Corporate Taxation and Profit Shifting: Sectoral Differences and the Influence of Intangible Assets among European Multinationals
| Název práce v češtině: | Korporátní zdanění a přesouvání zisků: Sektorové rozdíly a vliv nehmotného majetku mezi evropskými nadnárodními podniky |
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| Název v anglickém jazyce: | Corporate Taxation and Profit Shifting: Sectoral Differences and the Influence of Intangible Assets among European Multinationals |
| Klíčová slova: | přesouvání zisků, nehmotný majetek, nadnárodní podniky, korporátní zdanění, sektorová analýza, high-tech sektor |
| Klíčová slova anglicky: | profit shifting, intangible assets, multinational corporation, corporate taxation, sectoral analysis, high-tech sectors |
| Akademický rok vypsání: | 2022/2023 |
| Typ práce: | diplomová práce |
| Jazyk práce: | angličtina |
| Ústav: | Institut ekonomických studií (23-IES) |
| Vedoucí / školitel: | prof. Petr Janský, Ph.D. |
| Řešitel: | skrytý - zadáno vedoucím/školitelem |
| Datum přihlášení: | 08.02.2023 |
| Datum zadání: | 08.02.2023 |
| Datum a čas obhajoby: | 18.09.2024 09:00 |
| Místo konání obhajoby: | Opletalova, O314, místnost. č. 314 |
| Datum odevzdání elektronické podoby: | 31.07.2024 |
| Datum proběhlé obhajoby: | 18.09.2024 |
| Oponenti: | PhDr. Miroslav Palanský, Ph.D. |
| Seznam odborné literatury |
| GARCIA-BERNARDO, J., & JÁNSKÝ, P. (2024). "Profit Shifting of Multinational Corporations Worldwide." World Development 177: p. 106527.
CRIVELLI, E., DE MOOIJ, R., DE VRIJER, J., HEBOUS, M. & KLEMM, A. (2021): “Taxing Multinationals in Europe.” Technical Report 12, International Monetary Fund. BEER, S., & DEVLIN, D. (2021). "Is there money on the table? Evidence on the magnitude of profit shifting in the extractive industries." International Monetary Fund. HUIZINGA, H., & LAEVEN, L. (2008). "International profit shifting within multinationals: A multi-country perspective." Journal of Public Economics, 92(5-6), 1164-1182. RATHKE, A. A. T. (2020). "Profit shifting in Brazil and the impact of tax havens." Revista Contabilidade & Finanças, 32(85), 95-108. VIERTOLA, M. (2023). "Profit shifting of multinational enterprises: evidence from the Nordics." BEER, S., & LOEPRICK, J. (2013). "Profit shifting: Drivers and potential countermeasures." WU International Taxation Research Paper Series, 2013-03. |
| Předběžná náplň práce v anglickém jazyce |
| The dataset for this study will be sourced primarily from the ORBIS Europe database. ORBIS provides a comprehensive database containing detailed financial information on companies across Europe. The dataset will consist of multinationals' subsidiaries operating on European territory with European global ultimate owners (GUOs). In this case, GUO is defined as an entity owning at least 50.01 \% of the subsidiary. A crucial assumption will be made that only profit making, and tax paying multinationals shift profit.
Following in the steps of the existing literature (e.g. Huizinga & Laeven; Rathke; Viertola), the analysis will employ a fixed effects regression, making use of the Cobb-Douglas function to model the relationship between profits and tax rates. The Cobb-Douglas function helps capture the production capabilities of firms using capital and labor inputs and the resulting equation will be populated by a variety of financial variables such as profit before tax as the dependent variable, and regressors such as operating turnover, employee-related costs, tangible and intangible assets, as well as information on booked tax expenses and debt. These variables should provide a comprehensive view of the financial health and operational scale of the companies in the dataset. Other than the statutory corporate tax rates, effective tax rates (or ETRs) will be used, as they can provide information on the real tax liability faced by an MNE. Many forms of tax rates, including the logarithmic transformation suggested by Garcia-Bernardo & Jánský, will be included in the analysis to examine the consistency and to better account for the non-linear relationship between tax rates and profit shifting. The methodology will further include a detailed explanation of the following topics: - Data segmentation based on NACE codes and European Commission classification criteria into three groups based on the level of technology development and knowledge intensity. - Effective tax rates calculation and their differences relative to the statutory corporate income tax rates. - Regression models used to assess the impact of favorable low-tax jurisdictions or favorable IP regimes on profit shifting behavior of each group of MNEs. To summarize the above, among others, the proposed analysis will attempt to test the following hypotheses: Hypothesis \#1: The effect of intangible assets on pre-tax profits differs between high and low-tax jurisdictions. Hypothesis \#2: The effect of intangible assets on pre-tax profits differs between jurisdictions with and without favorable IP regimes. Hypothesis \#3: The sensitivity of pre-tax profits to tax rates differs depending on the level of technological development. |