This paper examines empirically how international taxation
affects the volume and pricing of cross-border banking activities
for a sample of banks in 38 countries over the 1998ï¿½2008 period.
International double taxation of foreign-source bank income is found
to reduce banking-sector FDI. Furthermore, such taxation is almost
fully passed on into higher interest margins charged abroad. These
results imply that international double taxation distorts the activities
of international banks, and that the incidence of international double
taxation of banks is on bank customers in the foreign subsidiary
Huizinga, Harry, Johannes Voget, and Wolf Wagner.
"International Taxation and Cross-Border Banking."
American Economic Journal: Economic Policy,
Multinational Firms; International Business
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Business Taxes and Subsidies including sales and value-added (VAT)
International Fiscal Issues; International Public Goods