NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Kevin S. Markle

University of Waterloo

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NBER Working Papers and Publications

October 2014The Impact of Headquarter and Subsidiary Locations on Multinationals' Effective Tax Rates
with Douglas A. Shackelford
in Tax Policy and the Economy, Volume 28, Jeffrey R. Brown, editor
We examine effective tax rates (ETRs) for 9,022 multinationals from 87 countries from 2006 to 2011. We find that, despite extensive investments in international tax avoidance, multinationals headquartered in Japan, the U.S., and some high-tax European countries continue to face substantially higher worldwide taxes than their counterparts in havens and other less heavily taxed locations. Other findings include: (a) Effective tax rates remained steady over the investigation period; (b) Entering a tax haven country for the first time results in a slight reduction in the firm's ETR; (c) ETR changes vary depending on whether the subsidiary is a financial conduit or an operating subsidiary. These results should aid ongoing international tax policy debates and expand scholars' understanding ab...
November 2013The Impact of Headquarter and Subsidiary Locations on Multinationals' Effective Tax Rates
with Douglas A. Shackelford: w19621
We examine effective tax rates (ETRs) for 9,022 multinationals from 87 countries from 2006 to 2011. We find that, despite extensive investments in international tax avoidance, multinationals headquartered in Japan, the U.S., and some high-tax European countries continue to face substantially higher worldwide taxes than their counterparts in havens and other less heavily taxed locations. Other findings include: (a) Effective tax rates remained steady over the investigation period; (b) Entering a tax haven country for the first time results in a slight reduction in the firm's ETR; (c) ETR changes vary depending on whether the subsidiary is a financial conduit or an operating subsidiary. These results should aid ongoing international tax policy debates and expand scholars' understanding ab...

Published: The Impact of Headquarter and Subsidiary Locations on Multinationals' Effective Tax Rates, Kevin S. Markle, Douglas A. Shackelford. in Tax Policy and the Economy, Volume 28, Brown. 2014

February 2011Cross-Country Comparisons of Corporate Income Taxes
with Douglas A. Shackelford: w16839
To our knowledge, this paper provides the most comprehensive analysis of firm-level corporate income taxes to date. We use publicly available financial statement information for 11,602 public corporations from 82 countries from 1988 to 2009 to estimate country-level effective tax rates (ETRs). We find that the location of a multinational and its subsidiaries substantially affects its worldwide ETR. Japanese firms always faced the highest ETRs. U.S. multinationals are among the highest taxed. Multinationals based in tax havens face the lowest taxes. We find that ETRs have been falling over the last two decades; however, the ordinal rank from high-tax countries to low-tax countries has changed little. We also find little difference between the ETRs of multinationals and domestic-only firms....

Published: Markle, Kevin S. and Douglas A. Shackelford, “Cross-Country Comparisons of Corporate Income Taxes,” National Tax Journal 65:3, September 2012, 493-527.

June 2009Do Multinationals or Domestic Firms Face Higher Effective Tax Rates?
with Douglas Shackelford: w15091
To our knowledge, this paper provides the most comprehensive analysis of firm-level corporate income tax expenses to date. We use publicly available financial statement information to estimate firm-level effective tax rates (ETRs) for 10,642 corporations from 85 countries from 1988 to 2007. We find that multinationals and domestic-only companies face similar ETRs. We also find that, on average, ETRs declined by seven percentage points or 20% over the period. German, Japanese, Australian and Canadian decreases were large. American, British, and French declines were more modest. Nonetheless, because ETRs were falling worldwide, the ordinal rank from high-tax countries to low-tax countries changed little. Japanese firms always faced the highest ETRs. ETRs for tax havens and countries ...

Published: Markle, Kevin S. and Douglas A. Shackelford, 2012. Cross-country Comparisons of Corporate Income Taxes. NBER Working Paper 15091. National Tax Journal 65, 493-528.

 
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