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Tax avoidance and profit shifting by multinationals pose a significant problem for most EU Member States. Since this problem is so widespread, it has become a major question of equitableness. Digitalisation and the increasing importance of intangible assets (brands, algorithms, data, etc.) are additional challenges to international taxation (of profits). A change to the system of international profit taxation towards a consolidated profit approach and formular apportionment (including a minimum profit tax rate) is the best way to get this problem under control.

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Philipp Gerhartinger

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Dominik Bernhofer

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