigilance with which the partners in a private copartnery frequently watch over their own” [Smith:62] Dan Throop Smith: Depreciation, Obsolescence, and Depletion; Harvard University, 1962. [Smith:97] Gordon V. Smith: Trademark Valuations, 3rd; Wiley 1997. Book is also referred as "Valuation' in Amazon. In Great Britain, since 1981 `Companies Act', trademark values can be placed on the books. But the U.K. Accounting Standards Committee (ASC) disagreed subsequently, but with amortization they can appear. Internally generated trademarks are only to be put on the books if they have an ascertainable value [SmithP:00, p 92] . [Smith:08] Vernon L. Smith: Rationality in Economics: Constructivist and Ecological Forms; Cambridge Univeristy Press, 2008. This guide is about centrist economics but you can easily be a libertarian. The Nobel Prize winning economist has created and absorbed all of these modern advances in economics and makes the case for markets in a way that the Friedrich Hayek would love. Not very relevant as I glanced through it from Maurer. Maurer started run a competing hair salon. East lost business. East then sued Maurer for deceit. Court of Appeal Citations [1991] 1 WLR 461 [SofkaS:04] Wolfgang Sofka and Tobias Schmidt:: I Like the Way You Move: An Empirical Investigation into the Mechanisms Behind First Mover and Follower Strategies; ZEW - Centre for European Economic Research Discussion Paper No.04-087, 2004; SSRN library 167330. Recommended by Panagiotis G. Ipeirotis 107 happen?" Stahl asked. "There's been a lot of arm twisting, a lot of effective lobbying here, and some really smart tax lawyers figuring out how to game the system with one shenanigan after the other”; the congressman replied. "But are they shenanigans or is it the law?" Stahl asked. "I think it was a shenanigan when some of these companies felt so strongly about America that they renounced their American citizenship and began saluting a foreign flag. They exploited a provision in our tax laws and moved offshore”; Doggett said. Read more: [Stiglitz:06] Joseph Stiglitz: Making Globalization Work; Norton 2006. Ex World bank, Nobel laureate, now at Columbia Univ. No mention of taxhavens in index. Have. [Stiglitz:10] Joseph Stiglitz: Freefall, paperback edition; Norton 2010. 2007-2009 recession. have [Stiglitz:12] Joseph Stiglitz: The Price of Inequality: how todays Divided Society Endangers Our Future; Norton 2012. Ex World bank, Nobel laureate, now at Columbia Univ. elaboration of his 2011 Vanity Fair article "Of the 1%, for the 1%, by the 1%." have [Stobbs:00]† Gregory Stobbs: Software Patents, 2nd ed.; Aspen publishers, 2000. [Stockman:13] David Stockman: The Great Deformation: The Corruption of America; 2013. Diatribe. [StolowyJ:01] Hervé Stolowy and Anne Jeny-Cazavan: “International accounting disharmony: the case of intangibles”; Accounting, Auditing & Accountability Journal, MCB UP Ltd., 2001, Vol.14 No.4, pp.477–497. {Stone:11} pre IPO valuation by early shareholder sales. Replaced by [Protalinski:12]‡ [Stone:12] Chad Stone: Pols Be Warned: Closing Loopholes Will Be Tough; Economic Intelligence, US News & world report; 18 Oct. 2012. [Stossel:12] John Stossel: No, They Can't, Why Government Fails-But Individuals Succeed; Threshold Editions, Simon and Schuster Digital Sales Inc, 2012. [Stout:12] Lynn A. Stout: The Shareholder Myth; Berret-Kohler, 2012. slim and elegant polemic, explains the idea's two problems: It's worked out horribly, and as a matter of law, it's not true.