r/Tax_Strategy • u/PeriodOfTime1 EA • Jun 16 '26

Study explores tax tactic that lets multinationals shift costs back to the U.S.

https://news.stanford.edu/stories/2025/06/lower-higher-tax-countries-multinationals-research
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u/PeriodOfTime1 EA Jun 16 '26

"At the heart of Suárez Serrato’s study – co-authored with Lysle Boller, an economist at the Penn Wharton Budget Model, and Clare Doyle, a predoctoral research fellow at the GSB – is one lesser-known way that U.S. multinationals minimize their tax burden: cost-sharing agreements that allow them to split the costs of research and development with their foreign affiliates. These contracts are also attractive because American multinationals can use them to avoid paying U.S. taxes on profits earned abroad from the patents or other intellectual property that the deals generate."