A Comparison of the Tax-Motivated Income Shifting of Multinationals in Territorial and Worldwide Countries

• 成果类型: Article
• 署名作者: Markle, Kevin
• 署名单位: University of Iowa
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1111/1911-3846.12148
• 发表日期: 2016
• 页码: 7-43
• 关键词: FOREIGN DIRECT-INVESTMENT; international taxation; location; Repatriation; corporations; incentives; decisions; earnings

摘要

This paper tests for differences in the tax-motivated income-shifting behaviors of multinationals subject to different systems of taxing foreign earnings. I find that, on average, multinationals subject to territorial tax regimes shift more income than those subject to worldwide tax regimes. The difference in shifting, however, is driven by a difference in the subset of shifting that involves the parent country; multinationals in the two groups appear to shift equally among their foreign affiliates. In additional tests, I find that the shifting of worldwide firms is sensitive to reinvestment in the recipient countries, while that of territorial firms is not.