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This paper examines the impact of international automatic exchange of information (AEOI) treaties on cross-border investments in tax havens. Using a restricted version of the BIS Locational Banking Statistics, we find that AEOIs significantly reduced cross-border deposits. A sectoral breakdown assessment reveals that households were the key driving force behind this contraction. However, we also document evidence of households' deposits shifting to non-AEOI haven countries and larger deposits by non-bank financial institutions between tax haven countries, suggesting an increased use of shell corporation networks since AEOI introduction. Extending the analysis to portfolio and direct investment, we observe that changes in investment patterns vis-à-vis tax havens are consistent with a significant impact of AEOI treaties on these forms of cross-border investment. [ABSTRACT FROM AUTHOR]

This article discusses the impact of the Common Reporting Standard (CRS) on cross-border tax evasion and avoidance practices. The authors use data from the Bank for International Settlements (BIS) to analyze the responses of deposit owners in tax havens affected by the CRS. The results show that the adoption of the CRS significantly reduced cross-border deposits held by non-resident households in tax havens. The article also explores the potential impact of the CRS on international investment flows and discusses the role of shell companies in hindering efforts to reduce tax evasion. However, the authors acknowledge limitations in the available data and suggest further research to improve policy analysis in these areas. [Extracted from the article]

Our paper develops a new transaction cost model of tax-motivated income shifting. We analytically show that income shifted by U.S. multinational parent corporations into their tax haven subsidiaries differs from predictions based only on tax rate differences because of the transaction costs of shifting income into tax haven subsidiaries. Our model predicts that e-commerce facilitates greater income shifting by lowering the transaction costs of income-shifting operations, which theoretically supports our focus on actual income shifting instead of the traditional focus on effective tax rates alone. Empirically, we find that greater numbers of multinational corporations' dot-sized tax havens significantly increase profits shifted out of their U.S. parent corporations and also show with a separate estimation that this amount is similar to amounts shifted into their tax haven subsidiaries, consistent with income shifting being a zero-sum strategy. This novel approach documents income shifting materially increasing with e-commerce activities that lower transaction costs. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: H26; L81; F38; M48. [ABSTRACT FROM AUTHOR]

Copyright of Die Unternehmensbesteuerung (Ubg) is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Investigaciones Regionales is the property of Asociacion Espanola de Ciencia Regional and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Tax haven leaks have attracted negative public attention in recent years, prompting scrutiny of corporate behavior in leaked jurisdictions. We investigate whether U.S. companies with subsidiaries in implicated tax havens change their disclosure behavior after a leak. The Offshore Leaks, Panama Papers, Bahamas Leaks, and Paradise Papers are included in this study. We analyze the leaks as separate exogenous shocks to the affected firms' behavior using a difference-in-differences approach. First, we focus on the readability of tax footnotes in annual reports. Our results suggest that tax footnotes are less readable after a firm's tax haven is implicated in a leak. This finding suggests that implicated firms try to obfuscate information and hide unethical conduct. Second, we investigate firms' disclosures of tax expenses using GAAP effective tax rates and find that companies report higher tax expenses after a leak. These changes in behavior could indicate that firms are concerned about the increasingly critical public attitude toward doing business in leaked low-tax jurisdictions and that they are taking measures to counteract possible negative reputational consequences. JEL Classification: F23, G14, H26, M41 [ABSTRACT FROM AUTHOR]

Various low-tax jurisdictions including Mauritius, have been often accused of usurping the just share of taxes of other countries. Given the adverse impact on the reputation of the 'tax havens', the country has implemented in 2019 the economic substance requirements to ensure a minimum substance for resident companies to be taxed in Mauritius. The aim of this research is to assess the efficiency and robustness of the economic substance rules of Mauritius in combatting harmful tax practices including base erosion and profit shifting. A doctrinal approach and a comparative analysis with the corresponding substance rules of Cayman Islands were adopted to achieve the research objective. The findings demonstrate that there is still room for improving the economic substance rules of Mauritius in terms of an enhanced interpretation of the rules, reporting requirements and imposition of the relevant sanctions. [ABSTRACT FROM AUTHOR]

In the context of increasing economic interdependence, tax reform has become critical on the international agenda due to widespread tax avoidance by multinational companies and digital giants. The OECD has proposed tax reforms to address these challenges, aiming for a fairer distribution of tax revenues among countries. This paper examines the necessity and impact of implementing the OECD's tax reforms within the EU, considering the diverse tax systems of member states. The analysis reveals an upward trend in profits transferred to tax havens globally. EU tax havens like the Netherlands, Ireland, and Luxembourg are significant recipients of these profits. The OECD reforms, by reallocating profits and establishing a minimum tax, are expected to reduce the attractiveness of these havens. The impact will vary: less developed EU countries may lose foreign investment opportunities, while more developed countries could benefit from increased tax revenues and fairer profit distribution.

