BEPS Policy Failure—The Case of EU Country-By-Country Reporting1

The tax gap between taxes that are “actually” paid and taxes that “ought” to have been paid by multinational corporate entities has become an area of huge public policy concern in the recent decades. This study reviews the impact of new legislation to reveal the tax gap created by the EU banks and financial institutions passed in 2013 and in particular of the quality of the resulting country-by-country reporting (CBCR) requirement for banks. Although resulting tax gap estimates are noted, they suffer due to significant problems in the published data; much of it is due to the quality of the regulation requiring its publication and implementation. The findings reveal a lack of understanding of the technical and structural weaknesses of accounting in a transnational context in the design of this regulation. CBCR is destined to fail in achieving its regulatory objectives in this context unless necessary reform of the regulation is undertaken

Thermal, Cardiac and Adrenergic Responses to Repeated Local Cooling

Summary The aim of this study was to ascertain whether repeated local cooling induces the same or different adaptational responses as repeated whole body cooling. Repeated cooling of the legs (immersion into 12 °C water up to the knees for 30 min, 20 times during 4 weeks = local cold adaptation -LCA) attenuated the initial increase in heart rate and blood pressure currently observed in control subjects immersed in cold water up to the knees. After LCA the initial skin temperature decrease tended to be lower, indicating reduced vasoconstriction. Heart rate and systolic blood pressure appeared to be generally lower during rest and during the time course of cooling in LCA humans, when compared to controls. All these changes seem to indicate attenuation of the sympathetic tone. In contrast, the sustained skin temperature in different areas of the body (finger, palm, forearm, thigh, chest) appeared to be generally lower in LCA subjects than in controls (except for temperatures on the forehead). Plasma levels of catecholamines (measured 20 and 40 min after the onset of cooling) were also not influenced by local cold adaptation. Locally cold adapted subjects, when exposed to whole body cold water immersion test, showed no change in the threshold temperature for induction of cold thermogenesis. This indicates that the hypothermic type of cold adaptation, typically occurring after systemic cold adaptation, does not appear after local cold adaptation of the intensity used. It is concluded that in humans the cold adaptation due to repeated local cooling of legs induces different physiological changes than systemic cold adaptation

A practical proposal to end corporate tax abuse:METR, a minimum effective tax rate for multinationals

An initiative is needed to break the logjam in the international negotiations to reform taxation of multinational enterprises (MNEs). The explosion of profit shifting observed since the 1990s has resulted in hundreds of billions of dollars of tax revenues being lost around the world each year – but reform efforts have thus far failed to deliver measurable progress on the primary agreed goal of better aligning MNEs' taxable profits with the location of their real economic activity. More recently, countries have committed also to ensure that MNEs’ global profits are subject to a minimum effective tax rate, but international agreement depends on designing an approach that can gain wide support. Our proposal for a minimum effective tax rate (METR) could be applied to MNEs by any countries that choose to do so, whether they are home to MNEs, host of MNEs, or both. The METR would be compatible with existing tax treaties, but being non-discriminatory it also complies with other international obligations and could be introduced unilaterally. Economic modelling shows the METR would deliver major revenue gains for participating countries, and adoption would also contribute to, rather than impede, momentum for a more comprehensive multilateral agreement

Modeling the ML4.7 mainshock of the February-July 2001 earthquake sequence in Aegion, Greece

An earthquake sequence comprising almost 2000 events occurred in February-July 2001 on the southern coast of the Corinth Gulf. Several location methods were applied to 171 events recorded by the regional network PATNET. The unavailability of S-wave readings precluded from reliable depth determination. For the mainshock of April 8, ML = 4.7, the depth varied from 0 to 20 km. The amplitude spectra of complete waveforms at three local stations (KER, SER, DES; epicentral distances 17, 26 and 56 km) were inverted between 0.1 and 0.2 Hz for double-couple focal mechanism and also for the depth. The optimum solution (strike 220°, dip 40°, rake - 160°, and depth of 8 km) was validated by forward waveform modeling. Additionally, the mainshock depth was further supported by the P- and S-wave arrival times from the local short-period network CRLNET (Corinth Rift Laboratory). The scalar seismic moment was 2.5e 15 Nm, and the moment rate function was successfully simulated by a triangle of the 0.5 second duration. This is equivalent to a 1-1.5 km fault length, and a static stress drop 2-6 MPa. This value is important for future strong ground motion simulation of damaging earthquakes in Aegion region, whose subevents may be modeled according to the studied event. The T axis of the mainshock (azimuth 176° and plunge 67°), is consistent with the regional direction of extension ∼N10°. However, none of the nodal planes can be associated to an active structure seen at the surface. The relationship of this earthquake sequence with deeper faults (e.g. possible detachment at about 10 km) is also unclear. © 2004 Kluwer Academic Publishers