scholarly journals What Drives the Tax Avoidance Strategies Adopted by US MNEs? Understanding the Heterogeneity of Approaches to Corporate Tax Planning in US Multinational Enterprises

AIB Insights ◽  
2018 ◽  
Author(s):  
Maggie Cooper
Keyword(s):  
Multinational Enterprises ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Corporate Tax ◽  
Avoidance Strategies

Brewing Up Controversy: A Case Exploring the Ethics of Corporate Tax Planning

2015 ◽  
Vol 30 (4) ◽  
pp. 311-327 ◽  
Author(s):  
Megan F. Hess ◽  
Raquel Meyer Alexander
Keyword(s):  
Real World ◽  
Ethical Issues ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Learning Assessment ◽  
Class Discussion ◽  
Corporate Tax ◽  
Tax Havens ◽  
Multinational Organizations ◽  
The U.S

ABSTRACT This instructional case explores the ethical issues surrounding the corporate tax-planning and tax-avoidance strategies of multinational organizations. Drawing on the real-world experiences of SABMiller, one of the world's largest beverage companies, this case provides a launching point for students to consider the ethics of corporate tax planning. The ethics of multinational tax practices, especially the use of tax havens, has recently become the focus of media and legislative debate in both the U.S. and the U.K., and many well-respected companies, such as General Electric, Apple Inc., and Starbucks are now feeling the pressure to reform. In a post-case learning assessment, students demonstrated significant improvement in their understanding and indicated that they enjoyed discussing this controversial issue. The “Implementation Guidance” section and Teaching Notes offer guidance for in-class discussion of the ethical and tax issues in this case.

scholarly journals Aggressive Tax Planning and Corporate Tax Avoidance: The Case Study

2019 ◽  
Vol 3 (2) ◽  
pp. 27-38
Author(s):  
Adzhar Sulaiman ◽  
Kamil Md. Idris ◽  
Saliza Abdul Aziz
Keyword(s):  
Tax Avoidance ◽  
Tax Planning ◽  
Economic Consequences ◽  
Corporate Tax ◽  
Policy Makers ◽  
Policy Responses ◽  
Tax Practitioners ◽  
The Media ◽  
Inland Revenue

There have been increasing literature on aggressive tax planning and corporate tax avoidance, which focus on economic consequences (Ksovreli, 2015; Hanlon & Heitzman, 2010). Campaigners have targeted tax-avoiding corporations through the media, citing the enormous amount of tax losses (Hasseldine, Holland & Van der Rijt, 2012). It is pertinent that policy-makers and tax authorities to take action against tax avoiders and tax intermediaries. This paper focuses on the tax avoidance structures identified during tax audits and investigations and further contributes to an understanding of tax avoidance structures and models. The key models identified are related to the abuse of tax incentives and the use of corporate restructuring to minimize or reduced tax exposures. Based on the Case Management System of the Inland Revenue Board of Malaysia, we identify the key structures, their roles and incentives, and outline the tax avoidance schemes. The study summarizes a range of policy responses to tax avoidance, including anti-avoidance rules, disclosure rules and the regulation of tax intermediaries such as tax practitioners.

Is Tax Avoidance Related to Firm Risk?

2016 ◽  
Vol 92 (1) ◽  
pp. 115-136 ◽  
Author(s):  
David A. Guenther ◽  
Steven R. Matsunaga ◽  
Brian M. Williams
Keyword(s):  
Tax Avoidance ◽  
Tax Rates ◽  
Firm Risk ◽  
Corporate Tax ◽  
Stock Volatility ◽  
Tax Rate ◽  
Avoidance Strategies ◽  
Jel Classifications

ABSTRACT We test whether tax avoidance strategies are associated with greater firm risk. We find that low tax rates tend to be more persistent than high tax rates and that measures of tax avoidance commonly used in the literature are generally not associated with either future tax rate volatility or future overall firm risk. Our evidence suggests that, on average, corporate tax avoidance is accomplished using strategies that are persistent and do not increase firm risk. We also find that the volatility of cash tax rates is associated with future stock volatility, suggesting that tax rate volatility and overall firm risk are related. JEL Classifications: M41.

scholarly journals Developing sustainable tax strategies in the post-BEPS era.