This study investigates the impact of tax avoidance on Romania's economy, specifically its relationship with GDP, comparing Romania's situation to other EU member states. The research utilizes a quantitative methodology, analyzing data from 2015 to 2020 through statistical methods, including regression analysis. The findings indicate a substantial increase in profits transferred from Romania to tax havens, rising from 4 billion USD in 2015 to 7 billion USD in 2020, with a peak of 8 billion USD in 2019. The share of profits lost as a percentage of GDP ranged from 2.25% to 3.19%, with an average of 2.63%. Transfers to non-EU tax havens increased significantly, while those to EU tax havens remained constant. Regression analysis shows a positive and significant relationship between GDP growth and profits lost, with an increase of 0.039904 units of profits lost for each additional unit of GDP. These results highlight the economic impact of tax avoidance and underline the need for effective policy measures to address this issue.

Financial globalization has enabled multinational corporations to shift profits between jurisdictions to lower their tax rate, undermining public finances and concerning policy makers. While policy efforts have focused on the jurisdictions that enable lower taxes, scholars increasingly recognize the importance of micro-level actors. We geographically map corporate tax advisors, influential micro-level actors in tax avoidance, using a novel empirical approach based on LinkedIn. We show that tax advisors are generally located in large cities in the EU and OECD, rather than in places targeted as 'tax havens'. Using multiple regression analysis, we find that the location of tax advisors is not correlated with the location of corporate profits, financial secrecy, or economic activity. Rather, it correlates with managerial and financial activity. We find that tax advisors are disproportionately placed in the countries writing the blacklists rather than the countries blacklisted. We argue that effective regulation of tax avoidance needs to focus on tax advisors, not only on the destination of financial flows. [ABSTRACT FROM AUTHOR]

In this contribution, an investigation is made into the abandonment of a very large infrastructural investment by the UK government. It was the HS2 (High Speed 2) train 'assemblage' for the 345 miles from Leeds in the North to London. It occurred in the belief that such expenditure would 'level-up' the worsening regional economic disparities between the two regions and render the North (dubbed the 'Northern Powerhouse' by successive governments) 'competitive'. In reality, there was no evidence in support of the idea that a faster rail service would have this effect. Critics realized London's advantage could not be competed against. This was because its advantage as an unregulated 'tax haven' had been entrenched since even before William the Conqueror's invasion in 1066. Our take on this débâcle is that it was caused by hubris on the part of successive governments, culminating in the growth of distrust between politicians and the people, including 'experts' who were singled out for special ministerial disdain. The analysis explores 'assemblage' theory and its psychological origins, in which desire has come to substitute for thought in the UK political arena. Accordingly, desire has been swallowed up by 'competitiveness', meaning mistakes were made due to hubris, narcissism and criminality because of the politics of 'we know better' on the part of the political élite. The cost of these mistakes was upwards of £36 billion for the biggest UK rail infrastructure project in a hundred years. [ABSTRACT FROM AUTHOR]

We examine whether improved cross‐border regulatory cooperation and information exchange affect corporate tax avoidance. We find that the improvement in the regulators' capacity to access to information in foreign countries through their entrance into the Multilateral Memorandum of Understanding (MMoU) effectively reduces corporate tax avoidance. Moreover, the effect of the MMoU on corporate tax avoidance is stronger for firms that are less income mobile and have no significant subsidiaries in tax havens. Collectively, these findings support the conjecture that the strengthened cross‐border regulatory cooperation and information exchange provided by the MMoU creates a positive externality in reducing corporate tax avoidance behavior. [ABSTRACT FROM AUTHOR]

We investigate the relation between a country's level of financial secrecy and market liquidity for non-US stocks listed on the New York Stock Exchange (NYSE). Our results indicate that non-US stocks from countries with lower levels of financial secrecy have higher market liquidity, as well as a lower probability of information-based trading. Deeper analysis into components of financial secrecy, including a jurisdiction's activity as a tax haven, lends insight into significant drivers of these effects. Our findings suggest that reducing financial secrecy can enhance market liquidity, ultimately benefiting investors and contributing to the overall stability and efficiency of financial markets. [ABSTRACT FROM AUTHOR]

