bonus contract rewards tax savings excessively in comparison to other determinants of corporate net income. A possible … explanation is that managers require to be compensated for the additional risk inherent in running an aggressive tax strategy. In … greater tax planning opportunities, for example by virtue of size or operations abroad, are more likely to condition the CEO …

The European Commission favours the introduction of a consolidated corporate tax base to overcome the distortions … general equilibrium model CORTAX. We show that the benefits of a common consolidated tax base are limited due to two … MNEs new tax planning possibilities to exploit tax rate differentials in the European Union. In addition, it triggers tax …

In a cross-border takeover, the tax base associated with future capital gains is transferred from target shareholders … to acquirer shareholders. Crosscountry differences in capital gains tax rates enable us to estimate the discount in … target valuation on account of future capital gains. A one percentage point increase in the capital gains tax rate reduces …

This paper analyzes enhanced cooperation agreements in corporate taxation in a three country tax competition model … where countries differ in size. We characterize equilibrium tax rates and the optimal tax responses due to the formation of … an enhanced cooperation agreement. Conditions for strategic complementarity or strategic substitutability of tax rates …

In Europe, declining corporate tax rates have come along with rising tax-to-GDP ratios. Thispaper explores to what … extent income shifting from the personal to the corporate tax base canexplain these diverging developments. We exploit a … incorporation is significant and large. It implies that therevenue effects of lower corporate tax rates – possibly induced by tax …

European countries. The magnitude of these effects rise in particular in the broadness of the corporate tax base of a country …

This paper analytically derives the conditions under which the slope of the tax reaction function is negative in a … classical tax competition model. If countries maximize welfare, we show that a negative slope (reflecting strategic … parameter configurations. The strategic tax response is crucial for understanding tax competition games, as well as for …