Multinational Firms’ Heterogeneity in Tax Responsiveness: the Role of Transfer Pricing

In this paper we show that the ability of multinational firms to manipulate transfer prices affects the tax sensitivity of foreign direct investment (FDI). We offer a model of international capital allocation where firms are heterogeneous in their ability to manipulate transfer prices. Perhaps paradoxically, we show that the ability to shift profits can make parent companies' investment more sensitive to host-country tax rates, as long as investors expect fisscal authorities to use price and profit detection methods. We then offer a comprehensive empirical study to test our predictions in the case of Japanese FDI. We exploit the finding that the unobservable ability to manipulate transfer prices is correlated with whole ownership of a±liates and R&D expenditure. Based on country, parent firm and sector characteristics, we estimate an investment equation on a sample of 3614 Japanese affiliates in 49 emerging countries. We obtain a greater semi-elasticity of investment to the statutory tax rate in a±liates that are wholly-owned and that have R&D intensive parents. We interpret these results as indirect evidence that abusive transfer pricing is one of the determinants of FDI activity.

Fitness to drive and cannabis: Validation of two blood THCCOOH thresholds to distinguish occasional users from heavy smokers.

Many studies based on either an experimental or an epidemiological approach, have shown that the ability to drive is impaired when the driver is under the influence of cannabis. Baseline performances of heavy users remain impaired even after several weeks of abstinence. Symptoms of cannabis abuse and dependence are generally considered incompatible with safe driving. Recently, it has been shown that traffic safety can be increased by reporting the long-term unfit drivers to the driver licensing authorities and referring the cases for further medical assessment. Evaluation of the frequency of cannabis use is a prerequisite for a reliable medical assessment of the fitness to drive. In a previous paper we advocated the use of two thresholds based on 11-nor-9-carboxy-Δ9-tetrahydrocannabinol (THCCOOH) concentration in whole blood to help to distinguish occasional cannabis users (≤3μg/L) from heavy regular smokers (≥40μg/L). These criteria were established on the basis of results obtained in a controlled cannabis smoking study with placebo, carried out with two groups of young male volunteers; the first group was characterized by a heavy use (≥10 joints/month) while the second group was made up of occasional users smoking at most 1 joint/week. However, to date, these cutoffs have not been adequately assessed under real conditions. Their validity can now be evaluated and confirmed with 146 traffic offenders' real cases in which the whole blood cannabinoid concentrations and the frequency of cannabis use are known. The two thresholds were not challenged by the presence of ethanol (40% of cases) and of other therapeutic and illegal drugs (24%). Thus, we propose the following procedure that can be very useful in the Swiss context but also in other countries with similar traffic policies: if the whole blood THCCOOH concentration is higher than 40μg/L, traffic offenders must be directed first and foremost toward medical assessment of their fitness to drive. This evaluation is not recommended if the THCCOOH concentration is lower than 3μg/L and if the self-rated frequency of cannabis use is less than 1 time/week. A THCCOOH level between these two thresholds cannot be reliably interpreted. In such a case, further medical assessment and follow-up of the fitness to drive are also suggested, but with lower priority.

Competition for FDI and profit shifting: On the effects of subsidies and tax breaks

We investigate competition for FDI within a region when a foreign multinational rm can profitably exploit differences in statutory corporate tax rates by shifting taxable pro ts to lower-tax jurisdictions. In such framework we show that targeted tax competition may lead to higher welfare for the region as a whole than lump-sum subsidies when the difference in statutory corporate tax rates and/or their average is high enough. Tax competition is also preferable from an efficiency point of view (overall surplus) by changing the firm's investment decision when pro t shifting motivations induce the rm to locate in the (before tax) least pro table country.

Incentives in university technology transfers

There are two main ways in which the knowledge created in universities has been transferred to firms: licensing agreements and the creation of spin-offs. In this paper, we describe the main steps in the transfer of university innovations, the main incentive issues that appear in this process, and the contractual solutions proposed to address them.

