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Persistent link: https://www.econbiz.de/10011545048
The OECD in its BEPS action plan 4 addresses tax base erosion by profit shifting through the use of tax deductible interest payments. Their main concern is interest deductions between outbound and inbound investment by groups. Studies of multinational firms show that the tax sensitivity of debt...
Persistent link: https://www.econbiz.de/10011384345
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Multinational companies can exploit the tax advantage of debt more aggressively than national companies. Besides utilizing the standard debt tax shield, multinationals can shift debt from affiliates in low-tax countries to affiliates in high-tax countries. We study the capital structure of...
Persistent link: https://www.econbiz.de/10010342883
Some multinationals use the parent company as a lender to the group, whereas others set up an internal bank in a low tax jurisdiction. This paper discusses the link between capital structure choices and tax planning motives in multinational groups. We model the trade-off between the use of...
Persistent link: https://www.econbiz.de/10011872932
shifting and show that it is optimal for them to use both types of debt to save taxes. Using a large panel of German …
Persistent link: https://www.econbiz.de/10010277407
shifting and show that it is optimal for them to use both types of debt to save taxes. Using a large panel of German …
Persistent link: https://www.econbiz.de/10013122255
There is a growing concern that governments lose substantial corporate tax revenue because of profit shifting through transfer-pricing and thin-capitalization strategies. Existing literature studies profit shifting and transfer pricing separately. In practice, the choice of debt-to-asset ratios...
Persistent link: https://www.econbiz.de/10009792223
shifting and show that it is optimal for them to use both types of debt to save taxes. Using a large panel of German …
Persistent link: https://www.econbiz.de/10009230788
We study how the OECD transfer pricing guidelines aimed at curbing tax-motivated transfer pricing practices affect investment incentives. Our theoretical model integrates the different OECD's transfer pricing methods into the tax planning cost function of an MNC to evaluate how the choice of...
Persistent link: https://www.econbiz.de/10015402021