An Alternative Approach in the Methodology of TNC Taxation: the Need and Possibilities
The analysis of the current development of the global economy demonstrates its further concentration on transnational corporations (TNCs), their growing influence in the economic and political arena due to the oligopolization of the world value-added chain as well as desires to seek recognition of the international legal personality. The objectives of the work were to theoretically substantiate the need and the possibility of transition to an alternative methodology for the tax regulation of TNCs based on the fractional method, propose and describe its main parameters. The paper shows the nature of the dialectical conflict between the system-wide global functioning unity of TNCs and their “country-scale fragmentation” in taxation, which generates problems of permanent complication and pile-up of tax tools to fight against the optimization of taxes in the international sphere. It is concluded that an alternative TNC taxation methodology, namely the corporate fractional taxation, is needed. The parameters of the alternative approach to the TNC taxation are described in detail, its advantages and prospects are highlighted.