|Dischinger, Matthias; Riedel, Nadine (Juni 2008): Corporate Taxes, Profit Shifting and the Location of Intangibles within Multinational Firms. Münchener Wirtschaftswissenschaftliche Beiträge (VWL) 2008-11|
Dies ist die neueste Version des Dokumentes.
Intangible assets are one major source of profit shifting opportunities due to a highly intransparent transfer pricing process. Our paper argues that multinational enterprises (MNEs) optimize their profit shifting strategy by locating shifting–relevant intangible property at affiliates with a low statutory corporate tax rate. Using panel data for European MNEs and controlling for unobserved time–constant heterogeneity between affiliates, we find that the lower a subsidiary’s tax rate relative to other affiliates of the multinational group the higher is its level of intangible asset investment. This effect is statistically and economically significant, even after controlling for subsidiary size and accounting for a dynamic intangible investment pattern.
|Dokumententyp:||Paper (Discussion Paper)|
|Keywords:||corporate taxation, multinational enterprise, profit shifting, intangible assets, micro level data|
Volkswirtschaft > Munich Discussion Papers in Economics
Volkswirtschaft > Munich Discussion Papers in Economics > Finanzwissenschaft
Volkswirtschaft > Lehrstühle > Seminar für Wirtschaftspolitik
|Themengebiete:||300 Sozialwissenschaften > 300 Sozialwissenschaft, Soziologie
300 Sozialwissenschaften > 330 Wirtschaft
|JEL Classification:||H25, F23, H26, C33|
|Veröffentlicht am:||19. Jun. 2008 08:55|
|Letzte Änderungen:||29. Apr. 2016 20:12|
Alesina, A., R. J. Barro, and S. Tenreyro (2002): “Optimal Currency Areas,” NBER Working Papers, Working Paper No. 9072, National Bureau of Economic Research.
Anderson, T. W., and C. Hsiao (1982): “Formulation and Estimation of Dynamic Models Using Panel Data,” Journal of Econometrics, 18, 47–82.
Arellano, M., and S. Bond (1991): “Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,” Review of Economic Studies, 58, 277–97.
Brand Finance plc (2008): “The Increasing Importance of Branding,” Brand Finance Report - Brands and tax planning, Issue 3, Twickenham (UK).
Bresnahan, T. F., E. Brynjolfsson, and L. M. Hitt (2002): “Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence,” Quarterly Journal of Economics, 117(1), 339–376.
Budd, J. W., J. Konings, and M. J. Slaughter (2005): “Wages and International Rent Sharing in Multinational Firms,” The Review of Economics and Statistics, 87, 73–84.
Clausing, K. A. (2003): “Tax-Motivated Transfer Pricing and US Intrafirm Trade Prices,” Journal of Public Economics, pp. 2207–2223.
Collins, J. H., D. Kemsley, and M. Lang (1998): “Cross-Jurisdictional Income Shifting and Earnings Valuation,” Journal of Accounting Research, 36, 209–230.
Desai, M. A., C. F. Foley, and J. R. Hines (2006): “The Demand for Tax Haven Operations,” Journal of Public Economics, 90(3), 513–531.
Devereux, M. P. (2006): “The Impact of Taxation on the Location of Capital, Firms and Profit: A Survey of Empirical Evidence,” Oxford University Centre for Business Taxation Working Paper Series, WP 07/02, Said Business School, Oxford.
Dischinger, M. (2007): “Profit Shifting by Multinationals: Indirect Evidence from European Micro Data,” Munich Economics Discussion Papers, No. 2007-30, University of Munich.
Dischinger, M., and N. Riedel (2007): “Economies of Scope in International Profit Shifting and Multinational Headquarter Location,” mimeo, University of Munich.
Edmans, A. (2007): “Does the Stock Market Misvalue Intangibles? Employee Satisfaction and Equity Prices,” mimeo, MIT Sloan School of Management.
European Commission (2006): “Structures of the Taxation Systems in the European Union,” Directorate Generale Taxation and Customs Union, Brussels.
Gattai, V. (2005): “Firm’s Intangible Assets and Multinational Activity: Joint-Venture Versus FDI,” Fondazione Eni Enrico Mattei Working Paper Series, No. 122.2005, Bocconi University and ISESAO.
Grubert, H. (2003): “Intangible Income, Intercompany Transactions, Income Shifting, and the Choice of Location,” National Tax Journal, 56(1), 221–242.
Grubert, H., and J. H. Mutti (2007): “The Effect of Taxes on Royalties and the Migration of Intangible Assets Abroad,” NBER Working Paper Series, Working Paper No. 13248.
Grubert, H., and J. Slemrod (1998): “The Effect of Taxes on Investment and Income Shifting to Puerto Rico,” The Review of Economics and Statistics, 80(3), 365–373.
Hall, R. E. (2001): “The Stock Market and Capital Accumulation,” The American Economic Review, 91(5), 1185–1202.
Hejazi, J. (2006): “Assessing the Risks of Intangibles Migration,” Tax Management - Transfer Pricing, 15(10), 399–401, The Bureau of National Affairs.
Hilary, G., and C. Lennox (2005): “The Credibility of Self-Regulation: Evidence from the Accounting Professions Peer Review Program,” Journal of Accounting and Economics, 40, 211–229.
Huizinga, H., and L. Laeven (2008): “International Profit Shifting Within Multinationals: A Multi-Country Perspective,” Journal of Public Economics, forthcoming.
KPMG International (2006): “KPMGs Corporate Tax Rate Survey,” Corporate Income Tax Rate - A Trend Analysis, 304-250(October 2006).
Markusen, J. R. (1995): “The Boundaries of Multinational Enterprises and the Theory of International Trade,” Journal of Economic Perspectives, 9, 169–189.
Markusen, J. R. (2002): Multinational Firms and the Theory of International Trade. The MIT Press, Cambridge.
Morgan Lewis & Bockius LLP (2007): “Optimising Brand Value Through Strategic Tax Planning,” Intellectual Asset Management - Brands in the Boardroom 2007, April 2007, Washington DC (USA).
Plassmann, F., and T. N. Tideman (2001): “Does the Right to Carry Concealed Handguns Deter Countable Crimes? Only a Count Analysis Can Say,” The Journal of Law and Economics, 44, 771–98.
Reinganum, J. F., and L. L. Wilde (1985): “Income Tax Compliance in a Principal–Agent Framework,” Journal of Public Economics, 26(1), 1–18.
Simpson, G. R. (2005): “Irish Unit Lets Microsoft Cut Taxes in U.S. and Europe,” The Wall Street Journal, November 7, 2005, p. A1.
Weichenrieder, A. J. (2008): “Profit Shifting in the EU: Evidence from Germany,” International Tax and Public Finance, forthcoming.
Zingales, L. (2000): “In Search of New Foundations,” Journal of Finance, 55(4), 1623–1653.
Alle Versionen dieses Dokumentes
- Corporate Taxes, Profit Shifting and the Location of Intangibles within Multinational Firms. (deposited 19. Jun. 2008 08:55) [momentan angezeigt]