The doctoral dissertation studies the impact of different taxation systems on the corporate strategic tax-related decisions with a focus on cross-border transactions and the comparative legal systems on corporate restructuring, M&A, and FDI between the US and UK. This research aims to fill an essential gap in the contemporary legal field by providing a thorough account of how different taxation systems influence the behavior of multinationals and the flow of capital in the two largest financial markets.

The primary objective of this study is to evaluate the contrasting consequences of tax policies in the United States and the United Kingdom on corporate restructurings and how the differences in tax policies in certain jurisdictions create either incentives or disincentives for undertaking cross-border transactions. In this respect, the study examines the comparative effectiveness of the anti-avoidance regime, the extent to which tax implications are considered in deal structuring, and the potential economic consequences of regulatory arbitrage that exploits differences between jurisdictions. In this regard, the study aims to assess whether the tax regime strikes an optimal balance between maintaining tax revenue and supporting legitimate economic activities and growth.

In crafting this study, the promoter employed the doctrinal approach, which involved an extensive legal critique of the legislation, guides, and case law from cross-jurisdictions. In this regard, the promoter integrated and critically examined primary legal documents, including the Internal Revenue Code, the UK Corporation Tax Act, Treasury Regulations, and HMRC guidance, along with relevant case law, to appreciate the practical application of legal doctrinal principles. Additionally, the study utilized secondary sources of law, including economic literature, policy documents, and empirical evidence, to enrich the doctrinal approach with evidence concerning the impacts of law and the financial and other policy reasons justifying the law.

The methodology utilizes legal comparative analysis, focusing on the convergence and divergence of legal frameworks and their implications on multinational businesses. The development of OECD BEPS initiatives and regulations regarding the digital economy, as well as Brexit, were recent developments considered in assessing the impact on tax compliance and tax planning strategies.

Recent research has highlighted the remarkable asymmetries in the tax frameworks of the US and UK regarding the same economic transactions, allowing for the circumvention of regulations and policies. It also demonstrates how complex anti-avoidance legislation can produce unintended outcomes by affecting legitimate transactions alongside abusive arrangements. The research also addresses the retailing challenges faced by digital businesses and the taxation of intangibles, which have outpaced traditional tax frameworks.

The policy analysis in this thesis constitutes a novel scholarly contribution to the discourse in international tax law, advocating for reforms that foster policy coherence between jurisdictions without undermining competitive disparities. The proposal for reforms suggests aligning policies on substance, enhancing standards of cooperation on cross-border enforcement, and adopting flexible policies that respond to dynamic business models. These contributions acknowledge the impact of tax policy on global capital markets and the implications for policy in balancing the competing interests of tax revenue, economic development, international cooperation, and global integration.