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This paper explores the link between foreign direct investment (FDI) and the BEPS (base erosion and profit shifting) practices of multinationals (MNEs). It puts the spotlight on the outsize role of offshore investment hubs as major players in global corporate investment, a role that is largely due to MNEs' tax planning, although other factors contribute. The paper shows that tax avoidance practices enabled by FDI through offshore hubs are responsible for significant leakage of development financing resources. In policy terms, these findings call for enhanced cooperation and synergies between international tax and investment policymaking.Keywords: multinational enterprise, BEPS, revenue losses, developing countries, offshore investment, 1. Introduction: an investment perspective on international taxationMNEs build their corporate structures through cross-border investment. They construct those corporate structures in the most tax-efficient manner possible, within the constraints of [...]

Most prior studies model tax avoidance as a function of firm-level characteristics and do not consider how individual executive characteristics affect tax avoidance. This paper investigates whether executives with superior ability to efficiently manage corporate resources engage in greater tax avoidance. Our results show that moving from the lower to upper quartile of managerial ability is associated with a 3.15% (2.50%) reduction in a firm's one-year (five-year) cash effective tax rate. We examine how higher-ability managers reduce income tax payments and find that they engage in greater state tax planning activities, shift more income to foreign tax havens, make more research and development credit claims, and make greater investments in assets that generate accelerated depreciation deductions. Identifying a manager characteristic related to firms' tax policy decisions adds to our understanding of the factors that explain the substantial variation in corporate income tax payments across firms. Keywords: tax avoidance * management style * managerial ability, 1. Introduction This study examines the relation between executives' ability to efficiently manage corporate resources and corporate tax avoidance. Income tax payments range from 20% to 40% of pretax income [...]

The U.S. tax law taxes the global income of multinational firms (MNFs) at their home country tax rate. To avoid double taxation, it permits tax cross-crediting. Through this strategy, global [...]

This article examines the feasibility of using Coase's holistic framework of business assessment--that is, one that includes a corporation's soft or indirect effects on society and the state--to establish a [...]

What has been will be again, what has been done will be done again; there is nothing new under the sun. (Ecclesiastes 1:9) I. INTRODUCTION Tax departments of U.S. corporations [...], We trace the history of corporate tax planning from a compliance-focused activity to a profit-enhancing endeavor to a risk management center. Tax directors of U.S. multinational corporations face unprecedented global pressures from taxing jurisdictions seeking to increase their share of the enterprise's worldwide taxes. Increasingly, corporations must consider the risks that a tax strategy will impose on them, not only in terms of potential lost revenue, but also in terms of reputation and market share. We discuss the components of tax risk management in today's global environment and speculate how future corporate tax planning will change in light of the Organisation for Economic Co-operation and Development Base Erosion and Profit Shifting project. Keywords: corporate tax, tax avoidance, book-tax differences, accounting for income taxes JEL Codes: H25, H26, M41, M48

I. INTRODUCTION In this paper, I discuss two concepts that have been studied at length in the corporate tax planning literature: tax aggressiveness and tax risk. My purpose is to [...], In this paper, I discuss the concepts of tax aggressiveness and tax risk from an academic point of view. Although tax aggressiveness is often defined as being in the 'eye of the beholder ' this is not terribly satisfactory when attempting to measure empirically tax planning aggressiveness and its associations with firm attributes. I explain that tax planning that results in certain tax benefits should not constitute aggressiveness. Although policy makers may argue that these tax planning opportunities are attributable to tax loopholes, this assertion does not imply that the firm has undertaken any significant risk by entering into such tax planning. By documenting that low effective tax rates are not necessarily associated with risky or uncertain tax planning, I hope to convince future researchers to develop better empirical proxies for capturing aggressive tax planning. Keywords: effective tax rates, tax aggressiveness, tax risk JEL Codes: H25, H26, M41

