scholarly journals Tax Avoidance — Methodology for Quantification and the Case of the Netherlands

2019 ◽  
Vol 2 (1) ◽  
pp. 40
Author(s):  
Marco Kerste ◽  
Barbara E. Baarsma ◽  
Jarst Weda
Keyword(s):  
The Netherlands ◽  
Tax Avoidance ◽  
Tax Havens ◽  
Financial Flows ◽  
Starting Point ◽  
Withholding Tax ◽  
Tax Systems ◽  
International Tax ◽  
Expected Benefits

The goal of this paper is to define and quantitatively measure tax avoidance. So far any rigorous assessment of financial flows related to tax avoidance that entails paying (almost) no taxes, is lacking. This prevents a proper assessment of the necessity for further regulation to fight such undesirable tax avoidance. Quantifying tax avoidance provides a sound starting point for assessing the severity of regulation – matching the expected benefits with costs – and sheds further light on the possible design of effective regulation. The paper defines tax avoidance as the legal use of tax constructions aimed at paying (almost) no taxes in the entire international financial chain. Our paper shows that in order to prevent international tax systems from being used for such double non-taxation, governments could introduce a withholding tax on outgoing interest and royalty flows to low tax jurisdictions (tax havens). If the low tax threshold is set at 15% or 10% respectively, then depending on the choice for one of the two provided definitions of ‘low tax jurisdiction’, we find that the combined outgoing royalty and interest flow related to tax avoidance via Dutch conduit companies was on average 9.7 or 11.9 billion euro per year in the period 2009-2013.

Curbing Illicit Financial Flows

2018 ◽  
Author(s):  
Xiaodon Liang
Keyword(s):  
Tax Evasion ◽  
Developing Economies ◽  
International System ◽  
Tax Avoidance ◽  
Incentive Structure ◽  
Global Finance ◽  
Tax Havens ◽  
Financial Flows ◽  
Playing Field ◽  
Illicit Financial Flows

Illicit financial flows (IFFs) drain state finances and economic vitality, with disproportionate impact on developing economies. IFFs—including money laundering, tax evasion, and tax avoidance—pose a transnational problem addressed so far through international regimes of coordination and cooperation. But meaningful reductions in IFFs require addressing the root of the problem: information asymmetries. Developed nations and tax havens know where money is hidden and profits are made, while developing nations do not. Since the international system of global finance creates the incentive structure and permissive environment for illicit flows, it is at this level that states must focus their policy-making attention. New information-sharing mechanisms, such as automatic exchange of tax information and public country-by-country tax reporting, can level the playing field and enable lower-income states to effectively address the IFF problem.

scholarly journals The Use of International Tax Planning in Subsidiaries from the Financial and ICT Sectors in the Czech Republic

2021 ◽  
Vol 24 (1) ◽  
pp. 182-196
Author(s):  
Vít Jedlička
Keyword(s):  
Global Economy ◽  
Transfer Pricing ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Tax Burden ◽  
Effective Tax Rate ◽  
Tax Havens ◽  
Tax Rate ◽  
Dummy Variable ◽  
International Tax

Tax avoidance is an important element of management in the global economy. Managers use tax havens for reducing a company’s effective tax rate. The most common practices in international tax planning can be divided into three groups: loans and their related interest, royalties, and transfer pricing. The aim of this article is to find the determinants of the tax burden faced by foreign-owned subsidiaries. Therefore, a model was created for the tax burden, focusing on the special position of subsidiaries within international tax planning. For this purpose, taxes/outcomes was established as a new dependent variable. The panel data used include Czech companies that are owned by parent companies located in other EU countries. The model distinguishes EU tax havens from regular member states; sector dummy variables are also included. The regression model that was created did not confirm the assumed dependencies. Rather, it indicated other important determinants: profitability, the share of intangible assets, size, and the dummy variable for the ICT sector. Based on the regression results, the independent variables connected with known tax planning schemes have relatively low importance. The significance of these results can be seen in the subsequent conclusions. First of all, there is no difference between the subsidiaries’ tax burdens based on the parent company’s location. Corporations use international tax planning whether or not they are owned from a tax haven. The second significant conclusion indicates the importance of certain sectors and their attributes concerning the tax burden. Companies from the ICT sector are linked to a lower tax burden. On the other hand, the dependencies within the financial sector are not statistically significant. From the perspective of further research, it would be constructive to incorporate the subsidiary’s position within the group.