[Eisinger:12] . The biggest ill has been to align top executives pay with performance, usually measured by the stock price. This has proven to be "a disaster She advocates what campaigners have called the "Robin Hood tax" — a transaction charge on securities trades. A small tax would curtail zero- sum, socially useless trading and might insulate corporations [Studt:07] Tim Studt: “R&D Outsourcing Becomes More Strategic”; R&D magazine, June 2007, pp.26-29; www.rdmag.com; guidance/references. Survey data on quantity, who, type, why not (58.4% IP), why, where, motivation. Globalization. [Styron:07] W. Joey Styron: “Transfer Pricing and Tax Planning”; CPA journal, Vol.77 no.11, 2007 pp.40- 45. DISCs and FSCs, PAD, Domestic Production Activities Deduction. Use of CFCs. Restates Regs., Coparabilty is they key. “the taxpayer can effectively plan transfer prices to reduce taxes for the dontrooled group as a whole”. [Sullivan:04] Martin A. Sullivan: “Data Show Dramatic Shift of Profits to Tax Havens”; Tax Analysts, 2004. Repatriation questions. ..[ACM]. [Sullivan:05] Martin Sullivan: ;Tax Notes in 2005 mention 50B removed. 2004 repartition at 5.25%. Total Corporate taxes 354Billion. [Sullivan:06] Martin A. Sullivan: “Drug Firms Move Profits to Save Billions”; Tax Notes, TaxAnalysts, 7 Aug.2006. Income Transfer offshore after Puerto Rico phase-out. ..[ACM]. [Sullivan:09] Martin A. Sullivan: "Economic Analysis: So 1980s: The Return of Nickel-and-Dime Tax Policy"; Tax Notes, 151-6, 6 Aug.2009. Ireland is a semi taxhaven. Profits by U.S, companies in Ireland doubled from 1999 to 2002 from $13.4B to $26.8B. [Sullivan:10M] Martin A. Sullivan: Multinationals and Jobs ; Tax Notes, 8 Feb.2010. From 1999 to 2007, U.S. multinationals eliminated 1 million jobs at home while adding 2.5 million jobs abroad. Cited by [Pelosi:10]‡ ..[ACM]. [Sullivan:10P]‡ Martin A. Sullivan: “Pharmaceutical Companies Keep Profits Abroad”; Tax Notes, Mar.2010. Quoted in Bloomberg Business Week, 29 December 2010. ..[ACM]. [Sullivan:10R]‡ Martin A. Sullivan: “Repatriation Holiday Would Destroy American Jobs”; Tax Notes, 15 Nov.2010. [Sullivan:11] Martin A. Sullivan: Corporate Tax Reform: Taxing Profits in the 21st Century; Apress, 2011. On Kindle. Tax expenditures quantified In general $10B reduced = 1% lower corp. tax for all. Caut the rate . changing 35% to 25% would cost $100B/year based on yield of !0%. don’t target specific industries. Problems associated with stopping corporate taxation [760] Changing would require an “epidemic od Rationality” [906] . Personhood [856] Debt vs shareholders, multinational have 109 more opportunity to shift taxes out of the country. Incentives do more for low margin tangibles – based industry than for high tech [1066] . [xls/taxexpenditures] ..[ACM]. [Sullivan:11C]‡ Martin Sullivan: Testimony before the House Ways and Means Committee; 20 Jan 2011. Data on effective taxrates of 14 companies, effect of taxhavens. Job creation. Taxhaven profitability. Transfer pricing. Arms’s length flawed.. pharmaceutical. Ignores finacial taxhaven transfers. ..[ACM]. [Sullivan:11K] Martin A. Sullivan: `Stateless Income’ is the Key to Tax Reform; Tax.com, 27 Jun.2011. Quotes Kleinbard. Versions of terriroriality. Irish fix is easily avoided by moving to BCDs [ACM]. [Sullivan:11L] Martin A. Sullivan: What the Debt Limit Debacle Teaches Us About Tax Reform; Tax.com 18 Jul.2011. On Lopholes – tax expenditures: graduated corporate income tax, carried interest, limit itemized deduction, tax haven, tax large passthrough , corp.cradt depreciation, ethanol tax credit domestic production Donmestic production credit. [Sullivan:13] Martin A. Sullivan: Tax Policy in a Knowledge-based Economy; Tax.com 21 Oct.2013. ..