The Rotten Apple: Tax Avoidance in Ireland

Barrera, Rita; Bustamante, Jessica

doi:10.1080/08853908.2017.1356250

Cited by 26 publications

(11 citation statements)

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“…Such laws would deter them from aggressively engaging in tax planning. Such measures have worked in Europe; for instance, the European Commission punished Apple for lowering its effective corporate tax rate from 1% to just 0.005% (Barrera & Bustamante, 2018). This view is consistent with those of Hanlon and Heitzman (2010) and Tang (2019), who explained that owners and shareholders employ competent individuals to help them to reduce their burden and increase their value.…”

Section: The Level and Trend Of Tax Planning In East Africasupporting

confidence: 63%

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A longitudinal analysis of tax planning schemes of firms in East Africa

Kimea

Mkhize

2021

Investment Management and Financial Innovations

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Taxes play a significant role in the social and economic development of counties. On the other hand, taxes represent a significant cost to firms; hence they devise legal ways to reduce their taxes through tax planning. In East Africa, the statutory tax rate of firms averages 30%, which is considered a major burden to the firms. As a result, this study aims to longitudinally examine the tax planning practices of listed firms in East Africa countries (EACs). The study used twelve-year annual reports of ninety-one firms from EACs. Both cash effective tax rate (CEFR) and accounting effective tax rate were employed as tax planning measures. Descriptive statistics together with Wilcoxon signed-ranked test were used to analyze the results. The study demonstrates the existence of corporate tax planning by the listed firms in EACs. The average CETR of the firms was 17% as opposed to the statutory tax rate of 30%, demonstrating that the firms actively engage in tax planning activities. The evidence further demonstrated a gradual decrease in the tax planning activities of the firms over the past twelve years. The study further found out that the rates of decline in the firms’ tax planning were statistically insignificant. Despite the decrease in the firms’ tax planning, the tax authorities in EACs should enforce tax laws to eliminate the tax planning problem.

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Section: The Level and Trend Of Tax Planning In East Africasupporting

confidence: 63%

“…Similarly, agency theorists argue that, due to agency costs that arise due to shareholders-management relationships, management may http://dx.doi.org/10.21511/imfi.18 (3).2021. 18 misuse tax planning decisions (Graham et al, 2014;Maama & Mkhize, 2020;Putra et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

A longitudinal analysis of tax planning schemes of firms in East Africa

Kimea

Mkhize

2021

Investment Management and Financial Innovations

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“…While the shared imaginary of tax havens is usually associated with dirty money laundry and criminal activity, recent studies have pointed out that this is only part of their story. Tax havens attract a variety of actors including major multinational corporations seeking to avoid tax around the world (Barrera and Bustamante, 2018) and parties aiming to hide licit capital from corrupted authorities in home countries (Ledyaeva et al, 2015). For instance, Ledyaeva et al (2015) show that the phenomenon of round-trip investment, that is, money sent abroad to be reinvested in the home country, has emerged as a way for firms to bargain better conditions when returning as foreign investors.…”

Section: Economic Geographies Of the Illicitmentioning

confidence: 99%

Towards a cultural political economy of the illicit

Inverardi-Ferri

2021

Progress in Human Geography

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This article intervenes in debates on the illicit in economic geography, notably in the tensions between cultural and political economic approaches. First, it assesses critiques of political economic evaluations of the illicit. It then offers a ‘trading zone’, drawing upon both cultural and political economy, and argues that the two economic epistemologies are complementary, not mutually exclusive. The article instates political and ecological missing links in cultural political economy to foster multidimensional analyses of illicit practices in discursive, material and ecological registers. It concludes by discussing the broader implications of a cultural political economy of the illicit for economic geography.

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“…According to Barrera and Bustamante (2018) tax avoidance and the ethical behaviour of multinationals has become a major issue for governments around the world. Though crucial, tax avoidance by MNCs has been largely discussed with reference to the role played by low-tax jurisdictions or tax havens in facilitating TP manipulation (Taylor & Richardson, 2014).…”

Section: Related Literature Reviewmentioning

confidence: 99%