The course provides a basic understanding of business taxation and international tax effects. It consists of two parts. In Part 1, an introduction to tax planning and the impact of taxation on investment decisions is given. Then, the basic (legal) features of business taxation as well as their implications are discussed and a standard model for corporations is set up that takes taxes into account. Due attention is given to the effects of legal form and to the effect of different forms of financing for the evaluation of investment alternatives.
The scope of the analysis is broadened to an international setting in Part 2. The main challenges under international company taxation (e.g., international double taxation) are discussed and the basic design of international tax law to avoid double taxation is presented (rules to combat international tax avoidance are briefly reviewed). Finally, the effects of corporate taxes on various international business decisions (e.g., present value analyses of cross-border investment and legal forms) are evaluated. The focus is put on regulation and activity in a European context.
In more detail, topics/chapters are:
- Tax Planning: A General Introduction
- Taxation and Investment Decisions
- Introduction to Business Taxation
- International Company Taxation
- Fundamentals of International Tax Planning
- International Corporate Tax Planning
- International Taxation and European Law
In sum, this course also provides a good stepping stone (particularly with respect to the institutional setting) for a more in-depth analysis of income shifting and tax avoidance in advanced master courses such as FIE441 Taxes and Business Strategy.