This thesis empirically studies the relation between corporate social responsibility (CSR) and corporate tax avoidance. Based on a sample of 3304 observations between 2002 and 2014, I find that the CSR score of companies is negatively related to their effective tax rate. This indicates that on average, responsible companies are more involved in tax avoidance activities compared to less responsible companies. This result is robust against different sets of control variables. The results of this thesis are contrary towards previous research, where most studies find a negative relation between CSR and tax avoidance. In addition, I examine how four dimensions of CSR are related to corporate tax avoidance and I find that economic performance and environmental performance are positive significant related towards tax avoidance. This indicates that shareholder and client loyalty, as well as resource and emission reduction, relate to a higher extent of corporate tax avoidance.

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ABSTRACT This thesis analyzes the corporate income tax, more specifically related to foreign sourced income, and proposes a solution to reduce the desirability of tax inversions and restore the competitiveness of United States’ corporations. The paper introduces the topic and discusses why corporate taxation has returned to the forefront of political discussion. It then addresses early 2000s regulation passed in response to increased inversion activity of the late ‘90s and how that regulation failed to achieve its intended purpose. Then, the current laws will be introduced with a focus on corporate actions to circumvent these laws in order to reduce tax liabilities. Then, I will propose a solution that emphasizes altering the incentives of corporations as opposed to creating rules to prevent corporate actions.

With the ambition to reduce compliance costs for multinational enterprises within the European Union, but also in order to reduce the erosion of the tax base through transfer pricing and harmful tax competition among member states, the European Commission has promised to deliver a proposal for a Common Consolidated Corporate Tax Base (CCCTB) by the end of 2008. A vast literature has since emerged on the advantages and disadvantages of a move towards formulary apportionment (CCCTB). Whilst no official proposal has yet been submitted by the European Union, several documents have since been released. It is the novel contribution of this paper to critically evaluate the proposal itself. We argue that the formula is overly complex and should be simplified to source and destination based revenue weights only. (author´s abstract) / Series: Discussion Papers SFB International Tax Coordination

This diploma thesis deals with the corporate tax, specifically with the comparison of the rules for the creation of the tax base in the Czech Republic, Slovak Republic, Cyprus and the Netherlands. The target of the thesis is to find out major differences in the structure of the corporate tax base, to assess the profitability of the systems for foreign investors and to formulate the recommendations for the Czech Republic. The thesis describes the legislative regulations of the corporate taxes in particular countries. The comparative analysis and the summary of the results formulated in the final part of the thesis. Furthermore, statutory and effective tax rates are being compared, as well as the share of revenues from corporate tax on gross domestic product and on total tax revenues.

Determining with certainty how the tax authorities will treat a particular financial instrument issued is not straightforward, and this poses a risk to corporate taxpayers tasked with generating shareholder value and predictable shareholder returns. The tax classification of financial instruments, as either debt or equity instruments, may have a profound impact from a corporate taxation perspective and the reclassification of financial instruments by a tax authority, in an unanticipated manner, can alter expected tax consequences. Previous studies have placed less emphasis on the potential discrepancies between the debt or equity classification of financial instruments from a tax-versus-corporate-reporting perspective and the reasons for such potential discrepancies. This study aims to identify potential factors, giving rise to divergent financial instrument classifications between tax and financial reporting, in order to gain insight into the reasons for the potential divergence. The research objectives of the study are to determine whether there is incongruity between the tax and accounting classification of selected financial instruments; to identify the factors giving rise to a possible incongruent outcome; and to evaluate the reasons for incongruity, in order to gain insight into the differing objectives of taxation and corporate reporting. Case studies were obtained from the technical department of a large accountancy firm in South Africa to analyse specific fact patterns. It was found that incongruence exists between the financial reporting and taxation classification of financial instruments from the perspective of the issuer of those instruments. This incongruence was attributed to the impact of contingent settlement provisions and the rules-based approach adopted by tax authorities, as opposed to the principle or substance-based approach favoured by financial reporting. The incongruence noted suggests that, based on their differing objectives, financial reporting favours the classification of financial instruments as debt whilst taxation favours the classification of financial instruments as equity. Although the approaches currently followed by financial reporting and taxation are different, recent taxation amendments have incorporated financial reporting guidance into the Income Tax Act 58 of 1962. Future research can be conducted to determine the impact of aligning financial reporting and taxation principles on tax certainty from a taxpayer perspective. / Dissertation (MCom)--University of Pretoria, 2012. / lmchunu2014 / Taxation / unrestricted

The flow of foreign direct investment (FDI) into a country can benefit both the investing entity (the home country) and the host country. The determinants of FDI are a highly discussed topic, with various determinants being analysed and discussed over time.  Multiple research papers focus on the determinants of the host country, which try to identify the most important factors that make countries attractive to investment from abroad. This paper aims to shed light on the home country determinants and their relationship with investments into the Republic of Ireland. Using panel data analysis for 28 different countries around the world from the years 2012 to 2019, this paper aims to find relationships between different home country related variables and FDI flows into the Republic of Ireland. We find evidence that FDI is positively associated with the market size of the home country, the corporate tax rate difference between the home and the host country and sharing an official language. On the other hand, population and distance were found to be negatively associated with FDI. Based on the results of our analysis, a discussion of the home country determinants and their impact on FDI into Ireland is presented.