[ACM]. [SullivanZS:09] William F. Sullivan, Thomas A. Zaccaro, and Adam D. Schneir: The SEC’s View of Auditor Independence; Bloomberg Law Reports -- Risk and Compliance, Vol.2 No.1, 2009. (Paul, Hastings, Janofsky, & Walker LLP). [Sultanoğlu:98] Sencer Sultanoğlu and Ümit Karakaş: Cost Estimation Models. Hacettepe Üniversitesi, Oct.1998. manipulation is predicated on the actual flows of goods among countries, this method of moving income may be more costly than other methods of income shifting. While the manipulation of intra-firm trade transfer prices represents one potential avenue for income shifting, my evidence from trade transaction prices suggests that the manipulation of product transfer prices is not generally responsible for large movements in reported income. [SwensonS:11] C. David Swenson and Gary B. Stone: Transfer Pricing Perspectives ; Thought Leadership Journal, Price Waterhouse Coopers, PWC, 2011. Disputes increasing in MNC’s 2005=2007, more transparency, more audit requests, Disturbing trend for MNC’s. Defiuning jurisdiction for Permannt Establishment (PE). Frmulary allocation, risk assumption. . Conflict between taxpayes and IRS in cost-sharing philosophical difference. Binary `baseball arbitration’ chills (Apple/IRS 1993). Also on court cases. No solution found to double taxation in complex cases. Triangular cases (dutch sandwich) examples. APAs. Canad CRA, jaoan NTA MAP – Mutual agreement procedures among countries. TTTTTTTTT [Tabuchi:10]‡ Hiroko Tabuchi: After Tough Year, Pay Cuts and Forfeited Bonuses for Top Toyota Executives; The New York Times, 24 June, 2010. [Taleb:07] Nassim Nicholas Taleb: The Black Swan: The Impact of the Highly Improbable; Encounter Books, Random House, 2007. On the very small and impossible to predict chance of an event with a very large impact. [TamaiT:92]† Tetsuo Tamai and Yohsuke Torimitsu: "Software Lifetime and its Evolution Process over Generations"; Proc. Conf. on Software Maintenance, ICSM, Nov.1992, pp.33-37. [Tamai:02]† Tetsuo Tamai: "Process of Software Evolution"; First International Symposium on Cyberworlds, Tokyo, Nov.2002, p.8-15. [TambeH:10] Prasanna B. Tambe and Lorin M. Hitt: “How Offshoring Affects Workers”; CACM, Vol.53 No.10, Oct.2010, pp.62-70. [Tang:93] Roger Tang: Transfer Pricing in the 1990’s: Tax and Management Perspectives”; Quorum, 1993. A GAO survey of 519 multinationals in 1980/1981 revealed that 60.1% of IRS adjustments (as measured as a percent of total dollar adjustments), represented pricing adjustments. In terms of dollar volumes, pricing adjustments were followed by adjustments to income allocation, expense allocation, intangibles, services, interest, rentals, and gain allocation. [TanPH:08] Hong Pew Tan, David Plowman, and Phil Hancock: "The Evolving Research on Intellectual Capital; Journal of Intellectual Capital, Vol.9 No.4, Emerald publications, 1469-1930, 2009, pp.585- 608. [Tanzi:00]‡ Vito Tanzi: Globalization, Technological Developments, and the Work of Fiscal Termites; IMF Working Paper number 00/181, Nov.2000. Termites are 1. Electronic commerce &sale of digital goods from tax havens. 2. Electronic money 3. Inracompany trade 4 offshore finacial centes, Derivatives and hedge funds 6. Inability to tax capital. & forieign activities and ssavings, 8 foreign shopping. [Tanzi:11] Vito Tanzi: Government versus Markets: the Changing Economic Role of the State; Cambridge University Press, May 2011. The author is a skeptic of a large paternalistic state and believes that the governments roles are to regulate markets and let private competition be the source of growth rather than governments fill the role of markets with failures. Given the externalities of many markets the author does not believe prices act as signals in many modern day industries and information asymmetries need to be fixed by the state. Government versus Markets is a good overview of a subject which will no doubt be a major topic of discussion in the coming decades. On the one hand, the welfare state seems to have become unsustainable and requires deep structural change to provide the populations that reside within them the opportunities that they deserve but at the same time small government reduces the voice of the community in an increasingly globalized world [Amazon reviews] . 