Sorbe, Stéphane; Johansson, Åsa; Skeie, Øystein Bieltvedt - 2017
Multinational enterprises (MNEs) manipulate the location of their debts to reduce their corporate tax burden. Indeed …, by locating debts in higher-tax rate countries, MNEs can deduct interest payments against a higher tax rate. This paper … opportunities, the analysis suggests that a 1 percentage point higher tax rate is associated with 1.3% higher third-party debt. This …