Global distribution network design: exploration of facility location driven by tax considerations and related cross-country implications
Multinational corporations (MNCs) are moving not only their headquarters but also their logistics operations to low-tax jurisdictions to minimise the tax burden. However, the logistics and fiscal domains are guided by different principles. This study aims to explore the cross-country implications of locating facilities in low-tax jurisdictions to take advantage of tax arbitrage. A single case study is developed, considering a fashion MNC that moved its European warehouse from Italy to Switzerland.The study offers theoretical insights about cross-country logistics network reconfiguration, formalising three possible scenarios and deepening the related implications. A quantitative evaluation of those scenarios is proposed, updating logistics cost items by including fiscal specifics and exploring the mutual interdependence between logistics and fiscal elements. To improve the study’s managerial contribution, the influence of contextual parameters is also investigated, showing that facility location for tax purposes does not necessarily lead to maximise net income after taxes.
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Availability:
- Find a library where document is available. Order URL: http://worldcat.org/issn/13675567
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Supplemental Notes:
- © 2020 Informa UK Limited, trading as Taylor & Francis Group. Abstract reprinted with permission of Taylor & Francis.
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Authors:
- Prataviera, Lorenzo Bruno
- Norrman, Andreas
- Melacini, Marco
- Publication Date: 2022-7
Language
- English
Media Info
- Media Type: Web
- Pagination: pp 1067-1090
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Serial:
- International Journal of Logistics Research and Applications
- Volume: 25
- Issue Number: 7
- Publisher: Taylor & Francis
- ISSN: 1367-5567
- EISSN: 1469-848X
- Serial URL: http://www.tandfonline.com/toc/cjol20/current
Subject/Index Terms
- TRT Terms: Business practices; Facilities; Location; Logistics; Taxes
- Subject Areas: Administration and Management; Freight Transportation; Planning and Forecasting;
Filing Info
- Accession Number: 01855612
- Record Type: Publication
- Files: TRIS
- Created Date: Aug 24 2022 9:28AM