111 [TanziS:00] Vito Tanzi and Ludger Schuknecht: Public Spending in the 20th Century: A global Perspective; Cambridge Univ. Press, 2000. Have. Much social redistributive spending is just churning. Transparency of subsidies is need for trust. Favors privatization to reduce governments share of GDPs [TaxF:11] Tax Foundation: National Corporate Tax Rates; [Thomas:12O] Landon Thomas jr.: Offshore Haven Considers a Heresy: Taxation; The New York Times, 3 Oct 2009. Budget problems in Cayman Islands. [Thompson:12] Derek Thompson: How We Pay Taxes: 11 Charts; The Atlantic, 16 April 2012 [ThompsonZ:11] Mark Thompson and Terri LaRae Zuraff: Export Tax Incentives (Portfolio 934); BNA Tax & Accounting, Product Code: TPOR43 Edition Code: TMF934 $400.00 [Thornton:02] E.A. Thornton: “Valuation of Software Intangible Assets”; ASA International Conference. San Diego, CA. Aug.2002. [Thornton:04] Mark Thornton: How Outsourcing Creates JOBS; 11 April 2004, lew Rockwell.com.. [Thorpe:10] Simon Thorpe: A flat rate Financial Transaction Tax to replace all taxes; CNRS, Toulouse, France, 29 Oct 2010. [email protected]‐tlse.fr.. has some numbers. post at http://simonthorpesideas.blogspot.com/ Zero rate for repatriation. [Thomson:12] Ainsly Thomson: “U.S. Firms Face British Grilling on Tax Practoces”; The Wall Street Journal, 12 Nov. 2012. Google, Amazon, and Starbucks were accused of being immoral.[ACM]. [Tichon:09] Nicole Tichon: "Tax Shell Game: The Taxpayer Cost of Offshore Corporate Havens"; U.S. Public Research Interest Group, April 2009. 113 [TorvaldsD:01] Linus Torvalds and David Diamond: Just for Fun: The Story of an Accidental RevolutionaryHraber Business Reprint, 2002 Includes observation on IP. [ACM]. [TownsendJ:99] John A. Townsend and Lawrence R. Jones, jr.: DHL - A Strategy Lesson in Transfer Pricing Controversy; Townsend & Jones Newsletter, January 1999. arbitrary, capricious, or unreasonable [Townsend:09]‡ John Townsend: “Tax Ostruction Crimes: Is Making the IRS’s Job Harder Enough?”; Houston Business and Tax Journal, Vol.9, 2009. A list of 27 legal - even morally neutral objective – means to exploit IRS inefficiency, even increasing increasing tax payments to avoid audits. [Townsend:11] John A. Townsend, Larry Campagna, Steve Johnson, and Scott Schumacher: Tax Crimes 2008; economic consequences of these tough policy choices. I think there needs to be a lot more discussion, articles, and a robust agreement as to how do we raise the standard of living. [Tyson:11] Laura d'Andrea Tyson: The Logic of Cutting Corporate Taxes; The New York Times April 8, 2011. Mentions S-corporations. [Tyson:13] Laura d'Andrea Tyson: “Modermizing Corporate Taxation”; Het Financieele Dagblad & Reuters, 28 Jul.2013. Will be a key agenda point at the upcoming G-20 summit in Russia. Favoers lower rates and territorial taxation, ignoring IP and taxhavens. [Tzu:340BCE] Sun Tzu: The Art of War, translated by Samuel B. Griffith; Oxford University Press, 1983. Consider five factors: `moral standing, the climate, the terrain, command capability, and doctrine’ UUUUUUU [UN:05] United Nations, Economic and Social Council Committee of Experts onInternational Cooperation in Tax Matters, Nov.2005, Abuse of tax treaties and treaty shopping. [UN:06] United Nations, Economic and Social Council Committee of Experts on International Cooperation in Tax Matters, Oct.2006, Treaty abuse and treaty shopping [UN:07] United Nations, Economic and Social Council Committee of Experts on International Cooperation in Tax Matters, Nov.2007, Improper use of treaties [Urdank:11] Albion Urdank: Can Britain really Proper ‘Unfettered by the EU?; WSJ, 31 Dec 2011. Cameron acts as a representative of the City of London. [US:06] United States Model Income Tax Convention of Nov.15, 2006, United States Model Technical Explanation Accompanying The United States Model Income Tax Convention of Nov.15, 2006 [UScensus:08] U.S. Census Bureau: Statistics about Business Size (including Small Business); US Department of Commerce, 