Location of Repository

Tax Avoidance Activities of U.S. Multinational Corporations

By Sonja Olhoft Rego

Abstract

This paper investigates whether economies of scale and scope exist for tax planning. In particular, do multinational corporations avoid more taxes than U.S. domestic-only companies, resulting in lower effective tax rates? While the empirical results indicate that ceteris paribus, larger corporations have higher effective tax rates, firms with greater pre-tax income have lower effective tax rates. I find evidence that multinational corporations, including those with greater income, report lower effective tax rates than do U.S. domestic-only companies. Finally, I find that multinational corporations with more extensive foreign operations report lower effective tax rates than do other firms. Overall, I find substantial evidence of economies of scale and scope to tax planning. JEL classification: M41, H2

Topics: Tax planning, Tax avoidance, Multinational, Effective tax rate
Year: 2011
OAI identifier: oai:CiteSeerX.psu:10.1.1.197.9811
Provided by: CiteSeerX
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://citeseerx.ist.psu.edu/v... (external link)
  • http://www.biz.uiowa.edu/facul... (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.