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This paper examines how restrictions on the tax-deductibility of interest cost affect location choices of multinational corporations (MNCs). Many countries have introduced so-called thin-capitalization rules (TCRs) to prevent MNCs from shifting tax base to countries with lower tax rates. As of...
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-shifting, are large. We test this prediction using confidential firm-level tax-return data for the local business tax in Germany …
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-shifting, are large. We test this prediction using confidential firm-level tax-return data for the local business tax in Germany …
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paper empirically tests this prediction using local business taxation in Germany as a testing ground. Exploiting rich and …
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