Corporate Taxation and the Choice of Patent Location within Multinational Firms

Karkinsky, Tom; Riedel, Nadine

doi:10.2139/ssrn.1532668

Cited by 44 publications

(19 citation statements)

References 39 publications

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“…Moreover, evidence attests that inequalities widen more remarkably in intangibleintensive MNEs. Again, this observation is consistent with earlier work revealing that a strategic management of intellectual property (IP) and a relocation of rights offer supplementary opportunities to route income through tax-friendly jurisdictions (e.g., Dischinger and Riedel, 2011;Karkinsky and Riedel, 2012;Griffith, Miller, and O'Connell, 2014;Alstadsaeter, Barrios, Nicodème, Skonieczna, and Vezzani, 2018).…”

Section: Introductionsupporting

confidence: 90%

“…There is compelling evidence on the existence of IP-related profit shifting schemes (Dischinger and Riedel, 2011;Karkinsky and Riedel, 2012;Griffith et al, 2014;Alstadsaeter et al, 2018). Prior research also suggests that IP-related profit shifting is one of the most important profit shifting channels (Beer and Loeprick, 2015;Heckemeyer and Overesch, 2017;Barrios and d'Andria, 2020).…”

Section: Testable Predictionsmentioning

confidence: 99%

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Profit Shifting, Employee Pay, and Inequalities: Evidence from US-Listed Companies

Souillard

2022

SSRN Journal

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Section: Introductionsupporting

confidence: 90%

Section: Testable Predictionsmentioning

confidence: 99%

Profit Shifting, Employee Pay, and Inequalities: Evidence from US-Listed Companies

Souillard

2022

SSRN Journal

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“…In all, while the implied tax semi-elasticities are large, similar magnitudes have been found in other profit shifting contexts, e.g. a tax semi-elasticity for patents of -3.8 (Karkinsky and Riedel, 2012).…”

Section: Relocation Of Proprietary Tradingsupporting

confidence: 80%

“…However, studies of specific methods of profit shifting have found decidedly higher tax semi-elasticities. For example, Karkinsky and Riedel (2012) document a semi-elasticity of -3.8 for patent applications; Dudar and Voget (2016) find a semi-elasticity of -6.2 for trademarks. These comparisons indicate that the tax sensitivity of assets held for proprietary trading is high, but comparable to other assets that firms relocate specifically in response to tax differentials.…”

Section: Introductionmentioning

confidence: 99%

Trading offshore: evidence on banks’ tax avoidance*

Langenmayr

Reiter

2022

Scandinavian J Economics

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Little is known about how banks shift profits to low-tax countries. Because of their specific business model, banks use profit shifting channels different from those of other firms. We propose a novel and bank-specific method of profit shifting: the strategic relocation of proprietary trading to low-tax jurisdictions. Using regulatory data from the German central bank, we show that a one percentage point lower corporate tax rate increases banks' fixedincome trading assets by 4.0% and trading derivatives by 9.0%. This increase does not arise from a relocation of real activities (i.e. traders); instead, it stems from the relocation of book profits.

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“…A key focus of the literature on shifting to havens is in identifying the various shifting techniques. A variety of ways have been identified, including manipulating transfer prices between affiliates [Cristea & Nguyen 2016;Davies et al 2018;Liu et al 2020;Wier 2020], the strategic location of intellectual property [Dischinger & Riedel 2011;Karkinsky & Riedel 2012;Griffith et al 2014], international debt shifting [Fuest et al 2011;Buettner & Wamser 2013] and treaty shopping [Hong 2018;Riet & Lejour 2018]. We refer to Heckemeyer & Overesch (2017) and Beer et al (2020) for comprehensive surveys.…”

Section: Related Literaturementioning

confidence: 99%