Este estudo investiga se o planejamento tributário efetuado pelas companhias abertas é uma prática de gestão que gera valor para o acionista. Embora se possa conjeturar que o aumento de lucros proporcionado pela economia de tributos contribua para elevar o valor da firma, uma avaliação incompleta de todos os custos do planejamento tributário possibilita o surgimento de quadros em que os custos superam os benefícios, reduzindo o retorno para os acionistas e afetando negativamente o valor da firma. Estudos desta questão efetuados em outros países apresentaram resultados variados. Para a verificação empírica, utilizou-se de análise de dados em painel, realizada sobre uma amostra de 1.432 observações do tipo empresa-ano, composta por 310 companhias abertas negociadas em bolsa nos anos de 2007 a 2012. O valor da firma foi estimado pelo Q de Tobin e o planejamento tributário por duas métricas distintas, alternadamente: Book-Tax Differences, controlada por accruals, e total de tributos distribuídos na DVA, ambas padronizadas pelo ativo. Visando obter resultados robustos, a amostra foi estratificada em função da agressividade histórica das firmas quanto ao planejamento tributário. Os resultados mostram que existe uma relação negativa entre planejamento tributário e valor da firma no estrato das firmas mais agressivas, não tendo havido convergência de evidências no estrato das firmas menos agressivas. Em função das peculiaridades do mercado de capitais brasileiro, foram analisados também os efeitos da governança corporativa, da gestão familiar e da concentração acionária sobre a relação estudada. Os resultados mostram que estes fatores não conseguem conter a diminuição de valor ocorrida no estrato das firmas agressivas. A contribuição desta pesquisa para a literatura consiste na demonstração dos efeitos que os custos de agência exercem sobre as avaliações dos investidores no mercado de capitais e na evidenciação da relação negativa entre planejamento tributário e valor da firma, detectada no conjunto das firmas agressivas, o que pode orientar a conduta dos investidores, analistas de mercado e gestores. / This study investigates whether tax planning activities conducted by publicly traded firms represent a management practice that creates shareholder value. While one might say, at first, that the increase in profits provided by the tax savings contributes to raise the value of the firm, an incomplete assessment of all the costs of tax planning facilitates the emergence of scenarios in which the costs outweigh the benefits, reducing the return to shareholders and adversely affecting the firm value. Studies of this issue in other countries found mixed evidence. For the empirical verification, analysis of panel data was conducted on a sample of 1,432 firm-year observations, composed of 310 publicly traded firms in years 2007 to 2012. Firm value was estimated by Tobin\'s Q and tax planning was proxied by two distinct metrics, alternately: Book-Tax Differences, controlled by total accruals, and total taxes distributed in Value Added Statement, both scaled by total assets. In order to obtain more robust results, the sample was stratified according to historical aggressiveness of the firms\' tax planning. The results show that there is a negative relationship between tax planning and firm value in the stratum of the most aggressive firms. Evidence didn\'t converge for the stratum of less aggressive firms. Due to the peculiarities of the Brazilian capital markets, the effects of corporate governance, ownership concentration and family management over the investigated relationship were also analyzed. The results show that these factors can not contain the value destruction that occurs in the stratum of the aggressive firms. The contribution of this research to the literature consists in demonstrating the effects that agency costs have on firm evaluations made by investors in the Brazilian capital markets and the disclosure of the negative relationship between tax planning and firm value found in the group of the aggressive firms, which can guide the behavior of investors, market analysts and managers.

Tématem této diplomové práce je aplikace Lafferovy křivky na daň z příjmů právnických osob v České republice. Trendem vrcholícím v posledních letech je snižování sazeb daně z příjmů korporací. Velice často se v této souvislostí mluví o fenoménu daňové konkurence. V souvislosti s očekávanými přínosy snižování daňových sazeb se práce snaží nalézt odpověď na otázku, jaký vliv má výše daňových sazeb na daňový výběr. Pro účely této analýzy je v práci vytvořen regresní model na základě časové řady dat o DPPO v ČR. Tento model umožní odhadnout daňový základ, který je použit k výpočtu daňového výnosu a konstrukci Lafferovy křivky. Na základě výsledků aplikace křivky na časovou řadu od roku 1997 se práce věnuje posouzení vhodnosti Lafferovy křivky jako nástroje k vysvětlení vývoje korporátních daňových příjmů v ČR. Následně je porovnáno daňové zatížení korporací v ČR se zatížením v ostatních státech EU, které rovněž sledují trend daňové konkurence. Analýza daňové zátěže korporací v rámci EU umožní vyvodit implikace pro oblast veřejných financí a růstový potenciál ekonomiky.