How much profit shifting do European banks do?

Fatica, Serena; Gregori, Wildmer Daniel

doi:10.1016/j.econmod.2020.01.026

Cited by 24 publications

(11 citation statements)

References 21 publications

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“…Furthermore, there are countries that have introduced a bank tax after us and still have it, but the amount that banks pay is lower in size than in Slovakia and there are countries where they had a bank tax but it has already been abolished, such as in Austria [27]. Or in some countries, the bank tax was transformed into contributions to the so-called single resolution fund, which is another novelty -in addition to contributions to the deposit protection fund, banks pay regular contributions to the resolution fund [22].…”

Section: Resultsmentioning

confidence: 99%

Bank levy

Michalíková

2021

SHS Web of Conf.

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Research background: The bank levy was approved in 2011 and entered into force in 2012. Shortly after the economic crisis, Slovakia was not the only country to introduce it. Unlike other countries, the Slovak government did not have to help banks financially and then compensate for this help by increasing their taxation. The bank levy thus served mainly to improve the overall image of public finances in the country. Purpose of the article: The main goal of the article is to confirm the correctness of the abolition of the bank levy, which has distorted the management of banks in Slovakia for almost a whole decade. The abolition of the levy will contribute to greater stability of the banking sector, which will be helpful in the restart of the Slovak economy affected by the crisis caused by the covid-19 pandemic. Methods: Analysis of the legislation regulating the introduction of a bank levy in Slovakia, its development from the introduction of a bank levy to its abolition. Comparison of the expected benefits of this tool with reality. Findings & Value added: The article monitors the development of bank levies in Slovakia from its introduction to its abolition. The imposition of a bank levy resulted in additional taxation of the banking sector. The difference compared to other taxes was that the amount of the levy does not depend on the bank’s profit, but on the size of its liabilities.

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Section: Resultsmentioning

confidence: 99%

Bank levy

Michalíková

2021

SHS Web of Conf.

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“…However, the findings of Dutt, Ludwig et al (2019) suggest an overall zero response of the capital market to the introduction of the disclosure obligation. Empirical evidence on the information content of the published data itself is growing (Bouvatier et al, 2018;Brown et al, 2019;Fatica & Gregori, 2020;Janský, 2020). The authors agree that the publicly available CbCR data of EU financial institutions reveals the extent of banks' presence in tax havens and a misalignment between profits and employees.…”

Section: Which Containsmentioning

confidence: 97%

“…Third, and most closely related to our study, several authors analyze the information content of CbCR. Descriptive analyses of the publicly available CbCR data of EU financial institutions reveal the extent of banks' presence in tax havens as well as a misalignment between profits and employees in particular tax havens (Bouvatier et al, 2018;Brown et al, 2019;Fatica & Gregori, 2020;Janský, 2020). 9 Dutt, Nicolay et al ( 2019) also show that CbCRs uncover a large amount of bank's worldwide profits and employees compared to conventional databases.…”

Section: Related Literaturementioning

confidence: 99%

Reporting Behavior and Transparency in European Banks’ Country-by-Country Reports

2021

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The public CbCR requirement for EU financial institutions leaves leeway to the reporting firms as regards the calculating and presentation of the data. Based on a sample of CbCRs published by EU-headquartered multinational bank groups, we analyze the reporting behavior and the degree of transparency across the reports. We observe a large heterogeneity with respect to the place of publication of the CbCR, its content, the readability of the data tables as well as the list of entities that should be published together with the by-country data. We also identify differences between headquarter countries, with CbCRs prepared by bank groups from the United Kingdom and Germany being the most transparent. Inconsistencies in reporting inhibit the interpretability and the comparability of the data. We conclude that the specification of the underlying data source and of the applicable consolidation scope as well the establishment of uniform definitions of the reportable items are essential for an appropriate consideration of the reports by all addressees. Our analyses are particularly important in light of the proposal for a public CbCR for large multinational firms in the EU.

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“…Relatedly, the profit per employee and the profit margin in tax havens is a multiple of the values in non-haven countries (R. J. Brown et al, 2019;Dutt et al, 2019b;Fatica & Gregori, 2020 Two studies apply the standard approach developed by Hines and Rice (1994) to banks'…”

Section: Country-by-country Reportingmentioning

confidence: 99%

On the Determinants and Effects of Corporate Tax Transparency: Review of an Emerging Literature

Müller¹,

Spengel²,

Vay³

2020

SSRN Journal

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In response to discussions about large multinational enterprises' tax planning activities, legislators around the world have adopted numerous regulations to increase corporate tax transparency. New settings and datasets have spurred empirical research in recent years. Our paper presents a review of this emerging literature on corporate tax transparency. To this end, we first propose a framework to structure the diverse landscape of tax-related disclosures. Second, we elaborate on the conceptual underpinnings of tax transparency by drawing on established theories from financial accounting and CSR reporting research. Third, we survey empirical evidence on corporate tax transparency. We classify the findings into (i) determinants of firms' tax disclosure decisions, (ii) informativeness of different kinds of tax-related disclosure, and (iii) effects of increased tax transparency on firms and their stakeholders. Finally, we synthesize the main inferences and offer suggestions for future research.

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How much profit shifting do European banks do?

Cited by 24 publications

References 21 publications

Bank levy

Bank levy

Reporting Behavior and Transparency in European Banks’ Country-by-Country Reports

On the Determinants and Effects of Corporate Tax Transparency: Review of an Emerging Literature

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