This paper examines the different CFC rule settings in the OECD and additional countries for the years 2004 to 2014, compares them and shows the influence on real foreign direct investments (FDI) and profit shifting of multinationals. Using a unique CFC rule panel data set for 56 parent...

With the election of Donald Trump and the Republican Party's domination of Congress, House Speaker Paul Ryan's blueprint for fundamental tax reform requires more careful analysis. The Ryan blueprint combines reduced individual rates with a destination-based cash flow type business tax applicable...

The American Jobs Creation Act of 2004 permitted a one-time 85% dividend received deduction for repatriated foreign earnings. A stated purpose of this legislation was to permit companies to access foreign earnings domestically that would have been too costly previously because of repatriation...

This paper looks at a country's central government optimal policy in a setting where its two identical local regions compete for the attraction of footloose multinationals to their sites, and where the considered multinationals strictly prefer this country to the rest of the world. For the sake...

This paper analyzes policy competition for a foreign-owned monopolist firm between two asymmetric countries. In particular, one country has a larger economy than the other country does. At the same time, the small country produces an intermediate good for the final good production, while the...

This paper studies the impact of special interest lobbying on competition between two countries for a multinational in a common agency framework. We examine the following questions. On the positive side, is special interest lobbying a determinant of competition for FDI? If so, how does this work...

In a recent article, Huizinga, Laeven and Nicodeme (2008) present a novel model that motivates an extensive empirical analysis of international debt shifting. We point out that the model fails to account for internal debt, and that once internal debt is properly accounted for, the external debt...

The OECD's proposal for a global minimum tax (GMT) of 15% aims for a reversal of a decline of corporate tax rates. We study the revenue effects of the GMT by focusing on strategic tax setting effects. The direct effect from less profit shifting increases revenues in high-tax countries. A...

Using a sample of cross-country observations, we examine the impact of the implementation of country-by-country reporting (CbCr) by the European Union in 2016 on audit fees. We posit that on one hand increased tax transparency increases both firms’ demand for audit effort to better support the...

Multinational companies are affected by tax reforms both at home and abroad. We study the effect of foreign corporate tax reforms on domestic employment and wages. To do this, we link the universe of Norwegian firm-level foreign direct investment (FDI) data with the universe of Norwegian...