This study examines multinational companies in emerging markets, exploring their transfer pricing strategies for establishing tax havens. These companies employ various mechanisms (e.g., transfer pricing, profit transfers, and the reallocation of intangible assets) to minimize their tax liabilities. Today an increasing level of intangible assets facilitates smoother profit transfers to jurisdictions with lower tax burdens. Furthermore, these companies relocate their productive activities to tax havens, creating opportunities for corporate tax evasion and avoidance. Despite the efforts of governments and international organizations to propose the adoption of a minimum tax rate for different countries, these companies have been able to reduce or completely avoid paying taxes. Our study sample includes companies headquartered in emerging countries between 2010 and 2020. The study introduces some innovative elements, such as the variable "transfer pricing intensity," which is derived from manual data collection. This variable enables analysis of the transfer pricing levels employed by multinational companies. In addition, a noteworthy contribution of this research is the use of an unconventional tax proxy known as AREA, which monitors the tax benefits associated with short‐ and long‐term debts. The results demonstrate that these companies employ a diverse range of instruments, often in combination, to reduce taxes in their conglomerates. These findings contribute significantly to a deeper understanding of the intricacies surrounding corporate tax optimization practices and provide valuable insights for governments in formulating robust policies that promote transparency and accountability in the international tax landscape. [ABSTRACT FROM AUTHOR]

Since the 1960s many jurisdictions have sought to create financial service centres to attract mobile capital by using tax incentives. In June 1996 the G7 raised concerns about the distortionary effects of such tax preferences. In 1998 the OECD responded by creating the Harmful Tax Practices project aimed at identifying jurisdictions as tax havens and classifying tax preferences in other jurisdictions as harmful, with the aim of exerting pressure on those jurisdictions to amend or abolish the offending schemes. This article examines the OECD's process for assessing whether a tax preference is harmful or not. It notes that, the OECD's approach does not deal with harmful tax competition arising from the cumulative impact of a suite of tax preferences, harmful or not, aimed at attracting mobile capital. The need counter this form of harmful competition, in respect of jurisdictions where the establishment of a financial centre is based on multiple tax incentives, is briefly explored. [ABSTRACT FROM AUTHOR]

Corporate profit shifting to tax havens negatively impacts corporate tax revenue, particularly in low‐income countries. Two studies published in 2016 and 2018 have proven this correlation using data from 2013. In this paper, I use the 2021 version of the UNU‐WIDER Government Revenue Dataset (GRD) to estimate government revenue losses in 2019 and to observe possible changes associated with the release of the new dataset. My estimations indicate that global tax revenue losses in 2019 are around USD 480 billion if estimated using statutory tax rates, compared to USD 500 billion in 2013. The volume of tax revenue losses in 2019 increases to USD 600 billion if estimated using effective tax rates. In terms of GDP percentage, my estimations confirm the presence of a higher share of losses in low‐income, and more generally, in non‐OECD countries, and they show a higher intensity of tax avoidance practices in those countries. The results also suggest that the total level of tax revenue losses has plateaued, with no increase in losses occurring since 2013 if estimated using statutory tax rates, while an increasing trend is visible for estimates using effective tax rates, although not with the same magnitudes with respect to others recent studies. [ABSTRACT FROM AUTHOR]

This article explores the effects of corporate taxes on shareholders, workers, and investment. It presents different perspectives on the issue, with some arguing that corporate taxes redistribute income and others claiming they are self-defeating. The article introduces a simplified model that predicts how corporate taxes impact wages, employment, domestic pretax profits, and domestic capital. The model suggests that manufacturing firms may be more affected by corporate taxes than service firms, which aligns with recent empirical evidence. The article also provides empirical evidence and analytical examples to support its findings. It concludes by acknowledging the limitations of the model and suggesting areas for further research. [Extracted from the article]

