This study investigates whether expected economic growth is associated with corporate tax planning. We predict that higher expected economic growth increases the net present value of tax planning opportunities and thus increases investment in tax planning. Consistent with our prediction, we find...

At present, the determination of tax rate and tax collection are a matter of sovereignty under the domain of Nation-states. However, the ability of the domestic governments to tax Multinational Enterprises has been significantly challenged by two developments that have reshaped the economy,...