Real Effects of Private Country-by-Country Disclosure

Simone, Lisa De; Olbert, Marcel

doi:10.2139/ssrn.3398116

Cited by 21 publications

(26 citation statements)

References 73 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The decline in tax avoidance that I document over the same time period can be attributed to a change in other types of tax planning. For example, De Simone and Olbert [2019] find a reduction in ownership of tax haven subsidiaries by EU MNCs subject to CbCr. Consistent with the notion that it can take firms 12 to 18 months to adjust tax planning strategies (Khan et al.…”

Section: Affiliate‐level Response To Country‐by‐country Reportingmentioning

confidence: 99%

“…De Simone and Olbert [2019] and Joshi [2019] examine the effects of CbCr on economic activity, finding a significant change in investment and employment levels in low‐tax countries after its introduction. My paper differs from these in several ways.…”

Section: Introductionmentioning

confidence: 99%

“…First, I examine whether CbCr meets its objective—a reduction in tax avoidance—by discouraging firms from shifting income to low‐tax jurisdictions. Unlike De Simone and Olbert [2019] and Joshi [2019], I also examine the channel through which these disclosures change tax behavior (i.e., enforcement risk, detection risk, and risk of public exposure).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Does Private Country‐by‐Country Reporting Deter Tax Avoidance and Income Shifting? Evidence from BEPS Action Item 13

Joshi

2020

J of Accounting Research

112

View full text Add to dashboard Cite

To combat tax avoidance by multinational corporations, the Organisation for Economic Co-operation and Development introduced country-by-country reporting (CbCr), requiring firms to provide tax authorities with a geographic breakdown of their profitability and activities. Treating the introduction of CbCr in the European Union as a shock to private disclosure requirements, this study examines the effect on corporate tax outcomes. Exploiting the Accepted by Douglas J. Skinner. I appreciate the insightful comments and constructive suggestions of two anonymous referees. This paper is based on my dissertation and I received invaluable guidance from my dissertation committee members: P. JOSHI €750 million revenue threshold for disclosure and employing regressiondiscontinuity and difference-in-differences designs, I document a 1-2 percentage point increase in consolidated GAAP effective tax rates among affected firms. I also find evidence consistent with a decline in tax-motivated income shifting, starting in 2018. These results suggest that, although private geographic disclosures can deter corporate tax avoidance, so far, the regulations have had a limited effect on tax-motivated income shifting. My findings have policy implications for the global implementation of private CbCr and extend the debate on public versus private disclosure of tax information.

show abstract

Section: Affiliate‐level Response To Country‐by‐country Reportingmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Does Private Country‐by‐Country Reporting Deter Tax Avoidance and Income Shifting? Evidence from BEPS Action Item 13

Joshi

2020

J of Accounting Research

112

View full text Add to dashboard Cite

show abstract

“…Third, we contribute to the strand of literature and on-going discussion about the tax disclosure by CbCreports of firms (European Parliament and the Council, 2017;Brown, 2018;De Simone and Olbert, 2019;Joshi et al, 2019;Overesch and Wolff, 2019;Dutt et al, 2019aDutt et al, , 2019b.…”

mentioning

confidence: 99%

Real Effects of Public Country-by-Country Reporting and the Firm Structure of European Banks

2020

View full text Add to dashboard Cite

European regulation mandates public country-by-country reporting for banks and is expected to increase costs of tax haven activities. We hand-collect data from IFRS consolidation scopes for European banks and test whether the availability of additional public information on banks' global activity reduces their tax haven presence. In a difference-indifference analysis, we find that indeed tax haven presence has declined significantly after the introduction of mandatory public country-by-country reporting for European banks, as compared to the insurance industry, which is not subject to this regulation. In further tests, we show that this negative association is particularly driven by a reduction of subsidiaries in "Dot-Havens" and tax havens with high financial secrecy.

show abstract

“…Several studies investigate both public and non-public CbCR and its real effects (R. J. Brown, 2018;Dutt, Ludwig, Nicolay, Vay, & Voget, 2019;Eberhartinger, Speitmann, & Sureth-Sloane, 2020;Joshi, Outslay, & Persson, 2020;Overesch & Wolff, 2017;Simone & Olbert, 2019). While it is known that the information disclosed through CbCR is potentially misleading none of these studies scrutinizes the extend to which misperception impedes transparency and generates undesired implications.…”

Section: Corporate Tax Misperceptionmentioning

confidence: 99%

Tax Misperception and Its Effects on Decision Making – a Literature Review

Blaufus

Chirvi²,

Huber³

et al. 2020

SSRN Journal

View full text Add to dashboard Cite

Previous accounting research shows that taxes affect decision making by individuals and firms. Most studies assume that agents have accurate perception regarding their tax burden. However, there is a growing body of literature analyzing whether taxes are indeed perceived correctly. We review 124 studies on the measurement of tax misperception and its behavioral implications. The review reveals that many taxpayers have substantial tax misperceptions that lead to biased decision making. We develop a Behavioral Taxpayer Response Model on the impact of provided tax information on tax perception. Besides individual traits, characteristics of the tax information and the decision environment determine the extent of tax misperception. We discuss opportunities for future research and methodological limitations. While there is much evidence on tax misperception at the individual level, we hardly find any research at the firm level. Little is known about the real effects of managers' tax misperception and on how tax information is strategically managed to impact stakeholders. This research gap is surprising as a large part of the accounting literature analyzes decision making and disclosure of firms. We recommend a mixed-method approach combining experiments, surveys, and archival data analyses to improve the knowledge on tax misperception and its consequences.

show abstract

Real Effects of Private Country-by-Country Disclosure

Cited by 21 publications

References 73 publications

Does Private Country‐by‐Country Reporting Deter Tax Avoidance and Income Shifting? Evidence from BEPS Action Item 13

Does Private Country‐by‐Country Reporting Deter Tax Avoidance and Income Shifting? Evidence from BEPS Action Item 13

Real Effects of Public Country-by-Country Reporting and the Firm Structure of European Banks

Tax Misperception and Its Effects on Decision Making – a Literature Review

Contact Info

Product

Resources

About