Showing 1 - 10 of 680
multinational firms to use transfer pricing to allocate profits across tax jurisdictions. We show that source-based taxation is a … Nash equilibrium for tax revenue maximizing jurisdictions if domestic and foreign firms generate large revenues. We also … revenues are intermediate. However, the source principle always tax-dominates the destination principle. …
Persistent link: https://www.econbiz.de/10012599091
from a tax haven, multinationals can shift income out of host countries through the interest rates they charge and the … amount of debt for which interest is tax deductible (safe harbor rules) are inferior to rules that limit the ratio of debt … interest to pre-tax earnings (earnings stripping rules), even if a safe harbor rule is used in conjunction with an earnings …
Persistent link: https://www.econbiz.de/10011387374
We exploit the 2017 US tax reform to learn about the tax-competitiveness of US multinational corporations (MNCs … effective tax rates of US MNCs compared to their European competitors after the US tax reform. Additional tests show (i) that US … MNCs have gained substantially in what we call tax-competitiveness, (ii) that the reform effect is more pronounced for MNCs …
Persistent link: https://www.econbiz.de/10014228546
Persistent link: https://www.econbiz.de/10011286496
Increasing attention has been given to the fact that some multinational enterprises shift income to tax haven countries …-of-the-envelope calculations suggest these higher wages would generate additional income tax revenues which would offset around 3% of the fall in … Norway’s corporate tax revenues due to profit shifting. …
Persistent link: https://www.econbiz.de/10012822021
, higher adoption of these practices may also enable more efficient allocation of profits across tax jurisdictions, lowering … actual taxable profits. We present new evidence that MNE subsidiaries with better such practices, when located in high-tax … that firms with better practices are more responsive to corporate tax rate changes. Our results suggest organizational …
Persistent link: https://www.econbiz.de/10012619267
in jurisdictions with effective average tax rates below 5%, but only 0.4% of their employees and 3% of their tangible … assets are located there. We find that globally, these companies reduce their tax burden by EUR 53 billion (15% of their … overall tax payments) by shifting profits to low-tax countries. Losses of the US and Canada are slightly lower, the losses of …
Persistent link: https://www.econbiz.de/10013202392
Corporate tax avoidance has regularly been accused of aggravating income inequalities. Yet, systematic evidence on this … financial officers receive higher compensations when their firm starts operating in tax havens. Non-executive employees, if … anything, see their wages fall in the meantime. Furthermore, the inequality-deepening impact of firm entry into tax havens is …
Persistent link: https://www.econbiz.de/10013186381
The paper discusses the effects of the corporate tax on local R&D expenditures by multinational enterprises (MNEs) when … the standard corporate tax may have positive effects on the R&D expenditures in the country that carries out the corporate … tax increase. The possible positive R&D effect results from a tax asymmetry: not all R&D returns are subject to the higher …
Persistent link: https://www.econbiz.de/10012668340
profit shifting by multinational enterprises. Unlike other data often used to evaluate the extent of profit shifting and tax … reporting have tax haven subsidiaries and that these subsidiaries are notably more profitable than those in non-havens. However …, only 9% of the global profits of German multinationals are reported in tax havens. Results from regression analysis suggest …
Persistent link: https://www.econbiz.de/10012417748