Tax havens are often connected to growth in tourism, as finance and tourism conveniently share infrastructural prerequisites. This paper addresses the detrimental impacts of a tax haven development strategy adopted by small open economies in relation to the development of their tourism industry. Utilizing the synthetic control method, we find that since the 2016 Panama Papers scandal, Panama's tourism exports have fallen relative to an estimated counterfactual level that would have otherwise been attained. Moreover, based on an analysis of panel data drawn from 20 small open economies, we find that in the long run, the growth of the financial industry crowds out the tourism industry. Our findings warn tourism practitioners, based in tax havens, that they face an additional risk linked to potential tax scandals. Furthermore, the tourism industry may suffer reputational harm due to tax haven blacklisting and the crowding out of productive resources by the financial industry. JEL classifications: F43, H26, O57, Z32 [ABSTRACT FROM AUTHOR]

The recent years, inequality and the accumulation of wealth in the hands of a few have grown alarmingly in the world. The concentration of corporate power leads to oligopolies in almost all sectors and monopolistic power, economic and political, which seriously damage the well-being of the majority and the very foundations of democracy. The 2030 Agenda set the Sustainable Development Goals (SDGs) that seek to alleviate inequalities in the world. An analysis of its various tracking indices does not invite optimism. The pandemic, wars and other concomitant factors have led to an even greater worsening at the beginning of the decade. Decisive action by governments is needed to control oligopolistic power and redistribute income and wealth. Only strong states will have the capacity to do so effectively. Tax justice must be an effective instrument for correcting inequalities and limiting excesses in the concentration of power and wealth. [ABSTRACT FROM AUTHOR]

In this paper, we analyse a sample of voluntarily published country-by-country reports (CbCRs) of 35 multinational enterprises (MNEs). We assess the value added and the limitations of qualitative and quantitative information provided in the reports based on a comparison to individual MNEs' annual financial reports and aggregate CbCR data provided by the OECD. In terms of data quality, we find that the inclusion of intra-company dividends and equity-accounted profits are a minor concern on average but that for individual MNEs corrections might be substantial. Our sample MNEs seem to pay higher effective tax rates than the global average and many of them report relatively little profit in tax havens. We only find a very weak correlation of the location of profits and effective tax rates. This might indicate that more tax transparent MNEs avoid taxes less aggressively. However, our assessment of different tax risk indicators reveals important variations between companies. [ABSTRACT FROM AUTHOR]

Multinational enterprises (MNEs) have incentive to reduce tax payment through transfer pricing. The incentive is stronger when MNEs own intangibles, because it is easy to transfer them across countries. To mitigate such strategic tax planning, the OECD proposes the arm's length principle (ALP). This paper deals with technology patents as an example of intangibles and investigates how the ALP affects MNEs' licensing strategies and welfare in a model with a tax haven. The ALP may distort MNEs' licensing decisions, because providing a license to unrelated firms restricts MNEs' profit-shifting opportunities due to the emergence of comparable transaction. Interestingly, the termination of licensing in the presence of the ALP may worsen domestic welfare if the (potential) licensee and the MNE's subsidiary do not compete in the domestic market but may improve welfare if they compete. The results under ad valorem royalty are in distinct contrast with those under per-unit royalty. [ABSTRACT FROM AUTHOR]

Copyright of Zeszyty Teoretyczne Rachunkowości is the property of Stowarzyszenie Ksiegowych w Polsce Rada Naukowa and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In the aftermath of first world war, offshore finance has garnered the attraction of various quarters. As of 2010, at least USD 21–32 Trillion of unreported private financial wealth, nearly 18% of the aggregate global wealth, was cantered in tax havens. Financial risk management to prevent offshore financial crisis has become an international concern and widely discussed. We examine the dynamic interrelationship between cognitive ability, risk preference and offshore financial development for a global sample of 44 countries for the period 2001–2017 by using simultaneous equation models. The findings reveal that risk preference, as an informal institute, exerts imperceptible influence on offshore financial development. Moreover, as the cognitive ability affects offshore financial development by way of risk preference, there does exist 'Smart Managers Effect' and 'Smart Investors Effect' determined by the cognitive ability in Offshore Financial Centres. Moreover, our results vindicate the role of 'Invisible Hand' of the market during the tension between markets and governments. The study offers a convincing explanation of the impacting path to risk preference, dominated by cognitive ability, on offshore financial development in offshore financial centres from the perspective of the Institutional Economics. [ABSTRACT FROM AUTHOR]

Multinationals can escape high Statutory Tax Rates (STRs) by way of Profit-Shifting (P-S) and in this form, reduce the Effective Tax Rate (ETR) they ultimately pay. In this article, we find evidence for Spain consistent with P-S, since the relationship between STRs and ETRs becomes negative for multinationals with characteristics that may facilitate P-S, i.e. being very large, having at least one tax haven affiliate, and owning Intellectual Property. [ABSTRACT FROM AUTHOR]