2010, http://www.census.gov/econ/smallbus.html. [UScensus:10] U.S. Census Bureau: Facts about the Census 2010 Residence rule; US Department of Commerce, 2010. [USCoC:11] U.S. Chamber of Commerce: Jobs Agenda, Intellectual Property; 115 use of the hypothetical condition results in a credible analysis; and the appraiser complies with the disclosure requirements set forth in USPAP for hypothetical conditions. “ VVVVVVVV [Vance:10] Ashlee Vance: “Suit Over Faulty Computers Highlights Dell’s Decline’; The New York Times, 28 June 2010. [vandenDool:12] Pim van den Dool: “NS ontwijkt belasting via Ierland”; Nieuwe Rotterdamse Krant, 1 Sep.2012. http://www.nrc.nl/nieuws/2012/09/01/ns-ontwijkt-belasting-via-ierland/ [vanDijkWM:06] Michiel van Dijk, Francis Weyzig, and Richard Murphy: The Netherlands: a tax haven?; Stichting Onderzoek Multinationale Ondernemingen, Amsterdam, Nov.2006, at http://bit.ly/aC2zuB (SOMO) also Francis Weyzig, Michiel van Dijk, and Richard Murphy in SSRN. SGI=BFI, IKEA. Assets held in SFI’s, about 20,000 80% no employees, about 100-125 really big. license payments examples. = Duitch sdandwich. [xls/taxhavens] [Valenduc BS:03] Christian M.A. Valenduc, Hana Polackova Brixi, Zhicheng Li Swift: Tax Expenditures - Shedding Light on Government Spending Through the Tax System: Lessons from Developed and Transition Economies; World Bank Publications, 31 Jan 2003. [vanHiltenEa:10] Dirk van Hilten, Richard Fletcher, Antonio Russo, Clive Jia-A-Joen, Margreet G. Nijhof, Pawel Wrblewki: Maximizing Tax benefits from Intangible Property Develop-ment and Ownership; Presentation slides, Baker McKenzie, Amsterdam, 10 March 2010, [VardiAMZ:06] Moshe Y.Vardi, William Aspray, Fred Mayadas, and Stuart Zweben: Panel: Educational Response to Offshore Outsourcing; ACM SIGCSE’06, Houston TX, March 2006, ACM, pp.330- 331. Based on [AsprayMV:06]. [ACM] [VatterW:96] Harold G. Vatter and John F. Walker (eds.): History of the U.S. Economy since World War II; Sharpe, 1996. As of Dec.1985 Morgan Guarantee estimated the net size of the Eurocurrency market at 1,668B, of which 1,251 would be Eurodollars. [Vaud:09] Canton de Vaud: Economic Promotion; Office for Economic Affairs, retrieved 2009, http://www.dev.ch/ [Vause:09] Bob Vause: Guide to Analysing Companies, Fifth Edition; Bloomberg Press, 2009. [VBM:04] Value Based Management.net: The Value of Intellectual Capital, do intangible assets yield a return ... ?; WWWWWWW [W:79] Gio Wiederhold: "Databases for Economic Planning in India"; abstract, Proceedings of The Institute for Management Science XXIV, Hawaii, June 1979. [W:83†] Gio Wiederhold, Gio: Database Design, Second edition; McGraw-Hill, 1983; republished in the ACM Digital Library 2002. 117 [W:92]† Gio Wiederhold: "Mediators in the Architecture of Future Information Systems"; IEEE Computer, Vol.25 No.3, March 1992, pages 38-49; [W:95]† Gio Wiederhold: ``Modeling and Software Maintenance"; in Michael P. Papazoglou (ed.): OOER'95: Object-Oriented and Entity Relationship Modelling; LNCS 1021, Springer Verlag, pp.1-20, Dec.1995. [W:98C]† Gio Wiederhold and CS99I class: Web growth (updated); 1998/2000, [Walker:06] David M. Walker: Tax Compliance, Challenges to Corporate Tax Enforement; US Government Accountability Office report GAO-06-851T, 7 Jul.2006, 26pp. [Walsh:01] Keith Walsh: The Economic and Fiscal Contribution of US investment in Ireland; Journal of the Satistical and Social Onquiry Society of Ireland; Vol.XL, no, 164, 1 dec.2010, pp.33-59. 