Debt and tax planning by multinationals:
Multinational enterprises (MNEs) manipulate the location of their debts to reduce their corporate tax burden. Indeed, by locating debts in higher-tax rate countries, MNEs can deduct interest payments against a higher tax rate. This paper provides evidence of such manipulation of debt location. The a...
Gespeichert in:
| 1. Verfasser: | |
|---|---|
| Weitere Verfasser: | , |
| Format: | Elektronisch E-Book |
| Sprache: | English |
| Veröffentlicht: |
Paris
OECD Publishing
2017
|
| Schriftenreihe: | OECD Economics Department Working Papers
|
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Zusammenfassung: | Multinational enterprises (MNEs) manipulate the location of their debts to reduce their corporate tax burden. Indeed, by locating debts in higher-tax rate countries, MNEs can deduct interest payments against a higher tax rate. This paper provides evidence of such manipulation of debt location. The analysis is based on a large sample of firm-level data from the ORBIS database. By comparing the indebtedness of MNE entities with similar characteristics but different debt shifting opportunities, the analysis suggests that a 1 percentage point higher tax rate is associated with 1.3% higher third-party debt. This is a lower bound estimate of debt manipulation, since it excludes the manipulation of internal debt. The analysis also shows that strict rules limiting interest deductibility (e.g. thin capitalisation or interest-to-earnings rules) can reduce debt manipulation. The possibility to locate debts in higher-tax rate countries reduces the effective cost of debt for MNE groups. The empirical analysis suggests that this can lead MNE groups to increase their overall external indebtedness, compounding the "debt bias" existing in most tax systems |
| Beschreibung: | 1 Online-Ressource (27 Seiten) |
| DOI: | 10.1787/b524037b-en |
Internformat
MARC
| LEADER | 00000nam a2200000zc 4500 | ||
|---|---|---|---|
| 001 | BV047936032 | ||
| 003 | DE-604 | ||
| 007 | cr|uuu---uuuuu | ||
| 008 | 220413s2017 xx o|||| 00||| eng d | ||
| 024 | 7 | |a 10.1787/b524037b-en |2 doi | |
| 035 | |a (ZDB-13-SOC)06125875X | ||
| 035 | |a (OCoLC)1312692905 | ||
| 035 | |a (DE-599)BVBBV047936032 | ||
| 040 | |a DE-604 |b ger |e aacr | ||
| 041 | 0 | |a eng | |
| 049 | |a DE-384 |a DE-91 |a DE-473 |a DE-824 |a DE-29 |a DE-739 |a DE-355 |a DE-20 |a DE-1028 |a DE-1049 |a DE-188 |a DE-521 |a DE-861 |a DE-898 |a DE-92 |a DE-573 |a DE-19 | ||
| 100 | 1 | |a Sorbe, Stéphane |e Verfasser |4 aut | |
| 245 | 1 | 0 | |a Debt and tax planning by multinationals |c Stéphane Sorbe, Åsa Johansson and Øystein Bieltvedt Skeie = Dette et planification fiscale des multinationales / Stéphane Sorbe, Åsa Johansson et Øystein Bieltvedt Skeie |
| 246 | 1 | 3 | |a Dette et planification fiscale des multinationales |
| 264 | 1 | |a Paris |b OECD Publishing |c 2017 | |
| 300 | |a 1 Online-Ressource (27 Seiten) | ||
| 336 | |b txt |2 rdacontent | ||
| 337 | |b c |2 rdamedia | ||
| 338 | |b cr |2 rdacarrier | ||
| 490 | 0 | |a OECD Economics Department Working Papers | |
| 520 | |a Multinational enterprises (MNEs) manipulate the location of their debts to reduce their corporate tax burden. Indeed, by locating debts in higher-tax rate countries, MNEs can deduct interest payments against a higher tax rate. This paper provides evidence of such manipulation of debt location. The analysis is based on a large sample of firm-level data from the ORBIS database. By comparing the indebtedness of MNE entities with similar characteristics but different debt shifting opportunities, the analysis suggests that a 1 percentage point higher tax rate is associated with 1.3% higher third-party debt. This is a lower bound estimate of debt manipulation, since it excludes the manipulation of internal debt. The analysis also shows that strict rules limiting interest deductibility (e.g. thin capitalisation or interest-to-earnings rules) can reduce debt manipulation. The possibility to locate debts in higher-tax rate countries reduces the effective cost of debt for MNE groups. The empirical analysis suggests that this can lead MNE groups to increase their overall external indebtedness, compounding the "debt bias" existing in most tax systems | ||
