The Outsourcing of Corporate Tax Function Activities

2001 ◽  
Vol 23 (2) ◽  
pp. 35-49 ◽  
Author(s):  
Amy E. Dunbar ◽  
John D. Phillips
Keyword(s):  
Transaction Costs ◽  
Economies Of Scale ◽  
Service Providers ◽  
Tax Compliance ◽  
Tax Planning ◽  
Asset Specificity ◽  
Corporate Tax ◽  
Factors Associated ◽  
Tax Professionals ◽  
The Status

This study investigates the factors associated with firms' decisions to outsource corporate tax-planning and -compliance activities. The results indicate that transaction costs relating to human-asset specificity, proprietary technology, and economies of scale, along with the status of firms' top tax professionals and recent growth, are factors that help explain variation in the proportion of 1997 tax-planning expenditures made to external service providers. In contrast, only firm size and growth help explain variation in the proportion of tax-compliance activities outsourced. Finally, the results indicate that firms with more of a tax-planning focus outsource greater (lesser) proportions of their tax-planning (-compliance) activities. These results provide the first empirical evidence relating to the economic motivations behind tax function outsourcing.

Interrogating the Relationship between “Legally Defensible” Tax Planning and Social Justice

2019 ◽  
pp. 347-366
Author(s):  
Daniel Shaviro
Keyword(s):  
Social Justice ◽  
Tax Planning ◽  
Corporate Tax ◽  
Tax Professionals ◽  
The Relationship

This chapter assesses where the ethical lines should be drawn around what constitutes “legally defensible tax planning,” given social justice imperatives. Because tax minimization by wealthy individuals and profitable corporations does not involve blatant fraud, one cannot simply call for “good corporate tax behavior” and criticize the ethics of those tax professionals who aid and abet the fraud. The tax-reducing strategies of super-rich individuals and highly profitable corporations commonly qualify as what will be called “legally defensible.” This term, however, covers tax planning that may vary across a range in at least three important dimensions: likelihood of legal correctness; consistency with legislative or regulatory intent; and ordinary course of business versus carefully contrived.

The Role of Auditors, Non-Auditors, and Internal Tax Departments in Corporate Tax Aggressiveness

2015 ◽  
Vol 91 (1) ◽  
pp. 179-205 ◽  
Author(s):  
Kenneth J. Klassen ◽  
Petro Lisowsky ◽  
Devan Mescall
Keyword(s):  
Tax Compliance ◽  
Tax Planning ◽  
Internal Revenue Service ◽  
Corporate Tax ◽  
Tax Aggressiveness ◽  
Big 4 ◽  
Confidential Data ◽  
Tax Preparer ◽  
Tax Returns

ABSTRACT Using confidential data from the Internal Revenue Service on who signs a corporation's tax return, we investigate whether the party primarily responsible for the tax compliance function of the firm—the auditor, an external non-auditor, or the internal tax department—is related to the corporation's tax aggressiveness. We report three key findings: (1) firms preparing their own tax returns or hiring a non-auditor claim more aggressive tax positions than firms using their auditor as the tax preparer; (2) auditor-provided tax services are related to tax aggressiveness even after considering tax preparer identity, which supports and extends prior research using tax fees as a proxy for tax planning; and (3) Big 4 tax preparers, in particular, are linked to less tax aggressiveness when they are the auditor than when they are not the auditor. Our findings help policymakers and researchers better understand an important feature of tax compliance intermediaries; particularly, how the dual role via audits is related to observable corporate tax outcomes.

