Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Attempted suicides among U.S. soldiers often occur before or soon after deployment

Shaefer and Edin's book ($2 a Day) cited in piece on political debate over plight of impoverished Americans

Eisenberg tracks factors affecting both mental health and athletic/academic performance among college athletes

Highlights

Elizabeth Bruch promoted to Associate Professor

Susan Murphy elected to the National Academy of Sciences

Maggie Levenstein named director of ISR's Inter-university Consortium for Political and Social Research

Arline Geronimus receives 2016 Harold R. Johnson Diversity Service Award

Next Brown Bag

PSC Brown Bags
will resume fall 2016

The demand for tax haven operations

Archived Abstract of Former PSC Researcher

Desai, Mihir A., C. Fritz Foley, and James Hines. 2006. "The demand for tax haven operations." Journal of Public Economics, 90(3): 513-531.

What types of firms establish tax haven operations, and what purposes do these operations serve? Analysis of affiliate-level data for American firms indicates that larger, more international firms, and those with extensive intrafirm trade and high R and D intensities, are the most likely to use tax havens. Tax haven operations facilitate tax avoidance both by permitting firms to allocate taxable income away from high-tax jurisdictions and by reducing the burden of home country taxation of foreign income. The evidence suggests that the primary use of affiliates in larger tax haven countries is to reallocate taxable income, whereas the primary use of affiliates in smaller tax haven countries is to facilitate deferral of U.S. taxation of foreign income. Firms with sizeable foreign operations benefit the most from using tax havens, an effect that can be evaluated by using foreign economic growth rates as instruments for firm-level growth of foreign investment outside of tax havens. One percent greater sales and investment growth in nearby non-haven countries is associated with a 1.5 to 2% greater likelihood of establishing a tax haven operation.

DOI:10.1016/j.jpubeco.2005.04.004 (Full Text)

Browse | Search : All Pubs | Next