scholarly journals Tax justice and the challenges of measuring illicit financial flows

2019 ◽  
pp. 103-114
Author(s):  
Richard Murphy
Keyword(s):  
Multinational Corporations ◽  
Multinational Corporation ◽  
Tax Avoidance ◽  
Accounting Standards ◽  
Tax Havens ◽  
Financial Flows ◽  
Corporation Tax ◽  
Illicit Financial Flows ◽  
Large Corporations ◽  
The Way

Multinational corporation tax avoidance is primarily about tax avoidance. That is, recording transactions in ways that are legal but which might not meet with the approval of the all the tax authorities who might be impacted by the way in which transactions are recorded are reported. This is most especially true of many transactions involving tax havens. The problem with tracing transactions recorded in these places has, however, been locating any data on them because if the accounting opacity that they create, which is also permitted by existing accounting standards for multinational corporations. Country-by-country reporting was created to tackle this opacity head-on by requiring that all large corporations report all their transactions wherever they might arise. The result could be far greater information on the illicit financial flows of major companies, or their potential elimination.

International tax planning techniques: a review of the literature

2020 ◽  
Vol 21 (2) ◽  
pp. 329-343
Author(s):  
Khaoula Ftouhi ◽  
Wafa Ghardallou
Keyword(s):  
Literature Review ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Literature Survey ◽  
Empirical Literature ◽  
Planning Techniques ◽  
Content Type ◽  
Starting Point ◽  
Key Variables ◽  
International Tax

PurposeThis paper aims to understand the international practices of tax planning. International companies choose their capital structure according to differences in international taxation, in order to minimize the tax burden of the whole company group. This paper reviews the literature that deals with international tax avoidance techniques by highlighting tax planning measurements in the empirical literature. The methodology used is the narrative approach of literature review, which consists on assembling and synthesizing previously published research. The paper concludes that there are several approaches of international tax planning including transfers of revenues by geographical area, redevelopment of the company, haven and loopholes in tax legislation. Moreover, finding more precise measures of tax planning techniques would be of great value to studies in this respect.Design/methodology/approachThe authors follow the guideline provided by Templier and Pare (2015) in order to select the type of the literature review to use in this paper. Accordingly, this paper employs the narrative approach of literature review, which consists on assembling and synthesizing previously published research on international tax planning. This narrative review will serve as a starting point for future investigations and research developments. The authors rely on a logic of configuration in order to analyze data. This logic consists on addressing then organizing various aspects of international practices of tax planning.FindingsThe paper concludes that there are many aspects of international tax planning that need to be covered by future researchers, especially finding more precise measures of tax planning techniques would be of great value to studies in this respect.Research limitations/implicationsThe literature survey reveals the following issues. First, few studies have been conducted to date. Second, several approaches remain unexplored, and studies rely only on surveys' results collected from the annual report of companies (microeconomics variables), while macroeconomic variables can better explain the phenomenon of international tax planning. In this context, studies containing proposals to estimate more accurate international companies' tax planning techniques would also be welcome. Previous literature supposes premises on this issue th:at limit the accurateness of the analysis. Particularly, empirical literature is short of the proper measurement to evaluate corporate tax avoidance. This would explain the various interpretations of research findings. Hence, finding more precise measures of tax planning techniques would be of great value to studies in this respect.Practical implicationsThis literature survey highlights recent studies dealing with tax planning theories within the framework of corporate governance. This theoretical framework particularly specifies which key variables are the most suitable for measuring tax planning methods and highlights the need to examine how those key variables might differ and under what circumstances. In addition, it underlines limits on tax planning measurements by addressing the comparison of the empirical measurements.Originality/valueThe paper contributes to the literature on internal tax planning in several ways. First, this study is unique in that it constitutes the only literature review that provides a comprehensive overview of research on international tax planning. Especially, it extends previous studies by considering the specific new trend of empirical literature dealing with the techniques of international tax planning. This literature review identifies two categories of tax planning approaches including techniques related to company internal management practices and international tax planning techniques. In addition, the literature survey helps to determine various strategies used by multinationals for tax planning, through an in-depth review of the existing studies. Finally, it provides researchers with a starting point to further explore issues related to tax avoidance techniques.

