Tax Haven Utilization and Tax Avoidance

2017 ◽  
Vol 26 (2) ◽  
pp. 83-115
Author(s):  
Jong Kwon Ko ◽  
Hee Jin Park
Keyword(s):  
Tax Avoidance ◽  
Tax Haven

The Internet as a Tax Haven?

2021 ◽  
Vol 13 (4) ◽  
pp. 1-35
Author(s):  
David R. Agrawal
Keyword(s):  
Average Rate ◽  
Tax Avoidance ◽  
Tax Rates ◽  
Standard Deviation Increase ◽  
Online Transactions ◽  
Online Sales ◽  
Percentage Points ◽  
Tax Haven ◽  
Internet Sales ◽  
Internet Penetration

If online transactions are tax free, increased online shopping may lower tax rates as jurisdictions seek to reduce tax avoidance; but, if online firms remit taxes, online sales may put upward pressure on tax rates because internet sales help enforce destination-based taxes. I find that higher internet penetration generally results in lower municipal tax rates but raises tax rates in some jurisdictions. The latter effect emerges in states where many online vendors remit taxes. A 1 standard deviation increase in internet penetration lowers local sales taxes in large municipalities by 0.15 percentage points, or 16 percent of the average rate. (JEL H25, H26, H71, L81, R51)

scholarly journals When Does Tax Avoidance Result in Tax Uncertainty?

2018 ◽  
Vol 94 (2) ◽  
pp. 179-203 ◽  
Author(s):  
Scott D. Dyreng ◽  
Michelle Hanlon ◽  
Edward L. Maydew
Keyword(s):  
Transfer Pricing ◽  
Tax Avoidance ◽  
Pricing Strategies ◽  
Tax Rates ◽  
Effective Tax Rates ◽  
Time Period ◽  
Tax Haven ◽  
Tax Benefits ◽  
Tax Uncertainty

ABSTRACT We investigate the relation between tax avoidance and tax uncertainty, where tax uncertainty is the amount of unrecognized tax benefits recorded over the same time period as the tax avoidance. On average, we find that tax avoiders, i.e., firms with relatively low cash effective tax rates, bear significantly greater tax uncertainty than firms that have higher cash effective tax rates. We find that the relation between tax avoidance and tax uncertainty is stronger for firms with frequent patent filings and tax haven subsidiaries, proxies for intangible-related transfer pricing strategies. The findings have implications for several puzzling results in the literature.

Ending the Tax Haven Scandals

2009 ◽  
Vol 9 (3) ◽  
pp. 1850175 ◽  
Author(s):  
Robert T. Kudrle
Keyword(s):  
Tax Evasion ◽  
Income Tax ◽  
Tax Avoidance ◽  
Personal Income Tax ◽  
Corporate Tax ◽  
Formula Apportionment ◽  
Automatic Information ◽  
Tax Haven ◽  
The World ◽  
Taking Action

States around the world appear more determined than ever to end tax haven abuse. The new U.S. administration, for example, is taking action against both major tax haven problems: corporation income tax avoidance and personal income tax evasion. Some progress may be made. This essay argues, however, that only radically new policy will likely suffice either to shore up corporate tax revenues or to sharply diminish evasion. Global formula apportionment is needed if the corporate income tax is to be preserved, and only a combination of automatic information sharing among governments and source withholding can stamp out evasion. As in most areas of international economic policy, U.S. leadership is essential.

scholarly journals Role of Tax Havens in Tax Avoidance by Multinationals with Special Regard to Ireland

2020 ◽  
pp. 333-341
Author(s):  
Tamás Zoltán Wágner
Keyword(s):  
Tax Avoidance ◽  
Case Law ◽  
The European Union ◽  
Preferential Treatment ◽  
Tax System ◽  
Tax Havens ◽  
Academic Literature ◽  
Tax Haven ◽  
The Government

Nowadays, many multinationals use tax avoidance strategies in order to minimise their tax liability. They often cooperate with governments providing them preferential treatment. These low-tax jurisdictions called tax havens pose a threat for world economy because they result in huge budgetary loss for countries. Even the European Union has its own tax havens which contribute to the loss of 250 billion euros annually. It is more than 2% of the Union’s GNP. Despite the apparent negative evidences, several member states’ tax system still contains favourable provisions for multinationals. Although, almost everybody would mention the Benelux states first, but many multinationals utilize the loopholes of the Irish tax system. In this regard, it is enough to refer to the Apple case where the European Commission ordered the recuperation of 13 billion euros from the company due to illegal state aid. Hence, we conducted a research based on academic literature and case-law. After a short introduction and dealing with the European Commission’s response to tax avoidance, we analyse the Irish tax system. The main goal was to demonstrate that Ireland – despite the denial of the respective authorities – was a tax haven. Our study proves that multinationals could use almost freely several tax optimisation strategies (e.g. Double Irish and Dutch Sandwich) up to now. Due to strong criticism and scandals the government had to amend the former tax regime, but it does not mean that preferential treatment is abolished. Ireland still should be considered a tax haven.

scholarly journals Determinan Penghindaran Pajak Dengan Corporate Social Responsibility Sebagai Variabel Moderasi

