Phytic acid degradation by phytase – as viewed by 31P NMR and multivariate curve resolution

The 31P NMR method is a most direct and useful method to describe the degradation of phytic acid to lower inositol phosphates by the action of the enzyme phytase. The use of chemometric and CARS visualizes and helps in the interpretation of the results. By means of LatentiX it has been possible to visualize the time-dependent hydrolysis of phytic acid and by PCA the complexity of the phytic acid is shown in the score plots. By modeling the spectra in CARS it is possible to identify and quantify each of the inositol phosphates

Centralized vs. De-centralized Multinationals and Taxes

The paper examines how country tax differences affect a multinational enterprise’s choice to centralize or de-centralize its decision structure. Within a simple model that emphasizes the multiple conflicting roles of transfer prices in MNEs - here, as a strategic pre-commitment device and a tax manipulation instrument -, we show that (de-)centralized decisions are more profitable when tax differentials are (small) large.centralized vs. de-centralized decisions, taxes, MNEs

Tax Spillovers under Separate Accounting and Formula Apportionment.

It is observed in the real world that taxes matter for location decisions and that multinationals shift profits by transfer pricing. The US and Canada use Formula Apportionment (FA) to tax corporate income, and the EU is debating a switch from Separate Accounting (SA) to FA. This paper develops a theoretical model that compares basic properties of FA to SA. The focal point of the analysis is on how changes in tax rates affect capital formation, input choice, and transfer pricing as well as spillovers on tax revenue in other countries. The analysis shows that a move from SA to FA will not eliminate such spillovers and will, in cases identified in the paper, actually aggravate them.

Formula Apportionment and Transfer Pricing under Oligopolistic Competition.

This paper demonstrates that under conditions of imperfect (oligopolistic) competition, a transition from separate accounting (SA) to formula apportionment (FA) does not eliminate the problem of profit shifting via transfer pricing. In particular, if affiliates of a multinational firm face oligopolistic competition, it is beneficial for the multinational to manupulate transfer prices for tax-saving as well as strategic reasons under both FA and SA. The analysis shows that a switch from SA rules to FA rules may actually strengthen profit shifting activities by multinationals.