I. INTRODUCTION Aggressive corporate tax planning has existed throughout history and will likely continue for as long as corporations are subject to tax. However, the degree of corporate tax aggressiveness [...], This paper examines corporate tax aggressiveness from the 1990s to 2014. The paper also discusses various public indicia of corporate tax aggressiveness and analyzes selected data from 21 public companies. Finally, the paper discusses several policy options for further reducing corporate tax aggressiveness, including: (1) improvements to the IRS whistleblower program, (2) increased transparency, and (3) changes to the penalty structure surrounding aggressive tax positions. Keywords: corporate tax aggressiveness, transparency, Schedule UTP, penalties, IRS whistleblower program, income shifting JEL Codes: H25 and H26

We developed a multiechelon location-inventory modeling approach and applied it to redesign the global network of four large transnational agricultural companies operating in Brazil. The results show that tax planning [...]

4. Media Attention Supercharged IPOs have received substantial attention in popular journals, including the New York Times, the Wall Street Journal, Forbes, and many others. (123) At the same time, [...]

A new innovation on the IPO landscape has emerged in the last two decades, allowing owner-founders to extract billions of dollars from newly public companies. These IPOs-labeled supercharged IPOs-have been [...]

I. INTRODUCTION The call for international corporate tax reform has gained traction in the past two years, with the chairs of both tax writing committees pledging to craft comprehensive tax [...], We review the basics of international tax planning by U.S. multinational corporations (MNCs) and the organizational structures that facilitate such planning. We then discuss the potential impacts that adopting a participation exemption regime (i.e., a territorial tax system) along the lines proposed by Representative Camp could have on a U.S. MNC's worldwide supply chain structure and financing arrangements. We compare the change in a corporation's global accounting effective tax rate under the current U.S. worldwide tax system and four participation exemption options proposed by Representative Camp. Using a hypothetical set of facts representative of a U.S. multinational with highly mobile intellectual property income, we show that the options produce very different accounting effective tax rates and tax revenues received by the U.S. Treasury. We also point out potential tax planning strategies that could be employed pre- and post-effective date of the implementation of a participation exemption system that would change the expected revenue to be received during the transition to such a system. Keywords: international taxation, tax reform, territorial tax system JEL Codes: H25, H26, M41, M48

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.ejor.2008.12.012 Byline: Zu-Hsu Lee (a), Shiming Deng (b), Beixin Lin (c), James G.S. Yang (c) Keywords: OR in strategic planning; Nonlinear programming; Income tax; Investment interest expense; Linear programming Abstract: Investment income tax planning requires informed, strategic choices. One must determine the amount of qualified dividends and net long-term capital gain to be included in investment income (against which investment interest expense can be deducted). This choice also determines the residual qualified dividends and net long-term capital gain which enjoy a reduced tax rate. Another important decision is whether all or some of this interest expense should be deducted in the current year or carried forward. This paper puts forward a new approach to formulate these questions as a generalized resource allocation problem which permits analysis of the interdependence between, and the tax consequences of, the above decisions. The commonly used approach - deducting investment interest expense sooner rather than later - we consider myopic since the benefit of deferring some of the deduction is not leveraged. Presented here is a tax planning guideline (a necessary and sufficient condition for optimality) to realize a more forward-looking strategy. We also show that, for certain income structures, the tax savings by deducting a one-dollar investment interest expense may be more than the tax rate on the dollar of investment income that is offset. Author Affiliation: (a) School of Management, Marist College, Poughkeepsie, NY 12601, United States (b) School of Management, Huazhong University of Science and Technology, Wuhan 430074, PR China (c) Department of Accounting, Law and Taxation, Montclair State University, Montclair, NJ 07043, United States Article History: Received 15 October 2006; Accepted 8 December 2008

