Taxation of income of multinational corporations: the case of the United States petroleum industry

Journal Article · Sat Feb 01 04:00:00 EST 1975 · Rev. Econ. Stat.; (United States)

DOI:https://doi.org/10.2307/1937857· OSTI ID:7355522

Jenkins, G P; Wright, B D

While U.S. petroleum corporations pay no U.S. tax on foreign income, they received in the 1969-1972 period a rate of return on foreign investment comparable to domestic corporate investments. The present U.S. tax system allows tax credits from one foreign country to offset U.S. taxes from foreign income, with the result that the U.S. receives virtually no corporate income tax from foreign petroleum investments. The multinational corporations use transfer pricing to shift profits between countries so that tax liabilities will be minimized. Loss of revenue to consumer countries due to transfer pricing is estimated at $205 million in 1966 and $240 million in 1970. (19 references) (DCK)

• OSTI ID: 7355522
• Journal Information: Rev. Econ. Stat.; (United States), Journal Name: Rev. Econ. Stat.; (United States) Vol. 57:1; ISSN RECSA
• Country of Publication: United States
• Language: English

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