How do disclosures of tax aggressiveness to tax authorities affect reporting decisions evidence from schedule utp erin m towery the university of texas at austin. The oecd provides a forum for countries to exchange information on tax planning schemes, detection methods and response strategies the atp expert group is a sub-group of working party no11 that has responsability for maintaining a secure directory of over 400 aggressive tax planning schemes. Department of revenue and taxation director john p camacho told senators his agency has been aggressive in collecting taxes, citing as an example a recent $2 million collection from a single taxpayer who has owed the government for years but camacho said the agency has hired only two additional. Tax planning by multinational enterprises (mnes) is estimated to generate a worldwide loss of corporate tax revenues of between $100 billion and $240 billion us-based mnes alone are believed to retain a total of $2 trillion in earnings outside the us, largely for tax reasons.
This study examines the impact of outside directors on the association between corporate social responsibility (csr) performance and tax aggressiveness based on a sample of 5,007 firm-year observations over the 2003-2009 period, we find that there is a negative association between the. Government plans in consultation document suggest that tax advisers whose schemes are defeated in courts could have to repay lost money to taxpayer. 1 american bar association tax section may meeting committee on tax policy and simplification second panel corporate tax aggressiveness may 9, 2014. May 2017 tax aggressiveness of alcohol and bottling companies in australia this research was funded by the foundation for alcohol research and education, uniting church in. In this dissertation, i examine two related questions on whether and how tax aggressiveness of firms is associated with shareholder wealth in a new context - mergers and acquisitions (m&a. - 2 - corporate tax aggressiveness and the role of debt abstract we examine the effect of leverage on corporate tax aggressiveness we derive the optimal level of.
We investigate the effect of information asymmetry on corporate tax avoidance using a difference-in-differences matching estimator to assess the effects of changes in analyst coverage caused by broker closures and mergers, we find that firms avoid tax more aggressively after a reduction in. Does tax aggressiveness reduce financial reporting transparency karthik balakrishnan email: [email protected] phone: (215) 898-2610. Overconfidence and aggressive corporate tax policy james a chyz university of tennessee fabio gaertner university of wisconsin-madison asad kausar. Tax aggressiveness, as commonly proxied by the effective tax rate (etr), measures a firm's effort spent on minimizing its tax payments it is suggested that more tax aggressive firms have greater incentives to allocate resources to minimize taxes and thus have lower etrs corporate governance.
I develop a unifying conceptual framework of corporate tax planning the framework accommodates constructs frequently studied in empirical tax accounting research, ie tax avoidance, tax aggressiveness, tax sheltering, and tax evasion, by relating them to the seminal notion of effective tax. To me the idea that taxes are contributions to society is intuitively reasonable it is a corporate social responsibility (csr) both tax behaviour and csr reporting strategy are corporate decisions hence, otherwise identical companies might have different effective tax rates (etrs) and csr.
Abstract this study investigates the relation between corporate political connections and tax aggressiveness we study a broad array of corporate political activities, including the employment of connected directors, campaign contributions, and lobbying. Between tax aggressiveness and financial aggressiveness however, earnings quality 2 increases as audit quality increases this study contributes to the literature by examining the link between audit quality and tax avoidance. Financial accounting measures of tax reporting aggressiveness abstract-this study examines a setting in which a tax reporting decision is delegated. Aggressive corporate tax planning has existed throughout history and will likely continue for as long as corporations are subject to tax however, the degree of.