E-Commerce and International Tax Planning
Kenneth J. Klassen
University of Waterloo - School of Accounting and Finance
University of Lethbridge - Faculty of Management
This paper investigates whether the increased flexibility afforded by e-commerce has allowed firms to increase their tax planning activities. We specifically address whether multinational firms that make greater use of e-commerce have greater sensitivity to tax incentives relative to firms making less use of e-commerce. Using proxies for e-commerce activity, we find that the relation between exports and tax incentives is increasing in the e-commerce measures. Alternative tests of foreign tax expense and country-level trade activity corroborate the main test. This research is an important first step in understanding the larger impact of e-commerce on international tax planning behavior.
Number of Pages in PDF File: 42
Keywords: International Tax Planning, Electronic Commerce, Foreign Trade
JEL Classification: H25, O33, F23working papers series
Date posted: June 21, 2004
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo8 in 0.360 seconds