The wealth chain is a conceptualisation of extended flows of capital operating across multiple tax jurisdictions in order to extract maximum value from investment locations. To date, such chains have largely been considered in relation to either international tax-avoiding flows of capital to offshore havens or in relation to prime property markets in major metropoles. In this article, we use new data to explain the geographical variations in asset strategies and investment types associated with different types of wealth chain in a historically deprived city region. The data relate to the purchase of real estate in the Liverpool and Merseyside Area (LMA) of the UK by companies from offshore jurisdictions. We use data to empirically model the wealth-chain concept. We compare the results from our empirically derived model with the key theoretical propositions regarding such chains. Our results confirm the actions of identifiable types of wealth chain. By geographical distribution, the specific asset strategy that dominates suggests that wealth-chain offshore investors in Liverpool's real estate are primarily motivated by their desire to protect their identities and their assets. In the literature on the subject, these are much sought after attributes of money launderers and others involved in illicit wealth accumulation. In money terms, the dominant asset strategy is situated in a much smaller geographical space in and around the city centre. In the literature, this type of wealth chain is associated with the multinational corporations who are, theoretically, the main source of innovation in wealth-chain operations. [ABSTRACT FROM AUTHOR]

In this paper, we explore the relationship between the culture of the country where a multinational corporation (MNC) is headquartered and the MNC's stock market reaction to tax avoidance regulations. Specifically, we examine the different responses of MNCs following the implementation of the 2010 UK reform that restricted profit shifting for a specific group of firms. We find that, in countries with short-term-oriented cultures, MNCs affected by this reform experienced positive stock market responses relative to their unaffected counterparts. This is not found in long-term-oriented cultures. This difference in response can partly be explained by the differing perceptions of the role tax havens play in tax minimization practices between more long-term-oriented cultures and those oriented towards the short term. We provide evidence that investors from more future-oriented cultures may recognize the short-lived effectiveness of a regulation ex ante, and thus price the quasi-exogenous market shock differently than their more short-term-oriented counterparts. [ABSTRACT FROM AUTHOR]

This study investigates the association between institutional shareholders and the extent of water disclosure in Indonesian companies based on the origin region of institutional investors, namely domestic, Asian, Western, and tax haven countries. Data are taken from 489 non‐financial companies listed on the Indonesia Stock Exchange (IDX) for the period of 2014 to 2019. The developed hypotheses are tested using panel data with the ordinary least squares (OLS) method. This study reveals the level of water disclosure in Indonesian companies is relatively low. The higher percentage of shares are owned by institutional shareholders from domestic, Asian, and tax haven countries result the lower level of water disclosure. On the other hand, institutional shareholders from Western countries are the driver of water disclosure practices in Indonesian firms. The findings of this study provide the empirical evidence for policymakers, investors, and other stakeholders on the role of institutional shareholders in promoting water‐related disclosure practices in developing countries like Indonesia. [ABSTRACT FROM AUTHOR]

Purpose: This research aims to analyze the impact of multinationality and tax havens, with audit quality serving as a moderating variable. Methodology/approach: The population of this study consists of companies listed on the IDX80 index. Sample selection was conducted using purposive sampling methods, resulting in 215 observations. This research utilizes secondary data, which was analyzed using SPSS software. Findings: The findings indicate that both multinationality and tax havens positively influence tax avoidance. Audit quality is capable of mitigating the effect of multinationality and tax havens on tax avoidance. High-quality auditors can prevent tax avoidance practices in multinational companies and those utilizing tax havens through rigorous oversight and transparent financial reporting. Practical and Theoretical contribution/Originality: This study contributes to the existing theoretical framework by elucidating Jensen and Meckling's agency theory (1976) within the context of the observed phenomena. It also provides practical guidance for multinational corporations and tax haven users on how to reduce tax avoidance practices. Research Limitation: The independent variables used in this study do not fully explain tax avoidance behavior. Future researchers are encouraged to explore and incorporate other variables that may influence tax avoidance.

