The taxation of passive foreign investment: lessons from German experience

Abstract

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Evaluating the effects of ACE systems on multinational debt financing and investment

“…Third, we estimate a host country location choice model, as in Ruf and Weichenrieder (2012), by only looking at new affiliates. This model enables us to estimate the likelihood of a country's hosting a new affiliate with special financing functions (i.e., characterized by positive equity-financed net lending).…”

Trading Offshore: Evidence on Banks' Tax Avoidance

“…6 German CFC rules completely exclude income from banking under the condition of a 'commercially organized business operation' in the foreign affiliate (see Förster and Schmidtmann, 2004;Ruf and Weichenrieder, 2012). According to a decision by the German Federal Fiscal Court, it is not even necessary that the affiliate has own employees or offices to fulfill this condition (BFH 13 Oct 2010, I R 61/09).…”

Money at the Docks of Tax Havens: A Guide

“…An affiliate is identified as a net lender if the value of its total loans to shareholders and associated enterprises linked to the affiliate exceeds the total debt of the affiliate. This definition of net lender is based on Ruf and Weichenrieder (2009), who coined the term "conduit entities with positive net lending". Table (3) shows that aside from the USA, the number of net-lender firms is the highest in European countries such as the UK, Switzerland, and the Netherlands.…”