Tax Haven Ties and the Profitability of Foreign Owned Companies

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F19%3A43916571" target="_blank" >RIV/62156489:43110/19:43916571 - isvavai.cz</a>

Výsledek na webu

<a href="https://is.muni.cz/do/econ/sborniky/2019/Proceedings_final.pdf" target="_blank" >https://is.muni.cz/do/econ/sborniky/2019/Proceedings_final.pdf</a>

DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Tax Haven Ties and the Profitability of Foreign Owned Companies

Popis výsledku v původním jazyce

Tax haven countries are the prevalent territories chosen by the Multinational Enterprises to place their income in order to avoid tax burden. By exploiting tax differences and preferential tax regimes, the Multinational Enterprises can engage in profit shifting in order to decrease the corporate income tax. This paper aims to analyze the impact of links with tax haven countries on the profitability of foreign owned companies based in the Czech Republic. The objective of this research is to investigate whether Czech subsidiaries that have sister companies based in tax haven countries report less profit before taxation. We adopt the stochastic frontier model to estimate the effect of links with tax haven on the output inefficiency reported by the Czech companies. We focus our empirical analysis on the firm-level data and their ties with 50 world tax haven countries. The links with tax havens are expected to have a negative impact of company efficiency, proxied by profit before taxation. This negative effect represents an indirect evidence of profit shifting from the Czech Republic to tax haven countries.

Název v anglickém jazyce

Tax Haven Ties and the Profitability of Foreign Owned Companies

Popis výsledku anglicky

Tax haven countries are the prevalent territories chosen by the Multinational Enterprises to place their income in order to avoid tax burden. By exploiting tax differences and preferential tax regimes, the Multinational Enterprises can engage in profit shifting in order to decrease the corporate income tax. This paper aims to analyze the impact of links with tax haven countries on the profitability of foreign owned companies based in the Czech Republic. The objective of this research is to investigate whether Czech subsidiaries that have sister companies based in tax haven countries report less profit before taxation. We adopt the stochastic frontier model to estimate the effect of links with tax haven on the output inefficiency reported by the Czech companies. We focus our empirical analysis on the firm-level data and their ties with 50 world tax haven countries. The links with tax havens are expected to have a negative impact of company efficiency, proxied by profit before taxation. This negative effect represents an indirect evidence of profit shifting from the Czech Republic to tax haven countries.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50204 - Business and management

Projekt

<a href="/cs/project/GA18-14082S" target="_blank" >GA18-14082S: Férové korporátní zdanění: Měření dopadu přesunu zisků na rozpočet České republiky</a><br>

Návaznosti

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Rok uplatnění

2019

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

European Financial Systems 2019: Proceedings of the 16th International Scientific Conference

ISBN

978-80-210-9338-6

ISSN

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e-ISSN

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Počet stran výsledku

9

Strana od-do

400-408

Název nakladatele

Masarykova univerzita

Místo vydání

Brno

Místo konání akce

Brno

Datum konání akce

24. 6. 2019

Typ akce podle státní příslušnosti

WRD - Celosvětová akce

Kód UT WoS článku

000503222600047