Firms should use all available information to anticipate future tax rates. Firm mobility, as a key determinant of corporate tax rates, is one such source of information. We first show theoretically that a government sets a higher tax rates on firm profits if average firm mobility in its...

In 2009, the United Kingdom abolished the taxation of profits earned abroad and introduced a territorial tax system. Under the territorial system, firms have strong incentives to shift profits abroad. Using a difference-in-differences research design, we show that profits of UK subsidiaries in...

In 2009, the United Kingdom abolished the taxation of profits earned abroad and introduced a territorial tax system. Under the territorial system, firms have strong incentives to shift profits abroad. Using a difference-in-differences research design, we show that profits of UK subsidiaries in...

Im Jahr 2020 werden viele Unternehmen durch die Corona-Pandemie Verluste erleiden. Das deutsche Steuersystem behandelt Gewinne und Verluste asymmetrisch: Während Gewinne sofort versteuert werden müssen, führen Verluste oft nicht zu direkten Steuererstattungen. Dieser Beitrag diskutiert...

This paper investigates how multinational banks use internal debt to shift profits to low-taxed affiliates. Using regulatory data on multinational banks headquartered in Germany, we show that banks use this tax avoidance channel more aggressively than non-financial multinationals do. We find...

Für die Einnahmenseite der Staatsfinanzen ist nicht die aggregierte rechnerische Steuerschuld ausschlaggebend, sondern das tatsächliche Steueraufkommen. Diese beiden Größen fallen durch die 'Steuerlücke' auseinander, die das Ausmaß an Steuerhinterziehung beschreibt. Insbesondere bei der...

With (automatic) exchange of tax information among countries now common, tax evaders have had to find new ways to hide their offshore holdings. One such way are citizenship-by-investment programs, which offer foreigners a new passport for a local investment or a fixed fee. We show analytically...

This paper investigates how multinational banks use internal debt to shift profits to low-taxed affiliates. Using regulatory data on multinational banks headquartered in Germany, we show that banks use this tax avoidance channel more aggressively than non-financial multinationals do. We find...