Annual Update on Fuel Poverty and Health (2008)

This paper provides an update on the All-Ireland Policy Paper on Fuel Poverty and Health published by the Institute of Public Health in Ireland (IPH) in December 2007.Economic downturn and fluctuating fuel prices mean that for many people the challenge of fuel poverty is becoming even more immediate. Alleviating financial strain and protecting the health and social well-being of fuel-poor householders must remain a priority across government. A substantial body of research links fuel poverty to physical and mental ill-health. Older people in particular are at an increased risk of suffering from heart disease, stroke and respiratory conditions in the winter months. Research published in Northern Ireland this year has also highlighted the impact of fuel poverty on children’s health and well-being.  

IPH response to the DSD consultation on regulations to prohibit or restrict irresponsible promotions of alcohol in Northern Ireland

IPH responded to the Department for Social Development consultation on the banning of certain promotions that may encourage irresponsible and excessive drinking. The consultation relates to regulations Article 57A(2)(d) of the 1996 Licensing Order “involving the supply of unlimited amounts of intoxicating liquor for a fixed charge (including any charge for entry to the premises)” and Article 31A(2)(d) of the Registration of Clubs Order “restricting the price at which the holder of a licence or the licence holder’s servant or agent may sell on licensed premises a package containing two or more intoxicating liquor products”. IPH welcomes this consultation and supports the Department’s proposals to restrict promotions that involve the supply of unlimited amounts of intoxicating liquor for a fixed charge. IPH welcomes this tangible action linked to the renewed commitment to tackling alcohol-related harms on the island of Ireland set out in the Steering Group Report on a National Substance Strategy (Dept of Health, 2012) and in the New Strategic Direction on Alcohol and Drugs (DHSSPS, 2011). IPH considers that irresponsible alcohol promotions can contribute to this burden of physical and mental ill-health, accidental and non-accidental injury and other harms associated with excessive alcohol consumption in Northern Ireland. As previously stated in the IPH submissions on the introduction of powers to prohibit or restrict irresponsible alcohol promotions (Dec, 2010), IPH considers that the issues of promotion and price are inter-related. The effectiveness of the proposed restrictions could be reinforced by the expeditious introduction of minimum unit pricing of alcohol on an all-island basis.

IPH response to Social Investment Fund Consultation

The Social Investment Fund aims to reduce poverty, unemployment and physical deterioration in areas through area based interventions of significant scale which will be delivered in partnership with communities. The fund will encourage communities, statutory agencies, businesses and departments to work together in a coordinated way, reducing duplication, sharing best practice and enhancing provision for the benefits of those communities most in need. IPH calls for a consideration of health to be included in the Social Investment Fund.  Each of the four objectives of the programme will have the potential to positively impact on health by increasing education attainment and skill levels, tackling deprivation, increasing community support and enhancing the physical regeneration of communities.  IPH also call for greater clarification on the links with other area based partnerships.

IPH Response to Dept of Justice and Equality Review of the Code of Practice on the Sale and Display of Alcohol in Mixed Trading Premises

IPH responded to the Department of Justice, Equality and Defence review of the voluntary Code of Practice for the display and sale of alcohol in supermarkets, convenience stores and similar mixed trading outlets. The voluntary Code was introduced in 2008 as an alternative to the statutory rules for structural separation of alcohol products in mixed trading outlets which are set out in section 9 of the Intoxicating Liquor Act 2008. Interested bodies and individuals were invited to submit comments on the Compliance Report for 2011 and on the effectiveness of the voluntary approach to structural separation by 20th December 2011. The Minister said he intended to also seek the views of the Minister for Health and the Joint Oireachtas Committee on Justice, Defence and Equality before reaching any decision on whether to bring the statutory rules in the 2008 Act into operation.

