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.
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
A Comparison of the Tax‐Motivated Income Shifting of Multinationals in Territorial and Worldwide Countries
TL;DR: In this article, the tax-motivated income-shifting behaviors of multinationals subject to different systems of taxing foreign earnings are compared and compared to those subject to worldwide tax regimes.
Journal ArticleDOI
Tax Compliance and Enforcement: New Research and Its Policy Implications
Joel Slemrod,Joel Slemrod +1 more
TL;DR: The authors reviewed recent economic research in tax administration, compliance, and enforcement and discussed the implications of the results of this research for realistic policy options for realistic tax policy options, including tax reform.
Journal ArticleDOI
Public Tax-Return Disclosure
TL;DR: This article investigated the consequences of public disclosure of information from company income tax returns filed in Australia and found 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
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.
Journal ArticleDOI
Tax Reporting Behavior Under Audit Certainty
TL;DR: This paper used a confidential data set of firms assigned to the Internal Revenue Service's Coordinated Industry Case (CIC) program to examine the effect of audit certainty on firms' tax reporting behavior.