Avoiding Taxes: Banks' Use of Internal Debt
Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association
This paper investigates how banks use internal debt to shift profits to lower taxed affiliates. Using regulatory data on German multinational banks I find that banks employ the debt shifting channel more aggressively than non-banks do. This becomes even clearer when I correct for conduit entities in internal debt financing: A ten percentage points higher corporate tax rate increases the internal net leverage by 5.63 percentage points, corresponding to an 18% increase at the mean.
JEL-codes: H25 G21 F21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc17:168115
Access Statistics for this paper
More papers in Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().