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The importance of Canada Revenue Agency (CRA) audits to the administration of the Canadian tax system is self-evident. So is the need for CRA to conduct high-quality audits. While audit outcomes are subject to appeals and court challenge, it is not desirable to rely frequently on appeals and the...
Persistent link: https://www.econbiz.de/10013289784
Many countries have imposed tax policies that limit the deductibility of interest costs, creating a plausibly exogenous increase in the net cost of borrowing. The limits are based on financial accounting numbers, adding a new incentive into managers’ choices. Firms in these countries are also...
Persistent link: https://www.econbiz.de/10014082044
We examine tax-motivated profit shifting as the outcome of corporate governance characteristics in multinational enterprises (MNEs). We propose a novel subsidiary-year measure of profit shifting, estimated from the responses of subsidiary profits to exogenous parent earnings shocks....
Persistent link: https://www.econbiz.de/10012851590
Using a survey of tax executives from multinational corporations, we document that some firms set their transfer pricing strategy to minimize tax payments, but more firms focus on tax compliance. We estimate that a firm focusing on minimizing taxes has a GAAP effective tax rate that is 6.6...
Persistent link: https://www.econbiz.de/10012938565
There is room for improvement in the Canadian Revenue Agency's (CRA) auditing process, according to a new report from the C.D. Howe Institute. In “Auditing the Auditors: Tax Auditors' Assessments and Incentives,” author Kenneth J. Klassen proposes that, in addition to traditional measures,...
Persistent link: https://www.econbiz.de/10012994509
In this study, we shed light on the combined effect of corporate income tax and other government policies on multinational corporations’ (MNCs) strategic location and relocation of intellectual property. Using granular affiliate-level data for worldwide MNCs, we show that the location of...
Persistent link: https://www.econbiz.de/10014350069
Persistent link: https://www.econbiz.de/10001421429
Using confidential data from the Internal Revenue Service on who signs a corporation’s tax return, we investigate whether the party primarily responsible for the tax compliance function of the firm — the auditor, an external non-auditor, or the internal tax department — is related to the...
Persistent link: https://www.econbiz.de/10014165291
Voluntary tax disclosure has become increasingly important in corporate sustainability reporting, particularly following new standards introduced by the Global Reporting Initiative combined with heightened public pressure and stakeholder demands. We examine tax aggressiveness and country...
Persistent link: https://www.econbiz.de/10014237821
Persistent link: https://www.econbiz.de/10010472070