{"title":"数字经济下的国际企业税收效率调查:对在印度运营的 MNES 的多重案例研究","authors":"Kavita Pandey, Surendra S. Yadav, Seema Sharma","doi":"10.1108/jabs-04-2023-0158","DOIUrl":null,"url":null,"abstract":"<h3>Purpose</h3>\n<p>The purpose of this paper is to validate the theoretical finding that digital MNEs avoid physical presence norms of permanent establishment and royalty characterization rules for business and royalty taxation, respectively, to escape tax incidence in the market economy, using information, communication and technology features and transfer pricing (TP) manipulations.</p><!--/ Abstract__block -->\n<h3>Design/methodology/approach</h3>\n<p>Multiple case studies of MNEs from technology sector, based on judicial decisions in 141 cases, over taxability of profits earned from Indian economic activities. Additional in-depth case study of the Uber Group to study the tax avoidance structures under platform economy, by routing of Indian profits through The Netherlands, a tax haven.</p><!--/ Abstract__block -->\n<h3>Findings</h3>\n<p>The study finds a significant number of digital MNEs earning profits from India and avoiding tax by defying physical presence and royalty characterization. In majority of the cases, demand-side business activities are discharged through incorporating and remunerating affiliates at cost plus low markup, thus avoiding tax incidence, using TP manipulations under the arm’s length principle applied by governments for benchmarking the intragroup transactions of the MNEs.</p><!--/ Abstract__block -->\n<h3>Research limitations/implications</h3>\n<p>The research findings validate the view that digital features promote tax avoidance in the market economy.</p><!--/ Abstract__block -->\n<h3>Originality/value</h3>\n<p>The originality of the study lies in the validation of profit shifting through digital features from the developing market economy and portending that digital MNEs defy physical presence to avoid business taxation through TP manipulations.</p><!--/ Abstract__block -->","PeriodicalId":46138,"journal":{"name":"Journal of Asia Business Studies","volume":null,"pages":null},"PeriodicalIF":2.3000,"publicationDate":"2024-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":"{\"title\":\"Investigating the international corporate tax revenue efficiency under the digital economy: multiple case study of MNES operating in India\",\"authors\":\"Kavita Pandey, Surendra S. Yadav, Seema Sharma\",\"doi\":\"10.1108/jabs-04-2023-0158\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"<h3>Purpose</h3>\\n<p>The purpose of this paper is to validate the theoretical finding that digital MNEs avoid physical presence norms of permanent establishment and royalty characterization rules for business and royalty taxation, respectively, to escape tax incidence in the market economy, using information, communication and technology features and transfer pricing (TP) manipulations.</p><!--/ Abstract__block -->\\n<h3>Design/methodology/approach</h3>\\n<p>Multiple case studies of MNEs from technology sector, based on judicial decisions in 141 cases, over taxability of profits earned from Indian economic activities. Additional in-depth case study of the Uber Group to study the tax avoidance structures under platform economy, by routing of Indian profits through The Netherlands, a tax haven.</p><!--/ Abstract__block -->\\n<h3>Findings</h3>\\n<p>The study finds a significant number of digital MNEs earning profits from India and avoiding tax by defying physical presence and royalty characterization. In majority of the cases, demand-side business activities are discharged through incorporating and remunerating affiliates at cost plus low markup, thus avoiding tax incidence, using TP manipulations under the arm’s length principle applied by governments for benchmarking the intragroup transactions of the MNEs.</p><!--/ Abstract__block -->\\n<h3>Research limitations/implications</h3>\\n<p>The research findings validate the view that digital features promote tax avoidance in the market economy.</p><!--/ Abstract__block -->\\n<h3>Originality/value</h3>\\n<p>The originality of the study lies in the validation of profit shifting through digital features from the developing market economy and portending that digital MNEs defy physical presence to avoid business taxation through TP manipulations.</p><!--/ Abstract__block -->\",\"PeriodicalId\":46138,\"journal\":{\"name\":\"Journal of Asia Business Studies\",\"volume\":null,\"pages\":null},\"PeriodicalIF\":2.3000,\"publicationDate\":\"2024-05-14\",\"publicationTypes\":\"Journal Article\",\"fieldsOfStudy\":null,\"isOpenAccess\":false,\"openAccessPdf\":\"\",\"citationCount\":\"0\",\"resultStr\":null,\"platform\":\"Semanticscholar\",\"paperid\":null,\"PeriodicalName\":\"Journal of Asia Business Studies\",\"FirstCategoryId\":\"1085\",\"ListUrlMain\":\"https://doi.org/10.1108/jabs-04-2023-0158\",\"RegionNum\":0,\"RegionCategory\":null,\"ArticlePicture\":[],\"TitleCN\":null,\"AbstractTextCN\":null,\"PMCID\":null,\"EPubDate\":\"\",\"PubModel\":\"\",\"JCR\":\"Q3\",\"JCRName\":\"BUSINESS\",\"Score\":null,\"Total\":0}","platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Asia Business Studies","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/jabs-04-2023-0158","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"BUSINESS","Score":null,"Total":0}
Investigating the international corporate tax revenue efficiency under the digital economy: multiple case study of MNES operating in India
Purpose
The purpose of this paper is to validate the theoretical finding that digital MNEs avoid physical presence norms of permanent establishment and royalty characterization rules for business and royalty taxation, respectively, to escape tax incidence in the market economy, using information, communication and technology features and transfer pricing (TP) manipulations.
Design/methodology/approach
Multiple case studies of MNEs from technology sector, based on judicial decisions in 141 cases, over taxability of profits earned from Indian economic activities. Additional in-depth case study of the Uber Group to study the tax avoidance structures under platform economy, by routing of Indian profits through The Netherlands, a tax haven.
Findings
The study finds a significant number of digital MNEs earning profits from India and avoiding tax by defying physical presence and royalty characterization. In majority of the cases, demand-side business activities are discharged through incorporating and remunerating affiliates at cost plus low markup, thus avoiding tax incidence, using TP manipulations under the arm’s length principle applied by governments for benchmarking the intragroup transactions of the MNEs.
Research limitations/implications
The research findings validate the view that digital features promote tax avoidance in the market economy.
Originality/value
The originality of the study lies in the validation of profit shifting through digital features from the developing market economy and portending that digital MNEs defy physical presence to avoid business taxation through TP manipulations.