One of the most significant trends in the evolution of global tax systems has been the rise from relative obscurity of thin capitalisation rules, which are perceived as anti-avoidance rules. Despite their prevalence, it is unclear whether thin capitalisation rules: (1) attain tax neutrality (specifically, do these rules mitigate the tax-induced cross-border debt bias); and, (2) are effective in both theory and practice.

Taxing Multinationals approaches the issue of thin capitalisation from a novel perspective by conceptualising the cross-border debt bias as the 'disease' and thin...