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Taxes, Profit Shifting, and the Real Activities of Mnes : Evidence from Corporate Tax Notches

Hansen, Jaqueline; Merlo, Valeria; Wamser, Georg - 2023

We exploit exogenous variation in tax notches created by controlled foreign corporation (CFC) rules to better understand the profit-shifting behavior of multinational enterprises (MNEs) and its consequences for real activity. Using new data on CFC rules and information on direct parent-affiliate...

Persistent link: https://www.econbiz.de/10014345628

Profit Shifting and Equilibrium Principles of International Taxation

Francois, Manon - 2021

We study the choice between source-based and destination-based corporate taxes in a two-country model, allowing multinational firms to use transfer pricing to allocate profits across tax jurisdictions. We show that source-based taxation is a Nash equilibrium for tax revenue maximizing...

Persistent link: https://www.econbiz.de/10013217554

The Race between Tax Enforcement and Tax Planning : Evidence from a Natural Experiment in Chile

Bustos, Sebastian; Pomeranz, Dina; Suárez Serrato, … - 2023

difference-in-differences event-study designs, we find that the reform was ineffective in reducing multinationals’ transfers to …

Persistent link: https://www.econbiz.de/10014348092

Royalty Taxation Under Tax Competition and Profit Shifting

Juranek, Steffen - 2018

The increasing use of intellectual property as a means to shift profits to low-tax jurisdictions or jurisdictions with so-called ‘patent boxes’ is a major challenge for the corporate tax base of medium- and high-tax countries. Extending a standard tax competition model for capital-enhancing...

Persistent link: https://www.econbiz.de/10012908675

Corporate Profit Shifting and the Role of Tax Havens : Evidence from German Country-by-Country Reporting Data

Fuest, Clemens; Hugger, Felix Sebastian; Neumeier, Florian - 2021

for multinationals exceeding a certain revenue threshold. We show that 82% of the German multinationals subject to CbC …, only 9% of the global profits of German multinationals are reported in tax havens. Results from regression analysis suggest … annual tax base loss for Germany amounts to EUR 5.4 billion. Adding estimates of profit shifting by multinationals not …

Persistent link: https://www.econbiz.de/10013250044

Optimal Policies against Profit Shifting: The Role of Controlled-Foreign-Company Rules

Haufler, Andreas; Mardan, Mohammed; Schindler, Dirk - 2016

By introducing controlled-foreign-company (CFC) rules, the parent country of a multinational firm reserves the right to tax the income of the firm’s foreign affiliates if the tax rate in the affiliate’s host country is below a specified threshold. We identify the conditions under which...

Persistent link: https://www.econbiz.de/10011451468

Multinational capital structure and tax competition

Wrede, Matthias - 2010

multinational enterprises choose tax-efficient capital-to-debt ratios. Under separate accounting, multinationals shift debt from low …

Persistent link: https://www.econbiz.de/10010270526

Wages and international tax competition

Krautheim, Sebastian; Schmidt-Eisenlohr, Tim - 2012

Rent-sharing between firm owners and workers is a robust empirical finding. If workers bargain with firms, information on the actual surplus is essential. When the firm can use profit shifting to create private information on the surplus, it can thereby reduce its wage bill. We study how rent...

Persistent link: https://www.econbiz.de/10010283583

Global Profit Shifting of Multinational Companies : Evidence from CbCR Micro Data

Fuest, Clemens; Greil, Stefan; Hugger, Felix Sebastian; … - 2022

This paper uses micro data from country-by-country reporting of more than 3600 large multinational companies operating in 238 jurisdictions to analyze global profit shifting to avoid taxes. These companies report 7% of their global profits in jurisdictions with effective average tax rates below...

Persistent link: https://www.econbiz.de/10014083323

The effects of taxation on the location decision of multinational firms: M&A vs. Greenfield investments

Hebous, Shafik; Ruf, Martin; Weichenrieder, Alfons J. - 2010

In this study, we estimate the impacts of differences in international tax rates on the probability of choosing a location for an affiliate of a multinational firm. In particular, we distinguish between the tax sensitivity of Greenfield and M&A investments. Based on a novel firm-level dataset on...

Persistent link: https://www.econbiz.de/10010277219