Discussion of Contextual Features of Tax Decision-Making Settings

1999 ◽  
Vol 21 (s-1) ◽  
pp. 74-77
Author(s):  
C. Bryan Cloyd
Keyword(s):  
Decision Making ◽  
Research Question ◽  
Tax Compliance ◽  
Essential Elements ◽  
Tax Planning ◽  
Professional Judgment ◽  
Contextual Features ◽  
Tax Professionals ◽  
Research Questions ◽  
Tax Practice

Tax practice has evolved over the past decade from being predominantly concerned with tax compliance to a major focus on tax planning. Significant challenges for researchers interested in tax professional judgment and decision making (JDM) are (1) understanding the current environment of tax professionals, (2) identifying research questions that are relevant to this environment, and (3) appropriately capturing the essential elements of the current environment in the experimental setting. The research question addressed in Magro (1999) is related to this first challenge—understanding the current environment or context in which tax professional JDM occurs. Specifically, the research question addressed in this study is whether experienced tax professionals perceive differences between certain contextual features of tax-planning and compliance tasks.

Corporate Tax Privacy and Human Rights

2019 ◽  
pp. 279-302
Author(s):  
Joshua D. Blank
Keyword(s):  
Tax Compliance ◽  
The United States ◽  
Tax Planning ◽  
Public Access ◽  
Tax Law ◽  
Corporate Tax ◽  
The Public ◽  
Tax Returns ◽  
The Government ◽  
Relationship Of

This chapter examines the relationship of corporate tax privacy and tax compliance from a new vantage point, which is called the “intercorporate perspective.” In the United States, all tax returns and return information of corporations are confidential. An unappreciated value of corporate tax privacy is that it can limit the pressure to pursue aggressive tax planning and reporting that corporate tax directors often face from significant shareholders, nontax managers, and even themselves. Corporate tax privacy provides the government with valuable strategic defenses by restraining the ability of a corporation’s stakeholders and agents to engage in “benchmarking” and “reverse engineering,” behaviors that would likely cause some tax directors to pursue more aggressive tax planning and reporting. Yet, at the same time, increased public access to certain corporate tax return information could enable the public to participate in informed debate and discussion of the corporate tax law and to question whether the governments is applying the tax law to corporate taxpayers effectively and fairly.

Pathways ahead for New Zealand hill country farming

2016 ◽  
Vol 78 ◽  
pp. 73-82 ◽  
Author(s):  
F.G. Scrimgeour
Keyword(s):  
New Zealand ◽  
Rural Communities ◽  
New Technologies ◽  
Service Providers ◽  
Farming Systems ◽  
Hill Country ◽  
The Status ◽  
And Performance ◽  
Hill Farming ◽  
The Hill

This paper provides a stocktake of the status of hill country farming in New Zealand and addresses the challenges which will determine its future state and performance. It arises out of the Hill Country Symposium, held in Rotorua, New Zealand, 12-13 April 2016. This paper surveys people, policy, business and change, farming systems for hill country, soil nutrients and the environment, plants for hill country, animals, animal feeding and productivity, and strategies for achieving sustainable outcomes in the hill country. This paper concludes by identifying approaches to: support current and future hill country farmers and service providers, to effectively and efficiently deal with change; link hill farming businesses to effective value chains and new markets to achieve sufficient and stable profitability; reward farmers for the careful management of natural resources on their farm; ensure that new technologies which improve the efficient use of input resources are developed; and strategies to achieve vibrant rural communities which strengthen hill country farming businesses and their service providers. Keywords: farming systems, hill country, people, policy, productivity, profitability, sustainability

The Shareholder Response to Corporate Tax Planning Advice Regulation

2020 ◽  
Author(s):  
Michael P. Donohoe ◽  
Brian Gale ◽  
Michael Mayberry
Keyword(s):  
Tax Planning ◽  
Corporate Tax

Brewing Up Controversy: A Case Exploring the Ethics of Corporate Tax Planning

2015 ◽  
Vol 30 (4) ◽  
pp. 311-327 ◽  
Author(s):  
Megan F. Hess ◽  
Raquel Meyer Alexander
Keyword(s):  
Real World ◽  
Ethical Issues ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Learning Assessment ◽  
Class Discussion ◽  
Corporate Tax ◽  
Tax Havens ◽  
Multinational Organizations ◽  
The U.S

