Are corruption and corporate tax avoidance in the United States related?

2021 ◽  
Author(s):  
Ahmed Al-Hadi ◽  
Grantley Taylor ◽  
Grant Richardson
Keyword(s):  
United States ◽  
Tax Avoidance ◽  
The United States ◽  
Corporate Tax

scholarly journals A perfect symbiosis: Curaçao, the Netherlands and financial offshore services, 1951–2013

2021 ◽  
pp. 1-29
Author(s):  
Tijn van Beurden ◽  
Joost Jonker
Keyword(s):  
United States ◽  
The Netherlands ◽  
Competitive Advantage ◽  
Tax Avoidance ◽  
The United States ◽  
Tax Treaties ◽  
Gradual Decline ◽  
Western Countries ◽  
Financial Centre ◽  
The One

Analysing Curaçao as an offshore financial centre from its inception to its gradual decline, we find that it originated and evolved in close concert with the demand for such services from Western countries. Dutch banks and multinationals spearheaded the creation of institutions on the island facilitating tax avoidance. In this they were aided and abetted by their government, which firmly supported the Antilles in getting access to bilateral tax treaties, notably the one with the United States. Until the mid 1980s Curaçao flourished, but then found it increasingly difficult to keep a competitive advantage over other offshore centres. Meanwhile the Curaçao connection had enabled the Netherlands to turn itself into a hub for international revenue flows that today still feed both Dutch tax income and specialised financial, legal and accounting services.

scholarly journals TAXATION ARISING FROM DIGITALISATION: ISSUES AT STAKE

2021 ◽  
Author(s):  
Silvia Velarde Aramayo ◽  
Keyword(s):  
United States ◽  
European Union ◽  
Developing Countries ◽  
Tax Avoidance ◽  
The United States ◽  
Digital Economy ◽  
Tax Structure ◽  
The European Union ◽  
International Consensus ◽  
European Union Countries

The OECD is leading global efforts to reach an international consensus around the BEPS Project with the G20 support. Action 1 works on the tax challenges of the digital economy and its proposals have been made with the «inclusive framework» participation that brings together more than 137 countries. The article focuses on the legitimacy, operation, and consequences of all this work for developing countries that, according to estimates of the UNCTAD, lost annually U$100 billion due to tax avoidance schemes by MNEs. The OECD/G20 inclusive framework is designing a new global tax structure and its proposals attempt to introduce new rules on taxing rights allocation and distribution. At the same time, some countries have adopted unilateral measures in order to tax some digital businesses. Finally, the European Union Countries continue to delay the adoption of the CCCTB and DST Directive proposals, and the United States has introduced the GILTI legislation that seeks to tax the global intangible income. Everything seems to indicate that in the next years the international tax architecture will be changed in deep.

scholarly journals Corporate Inversions: The Migration Of Corporate Tax Revenue

2016 ◽  
Vol 32 (4) ◽  
pp. 1137-1144
Author(s):  
Joel Barker
Keyword(s):  
United States ◽  
Tax Reform ◽  
Tax Incentives ◽  
The United States ◽  
Business Strategies ◽  
Tax Revenue ◽  
Corporate Tax ◽  
Tax System ◽  
Tax Revenues ◽  
Corporate Profits

Estimates of over 20 billion of tax revenue are lost to our economy because of corporate inversions. Therefore, lawmakers are actively exploring ways to stop the hemorrhaging of corporate tax-revenues, tighten restrictions on corporate inversions, and to find ways to collect on defer tax revenues. From a business prospective, corporate inversions are nothing less than prudent, innovative, business strategies to enhance corporate profits. However, it’s undoubtedly having a significant impact on U.S. tax revenues and ultimately reducing domestic investments. Ireland is now the most popular new home to many U.S. Corporations, especially within the pharmaceutical industry. The advantageous tax incentives offered by Ireland is a “no-brainer,” when compared to the heavy taxes levied upon domestic business. Since the Tax Reform Act of 1986, there has been no major tax reform to the United States Tax System. Despite the various proposals and recommendations made to address this growing economic issue, all concern parties are in consensus that the United States Tax System needs reform.

scholarly journals Corporate Tax Avoidance of Malaysian Public Listed Companies: A Multi-Measure Analysis

