This manuscript develops a model that incorporates income shifting into investments by U.S. multinationals in their foreign subsidiaries. The model demonstrates that, while there is always an incentive to shift income into the U.S. from high foreign tax rate subsidiaries, income shifting out of...

Using confidential data from the Internal Revenue Service on who signs a corporation’s tax return, we investigate whether the party primarily responsible for the tax compliance function of the firm — the auditor, an external non-auditor, or the internal tax department — is related to the...

This paper examines American state and Canadian provincial data to estimate the extent to which manufacturers minimize subnational tax payments by managing four key components of subnational tax returns: taxable income, sales, compensation, and assets. To our knowledge, this is the first study...

This paper develops a model of dynamic tax planning in which the implementation of a tax plan involves exercising the option regarding an irreversible investment or financing structure choice. The model is applied to a common estate freeze tax plan. Undertaking an estate freeze requires a...