Multinational Corporations’ Tax Optimization Strategies and European Union Policies

Krifa-Schneider, Hadjila; Sattar, Abdul

doi:10.7202/1085039ar

Cited by 1 publication

(3 citation statements)

References 21 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Assume that the taxpayer's disposable income before the tax was 1 W and the number of hours worked was 1 T . Now that the government has decided to impose an income tax on the wage income of operators and workers, the tax reduces the taxpayer's disposable income to 2 W .…”

Section: Figure 2 Substitution Effect Of Taxationmentioning

confidence: 99%

“…Now that the government has decided to impose an income tax on the wage income of operators and workers, the tax reduces the taxpayer's disposable income to 2 W . As the marginal return to labor decreases, the relative price of labor and leisure changes, and the number of hours worked decreases from 1 T to 2 T . This suggests that the government's imposition of the tax is highly likely to induce operators and workers to reduce the amount of labor input.…”

Section: Figure 2 Substitution Effect Of Taxationmentioning

confidence: 99%

“…With the continuous development of international trade, multinational corporations are becoming more and more common. However, at the same time, multinational corporations' tax strategy has become an important topic in global financial management [1][2][3]. Because MNCs can operate in different countries and face different tax regimes and rates, they need to consider how to minimize their burden on taxes so as to increase their profits.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Tax Strategy and International Financial Management of Multinational Companies

Jin,

2024

Applied Mathematics and Nonlinear Sciences

View full text Add to dashboard Cite

In the context of intensifying global competition, the exploration of corporate tax strategy is emerging as a pivotal area within financial management. This paper develops a flowchart for a tax planning scheme tailored to the economic strategy of multinational corporations. It examines the tax planning approaches related to enterprise financing strategy and capital operation strategy, identifying the optimal tax planning scheme based on two primary service objectives outlined in the flowchart. An empirical analysis is conducted using the case of H Communication Company to investigate the tangible benefits of its tax strategy on international financial management during its multinational operations. The results demonstrate that following tax planning, the coefficient for the cross-term of the multinational company’s earnings per share stands at 0.8340, suggesting that the market has positively received the company’s effective tax avoidance measures. This study not only advances practical research on tax planning for multinational projects but also serves as a dual theoretical and practical reference for the operations of multinational enterprises.

show abstract

Section: Figure 2 Substitution Effect Of Taxationmentioning

confidence: 99%

Section: Figure 2 Substitution Effect Of Taxationmentioning

confidence: 99%