Tax attractiveness and the allocation of risk within multinationals

Andreas Dinkel

No 189, arqus Discussion Papers in Quantitative Tax Research from arqus - Arbeitskreis Quantitative Steuerlehre

Abstract: This paper analyzes the impact of countries' tax attractiveness on the allocation of risk within multinational groups. Our dataset contains subsidiaries located in 32 European countries and owned by parents from 90 different countries globally. We show that tax symmetry positively influences the relative amount of risk allocated to subsidiaries. Both time and amount limitations of loss offset rules matter. Higher statutory corporate tax rates in the country of the subsidiary decrease the relative amount of risk taken.

Keywords: International taxation; Tax attractiveness; Location decision; Multinational enterprise; Risk allocation (search for similar items in EconPapers)
JEL-codes: F23 G32 H25 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-pbe and nep-pub
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:arqudp:189

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