119 [Weissler:01]‡ Robert Weissler: APA Study Guide; ; www.irs.gov/pub/irs-apa/apa_study_guide_.pdfl>, in 11 Transfer Pricing Report 533, 10/2/02, 2002. p.59 with 461 f memo 457 outline 403b “The precise definition in the regulation is somewhat difficult to understand” “For purposes of this section, the interquartile range is the range from the 25th to the 75thpercentile of the results derived from the uncontrolled comparables. For this purpose, the 25thpercentile is the lowest result derived from an uncontrolled comparable such that at least 25percent of the results are at or below the value of that result. However, if exactly 25 percent of the results are at or below a result, then the 25th percentile is equal to the average of that result and the next higher result derived form the uncontrolled comparables. The 75th percentile is determined analogously.” Reg. § 1.482–1(e)(2)(iii)(C)” (filed in guidance/references/Weissler, also CSA slides). [Weissler:02]‡ Robert Weissler: APA Program Training on Cost Sharing Buy-In Payments; Transfer Pricing Report 533, Feb.2002. [WeisslerEa:02]‡ Robert Weissler et al.: CostSharing Workshop: Buy-in Payments; www.irs.gov/pub/irs- apa/study_guide_exhibit_e.pdfl>, Aug.2002. Six valuation methods explained. Deals with small sales & royalties/(in guidance/references/Weissler, also CSA slides, also in WT MA-695.) Refers to [Morgan:99]‡ [Wells:97] William D. Wells: Measuring advertising effectiveness, Lawrence Erlbaum Publishers, 1997. No quantification. Much based on retention in memory. Recognition up to 10 years. [Wessel:11] David Wessel: U.S. Firms Shift Hiring Abroad; Wall Street Journal, 19 April, 2011. [Wessner:08] Charles W. Wessner (ed.): An Assessment of the Small Business Innovation Research (SBIR) Program; NRC, NAS, 2008. [West:11] Darrell M. West, Technology and the Innovation Economy; Governance Studies. The Brookings Institution , 24Oct.2011. The United States spends only 2.8 percent of its federal budget on national research and development as a percentage of GDP. This is less than the 4.3 percent spent by the government in Sweden, 3.1 percent by Japan, and 3.0 percent by South Korea, but higher than that of Germany (2.5 percent), [WGMN:07] Gio Wiederhold, Amar Gupta, Rajat Mittal, and Erich Neuhold: "The Value of Outsourced Software"; M. Josef and B. Meyer (eds): Software Engineering Approaches for Offshore and Outsourced Development (SEAFOOD), Springer Verlag Lecture Notes in Computer Science, 2007, p.141-151. [WGN:10] Gio Wiederhold, Amar Gupta, and Erich Neuhold: "Offshoring and Transfer of Intellectual Property"; Information Resources Management Journal (IRMJ); Vol.23 No.1, January-March 2010, pp.74-93. [WhiteC:11] Kasdey Shewy White and Joanne P. Carney: Working with Congress, A Scientist’s Guide to Policy; American Association for the Advancement of Science, 2011. [WhittingtonD:12] O. Ray Whittington and Patrick R. Delaney: CPA Exam Reciew 2012; Wiley, 2012. On Kindle: Regulation volume. Also Finacial Accounting and Reporting; Auditing and Attestaion; Business Environment and Cocepts. [Wicks:64]‡ [xls/irs] [Wiederhold:09] Simon Wiederhold: Government Spending Composition in a Simple Model of Schumpeterian Growth; 2009, Jena Research group on The Economics of Innovative Change . ([email protected]) (Friedrich Schiller University Jena, GK-EIC), now in Munich. [WilkinsD:12]‡ William J. Wilkins and Michael Danilack: Statement to Congress; Chief Counsel and Deputy Commissioner (International) of the Large Business and International Division, Internal Revenue Service, Permanent Subcommittee on Investigations, U.S. Congress, 20 Sep.2012. Transfer pricing is important, Requires substantial enforcement resources. Aggressive income shifting. Temp regs finalized 2011. New hires, and new position Danilack. Focuss on royalty payment. Core intangibles. Describes ex-ante income method. Only two cases litgated in last couple of years. Bureaucratic answers. Mentions copyrights for high tech. Struggling with intangible property rights. Riskyness is in the equation. No herky-jerky canges to the tax law. [WilliamsF:06] Jonathan Williams and Patrick Fleenor: Options for Reforming the U.S. Corporate Income Tax; Fiscal Facts No.58, the Tax Foundation, 8 May 2006. The 2005 Bush BAT plan. Problem of retained earnings. [Willis:09]‡ Andrew Willis: Commission finance experts the same bankers that caused the crisis; EUobserver.com, 11 May 2009. [Wills:11] John Wills: The Competitive Advantage Period as a Measure of Economic Life; BNA Tax Management Transfer Pricing Report Analysis, 1 Dec.2011. Have paper. Dirst-to-market. [Wilson:97]† Mike Wilson: The Difference Between Gods and Larry Ellison; William Morrow Co., 1997. [Wilson:89] James Q. Wilson: Bureaucracy; Basic Books, 1989. Updates [Weber:68]‡. Very symphathetic and insightful. But simplifies the IRS’ situation. [Wilson:99]‡ John D. Wilson: “Theories of Tax Competition”; National Tax Journal 1999, Vol.52, pp.269- 304. [Wilson:05]‡ John D. Wilson: “Tax Competition with and without Preferential Treatment of a Highly- Mobile Tax Base”; in J. Alm, J. Martinez-Vazquez, and M. Rider (eds.): The Challenges of Tax Reform in a Global Economy, Springer, 2005. From 121 [Wipfel:09] Hildegard Wipfel: International Taxes on Financial Transactions; KOO, Austria, The International Alliance of Catholic Development Agencies (CIDSE), Nov.2009. Cites The UN General Assembly’s Commission of Experts on Reforms of the International Financial and Monetary System (the “Stiglitz Commission”) mentioned a financial services tax as a way of providing.more stable and sustainable development finance that.would also help to stabilize markets. The tax would be automatically collected at the exchanges and borne equally by buyers and sellers using the.electronic settlement systems. Between 0.01%-0.1%. [WinnettK;12] Robert Winnett and James Kirkup: 50p tax rate `failing to boost revenures’”; The Daily Telegraph, 21 Feb, 2012. [Wipo:11] About WIPO: What is Intellectual Property?; United Nations, World Intellectual Property Organization, established 1967, Geneva, [Worldbank:10] Worldbank: Data on country GDP, 2010. [Worldwide:12] Worldwide-tax: Key Data on World Taxes; www.worldwide-tax.com, last accessed 24 March 2012. [WTB:00] OTPR: World Tax Database; Office of Tax Policy Research, Uni. Of Michigan, 2000, XXXXXXXX [Xing:11] Yuqing Xing: How the iPhone widens the US trade deficit; VOX, 10 April 2011, YYYYYYYYYYYYY [Yablon:10]‡ Jeffrey L. Yablon: Avoidance, Evasion, and Planning. Tax Analysts, Sep.2010. Quotes. [Yamamura:12] K. Yamamura: Changing corporate tax rules; Sacramento Bee, 15 Oct.2012. [YoungV:11] Christobal Young and Charles Varner: Millionaire Migration and State Taxation of Top Incomes: Evidence from a Natural Experiment; National Tax Journal, Jun2011, Vol.64 no.2, part 1, pp.255–284. People stay put ZZZZZZZZZZZZZ [Zadrony:06] Wlodek Zadrony: "Leveraging the Power of Intangible Assets"; MIT Sloan Management Review, Vol48. No.1, Fall 2006, reprint #48117. Ignores Software, but cites that info is in corporate DBs and can be mined. In TT-IP/worth references. [Zeidman:11] Bob Zeidman: The Software IP Detective's Handbook, Measurement, Comparison, and Infringement Detection; Prentice Hall, Pearson Publishing, 2011. [Zembar:11] Tom Zembar: When corporations avoid paying Taxes, public education gets shortchanged; National Education Association, 7 Nov.2011. [Zerbe:10] Dean Zerbe: IRS Audits Small Biz More, Big Guys Less; Expert View, FORBES.com, 11 April 2010. Hour benefit per hour audit in LMSB is $9,354. Audit rate 25%. The IRS should also tell more. 123 [Zheng:] Tracey Zheng: Overview of Transfer Pricing Guidelines; Chapter 11 in William kastner, Doing Business in Washington State.> [Zima:07] Patricia Zima, Mohawk College: “Goodwill and Other Intangible Assets; Chapter 12 in: Intermediate Accounting, 8th ed; Wiley Canada, 2007. [Zipf:49]† George K. Zipf: Human Behavior and the Principle of Least Effort; Addison-Wesley, 1949. [Zoromé:87] Ahmed Zoromé: Concept of Offshore Financial Centers: In Search of an Operational Definition; International Monetary Fund, IMF Working Paper/07/87, <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< . . .