ABSTRACT This instructional case explores the ethical issues surrounding the corporate tax-planning and tax-avoidance strategies of multinational organizations. Drawing on the real-world experiences of SABMiller, one of the world's largest beverage companies, this case provides a launching point for students to consider the ethics of corporate tax planning. The ethics of multinational tax practices, especially the use of tax havens, has recently become the focus of media and legislative debate in both the U.S. and the U.K., and many well-respected companies, such as General Electric, Apple Inc., and Starbucks are now feeling the pressure to reform. In a post-case learning assessment, students demonstrated significant improvement in their understanding and indicated that they enjoyed discussing this controversial issue. The “Implementation Guidance” section and Teaching Notes offer guidance for in-class discussion of the ethical and tax issues in this case.

scholarly journals Looking into the future ten years later: big full containerships and their arrival to south American ports

2021 ◽  
Vol 6 (1) ◽  
Author(s):  
Ricardo J. Sánchez ◽  
Daniel E. Perrotti ◽  
Alejandra Gomez Paz Fort
Keyword(s):  
Economies Of Scale ◽  
South American ◽  
Medium Term ◽  
Trade Routes ◽  
Factors Associated ◽  
Cascading Effect ◽  
Dependent Variables ◽  
The World ◽  
Nominal Capacity ◽  
Global Increase

AbstractSince 2006, when the Emma Maersk broke into the world of shipping, the growth in containership size has remained a continuous trend.For the last 14 years, since 2006, the enlargement of fullcontainerships size has remained a continuous trend since Emma Maersk broke into the world of shipping. This process - that also affected north-south trades - has crucial implications in the shipping business, particularly in the planning of ports and its services and related activities. This paper analyses the global increase in vessel size and forecasts larger vessels’ arrival to South American coasts. The paper analyses evidence since 2006 to understand the factors behind the trend for bigger ships (fleets between 18,000 and 24,000 TEU) and introduce a validated methodology for the prediction of the size of container ships. Experts presented a consensus vision in which factors associated with infrastructure, economics, technology, and the environment play a crucial role in driving the trend. Next, the paper presents a methodology for forecasting the size of containerships and applies it to Latin America’s trade. The models include two alternative thresholds for the dependent variables (1310 ft LOA and 18,000 TEU of nominal capacity) that are controlled by cascading effect (i.e., the size gap between Latin America and the world’s main trade routes), and the economic activity at the destination countries (represented by port activity). Finally, the conclusions highlight the forecast’s call to take action on infrastructure planning and investments, analyzing issues such as “economies of scale,” concentration, or entry barriers. Overall, the paper warns about the importance of efficient medium-term planning in the port industry to maximize its economic impact.

FATCA violation underlies latest US tax and securities fraud charges

2015 ◽  
Vol 16 (1) ◽  
pp. 74-76
Author(s):  
Miriam Fisher ◽  
Brian McManus
Keyword(s):  
Law Enforcement ◽  
Service Providers ◽  
Task Force ◽  
Tax Compliance ◽  
Financial Fraud ◽  
Securities Fraud ◽  
Content Type ◽  
The Impact ◽  
First Time ◽  
Practical Implications

Purpose – To explain the details and implications of a September 9, 2014 federal indictment, US v. Robert Bandfield, the first time a Foreign Account Tax Compliance Act (FATCA) violation has been charged as an “overt act” in furtherance of a tax conspiracy and securities fraud. Design/methodology/approach – Provides background, including the enactment of FATCA and the details of the indictment; describes an undercover investigation conducted by President Obama’s Financial Fraud Enforcement Task Force; and discusses the warnings this indictment sends to the global financial community. Findings – The indictment confirms the coordinated and aggressive tactics US law enforcement is now employing to investigate and prosecute offshore financial fraud. Practical implications – Banks and financial service providers need to be aware of the impact of enhanced US regulatory obligations and implement appropriate compliance measures. These institutions must also remain sensitive to risks presented by unscrupulous customers. Finally, they must be ready to manage appropriately information-gathering and investigatory inquiries originating with US authorities. Originality/value – Practical guidance from experienced tax controversy lawyers.

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