Competing with Whom? European Tax Competition, the “Great Fragmentation of the Firm,” and Varieties of FDI Attraction Profiles

International tax competition is generally framed as states competing for foreign direct investment (FDI), and analyses of the phenomenon draw heavily on FDI statistics. In and of themselves, however, FDI statistics are merely a quantification of the value of investment projects and tell us little about the heterogeneity of these projects and the distinct patterns of competitive dynamics between countries they generate. In this paper, we create a more sophisticated understanding of international tax competition by pointing out its variegated nature. To do so, we introduce the notion of the "great fragmentation of the firm" to distinguish between five categories of FDI: manufacturing affiliates, shared service centers, research and development facilities, intermediate holding companies, and top holding companies. Using a novel combination of firm-level and country-level data, we identify for each category of FDI which European Union member states are most successful in attracting it, what macro-institutional and tax arrangements they rely on for doing so, and what benefits they receive from it in terms of tax revenues and employment creation. In this way we were able to identify five distinct FDI attraction profiles and show that, rather than being a game of all against all, tax competition in the European Union increasingly takes place amongst subsets of countries that compete for similar categories of FDI.Der internationale Steuerwettbewerb wird üblicherweise als ein Wettbewerb zwischen Staaten um ausländische Direktinvestitionen (foreign direct investment, FDI) dargestellt. Analysen zu diesem Thema stützen sich weitgehend auf FDI-Statistiken, die jedoch ausschließlich den zahlenmäßigen Wert von Investitionsprojekten beschreiben. Sie besagen daher wenig über die Heterogenität dieser Projekte und die durch sie erzeugten distinkten Muster wettbewerblicher Dynamik zwischen Ländern. Mit diesem Papier möchten wir zu einem differenzierteren Verständnis des internationalen Steuerwettbewerbs beitragen, indem wir dessen vielfältige Erscheinungsformen aufzeigen. Hierzu führen wir den Begriff der „großen Fragmentierung des Unternehmens“ (great fragmentation) ein, um zwischen fünf FDI-Kategorien zu unterscheiden: Produktionsstandorte, Shared Service Centers, Forschungs- und Entwicklungszentren, Zwischenholdings und Dachholdings. Durch eine neuartige Kombination von Unternehmens- und Länderdaten ermitteln wir für jede dieser Kategorien, welche EU-Mitgliedstaaten am erfolgreichsten ausländische Direktinvestitionen darin anwerben, auf welche makroinstitutionellen und steuerlichen Arrangements sie sich hierbei stützen und welchen Nutzen im Hinblick auf Steuererträge und neu geschaffene Arbeitsplätze sie hieraus ziehen. Auf diese Weise können wir fünf verschiedene FDI-Attraktivitätsprofile erarbeiten und zeigen, dass der Steuerwettbewerb zwischen den Staaten der Europäischen Union nicht etwa ein Spiel ist, in dem alle gegen alle antreten, sondern dass er zunehmend zwischen Untergruppen von Staaten stattfindet, die in ähnlichen FDI-Kategorien miteinander konkurrieren.Contents 1 Introduction 2 The great fragmentation of the firm 3 The anatomy and geographical dispersion of corporate groups Manufacturing affiliates Shared service centers Research and development (R&D) facilities Top holding companies Intermediate holding companies 4 Analytical approach, data, and visualization Analytical approach Data Clustering analysis and visualization of the results 5 Results Manufacturing affiliates Shared service centers Research and development (R&D) facilities Top holding companies Intermediate holding companies Towards a typology of “FDI attraction profiles” 6 Conclusion Reference

The Wealth Defence Industry:A Large-scale Study on Accountancy Firms as Profit Shifting Facilitators

Corporations increasingly engage in innovative ‘tax planning strategies’ by shifting profits between jurisdictions. In response, states try to curtail such profit shifting activities while at the same time attempting to retain and attract multinational corporations. We aim to open up this dichotomy between states and corporations and argue that a wealth defence industry of professional service firms plays a crucial role as facilitators. We investigate the subsidiary structure of 27,000 MNCs and show that clients of the Big Four accountancy firms show systematically higher levels of aggressive tax planning strategies than clients of smaller accountancy firms. We specify this effect for three distinct strategies and also uncover marked differences across countries. As such we provide empirical evidence for the systematic involvement of auditors as facilitators in corporate wealth defence

Inverse association between negative symptoms and body mass index in chronic schizophrenia.

BACKGROUND: We investigated whether negative symptoms, such as poor motivation or anhedonia, were associated with higher body mass index (BMI) in stable patients with schizophrenia chronically treated with antipsychotic medication. METHODS: 62 olanzapine- or clozapine-treated patients with illness duration of at least four years were selected from an international multicenter study on the characterization of negative symptoms. All participants completed the Brief Negative Symptom Scale (BNSS) and the Positive and Negative Syndrome Scale (PANSS). Bivariate correlations between BMI and negative symptoms (BNSS) were explored, as well as multiple regression analyses. We further explored the association of two principal component factors of the BNSS and BMI. Subsidiary analyses re-modeled the above using the negative symptoms subscale of the PANSS and the EMSLEY factor for negative symptoms for convergent validity. RESULTS: Lower negative symptoms (BNSS score) were associated with higher BMI (r=-0.31; p=0.015). A multiple regression analysis showed that negative symptoms (BNSS score) and age were significant predictors of BMI (p=0.037). This was mostly driven by the motivation/pleasure factor of the BNSS. Within this second factor, BMI was negatively associated with anhedonia (r=-0.254; p=0.046) and asociality (r=-0.253; p=0.048), but not avolition (r=-0.169; p=0.188). EMSLEY score was positively associated with BNSS (r=0.873, p<0.001), but negatively associated with BMI (r=-0.308; p=0.015). The association between PANSS and BMI did not reach significance (r=-224, p=0.080). CONCLUSIONS: We conclude that lower negative symptoms were associated with higher BMI (assessed using both the BNSS and EMSLEY) in chronic stable schizophrenia patients, mostly due to lower anhedonia and asociality levels

Organizing pneumonia due to actinomycosis: an undescribed association

Organizing pneumonia is a pathologic entity characterized by intra-alveolar buds of granulation tissue that can extend to the bronchiolar lumen. It is a non-specific finding reflecting a pattern of pulmonary response to aggression that can be cryptogenic or associated with several causes. Pulmonary actinomycosis is a rare infectious disease, of bacterial aetiology, and of difficult diagnosis. This disease usually causes non-specific respiratory symptoms and radiological findings, and the treatment is based on the use of antibiotics. The authors describe a clinical case of a 53-year-old male smoker (50 pack years), initially seen for complaints of right-sided chest pain and sub-febrile temperature. Imaging studies revealed a mass in the inferior right lobe and enlarged mediastinal lymph nodes. Empirical treatment with antibiotics caused partial and temporary improvement. Transthoracic biopsy revealed a pattern of organizing pneumonia with giant multinucleated cell granulomas. Repeat imaging studies revealed an enlargement of the pulmonary mass and therefore a right inferior lobectomy was performed. The pathologic study revealed a histological pattern of organizing pneumonia surrounding inflammatory bronchiectasis with a large number of Actinomyces colonies. To our knowledge there is presently no report in the literature of organizing pneumonia associated with Actinomyces infection