2019 ◽  
Vol 69 (275-1) ◽  
pp. 63
Author(s):  
Juan Esteban Sanín Gómez
Keyword(s):  
Corporate Governance ◽  
Tax Avoidance ◽  
Close Relation ◽  
Tax Planning ◽  
Duty Of Care ◽  
Corporate Tax

<p>As never before, the concepts of tax planning, corporate governance and sustainability are having a close relation. Despite the fact that governments have tackled tax avoidance schemes, the director´s duty of care still obliges them to seek the best tax optimization for the Company they manage. In that sense, developing sustainable tax strategies that comply with transparent post-BEPS policies should could be considered as a standard of good corporate tax governance in today’s entrepreneurial world.</p><div> </div>

scholarly journals Low-Tax Jurisdictions in International Tax Planning

2021 ◽  
Vol 9 (3) ◽  
pp. 137-162
Author(s):  
Natalia Andrianova
Keyword(s):  
Tax Evasion ◽  
Multinational Enterprises ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Global Trends ◽  
National Legislation ◽  
Global Trend ◽  
International Tax ◽  
Definition Of ◽  
Financial Transactions

Until recently low-tax jurisdictions have played an important role in the formulation of tax planning schemes by multinational enterprises. However with the onset of global trends towards deoffshorization, existing methods of tax optimization have seen significant changes. As there is currently no one single approach when creating the definition of, or defining a “low-tax jurisdiction”, in this article the definition and the main features of lowtax jurisdictions are proposed and the main stages in the formation and development of low-tax jurisdictions are detailed. On the basis of research carried out on the national legislation of low-tax jurisdictions, the main company types which meet the special legal formulae that can be incorporated into low-tax jurisdictions have been analyzed. In order to highlight similar characteristics and to simplify the analysis of the national legislation of low-tax jurisdictions so that general recommendations covering the nature of measures which can be used to counter illegal tax avoidance, tax evasion, money laundering and other illegal financial machinations, different classifications of low-tax jurisdictions have been analyzed. The unfair and perhaps even illegal use of low-tax jurisdictions often leads to violations of core tax principles which may have an impact on the overall size of budget revenues available to high-tax countries. Therefore, deoffshorization measures are being proposed at the international level. Currently the main global trend has been to increase the transparency of tax information and of financial transactions which are carried out by international exchanges. This is supported by the strengthening and expansion of cooperation between tax authorities which serves to counter the abuse of provisions in international tax treaties on the avoidance of double taxation.

scholarly journals Ireland

2019 ◽  
Vol 19 (164) ◽  
pp. 1
Author(s):  
Keyword(s):  
Labor Market ◽  
Multinational Enterprises ◽  
Tax Planning ◽  
Domestic Demand ◽  
Corporate Tax ◽  
Market Conditions ◽  
Labor Market Conditions ◽  
Net Exports ◽  
Full Capacity ◽  
Tight Labor Market

The Irish economy continues to expand strongly, benefitting from higher net exports by multinational enterprises and robust domestic demand. Accelerating wage growth reflects tight labor market conditions and inflation has started to pick up. Crisis legacies have diminished but some vulnerabilities persist. The outlook remains broadly positive, provided Brexit proceeds in an orderly manner. However, the economy operates near full capacity and an accelerating cyclical momentum could re-ignite a boom-bust dynamic. A no-deal Brexit represents the key downside risk, while escalation in global protectionism and sudden changes in corporate tax planning of multinational enterprises in Ireland could adversely affect the economy and public finances.

scholarly journals Does Information Asymmetry Affect Corporate Tax Aggressiveness?

2017 ◽  
Vol 52 (5) ◽  
pp. 2053-2081 ◽  
Author(s):  
Tao Chen ◽  
Chen Lin
Keyword(s):  
Information Asymmetry ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Corporate Tax ◽  
Difference In Differences ◽  
Analyst Coverage ◽  
Tax Aggressiveness ◽  
Tax Haven ◽  
Matching Estimator ◽  
Planning Capacity

We investigate the effect of information asymmetry on corporate tax avoidance. Using a difference-in-differences matching estimator to assess the effects of changes in analyst coverage caused by broker closures and mergers, we find that firms avoid tax more aggressively after a reduction in analyst coverage. We further find that this effect is mainly driven by firms with higher existing tax-planning capacity (e.g., tax-haven presence), smaller initial analyst coverage, and a smaller number of peer firms. Moreover, the effect is more pronounced in industries where reputation matters more and in firms subject to less monitoring from tax authorities.

Sign in / Sign up

Export Citation Format

Share Document