The effect of tax and nontax country characteristics on the global equity supply chains of U.S. multinationals

The Impact of Headquarter and Subsidiary Locations on Multinationals’ Effective Tax Rates

“…Furthermore, 14% of the operating subsidiaries are located in tax havens and larger countries associated with international tax planning (specifically, Hong Kong, Ireland, Netherlands, Singapore, or Switzerland), significantly less than the 18% of the financial conduits found in those countries. This is consistent with real operations occurring throughout the world wherever business opportunities arise with less concern for taxes, while financial conduits are more likely to be concentrated in countries that can facilitate tax-efficient cash transfer along the company's equity supply chain (see discussion in Dyreng et al 2013). For example, a multinational might set up an equity holding company in the Netherlands for all of its European operating subsidiaries because Dutch holding companies enjoy certain advantages in global cash management.…”

Agressividade Tributária: Um Survey da Literatura

“…Trabalhos mais recentes têm destacado a influência de algumas características da empresa no seu perfil agressividade fiscal, são elas: a qualidade do ambiente informacional da empresa (Gallemore & Labro, 2015); a demora na publicação das demonstrações (Rodrigues, 2017); a predisposição para refazimento de demonstrações financeiras (Ramos, 2017); a eficiência dos mecanismos de controle interno (Martinez, Ribeiro & Funchal, 2015;De Simone, Ege & Stomberg, 2015;Bauer, 2016), a eficiência empresarial na utilização dos recursos (Paste Junior, 2017); as estratégias de negócios e os ciclos de vida das empresas (Higgins, Omer & Phillips, 2015;Silva & Rezende, 2017); as restrições financeiras as quais as empresas estão submetidas (Law & Mills, 2015;Edwards, Schwab & Shevlin, 2016;Da Silva & Martinez, 2017;Richardson, Taylor & Lanis, 2015); as transações com partes relacionas no exterior ; e a utilização dos paraísos fiscais como mecanismo para redução da tributação explícita (Lee, 2017;Dyreng & Lindsey, 2009;Dyreng, Lindsey, Markle & Shackelford, 2015;Taylor & Richardson, 2012). Esses estudos buscam identificar características das firmas que conduzem uma maior ou menor agressividade tributária.…”

International Taxation and the Role of Organizational Form Choices for Group Structures Multinationals

“…Prior research suggests that taxes might shape specific elements of these structures. Dyreng et al (2015), for instance, examine locational choices for U.S.owned foreign subsidiaries and find that MNCs strategically select a host country to minimize the withholding tax on dividend distributions. Similarly, Lewellen and Robinson (2013) examine internal ownership chains of U.S. MNCs and show that several tax factors, such as double tax treaties, controlled-foreign corporation rules, and capital gains taxes, determine the location of a subsidiary and the choice between direct and indirect ownership chains.…”

“…On the other hand, these structures enable an MNC to shift income to tax havens and to exploit loopholes in tax systems. 2 Despite prior research showing that international taxation influences the location of foreign affiliates (Dyreng, Lindsey, Markle, and Shackelford 2015) and the design of internal ownership chains (Lewellen and Robinson 2013), we know little about how international taxation affects an MNC when selecting an organizational form for a new affiliate in the FDI host country.…”

“…MNCs, however, differ from domestic or standalone firms along several dimensions. First, unlike domestic firms, an MNC could reduce dividend-withholding taxes prior to the organizational form choice by establishing the new affiliate in a host country that lightly taxes dividend distributions (Dyreng et al 2015). Second, by operating in several taxing jurisdictions, an MNC could 3 shift taxable income across border Rice 1994, Klassen andLaplante 2012) and limit an affiliate's exposure to international taxation.…”