Author: | Hsieh, Chih-chieh |
Title: | Does exchange of information deter tax avoidance : evidence from convention of double taxation taxes on income |
Advisors: | Cheng, C. S. Agnes (AF) |
Degree: | Ph.D. |
Year: | 2019 |
Subject: | Hong Kong Polytechnic University -- Dissertations Tax evasion -- United States Double taxation -- United States |
Department: | School of Accounting and Finance |
Pages: | vii, 80 pages : color illustrations |
Language: | English |
Abstract: | This project studies whether the establishment of a convention of double taxation taxes on income between the United States of America and other countries deter the U.S. registered multinational firms from engaging in a higher level of tax avoidance. Because the differences in income tax laws and information asymmetry between the U.S. and other countries, businesses operate in multiple jurisdictions could minimize the overall income tax liability by shifting their income in either country. While income tax convention intends to reduce double taxation on income for multinationals, it includes provisions such as article 26 Exchange of Information and Administrative Assistance that enables contracting countries to help each other in collecting their fair share of revenue. Taking advantage of the double income taxation conventions signed by the U.S. and other countries, I investigate the effect of a convention on multinationals' tax avoidance and erosion behavior (proxied by cash, GAAP, and current effective tax rates). I find that multinational firms with material operations in countries that have income tax convention with the U.S. will have higher effective tax rates afterward, suggesting the establishment of double taxation convention helps U.S. tax authority in combating tax erosion by the U.S. registered multinational firms. |
Rights: | All rights reserved |
Access: | open access |
Files in This Item:
File | Description | Size | Format | |
---|---|---|---|---|
991022255758903411.pdf | For All Users | 1.03 MB | Adobe PDF | View/Open |
Copyright Undertaking
As a bona fide Library user, I declare that:
- I will abide by the rules and legal ordinances governing copyright regarding the use of the Database.
- I will use the Database for the purpose of my research or private study only and not for circulation or further reproduction or any other purpose.
- I agree to indemnify and hold the University harmless from and against any loss, damage, cost, liability or expenses arising from copyright infringement or unauthorized usage.
By downloading any item(s) listed above, you acknowledge that you have read and understood the copyright undertaking as stated above, and agree to be bound by all of its terms.
Please use this identifier to cite or link to this item:
https://theses.lib.polyu.edu.hk/handle/200/10075