Profit Shifting and Earnings Management through Tax Haven Subsidiaries: An Exploratory Analysis of Multinational Companies

Omar, Normah; Zolkaflil, Salwa

doi:10.1016/s2212-5671(15)01081-3

Cited by 20 publications

(21 citation statements)

References 5 publications

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“…Both, the EU and OECD as well as the national governments should continue close cooperation and go further behind BEPS Action plan also fighting with tax evasion and other illegal activities. Future researchers should extend this study and look into the business strategy and type of operation run by respective companies and their subsidiaries together with their notes to the account on related party transaction (Omar & Zolkaflil, 2015).…”

Section: Discussionmentioning

confidence: 99%

Criteria for Defining Tax Evasion as Tax Terrorism

Jurušs

2017

Economics and Business

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There are significant losses in tax revenues across the European Union (EU). National governments lose billions of euros in the revenues from non-paid taxes and other illegal activities. The fight against aggressive tax planning, tax fraud and illegal activities is on the agenda of the EU, OECD and all the national governments. However, due to the size of tax losses it should not be treated just as tax evasion, but rather as tax terrorism! Therefore, the author has set criteria when tax evasion should be named as “tax terrorism” as well as designed the principles for tackling tax terrorism and other ways of non-payment of taxes. The tax evasion could be treated as “tax terrorism” in case of international evasion from taxes by organized groups of persons for criminal purposes as well as when it creates significant losses in government revenues. The term “tax terrorism” would have impact to communication and cause response of society and politics, therefore it would have more social and political consequences.

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Section: Discussionmentioning

confidence: 99%

Criteria for Defining Tax Evasion as Tax Terrorism

Jurušs

2017

Economics and Business

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“…By having operated in different jurisdictions, MNEs can exploit different statutory corporate income tax (CIT) rates. The difference in the CIT rate between countries creates the opportunity for an MNE to maximize its global profit by lowering tax paid (Armstrong, Blouin, & Larcker, 2012) (Omar & Zolkaflil, 2015) (Ratan, 2015). MNE uses strategy by shifting profit from a high tax jurisdiction to a low or nil tax jurisdiction (Johansson, Skeie, Sorbe, & Menon, 2017) (Dharmapala, 2014a).…”

Section: Multinational Enterprises and Profit Shiftingmentioning

confidence: 99%

Anti-Avoidance and Profit Shifting in Asean Multinational Enterprises: Is It Effective?

Pratama¹

2020

JIA

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Using ORBIS company micro-level data, this paper discussed the effectiveness of anti-avoidance regulation in tackling outbound profit shifting in ASEAN. Using fixed effect panel data for the period from 2009 - 2018, the thesis found that the elasticity of outbound profit shifting to positive tax rate differential is roughly 1.56%, where anti-avoidance effect brings back profit by 1.06%, which resulted in net impact of 0.5% of outbound profit shifting. While negative tax rate differential brings inbound profit shifting by 0.75%. Also, this paper conclude too strict anti-avoidance regulation will result in the decreasing effect. Dengan menggunakan data mikro yang disediakan oleh ORBIS, penelitian ini ini mencoba mengukur tingkat efektivitas peraturan anti penghindaran pajak di ASEAN dalam mencegah pergeseran laba keluar negeri. Dengan menggunakan metode efek tetap data panel yang mencakup periode 2009 – 2018, thesis ini menemukan bahwa tingkat elastisitas atas outbound profit shifting terhadap perbedaan tarif pajak positif adalah 1,56%, dimana efek aturan penghindaran pajak dapat mencegah pergeseran profit sebesar 1,06%, yang menghasilkan dampak bersih pergeseran laba keluar negeri yang tidak bisa dicegah sebesar sebesar 0,5%.Selain itu, thesis ini juga menyimpulkan bahwa peraturan anti penghindaran pajak yang terlalu ketat akan menurunkan efektivitas peraturan anti penghindaran pajak.

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“…Untuk mengatasi permasalahan tersebut, OECD mengeluarkan OECD Transfer Pricing Guidelines, sebagai panduan bagi otoritas pajak maupun perusahaan multinasional dalam menyelesaikan masalah transfer pricing. OECD Transfer Pricing Guidelines berisi panduan mengenai penerapan the arm's length principle (standar internasional mengenai penetapan harga transfer yang telah disepakati oleh negara-negara anggota OECD untuk kepentingan perpajakan (Hebous & Lipatov, 2014;Omar & Zolkaflil, 2015). Hal ini kemudian berimplikasi terhadap adanya penetapan harga yang ditetapkan oleh pihak independen dan menimbulkan harga pasar wajar (Mara, 2015;Gen sch el & Seelkopf, 2016).…”

Section: Tabel 5 Hasil Uji Signifikansi Parameter Individuunclassified

Peran OECD dalam Meminimalkan Upaya Tax Aggressiveness pada Perusahaan Multinationality

Damayanti

Prastiwi²

2017

jamal

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Peran OECD dalam Meminimalkan Upaya Tax Aggressiveness pada Perusahaan Multinationality. Penelitian ini bertujuan membuktikan pengaruh transaksi multinationality, pemanfaatan tax heaven country dan pemeriksaan pajak terhadap tax aggressiveness. Penelitian dilakukan dengan pendekatan kuantitatif pada perusahaan yang terdaftar di BEI periode 2010-2014. Hasil penelitian menunjukkan pemanfaatan tax haven countries tidak berpengaruh terhadap tax aggressiveness, yang berarti bahwa perusahaan memanfaatkan lokasi usaha di negara tax heaven tidak dalam upaya melakukan tax aggresiveness. Multinatio nality berpengaruh negatif terhadap tax aggressiveness. Hal ini disebabkan lembaga OECD telah mengeluarkan OECD Transfer Pricing Guidelines sebagai panduan bagi otoritas pajak maupun perusahaan multinasional dalam menyelesaikan masalah transfer pricing. Sebaliknya, Pemeriksaan pajak tidak berpengaruh terhadap tax aggressiveness.

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Profit Shifting and Earnings Management through Tax Haven Subsidiaries: An Exploratory Analysis of Multinational Companies

Cited by 20 publications

References 5 publications

Criteria for Defining Tax Evasion as Tax Terrorism

Criteria for Defining Tax Evasion as Tax Terrorism

Anti-Avoidance and Profit Shifting in Asean Multinational Enterprises: Is It Effective?

Peran OECD dalam Meminimalkan Upaya Tax Aggressiveness pada Perusahaan Multinationality

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