2021 ◽  
Vol 12 (1) ◽  
pp. 4-4
Author(s):  
Nirmala Devi Mohanadas ◽  
Abdullah Sallehhuddin Abdullah Salim ◽  
Suganthi Ramasamy
Keyword(s):  
Empirical Studies ◽  
Tax Avoidance ◽  
Listed Companies ◽  
Developed Countries ◽  
The United States ◽  
Corporate Tax ◽  
Single Measure ◽  
Corporate Strategies ◽  
Tax Returns ◽  
Avoidance Level

While the topic of corporate tax avoidance has been experiencing ceaseless attention among researchers, its empirical aspect is still facing the challenge of constructing a single universally accepted measure of such practice. Due to the confidential nature of tax returns, most empirical studies have had to rely on financial statements information to developed proxy measures such as effective tax rates (ETRs) and book-tax differences (BTDs) (Hanlon & Heitzman, 2010). Nevertheless, these proxies possess their individual advantages as well as limitations. Such available choices may therefore cause confusions to the researchers in choosing the most suitable measure for their corporate tax avoidance studies. As the mainstream studies on corporate tax avoidance have focused mostly on developed economies like the United States, United Kingdom, and Australia, there is a scarcity of such studies in developing countries (Salihu et al., 2015). The unique jurisdictional nature of tax laws and enforcement systems hinder the extant findings' applicability on less economically-developed countries, especially those highly dependent on their corporate income tax revenue which is especial true with regard to Malaysia (Mohanadas et al., 2020). Though not as abundant in numbers, extant published studies had found that Malaysian public listed companies were indeed being consistently tax-avoidant since the 1990s. Nevertheless, these studies had respectively employed only a single measure of corporate tax avoidance. Indeed, nearly all had used variations of ETR while only a few had applied BTD measures. Their mutually exclusive application of ETR and BTD measures could negatively impact their findings' ability to capture tax-deferring corporate strategies (Hanlon & Heitzman, 2010; Lennox et al., 2013). It thus worsened the risk of potential distortion in the results of tax avoidance level which would led to flawed conclusions being made. In view of the above, this study seeks to measure corporate tax avoidance level of Malaysian public listed companies for the years 2015 until 2019 using both ETR and BTD measures. Furthermore, this study aims to analyse how closely these two measure are related in their respective appraisals of the companies' tax avoidance level. Keywords: Corporate Tax Avoidance; GAAP ETR; Cash ETR; Total BTD; Permanent BTD.

scholarly journals Is Incorporation the Solution to the Enigma of Corporate Tax Residency for International Tax Purposes?

2020 ◽  
Vol 7 (4) ◽  
pp. 35-47
Author(s):  
Charles Edward Andrew Lincoln
Keyword(s):  
Tax Evasion ◽  
Tax Avoidance ◽  
The United States ◽  
Vertical Equity ◽  
Corporate Tax ◽  
Economic Reality ◽  
International Tax ◽  
And Control ◽  
Jobs Act ◽  
Central Management

Incorporation of a company for testing residency—if applied uniformly—is likely the best and most accurate way to reflect corporate residency for tax purposes. However, it does not always reflect economic reality. There is not a consensus on what the best approach is. The Organization for Economic Cooperation and Development (“OECD”) countries overwhelmingly use three tests for residency: incorporation, central management and control, and domicile. Indeed, a court in the United States or other jurisdictions may often ask if tax-avoidance motives exist when incorporation occurs in one jurisdiction and central management and control occurs in another. This Article follows the 2017 Tax Cuts and Jobs Act on many international tax provisions that caused a shift in thinking at both the U.S. level, and at the international level in terms of deciding what formulations would be the best way to ensure proper taxation while promoting horizontal and vertical equity. The genesis of this Article is a response and critique of an article on the same subject by the same author: Charles Edward Andrew Lincoln IV, Is Incorporation Really Better Than Central Management and Control for Testing Corporate Residency? An Answer to Corporate Tax Evasion and Inversion, 43 Ohio N.U. L. Rev. 359 (2017). The author now critiques the point of that article and comes to a different conclusion based on different criteria: specifically, new case law, Musgrave’s economic theory of accretion of wealth, and the importance of substance-over-form doctrines.

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