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Public Disclosure of Foreign Subsidiaries and International Tax Avoidance

37 Pages Posted: 7 Aug 2015 Last revised: 5 Nov 2016

Tanja Herbert

University of Cologne

Pia Olligs

University of Cologne

Michael Overesch

Universität zu Köln

Date Written: October 2016

Abstract

Our study analyzes the relationship between public disclosure of group structures in Exhibit 21 and international tax avoidance of U.S. multinational firms. Several U.S. multinational enterprises have removed a substantial number of foreign subsidiaries from their Exhibit 21 since 2010. Our analysis suggests that firms that decided to substantially reduce the number of foreign subsidiaries disclosed in their Exhibit 21 avoid significantly more taxes compared to firms that did not change disclosure.

Keywords: Effective Tax Rate, Tax Avoidance, Public Disclosure

JEL Classification: M41, M48, H26

Suggested Citation

Herbert, Tanja and Olligs, Pia and Overesch, Michael, Public Disclosure of Foreign Subsidiaries and International Tax Avoidance (October 2016). Available at SSRN: https://ssrn.com/abstract=2640552 or http://dx.doi.org/10.2139/ssrn.2640552

Tanja Herbert

University of Cologne ( email )

Albertus-Magnus-Platz
Cologne, 50923
Germany

Pia Olligs

University of Cologne ( email )

Albertus-Magnus-Platz
Cologne, 50923
Germany

Michael Overesch (Contact Author)

Universität zu Köln ( email )

Albertus-Magnus-Platz
WiSo-Gebäude
Cologne, 50923
Germany
0221/470-5605 (Phone)

HOME PAGE: http://www.steuer.uni-koeln.de/

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