| 650 | 4 | |a Taxation | |
| 650 | 4 | |a Economics | |
| 700 | 1 | |a Johansson, Åsa |4 ctb | |
| 700 | 1 | |a Bieltvedt Skeie, Øystein |4 ctb | |
| 856 | 4 | 0 | |u https://doi.org/10.1787/b524037b-en |x Verlag |z kostenfrei |3 Volltext |
| 912 | |a ZDB-13-SOC | ||
| 943 | 1 | |a oai:aleph.bib-bvb.de:BVB01-033317525 | |
Datensatz im Suchindex
| _version_ | 1818806084165435392 |
|---|---|
| adam_text | |
| adam_txt | |
| any_adam_object | |
| any_adam_object_boolean | |
| author | Sorbe, Stéphane |
| author2 | Johansson, Åsa Bieltvedt Skeie, Øystein |
| author2_role | ctb ctb |
| author2_variant | å j åj s ø b sø søb |
| author_facet | Sorbe, Stéphane Johansson, Åsa Bieltvedt Skeie, Øystein |
| author_role | aut |
| author_sort | Sorbe, Stéphane |
| author_variant | s s ss |
| building | Verbundindex |
| bvnumber | BV047936032 |
| collection | ZDB-13-SOC |
| ctrlnum | (ZDB-13-SOC)06125875X (OCoLC)1312692905 (DE-599)BVBBV047936032 |
| discipline | Wirtschaftswissenschaften |
| discipline_str_mv | Wirtschaftswissenschaften |
| doi_str_mv | 10.1787/b524037b-en |
| format | Electronic eBook |
| fullrecord | <?xml version="1.0" encoding="UTF-8"?><collection xmlns="http://www.loc.gov/MARC21/slim"><record><leader>00000nam a2200000zc 4500</leader><controlfield tag="001">BV047936032</controlfield><controlfield tag="003">DE-604</controlfield><controlfield tag="007">cr|uuu---uuuuu</controlfield><controlfield tag="008">220413s2017 xx o|||| 00||| eng d</controlfield><datafield tag="024" ind1="7" ind2=" "><subfield code="a">10.1787/b524037b-en</subfield><subfield code="2">doi</subfield></datafield><datafield tag="035" ind1=" " ind2=" "><subfield code="a">(ZDB-13-SOC)06125875X</subfield></datafield><datafield tag="035" ind1=" " ind2=" "><subfield code="a">(OCoLC)1312692905</subfield></datafield><datafield tag="035" ind1=" " ind2=" "><subfield code="a">(DE-599)BVBBV047936032</subfield></datafield><datafield tag="040" ind1=" " ind2=" "><subfield code="a">DE-604</subfield><subfield code="b">ger</subfield><subfield code="e">aacr</subfield></datafield><datafield tag="041" ind1="0" ind2=" "><subfield code="a">eng</subfield></datafield><datafield tag="049" ind1=" " ind2=" "><subfield code="a">DE-384</subfield><subfield code="a">DE-91</subfield><subfield code="a">DE-473</subfield><subfield code="a">DE-824</subfield><subfield code="a">DE-29</subfield><subfield code="a">DE-739</subfield><subfield code="a">DE-355</subfield><subfield code="a">DE-20</subfield><subfield code="a">DE-1028</subfield><subfield code="a">DE-1049</subfield><subfield code="a">DE-188</subfield><subfield code="a">DE-521</subfield><subfield code="a">DE-861</subfield><subfield code="a">DE-898</subfield><subfield code="a">DE-92</subfield><subfield code="a">DE-573</subfield><subfield code="a">DE-19</subfield></datafield><datafield tag="100" ind1="1" ind2=" "><subfield code="a">Sorbe, Stéphane</subfield><subfield code="e">Verfasser</subfield><subfield code="4">aut</subfield></datafield><datafield tag="245" ind1="1" ind2="0"><subfield code="a">Debt and tax planning by multinationals</subfield><subfield code="c">Stéphane Sorbe, Åsa Johansson and Øystein Bieltvedt Skeie = Dette et planification fiscale des multinationales / Stéphane Sorbe, Åsa Johansson et Øystein Bieltvedt Skeie</subfield></datafield><datafield tag="246" ind1="1" ind2="3"><subfield code="a">Dette et planification fiscale des multinationales</subfield></datafield><datafield tag="264" ind1=" " ind2="1"><subfield code="a">Paris</subfield><subfield code="b">OECD Publishing</subfield><subfield code="c">2017</subfield></datafield><datafield tag="300" ind1=" " ind2=" "><subfield code="a">1 Online-Ressource (27 Seiten)</subfield></datafield><datafield tag="336" ind1=" " ind2=" "><subfield code="b">txt</subfield><subfield code="2">rdacontent</subfield></datafield><datafield tag="337" ind1=" " ind2=" "><subfield code="b">c</subfield><subfield code="2">rdamedia</subfield></datafield><datafield tag="338" ind1=" " ind2=" "><subfield code="b">cr</subfield><subfield code="2">rdacarrier</subfield></datafield><datafield tag="490" ind1="0" ind2=" "><subfield code="a">OECD Economics Department Working Papers</subfield></datafield><datafield tag="520" ind1=" " ind2=" "><subfield code="a">Multinational enterprises (MNEs) manipulate the location of their debts to reduce their corporate tax burden. Indeed, by locating debts in higher-tax rate countries, MNEs can deduct interest payments against a higher tax rate. This paper provides evidence of such manipulation of debt location. The analysis is based on a large sample of firm-level data from the ORBIS database. By comparing the indebtedness of MNE entities with similar characteristics but different debt shifting opportunities, the analysis suggests that a 1 percentage point higher tax rate is associated with 1.3% higher third-party debt. This is a lower bound estimate of debt manipulation, since it excludes the manipulation of internal debt. The analysis also shows that strict rules limiting interest deductibility (e.g. thin capitalisation or interest-to-earnings rules) can reduce debt manipulation. The possibility to locate debts in higher-tax rate countries reduces the effective cost of debt for MNE groups. The empirical analysis suggests that this can lead MNE groups to increase their overall external indebtedness, compounding the "debt bias" existing in most tax systems</subfield></datafield><datafield tag="650" ind1=" " ind2="4"><subfield code="a">Taxation</subfield></datafield><datafield tag="650" ind1=" " ind2="4"><subfield code="a">Economics</subfield></datafield><datafield tag="700" ind1="1" ind2=" "><subfield code="a">Johansson, Åsa</subfield><subfield code="4">ctb</subfield></datafield><datafield tag="700" ind1="1" ind2=" "><subfield code="a">Bieltvedt Skeie, Øystein</subfield><subfield code="4">ctb</subfield></datafield><datafield tag="856" ind1="4" ind2="0"><subfield code="u">https://doi.org/10.1787/b524037b-en</subfield><subfield code="x">Verlag</subfield><subfield code="z">kostenfrei</subfield><subfield code="3">Volltext</subfield></datafield><datafield tag="912" ind1=" " ind2=" "><subfield code="a">ZDB-13-SOC</subfield></datafield><datafield tag="943" ind1="1" ind2=" "><subfield code="a">oai:aleph.bib-bvb.de:BVB01-033317525</subfield></datafield></record></collection> |
| id | DE-604.BV047936032 |
| illustrated | Not Illustrated |
| index_date | 2024-07-03T19:35:05Z |
| indexdate | 2024-12-18T19:04:08Z |
| institution | BVB |
| language | English |
| oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-033317525 |
| oclc_num | 1312692905 |
| open_access_boolean | 1 |
| owner | DE-384 DE-91 DE-BY-TUM DE-473 DE-BY-UBG DE-824 DE-29 DE-739 DE-355 DE-BY-UBR DE-20 DE-1028 DE-1049 DE-188 DE-521 DE-861 DE-898 DE-BY-UBR DE-92 DE-573 DE-19 DE-BY-UBM |
| owner_facet | DE-384 DE-91 DE-BY-TUM DE-473 DE-BY-UBG DE-824 DE-29 DE-739 DE-355 DE-BY-UBR DE-20 DE-1028 DE-1049 DE-188 DE-521 DE-861 DE-898 DE-BY-UBR DE-92 DE-573 DE-19 DE-BY-UBM |
