Internationally mobile firms and tax policy

Tax Policy and Investment by Startups and Innovative Firms

Toder for helpful comments. The findings and conclusions contained within are solely the responsibility of the authors and do not necessarily reflect positions or policies of the Tax Policy Center or its funders. ii ABSTRACT We examine how tax policies alter investment incentives, with a particular focus on startup and innovative businesses. Consistent with prior work, we find that existing pol...

Tax Competition with and without Tax Discrimination against Domestic Firms

Multinational Firms Mitigate Tax Competition

An increase in the taxation of foreign affi liates reduces domestic investment, as has recently been empirically shown in Becker and Riedel (2012). This paper investigates the implication of this finding for tax competition. It is shown that an increase in the number of multinational firms (in contrast to purely national firms) may actually mitigate tax competition — counter to the popular opin...

Evaluating Tax Persistence and Future Tax Risk of Firms by Emphasizing on Ownership Type

According to Agency Theory, one of the objectives of earning management is, to reduce liabilities and tax payments through minimizing the effective tax rate. Either, by short-term and opportunistic goals or by reducing long-term taxes and creating firm value, tax strategies reduce the effective tax rate. The purpose of this paper is to determine the effect of effective tax rates on tax persiste...

Tax Compliance and Firms' Strategic Interdependence

We focus on a relatively neglected area of the tax-compliance literature in economics, the behaviour of rms. We examine the impact of alternative audit rules on receipts from a tax on pro ts in the context of strategic interdependence of rms. In the market rms may compete in terms of either output or price. The enforcement policy can have an e ect on rms' behaviour in two dimensions { their mar...