Tax strategies and organisational communication in MNC supply chains: case studies

Joseph, Kathryn; O’Brien, Timothy; Corrêa, Henrique Luiz

doi:10.1080/13675567.2016.1206065

Cited by 6 publications

(4 citation statements)

References 41 publications

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“…Specifically, PE is a fixed place of business generally giving rise to tax liabilities in a particular jurisdiction (Henkow and Norrman, 2011). Performing specific value-adding activities in different countries could have PE implications, thus influencing where and how much tax should be paid (Joseph et al. , 2017).…”

Section: Related Literaturementioning

confidence: 99%

Coping with the postponement boundary problem: an empirical investigation in global food supply chains

Prataviera

Moretti

Tappia

2022

IJLM

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PurposeThe postponement boundary problem entails that duties and cross-border trade complexity can lead companies to geographically postpone operations to downstream global facilities. The present study aims at investigating the problem to provide insights into the drivers behind the choice of different postponement strategies for global food supply chains.Design/methodology/approachA single case study was conducted considering an Italian company exporting olive oil toward the United States. Two global postponement strategies, previously formalized in the literature, were tailored for food supply chains. A multi-methodological approach was adopted, combining data obtained through exploratory case research with empirically grounded analytical modeling. A sensitivity analysis was also performed, to investigate outcomes related to the considered problem when changing key parameters.FindingsBulky and heavy packing materials account for a big percentage of finished products' volume and weight, and this can deeply affect strategies' cost-effectiveness. Postponing packaging operations could allow for taking advantage of lower tariffs levied on bulk goods, contributing to significantly lower duties to be paid. However, important trade-offs could arise related to the required investments, and the fiscal regulatory frameworks must be carefully examined.Originality/valueThis study offers an empirical investigation of the postponement boundary problem, which is largely unexplored in the current literature. It also tackles an understudied empirical context as global food supply chains. It summarizes the drivers behind and explores the costs related to the implementation of different strategies, offering an original quantitative approach that could support practitioners' decision-making. Lastly, it formalizes five propositions that could pave the way for further research inquiries.

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Section: Related Literaturementioning

confidence: 99%

Coping with the postponement boundary problem: an empirical investigation in global food supply chains

Prataviera

Moretti

Tappia

2022

IJLM

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“…To the extent they are able, MNCs may have incentives to reallocate profits to reduce worldwide corporate tax liabilities, even when simultaneously required to locate physical operations in low-tax jurisdictions (e.g. Switzerland, Hong Kong, Ireland) to justify the profits they plan to report there (Hsu and Zhu, 2011;Joseph et al, 2017). Indeed, MNCs can take advantage of real and financial opportunities to reduce the tax burden.…”

Section: Direct and Indirect Taxesmentioning

confidence: 99%

“…Specifically, PE is a fixed place of business generally giving rise to income or value-added tax liability in a particular jurisdiction (Petriccione et al, 2007). Performing specific value-adding activities in different countries could have different PE implications, influencing where and how much tax should be paid (Joseph et al, 2017). Indeed, PE involves a 'fixed place of business' that requires a connection between the MNC's premises and some geographical positions, as well as a degree of permanence to that location.…”

Section: Direct and Indirect Taxesmentioning

confidence: 99%

“…Global distribution network design, that is, designing how to manage global flows in downstream supply chains (Olhager et al, 2015), is experiencing significant changes because multinational corporations (MNCs) are adopting an integrated approach where logistics and fiscal aspects are considered simultaneously (Norrman and Henkow, 2014). Fiscal specialists have been advising manufacturing and logistics on how to minimise the tax burden (Webber, 2011;Joseph et al, 2017), but maximising profits on a global scale presents huge challenges (Cohen and Lee, 2020). An option is separating MNCs into pieces and concentrating highvalue-added functions (bearing the most meaningful risks) into a specific organisation (Shunko et al, 2017), often called a Principal structure (Bhutta et al, 2003).…”

Section: Introductionmentioning

confidence: 99%

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Global distribution network design: exploration of facility location driven by tax considerations and related cross-country implications

Prataviera

Norrman

2020

International Journal of Logistics Research and Applications

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Multinational corporations (MNCs) are moving not only their headquarters but also their logistics operations to low-tax jurisdictions to minimise the tax burden. However, the logistics and fiscal domains are guided by different principles. This study aims to explore the cross-country implications of locating facilities in low-tax jurisdictions to take advantage of tax arbitrage. A single case study is developed, considering a fashion MNC that moved its European warehouse from Italy to Switzerland.The study offers theoretical insights about cross-country logistics network reconfiguration, formalising three possible scenarios and deepening the related implications. A quantitative evaluation of those scenarios is proposed, updating logistics cost items by including fiscal specifics and exploring the mutual interdependence between logistics and fiscal elements. To improve the study's managerial contribution, the influence of contextual parameters is also investigated, showing that facility location for tax purposes does not necessarily lead to maximise net income after taxes.

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Potential Use-Cases of Natural Language Processing for a Logistics Organization

Garg

Kiwelekar

Netak

et al. 2021

Studies in Computational Intelligence

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Tax strategies and organisational communication in MNC supply chains: case studies

Cited by 6 publications

References 41 publications

Coping with the postponement boundary problem: an empirical investigation in global food supply chains

Coping with the postponement boundary problem: an empirical investigation in global food supply chains

Global distribution network design: exploration of facility location driven by tax considerations and related cross-country implications

Potential Use-Cases of Natural Language Processing for a Logistics Organization

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