| physical | 1 Online-Ressource (27 Seiten) |
| psigel | ZDB-13-SOC |
| publishDate | 2017 |
| publishDateSearch | 2017 |
| publishDateSort | 2017 |
| publisher | OECD Publishing |
| record_format | marc |
| series2 | OECD Economics Department Working Papers |
| spelling | Sorbe, Stéphane Verfasser aut Debt and tax planning by multinationals Stéphane Sorbe, Åsa Johansson and Øystein Bieltvedt Skeie = Dette et planification fiscale des multinationales / Stéphane Sorbe, Åsa Johansson et Øystein Bieltvedt Skeie Dette et planification fiscale des multinationales Paris OECD Publishing 2017 1 Online-Ressource (27 Seiten) txt rdacontent c rdamedia cr rdacarrier OECD Economics Department Working Papers Multinational enterprises (MNEs) manipulate the location of their debts to reduce their corporate tax burden. Indeed, by locating debts in higher-tax rate countries, MNEs can deduct interest payments against a higher tax rate. This paper provides evidence of such manipulation of debt location. The analysis is based on a large sample of firm-level data from the ORBIS database. By comparing the indebtedness of MNE entities with similar characteristics but different debt shifting opportunities, the analysis suggests that a 1 percentage point higher tax rate is associated with 1.3% higher third-party debt. This is a lower bound estimate of debt manipulation, since it excludes the manipulation of internal debt. The analysis also shows that strict rules limiting interest deductibility (e.g. thin capitalisation or interest-to-earnings rules) can reduce debt manipulation. The possibility to locate debts in higher-tax rate countries reduces the effective cost of debt for MNE groups. The empirical analysis suggests that this can lead MNE groups to increase their overall external indebtedness, compounding the "debt bias" existing in most tax systems Taxation Economics Johansson, Åsa ctb Bieltvedt Skeie, Øystein ctb https://doi.org/10.1787/b524037b-en Verlag kostenfrei Volltext |
| spellingShingle | Sorbe, Stéphane Debt and tax planning by multinationals Taxation Economics |
| title | Debt and tax planning by multinationals |
| title_alt | Dette et planification fiscale des multinationales |
| title_auth | Debt and tax planning by multinationals |
| title_exact_search | Debt and tax planning by multinationals |
| title_exact_search_txtP | Debt and tax planning by multinationals |
| title_full | Debt and tax planning by multinationals Stéphane Sorbe, Åsa Johansson and Øystein Bieltvedt Skeie = Dette et planification fiscale des multinationales / Stéphane Sorbe, Åsa Johansson et Øystein Bieltvedt Skeie |
| title_fullStr | Debt and tax planning by multinationals Stéphane Sorbe, Åsa Johansson and Øystein Bieltvedt Skeie = Dette et planification fiscale des multinationales / Stéphane Sorbe, Åsa Johansson et Øystein Bieltvedt Skeie |
| title_full_unstemmed | Debt and tax planning by multinationals Stéphane Sorbe, Åsa Johansson and Øystein Bieltvedt Skeie = Dette et planification fiscale des multinationales / Stéphane Sorbe, Åsa Johansson et Øystein Bieltvedt Skeie |
| title_short | Debt and tax planning by multinationals |
| title_sort | debt and tax planning by multinationals |
| topic | Taxation Economics |
| topic_facet | Taxation Economics |
| url | https://doi.org/10.1787/b524037b-en |
| work_keys_str_mv | AT sorbestephane debtandtaxplanningbymultinationals AT johanssonasa debtandtaxplanningbymultinationals AT bieltvedtskeieøystein debtandtaxplanningbymultinationals AT sorbestephane detteetplanificationfiscaledesmultinationales AT johanssonasa detteetplanificationfiscaledesmultinationales AT bieltvedtskeieøystein detteetplanificationfiscaledesmultinationales |