Accounting – Taxes

Andreas Simon, PhD, CPA, Assistant Professor of Accounting

Permanently Reinvested Earnings: Priceless, 25 Australian Tax Forum 4 (2010); 121 Tax Notes 835, (original publication), with Rodney Mock, (2008).

Abstract

In this report, the authors discuss the tax and policy issues associated with repatriation under the American Jobs Creation Act of 2004, P.L. No. 108-357, 118 Stat. 1418 (2004) (Jobs Act), and conduct an extensive survey of the financial statements of the top 81 repatriating multinational corporations. The author’s findings suggest that the rate of repatriation by firms was extremely sensitive to the tax burden associated with repatriation, and the rate was further influenced by industry sector, and the amount of permanently rein- vested earnings located in low-tax jurisdictions over- seas. The authors’ data results also evidence that firms repatriated qualifying dividends under section 965 at a U.S. effective tax rate lower than the 5.25 percent initially discussed in literature, and suggest that the amount of permanently reinvested earnings by firms only increased after repatriation. The findings of the article are timely in light of President Trump’s proposed offshore cash plan.

Keywords: accounting, taxes, tax policy, financial statements, tax burden, repatriation

Author of the article
Graziadio Business Review
Graziadio Business Review, Is an online journal that delivers relevant business information and analysis for business, government, and non-profit managers. From accounting and finance to ethics and work/life balance, the Graziadio Business Review extends current business debates in new directions that you can use to advance your business and professional career.
More articles from
Related Articles

Decision Sciences

James DiLellio, PhD, MBA, Associate Professor of Decision Sciences A hybrid GNSS integrity design leveraging a priori signal noise characteristics. Journal of Navigation, 63(3), 513-526, (2010). Abstract The objective of this paper is to explore a hybrid Global Navigation Satellite System (GNSS) architecture that efficiently meets the stringent needs of safety of life systems. An … Continued

Finance – ETFs

James DiLellio, PhD, MBA, Associate Professor of Decision Sciences Darrol J. Stanley, DBA, Professor of Finance and Accounting ETF Trading Strategies to Enhance Client Wealth Maximization. Financial Services Review, 20, p. 145-163, (2011). Abstract This study examines the performance of pragmatic ETF-only investment strategies published either in an investment newsletter, blog, or are otherwise available … Continued