Beneficial ownership transparency is a complex issue that raises questions about anti-money laundering measures, corporate accountability, and privacy rights. Transparency advocates argue for increased public scrutiny of corporate affairs, leading to the implementation of registers of beneficial owners in many jurisdictions. However, critics argue that confidentiality is necessary for innovation and competitiveness, and compliance with transparency measures is costly. The effectiveness of these registers in preventing financial crime is uncertain, and there are challenges related to trust, privacy, and verification. Recent legal judgments have also limited public access to beneficial ownership information. While some argue that public access to this information is crucial for combating illicit wealth, others believe that current registers are failing to have a meaningful impact. The focus on offshore tax havens overlooks the role of powerful financial centers in Western nations. Mere public registers may not be sufficient to combat financial crime, and further work is needed to ensure effective implementation. [Extracted from the article]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study examines "Determinant Analysis of Transfer Pricing in Energy Sector Companies Listed on the Indonesia Stock Exchange in Energy Sector Companies". The formulation of the problem that will be studied in this research is: Does multinationality, tax haven and yhin capitalization have a positive effect on transfer pricing. And the research objective is to test and find empirical evidence of the effect of multinationality, tax havens, thin capitalization can affect transfer pricing. The sample in this study is the energy sector companies, the data that fits the sample criteria is 38 data. The analytical method used in processing the data uses multiple linear analysis. The results showed that multinationality and thin capitalization had a positive effect on transfer pricing, and tax heaven had no positive effect on transfer pricing. The results of this study are multinationality and thin capitalization have a positive effect on transfer pricing. This result is in accordance with Afifah & Prastiwi (2019) which states that multinational companies have easier access to external funding than domestic companies because funding can be obtained from various sources from the country where the company's affiliation is established. [ABSTRACT FROM AUTHOR]

This paper explores three novel research questions. First, is an increase in the number of countries involved in ownership of a co-patent an effective way to enhance patent quality? Second, if the objective is to raise patent quality, which are the right countries to collaborate with? And third, does cooperation with partners located in a tax haven affect patent quality? The empirical methodology relies on forward citations as an indicator of quality, and patent co-ownership as a measure of international collaboration. Our econometric findings show that, first, the average effect of international collaboration is a 4.9% increase in patent quality compared with those patents for which the assignees come from a single country (once we controlled for patent characteristics). When the number of countries in which the assignees are based increases, the effect of this wider collaboration on patent quality is also greater, though only for up to a maximum of five countries. Second, to produce patents of better quality, the most suitable countries with which to collaborate were found to be the United States, Switzerland, Japan, Germany and the United Kingdom. Finally, collaboration with firms located in a country categorized as a tax haven does not have any significant impact on patent quality. [ABSTRACT FROM AUTHOR]

This research investigates the influence of Related Party Transactions and Tax Haven Utilization on Tax Avoidance with and without Country-by-Country Reporting regulations, which were introduced in Indonesia at the end of 2016, as moderating variables. This research uses a purposive sampling method as sample selection. The data in this study was collected from the financial reports of 96 multinational companies registered between 2012 and 2021. To test the hypothesis, this study used regression with Random Effect Model. The results of this research are that Tax Haven Utilization has a significant effect on Tax Avoidance and Related Party Transactions have no effect on Tax Avoidance. Other results show that Country-by-Country Reporting regulations are unable to moderate the influence of Related Party Transactions and Tax Haven Utilization on Tax Avoidance. The findings of this research provide recommendations for the government to launch CbCR regulations in order to prevent tax avoidance through mechanisms for utilizing tax havens and related party transactions as well as increasing understanding of the principles of implementing CBCR. [ABSTRACT FROM AUTHOR]

Copyright of Revista Técnica Tributaria is the property of Asociacion Espanola de Asesores Fiscales and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study investigates the impact of tax avoidance on Romania's economy, specifically its relationship with GDP, comparing Romania's situation to other EU member states. The research utilizes a quantitative methodology, analyzing data from 2015 to 2020 through statistical methods, including regression analysis. The findings indicate a substantial increase in profits transferred from Romania to tax havens, rising from 4 billion USD in 2015 to 7 billion USD in 2020, with a peak of 8 billion USD in 2019. The share of profits lost as a percentage of GDP ranged from 2.25% to 3.19%, with an average of 2.63%. Transfers to non-EU tax havens increased significantly, while those to EU tax havens remained constant. Regression analysis shows a positive and significant relationship between GDP growth and profits lost, with an increase of 0.039904 units of profits lost for each additional unit of GDP. These results highlight the economic impact of tax avoidance and underline the need for effective policy measures to address this issue. [ABSTRACT FROM AUTHOR]