In this study, the authors propose that the 2014 amendment to the EU Parent-Subsidiary Directive (which introduces a new minimum ‘anti-abuse' rule) effectively sets a standard definition of abuse under EU law that would only curb ‘wholly artificial arrangements' and likely fosters tax...

This paper studies the performance of interest limita- tion rules during business cycles. It employs register data on Finnish affiliates of multinational enterprises (MNEs) to study both thin-capitalization rules (TCRs) and earnings-stripping rules (ESRs). Both types of rules are found to become...

We examine whether and how managers alter their tax avoidance strategies when the country adopts stricter competition laws. Using comprehensive data on competition laws from 44 countries, we find that firms engage in more tax avoidance when the country’s competition laws become stricter. This...

With multinational enterprises (MNEs) centralizing production facilities, market countries claim not to receive their fair share of taxes. A reform of international business taxation that includes new profit allocation rules as well as the introduction of minimum taxation is being considered as...