This paper analyzes whether a dividend tax cut for owner-managers of closely held corporations encourages income shifting, income generation, or both. We use rich, micro data from Sweden for the period 2000 - 2011 comprising the entire Swedish population, as well as firmand individual-level data...

This paper analyzes the effects of personal income taxation on earnings, formality and business organization choices of agents. I use a tax reform introduced in Pakistan in 2009, which increased taxation of partnership firms substantially relative to other unincorporated firms, as a natural...

This is a letter to the editor of Tax Notes Federal that highlights some changes to subsections (d) and (e) of section 954. These are the definitional rules for what is foreign base company sales income and foreign base company services income.I see this as something that was likely drafted by a...

The journalistic scandal that reached the headlines with the iconoclastic expression “LuxLeaks” has raised an EU wide debate about national tax administrations' advance ruling practices and it calls for a need to establish the acceptable boundaries between fair and harmful tax competition in...

We exploit a quasi-experimental setting to cleanly identify the effect of the adoption of an intellectual property box (IP box) on innovative activity and effective tax rates. We document an increase in innovative activity, including patent applications, grants, and highly-skilled employment, at...

The opportunities to avoid paying taxes provided by tax havens have motivated numerous multinational companies to resort to offshore operations, generating a significant tax loss at a global level. Romania is facing the same problem and the Finance Minister estimates that offshore operations in...

We study the economic effects of unilateral adoption of corporate tax policies that include destination-based taxes and/or cash ow taxes in a heterogeneous agent model in which multinational firms can endogenously shift income between countries using transfer prices. Standard pass through...

This study analyzes the impact of transfer pricing on multinational enterprises' R&D investment decisions. Specifically, I examine the effects of two commonly used contract designs to exchange and develop intangible assets across group affiliates: licensing and cost sharing agreements. Whilst...

The opportunities to avoid paying taxes provided by tax havens have motivated numerous multinational companies to resort to offshore operations, generating a significant tax loss at a global level. Romania is facing the same problem and the Finance Minister estimates that offshore operations in...