1970 ◽  
Vol 4 (02) ◽  
pp. 182-194
Author(s):  
Purwoko Erie Dharmawan ◽  
Syahril Djaddang ◽  
Darmansyah Darmansyah
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Significant Influence ◽  
Transfer Pricing ◽  
Tax Avoidance ◽  
Secondary Data ◽  
Jel Classification ◽  
Tax Haven ◽  
Corporate Social ◽  
Thin Capitalization

ABSTRACT This study aimed to analyze the influence of transfer pricing, thin capitalization, dan tax haven utilization against tax avoidance. This sudy also uses corporate social responsibility as a moderating variable. This study uses secondary data from manufacturing listed company during period of 2014-2016. Samples taken by using purposive sampling method and obtain 189 sampel consist of 63 companies during three years period. The method of testing the data used in this study is panel data regression analysis and descriptive statistics. The result showed that the transfer pricing has significant effect on tax avoidance, while thin capitalization dan tax haven utilization has no significant effect on tax avoidance. Corporate social responsibility has significant influence as moderating between transfer pricing and tax avoidance, but corporate social responsibility has no significant influence as moderating between thin capitalization dan tax haven utilization and tax avoidance. ABSTRAK Penelitian ini bertujuan untuk mengetahui pengaruh transfer pricing, thin capitalization, dan tax haven utilization terhadap penghindaran pajak. Peneltian ini juga menggunakan variabel corporate social responsibility sebagai variabel yang memoderasi pengaruh transfer pricing, thin capitalization, dan tax haven utilization terhadap penghindaran pajak. Studi ini menggunakan data sekunder dari perusahaan manufaktur yang terdaftar di bursa efek indonesia. Pengambilan sampel dilakukan dengan metode purposive samping. Sampel yang diperoleh sebanyak 189 sampel, terdiri dari 63 perusahaan manufaktur selama periode tiga tahun yaitu 2014 – 2016. Metode analisis yang digunakan dalam mengolah data menggunakan analisis regresi data panel. Hasil penelitian menunjukkan bahwa transfer pricing berpengaruh signifikan terhadap penghindaran pajak, sementara thin capitalization dan tax haven utilization tidak berpengaruh signifikan terhadap penghindaran pajak. Corporate social responsibility dapat memoderasi pengaruh transfer pricing terhadap penghindaran pajak, namun corporate social responsibility tidak dapat memoderasi pengaruh thin capitalization dan tax haven utilization terhadap penghindaran pajak. JEL Classification: MH14, H26, H32

scholarly journals Peran Komisaris Independen Di Indonesia : Multinationality, Tax Haven, Penghindaran Pajak

Jurnalku ◽  
2021 ◽  
Vol 1 (3) ◽  
pp. 200-209
Author(s):  
Tania Alvianita Pramudya ◽  
Chyntia Lie ◽  
Amrie Firmansyah ◽  
Estralita Trisnawati
Keyword(s):  
Tax Avoidance ◽  
Purposive Sampling ◽  
Tax Haven

Penelitian ini bertujuan untuk menguji pengaruh multinationality dan tax haven terhadap penghindaran pajak. Selain itu, penelitian ini juga memasukkan komisaris independen sebagai pemoderasi daalam hubungan variabel independen dan dependen. Penelitian ini menggunakan data perusahaan sektor industri barang konsumsi tahun 2017 sampai dengan 2019 yang bersumber dari www.idx.co.id. Berdasarkan purposive sampling, sampel final penelitian ini berjumlah 64 observasi. Metode analisis yang digunakan dalam penelitian ini adalah analisis regresi linier berganda untuk data panel. Hasil penelitian menunjukkan bahwa multinationality berpengaruh positif terhadap tax avoidance, sedangkan tax haven berpengaruh negatif terhadap penghindaran pajak. Sementara itu, komite independen tidak berhasil memiliki peran dalam hubungan multinationality dan penghindaran pajak maupun hubungan tax haven terhadap penghindaran pajak. Penelitian ini mengindikasikan bahwa perlu adanya koordinasi antara Otoritas Perpajakan Indonesia dan Otoritas Pengawas Pasar Modal Indonesia terkait dengan penguatan peran komisaris independen dalam fungsi pengawasan kepada perusahaan emiten.

Ireland’s tax games: the challenge of tackling corporate tax avoidance

2020 ◽  
Author(s):  
Nessa Ní Chasaide
Keyword(s):  
Tax Avoidance ◽  
Global Network ◽  
Corporate Tax ◽  
Tax Havens ◽  
Development Path ◽  
Corporate Profit ◽  
Tax Haven ◽  
Potential Alternative ◽  
Financial Transactions

Abstract The phenomenon of financialization has given rise to new modes of corporate profit accumulation. This includes the creation of global channels for corporate tax avoidance that are embedded in the operations of global firms. Due to a lack of transparency by multinational companies (MNCs), these channels, and their tax implications, are not easily identified or understood. This article sets out the workings of the ‘global tax games’ which operate via intracompany financial transactions alongside the reorganization of the functions of MNCs. The article highlights the consequences for communities of corporate tax avoidance, whereby corporate shareholders and tax haven states profit at the expense of other states and communities. Thus, people living in tax havens, often unknowingly, benefit from tax revenues that should have been paid elsewhere. It offers a case study of Ireland, an understudied case, but which is repeatedly identified as a key node in the global network of corporate tax avoidance. It emphasizes that, in the case of Ireland, a precursor to a potential alternative development path is the acknowledgement of its problematic role.

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