We characterize the effects of different methods of taxing multinational income on productive efficiency in a competitive equilibrium. The efficient outcome is achieved when every firm that produces and sells domestically faces the same tax rate as a multinational firm selling into the same...

This paper uses a strategic tax compliance model to examine taxpayer reporting and tax authority audit strategies in an international setting with two tax authorities. The setting features both information asymmetry between the taxpayer and the tax authorities and tax law ambiguity. The latter...

This study examines a setting in which a tax reporting decision is delegated to a firm 's tax manager. Using financial accounting measures of tax expense to evaluate the tax manager allows the fi rm to efficiently attain the level of tax avoidance it prefers, despite the fact that the...