IPH response to Broadcasting Authority of Ireland Children's Commercial Communications Code

The Broadcasting Authority of Ireland (BAI) is an independent statutory organisation responsible for certain aspects of television and radio services in Ireland, guided by the Broadcasting Act 2009. The BAI are undertaking a review of the Children’s Commercial Communications Code section 11 rules on Diet and Nutrition. This section sets down standards with which commercial communications for food and drink shown during children’s programmes and/or where these communications are for food and drink products or services that are of special interest to children.

IPH response to DOE Consultation 'Preparing a Road Safety Strategy for Northern Ireland 2010-20'

The Department of Environment (NI)  recently held a consultation on preparing a new road safety strategy for Northern Ireland which will cover the years 2010 to 2020.  The consultation ran from 16 March 2010 to 15 June 2010.  The consultation paper outlined key challenges to be addressed over the lifetime of the strategy and proposed a number of action measures which have been agreed by the statutory road safety partners.  Views were invited on preparing a new road safety strategy for Northern Ireland that will shape the way ahead for safety on roads over the next decade.

Response to Northern Ireland Housing Executive Review of Housing and Health

The Institute of Public Health in Ireland welcomes the opportunity to comment on the Northern Ireland Housing Executive (NIHE), Review of Housing and Health – Towards a Shared Agenda policy.   The Institute aims to improve health in Ireland, North and South by working to combat health inequalities and influence public policies in favour of health. The Institute recognises the potential health impacts linked with housing and welcome the proactive approach NIHE is adopting. By identifying the wider determinants of health, the NIHE acknowledges that as a statutory organization they have a major role to play in contributing to improved health for Northern Ireland.   There are many causal pathways linking housing to health and due to the nature of social housing, a number of vulnerable groups, for example those on a low income or the Travelling Community are subject to NIHE policies.  Overall the policy outlines a number of key recommendations.  The Institute advise that the Implementation Plan which will incorporate the recommendations should outline targets which can be measurable, for example, under Objective 1 which identifies the reduction of fuel poverty.  We recommend that key targets are outlined to show what action the NIHE has set in accordance to measure a reduction in fuel poverty.

Joint Communique Under The Auspices of The North South Ministerial Council On Safeguarding Child Protection (PDF 28KB)

This Communication Strategy has been developed by representatives of the statutory sector and Non-Governmental Organisations (NGOs) from the voluntary and community sectors from both Northern Ireland and the Republic of Ireland

Developing a Workplace Policy on Domestic Violence and Abuse (PDF 219KB)

This guide for employers has been produced by the Regional Steering Group on Domestic Violence in line with the strategy and action plan “Tackling Violence at Home” published in October 2005. The Regional Steering Group is a group of about 30 members representing the statutory and voluntary agencies involved in dealing with domestic violence. The guidance provides advice on how employers can develop increased awareness and more effective responses to domestic violence in the workplace for the benefit of all staff. The Regional Steering Group acknowledges that some employers already have good workplace policies in place and it encourages all employers across the public, private, voluntary and community sectors to use the guidance to develop a workplace policy on domestic violence. åÊ

Annual Report to the Equality Commission 01-02 (PDF 103 KB)

The Department and its associated bodies are committed to jointly taking forward the Statutory equality obligations placed on them by Section 75 of the Northern Ireland Act 1998. This has involved collaboration in drafting and submitting their Equality Schemes and then in jointly conducting a 2-stage consultation exercise on the equality implications of our policies. Stage 1 papers were issued in November/December 2000 seeking views, amongst other things, on the equality implications of our policies, and a composite Stage 2 paper in April 2001setting out the conclusions reached on the screening of policies and proposals for an Equality Impact Assessment programme. åÊ

Annual Report to the Equality Commission 02-03 (PDF 259 KB)

The Department of Health, Social Services and Public Safety is committed to report annually on progress towards implementing its statutory equality duties and related commitments set out in the Departments Equality Scheme. This Annual Report has been produced to meet the standards set out by the Equality Commission, and will assist the Commission in compiling its own annual report, as required by sub paragraph 5(1) (b) of schedule 8 to the Act. åÊ