Journal ArticleDOI
Does Tax Enforcement Disparately Affect Domestic versus Multinational Corporations Around the World
TLDR
This article examined whether there is a differential relation between changes in enforcement spending and the tax avoidance of domestic versus multinational entities using OECD data on 47 countries from 2005 to 2013, finding that increases in home-country enforcement spending are related to less firm-level tax avoidance for domestic firms relative to multinational entities.Abstract:
Global tax enforcement has received increased attention since the Financial Crisis, with much stated focus on curbing perceived harmful tax practices of multinational entities. Yet multinationals can avoid tax in multiple countries whereas domestic firms cannot. We therefore examine whether there is a differential relation between changes in enforcement spending and the tax avoidance of domestic versus multinational entities. Using OECD data on 47 countries from 2005 to 2013, we find increases in home-country enforcement spending are related to less firm-level tax avoidance for domestic firms relative to multinational entities. Although we find no differential relation between changes in tax enforcement and home-country tax avoidance between multinational and domestic firms, multinationals increase their tax avoidance in foreign countries when home-country enforcement increases, which allows them to maintain a consistent level of worldwide tax avoidance. Results are robust to multiple measures of tax enforcement and avoidance across multiple countries and databases.read more
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Posted Content
Public Tax-Return Disclosure
TL;DR: The authors investigate the consequences of public disclosure of information from company income tax returns filed in Australia and find that investors react negatively to anticipated and actual disclosure of tax information, most likely due to anticipated policy backlash rather than consumer backlash or the revelation of negative information about cash flows.
Posted Content
Corporate Tax Avoidance and Industry Concentration
TL;DR: This paper investigated the influence of corporate tax avoidance on industry concentration in the U.S. since the mid-1990s and found a positive and causal impact of CTA on firm-level sales using three alternative identification strategies.
Journal ArticleDOI
Patent Concentration, Asymmetric Information, and Tax-Motivated Income Shifting
Harald Amberger,Benjamin Oßwald +1 more
TL;DR: In this article, the relation between patent concentration and tax-motivated income shifting is studied. And the results suggest that patent concentration shapes an MNC's incentives to shift income via patents.
Journal ArticleDOI
Monitoring and Tax Planning – Evidence from State-Owned Enterprises
TL;DR: In this paper, the authors provide new evidence on the association of state ownership and tax planning and show that shareholders' monitoring incentives affect a firm's tax planning. But they do not consider the effect of state owners directly benefiting from state-owned enterprises' (SOEs) income tax payments.
Journal ArticleDOI
How does mandatory IFRS adoption affect tax planning decision? Evidence from tax avoidance distributions
TL;DR: In this article , the authors investigated whether IFRS adoption affects corporate tax avoidance and how the impact of IFRS varies with country-level institutions, and they found that firms with a lower (higher) initial level of tax avoidance tend to be more tax aggressive after adopting the International Financial Reporting Standards (IFRS).
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Journal ArticleDOI
Cross-Jurisdictional Income Shifting and Earnings Valuation
TL;DR: In this paper, the authors investigate the extent to which U.S. multinational enterprises engage in tax-motivated income shifting between the U. S. and foreign jurisdictions and whether investors differentially capitalize shifted income, based on its true source or its reported source.
Journal ArticleDOI
Do IRS Audits Deter Corporate Tax Avoidance
TL;DR: In this paper, the role of the Internal Revenue Service (IRS) monitoring in corporate tax avoidance has been investigated. And the authors show that tax enforcement is more effective than tax avoidance.
Journal ArticleDOI
Changes in corporate effective tax rates over the past 25 years
TL;DR: In this paper, the authors investigate systematic changes in corporate effective tax rates over the past 25 years and find that the decline in effective tax rate is not concentrated in multinational firms, but occurs at approximately the same rate for both multinational and domestic firms.
Journal ArticleDOI
Law and the Market: The Impact of Enforcement
John C. Coffee,John C. Coffee +1 more
TL;DR: The United States is unique not only in its expenditures on securities regulation, but also in the amount and severity of the penalties it imposes as mentioned in this paper, with a high level of retail ownership creating a political demand for greater enforcement.
Journal ArticleDOI
Do IRS Audits Deter Corporate Tax Avoidance
TL;DR: In this paper, the role of the Internal Revenue Service (IRS) monitoring in corporate tax avoidance has been investigated. And the authors show that tax enforcement is more effective than tax avoidance.