Corporate Tax Aggressiveness - Recent History and Policy Options
21 Pages Posted: 16 Nov 2014 Last revised: 17 Nov 2014
Date Written: October 28, 2014
Aggressive corporate tax planning has existed throughout history and will likely continue for as long as corporations are subject to tax. However, the degree of corporate tax aggressiveness can ebb and flow depending upon the legal environment and whether corporations believe the benefits exceed the costs.
This paper examines corporate tax aggressiveness from the 1990s to 2014. The paper also discusses various public indicia of corporate tax aggressiveness and analyzes selected data from 21 public companies.
Finally, Section VII of the paper discusses several policy options for further reducing corporate tax aggressiveness, including: (1) improvements to the IRS whistleblower program, (2) increased transparency, and (3) changes to the penalty structure surrounding aggressive tax positions.
Keywords: corporate tax aggressiveness, transparency, Schedule UTP, penalties, IRS whistleblower program, income shifting
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