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).
References
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Journal ArticleDOI
An examination of firms’ responses to tax forgiveness
TL;DR: For example, this paper found that firms headquartered in an amnesty-granting state increase state income tax aggressiveness following the first instance of tax amnesty, relative to control firms in other states.
Journal ArticleDOI
How do IRS Resources Affect the Corporate Audit Process
TL;DR: In this paper, the authors examined the effect of IR resources on the IRS audit process for publicly traded corporations using confidential IRS audit data, and found that IR resources affect the audit process of publicly traded companies.
Journal ArticleDOI
Understanding multidimensional tax systems
Leslie A. Robinson,Joel Slemrod +1 more
TL;DR: In this paper, the authors analyze 10 non-rate tax system aspects, codified based on recent reports published by the Organisation for Co-operation and Develop- ment, and find that a single factor (which they call Dispersed Responsibility), related to the role of taxpayers and third parties in tax collection, can reasonably summarize the cross-country covariation, and offer it as a parsimonious measure of tax system dimensions for future empirical analysis.
Journal ArticleDOI
Taxes and leverage at multinational corporations
TL;DR: In this article, the authors argue that both the tax rates applied to multinational corporations and the taxable income earned have been mismeasured, and they find that firms do have higher leverage ratios and lower interest coverage ratios when they operate in countries with higher tax rates.
Journal ArticleDOI
The Effects of Changes in State Tax Enforcement on Corporate Income Tax Collections
Sanjay Gupta,Dan Lynch +1 more
TL;DR: In this paper, the authors examined the association between changes in state corporate tax enforcement expenditures and state-level tax collections during the 2000-2008 time period and found that a $1 increase (decrease) in current period corporate enforcement is associated with an $8 to $11 increase in state tax collections two years into the future.