To authenticate to the full-text of this article, please visit this link: http://dx.doi.org/10.1111/j.1468-0297.2009.02217.x Byline: Hongbin Cai (1), Qiao Liu (2) Abstract: This article investigates whether market competition enhances the incentives of Chinese industrial firms to avoid corporate income tax. We estimate the effects of competition on the relationship between firms' reported accounting profits and their imputed profits based on the national income account. To cope with measurement errors and potential endogeneity, we use instrumental variables, exogenous policy shocks and other robustness analysis. We find robust and consistent evidence that firms in more competitive environments engage in more tax avoidance activities. Moreover, all else equal, firms in relatively disadvantageous positions demonstrate stronger incentives to avoid corporate income tax. Author Affiliation: (1)Guanghua School of Management and IEPR, Peking University, Beijing (2)University of Hong Kong Article History: Submitted: 21 March 2006 Accepted: 20 May 2008

ABSTRACT This paper empirically evaluates the practitioner anecdotal evidence that good state and local tax planning dictates a Delaware or Nevada domicile for corporations in and environment in which the [...]

The central idea behind an important branch of modern public finance literature is that imperfect government information about taxpayers' individual characteristics limits the economic outcomes attainable by taxation and redistribution [...]

Abstract: The paper investigates determinants of capital structure, focusing on tax incentives for debt. The paper makes use of a panel of Australian firms in two tax regimes: a classical [...]

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.jfineco.2005.02.002 Byline: Mihir A. Desai (a)(b), Dhammika Dharmapala (c) Keywords: Incentive compensation; Corporate governance; Tax avoidance; Stock options; Tax evasion Abstract: This paper analyzes the links between corporate tax avoidance and the growth of high-powered incentives for managers. A simple model demonstrates the role of feedback effects between tax sheltering and managerial diversion in determining how high-powered incentives influence tax sheltering decisions. A novel measure of corporate tax avoidance (the component of the book-tax gap not attributable to accounting accruals) allows for an investigation of the link between tax avoidance and incentive compensation. Increases in incentive compensation tend to reduce the level of tax sheltering, in a manner consistent with a complementary relationship between diversion and sheltering. In addition, this negative effect is driven primarily by firms with relatively weak governance arrangements, confirming a central prediction of the model. These results can help explain the growing cross-sectional variation among firms in their levels of tax avoidance, the undersheltering puzzle, and why large book-tax gaps are associated with subsequent negative abnormal returns. Author Affiliation: (a) Harvard Business School, Morgan Hall 363, Boston, MA 02163, USA (b) National Bureau of Economic Research, Cambridge, MA 02138, USA (c) University of Connecticut, 341 Mansfield Road, Storrs, CT 06269, USA Article History: Received 22 April 2004; Revised 21 December 2004; Accepted 4 February 2005 Article Note: (footnote) [star] We would like to thank an anonymous referee, Alan Auerbach, Amy Dunbar, Alexander Dyck, Austan Goolsbee, Dirk Jenter, Mark Lang, Bryan Lincoln, John Phillips, Gary Richardson, Justin Tobias, Luigi Zingales, and various conference and seminar participants for valuable discussions and comments on an earlier version of this paper. We also thank Nathan Koppel and Philip West for their help with the example in . Mihir A. Desai acknowledges the financial support of the Division of Research of Harvard Business School, and Dhammika Dharmapala acknowledges the financial support of the University of Connecticut Research Foundation. Michael Park provided excellent research assistance.

A study on an enforcement agency's optimal audit policy for firms is presented. Focus on firms' emissions and environmental tax avoidance behavior is also reported.

A study on relationship between incentive compensation of managers and corporate tax avoidance in corporate governance is presented.

Data gathered from Australian taxpayers through a national survey is used to analyze their preference for a creative and aggressive tax agent. To find the relationship between high risk tax payers and high risk tax practitioners the taxpayers attitudes and their perception of the Australian tax system is studied.

ABSTRACT With the average cost of a college education at public and private institutions estimated to rise to $60,000 and $200,000, respectively, by the year 2007, the need for financial [...]