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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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.
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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.
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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
Why Do Firms Evade Taxes? The Role of Information Sharing and Financial Sector Outreach
TL;DR: This article showed that firms in countries with better credit information sharing systems and higher branch penetration evade taxes to a lesser degree than those in countries without such information sharing, and this effect is robust to instrumental variable analysis, controlling for firm fixed effects in a smaller panel data set of countries, and many other robustness tests.
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The effect of repatriation tax costs on U.S. multinational investment
TL;DR: In this paper, the authors investigated whether the U.S. repatriation tax affects foreign investment and found a negative association between tax-induced foreign cash holdings and the market reaction to foreign deals.
Journal ArticleDOI
The Effect of Tax Authority Monitoring and Enforcement on Financial Reporting Quality
TL;DR: In this article, the relation between tax enforcement and financial reporting quality was examined and it was shown that higher tax enforcement by the tax authority has a positive association with reporting quality and that this association is generally stronger when other monitoring mechanisms are weaker.
Journal ArticleDOI
Influential Observations and Inference in Accounting Research
TL;DR: Two widely used approaches to address influential observations as discussed by the authors were proposed to deal with the extreme values of observations with extreme values that can influence coefficient estimates and inferences in accountancy studies.
Posted Content
Tax Compliance and Enforcement
Joel Slemrod,Joel Slemrod +1 more
TL;DR: The authors reviewed recent economic research in tax compliance and enforcement and outlined a normative framework based on the behavioral response elasticities now being credibly estimated that allows one to assess whether a given enforcement intervention is worth doing.