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Management incentives under formula apportionment : tax-induced distortions of effort and compensation in a principal-agent setting
Martini, Jan T.; Niemann, Rainer; Simons, Dirk - 2014
The introduction of a common consolidated corporate tax base (CCCTB) and tax allocation via formula apportionment (FA) is hotly debated in the European Union (EU) since more than a decade. While the literature has thoroughly analyzed the economic effects of FA from a macro-level perspective, the...
Persistent link: https://www.econbiz.de/10010383849
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Corporate profit shifting and the role of tax havens : evidence from German country-by-country reporting data
Fuest, Clemens; Hugger, Felix; Neumeier, Florian - 2021
annual tax base loss for Germany amounts to EUR 5.4 billion. Adding estimates of profit shifting by multinationals not … covered by the CbC data yields an overall estimate for profits shifted out of Germany to tax havens of EUR 19.1 billion per … year, corresponding to 4.3% of the profits reported by these firms in Germany. This implies a tax revenue loss due to …
Persistent link: https://www.econbiz.de/10012417748
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How low business tax rates attract multinational headquarters : municipality-level evidence from Germany
Becker, Sascha O.; Egger, Peter; Merlo, Valeria - 2009
,000 municipalities in Germany to analyze the sensitivity of the location decisions of foreign MNEs with respect to business tax rates …
Persistent link: https://www.econbiz.de/10003806078
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The effects of taxation on the location decision of multinational firms : M&A vs. Greenfield investments
Hebous, Shafik; Ruf, Martin; Weichenrieder, Alfons J. - 2010
In this study, we estimate the impacts of differences in international tax rates on the probability of choosing a location for an affiliate of a multinational firm. In particular, we distinguish between the tax sensitivity of Greenfield and M&A investments. Based on a novel firm-level dataset on...
Persistent link: https://www.econbiz.de/10003974552
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Taxation and capital structure choice : evidence from a panel of German multinationals
Büttner, Thiess; Overesch, Michael; Schreiber, Ulrich; … - 2006
Persistent link: https://www.econbiz.de/10003395390
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Debt financing and sharp currency depreciations : wholly vs. partially owned multinational affiliates
Hebous, Shafik; Weichenrieder, Alfons J. - 2009
This paper provides empirical evidence on two potential costs of shared ownership of German affiliates abroad. First, in periods of currency crises, wholly-owned affiliates, in contrast to partially-owned affiliates, seem to circumvent financial constraints by accessing capital from their parent...
Persistent link: https://www.econbiz.de/10003923516
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The impact of thin capitalization rules on the location of multinational firms' foreign affiliates
Merlo, Valeria; Riedel, Nadine; Wamser, Georg - 2015
This paper examines how restrictions on the tax-deductibility of interest cost affect location choices of multinational corporations (MNCs). Many countries have introduced so-called thin-capitalization rules (TCRs) to prevent MNCs from shifting tax base to countries with lower tax rates. As of...
Persistent link: https://www.econbiz.de/10011300391
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International debt shifting : do multinationals shift internal or external debt?
Møen, Jarle; Schindler, Dirk; Schjelderup, Guttorm; … - 2011
Multinational companies can exploit the tax advantage of debt more aggressively than national companies by shifting debt from affiliates in low tax countries to affiliates in high tax countries. Previous papers have either omitted internal debt or external debt from the analysis. We are the...
Persistent link: https://www.econbiz.de/10009230788
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Tax revenue losses through cross-border loss offset : an insurmountable hurdle for formula apportionment?
Mardan, Mohammed; Stimmelmayr, Michael - 2017
This paper analyzes the relevance of firm losses for tax revenues and welfare when switching from separate accounting to a system of tax base consolidation with formula apportionment. We find that a system change unambiguously decreases tax revenues in the short run, in which neither firms nor...
Persistent link: https://www.econbiz.de/10011611957
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Evaluating the effects of ACE systems on multinational debt financing and investment
Hebous, Shafik; Ruf, Martin - 2015
Theory recommends aligning the tax treatment of debt and equity. A few countries, notably Belgium, have introduced an allowance for corporate equity (ACE) to achieve tax neutrality. We study the effects of adopting an ACE on debt financing, passive investment, and active investment of...
Persistent link: https://www.econbiz.de/10010519931