Capital Taxation, Investment, Growth and Welfare

Bösenberg, Simon, Peter Egger and Benedikt Zoller-Rydzek (2018) International Tax and Public Finance 25, 325-76. [2015] Abstract This paper formulates a model of economic growth to study the effects of broad capital taxation (of profits, dividends, and capital gains) on macroeconomic outcomes in small open economies. A framework of exogenous growth permits modelling countries in transition to aContinue reading “Capital Taxation, Investment, Growth and Welfare”

Tax Competition

Tax Competition Michael P. Devereux Oxford University Centre for Business Taxation Summary: Corporation tax rates in OECD countries have been falling for the last three decades. This has widely been interpreted as the result of competition between governments to attractboth real economic activity and taxable income. And such a view is supported by some governmentContinue reading “Tax Competition”

The effect of taxes on foreign direct investment: a survey of the empirical evidence

The effect of taxes on foreign direct investment: a survey of the empirical evidence Johannes Voget University of Mannheim Summary: There has been a considerable amount of economics research into the impact of taxes on multinational companies. The main issuesexamined have been the impact on location choice, investment, financial policy and the location of profit.Continue reading “The effect of taxes on foreign direct investment: a survey of the empirical evidence”

Who bears the burden of corporate income taxation?

Who bears the burden of corporate income taxation? Clemens Fuest Centre for European Economic Research(ZEW) and University of Mannheim Summary The question of who bears the burden of the corporate income tax is an important policy question, and views about the right answer differ widely. One view is that the corporate tax is borne byContinue reading “Who bears the burden of corporate income taxation?”

Quantifying International Tax Avoidance:A Review of the Academic Literature

Quantifying International Tax Avoidance:A Review of the Academic Literature Nadine RiedelUniversity of Bochum Summary: This paper provides a brief review of the academic literature that assesses the quantitative importance of tax avoidance behaviour of multinational entities (MNEs) by means of income shifting from high-tax to low-tax affiliates. Existing studies unanimously report evidence in line withContinue reading “Quantifying International Tax Avoidance:A Review of the Academic Literature”

Where Does Multinational Investment Go with Territorial Taxation? Evidence from the United Kingdom

Liu, Li (2020) American Economic Journal: Economic Policy 12.1, 325-58. [2014] Abstract In 2009, the United Kingdom changed from a worldwide to a territorial tax system, abolishing dividend taxes on foreign repatriation from many low-tax countries. This paper assesses the causal effect of territorial taxation on real investments, using a unique dataset for multinational affiliatesContinue reading “Where Does Multinational Investment Go with Territorial Taxation? Evidence from the United Kingdom”

Taxes and the location of targets

Arulampalam, Wiji, Michael P. Devereux and Federica Liberini Journal of Public Economics 176, 161-178. [2010] Abstract We use firm-level data to investigate the impact of taxes on the international location of targets in M&A, allowing for domestic acquisitions and heterogeneous responses by companies. The statutory tax rate in the target country is found to haveContinue reading “Taxes and the location of targets”

The impact of thin‐capitalization rules on the location of multinational firms’ foreign affiliates

Merlo, Valeria, Nadine Riedel, Georg Wamser (2020) Review of International Economics 28.1, 35-61. [2014] Abstract This paper examines how restrictions on the tax deductibility of interest cost affect location choices of multinational corporations (MNCs). Many countries have introduced so‐called thin‐capitalization rules (TCRs) to prevent MNCs from shifting their tax base to countries with lower taxContinue reading “The impact of thin‐capitalization rules on the location of multinational firms’ foreign affiliates”

The OECD/G20 Base Erosion and Profit Shifting Initiative and Developing Countries

Collier, Richard and Nadine Riedel (2018) Bulletin of International Taxation 72.12, 704-717. [2018] Abstract This article considers the implications of the OECD/G20 Base Erosion and Profit Shifting (BEPS) initiative by reference to the priorities of developing countries. It also suggests ways in which the Project could be made a better fit for the needs ofContinue reading “The OECD/G20 Base Erosion and Profit Shifting Initiative and Developing Countries”

Comparing UK Tax Returns of Foreign Multinationals to Matched Domestic Firms

Bilicka, Katarzyna American Economic Review 109.8, 2921-53. [2017] In this paper, I use confidential UK corporate tax returns data to explore whether there are systematic differences in the amount of taxable profits that multinational and domestic companies report. I find that the ratio of taxable profits to total assets reported by foreign multinational subsidiaries isContinue reading “Comparing UK Tax Returns of Foreign Multinationals to Matched Domestic Firms”