CONSEQUENCES OF THE NEW UK TAX EXEMPTION SYSTEM: EVIDENCE FROM MICRO-LEVEL DATA

• 成果类型: Article
• 署名作者: Egger, Peter; Merlo, Valeria; Ruf, Martin; Wamser, Georg
• 署名单位: University of Nottingham; Centre for Economic Policy Research - UK; University of Oxford; Eberhard Karls University of Tubingen; Leibniz Association; Ifo Institut; Leibniz Association; Ifo Institut; Eberhard Karls University of Tubingen
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/ecoj.12190
• 发表日期: 2015
• 页码: 1764-1789
• 关键词: international mergers; taxation; POLICY

摘要

Until 2009, the UK operated a system of worldwide taxation. Under this system, taxation of foreign income was deferred until repatriated as dividends, leaving UK-owned multinational firms the possibility of avoiding UK taxation by delaying dividend payments and keeping earnings abroad. In 2009, the UK switched to a system under which all foreign-earned income is exempted from taxation. We evaluate the effects of this reform on foreign affiliates of UK multinationals. Using an identification approach that quasi-randomises over the country of residence of the ultimate firm owners, we find that the reform significantly affected short-run repatriation behaviour.