scholarly journals Tax Havens: International Tax Avoidance and Evasion

2009 ◽  
Vol 62 (4) ◽  
pp. 727-753 ◽  
Author(s):  
Jane G. Gravelle
Keyword(s):  
Tax Avoidance ◽  
Tax Havens ◽  
International Tax

scholarly journals International Tax Avoidance and Evasion with Special Reference to India

2017 ◽  
Vol 4 (01) ◽  
Author(s):  
M. M. Sury
Keyword(s):  
Tax Evasion ◽  
Structural Changes ◽  
Transfer Pricing ◽  
Tax Avoidance ◽  
Tax Havens ◽  
Business Operations ◽  
History Of ◽  
International Tax ◽  
Taxation System ◽  
International Tax Evasion

International tax avoidance and evasion is a serious problem in developing countries where the tax systems are still evolving. While it is true that international business operations are exposed to the risk of being subject to double taxation, such activities also provide various opportunities for tax avoidance and evasion. This paper analyses at the various methods adopted for international tax evasion and avoidance such as tax treaties, tax havens, and transfer pricing. It also examines the general causes of this evasion along with the detrimental impact that it has on the economy. In addition, it discusses the various estimates of tax evasion in India from time to time. While examining the history of taxation law amendments in India, it is seen that it is essentially a history of plugging loopholes, as and when discovered, to prevent leakages of revenue rather than making structural changes in the taxation system to strike at the root cause of the problem. India needs tougher laws and stricter enforcement of existing provisions to deal with the root causes of international tax evasion and avoidance.

Dreams Give Birth to Reality”. Engraving Austroseraphicum Coelum as an Attempt to Create a New Reality by the Spanish Habsburgs Dynastic Propaganda / Sny rodzą rzeczywistość…”. Grafika Austroseraphicum Coelum jako próba kreowania nowej rzeczywistości za pomocą propagandy dynastycznej Habsburgów hiszpańskich

2014 ◽  
Vol 39 (1) ◽  
Author(s):  
Jan Kurowiak
Keyword(s):  
Seventeenth Century ◽  
The Netherlands ◽  
General Condition ◽  
Symbolic System ◽  
Political Situation ◽  
Mission Of God ◽  
Starting Point ◽  
The World ◽  
The Church

AbstractAs a work of propaganda, graphics Austroseraphicum Coelum Paulus Pontius should create a new reality, make appearances. The main impression while seeing the graphics is the admiration for the power of Habsburgs, which interacts with the power of the Mother of God. She, in turn, refers the viewer to God, as well as Franciscans placed on the graphic, they become a symbol of the Church. This is a starting point for further interpretation of the drawing. By the presence of certain characters, allegories, symbols, we can see references to a particular political situation in the Netherlands - the war with the northern provinces of Spain. The message of the graphic is: the Spanish Habsburgs, commissioned by the mission of God, they are able to fight all of the enemies, especially Protestants, with the help of Immaculate and the Franciscans. The main aim of the graphic is to convince the viewer that this will happen and to create in his mind a vision of the new reality. But Spain was in the seventeenth century nothing but a shadow of former itself (in the time of Philip IV the general condition of Spain get worse). That was the reason why they wanted to hold the belief that the empire continues unwavering. The form of this work (graphics), also allowed to export them around the world, and the ambiguity of the symbolic system, its contents relate to different contexts, and as a result, the Habsburgs, not only Spanish, they could promote their strength everywhere. Therefore it was used very well as a single work of propaganda, as well as a part of a broader campaign

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