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Effective Tax Rates and Profit Shifting Around the World
Kraváček, Jan ; Janský, Petr (advisor) ; Mareš, Jan (referee)
This thesis aims to analyze the scope of profit shifting by U.S. multinational corporations using effective tax rates as a metric. Alternatively, unlike other academic literature on the subject, this work complements the analysis by utilizing also statutory coporate tax rate. The main contribution of the thesis is an econometric analysis of the most recent data provided by Bur- eau of Economic Analysis. It is shown that the scope of profit shifting is rising with gross income sensitivity to effective tax rates clearly increasing in the time span from 1983 till 2015. According to the panel data from this time span, one percentage point increase in effective tax rate would decrease the reported gross income in a low tax jurisdiction by 2.4 percent. Interestingly, an analogous analysis using statutory tax rates does not yield any statistically significant effect. Moreover, results show that the richer the country is, the lower its effective tax rate and the higher its statutory rate. These results indicate that the two metrics can have different implications. Furthermore, if some version of profit apportionment formula was applied on the profit of U.S. multinationals, a significant profit redistribution would take place. Gross income would oftentimes be attributed to developing coun- tries with a large share of...
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Is there any link between hierarchy of transnational corporations, banks and research and development institutions?
Chmelařová, Eva ; Blažek, Jiří (advisor) ; Marek, David (referee)
Is there any link between hierarchy of transnational corporations, banks and research and development institutions? Abstract The world city theory focuses on concentration of the most progressive activities of the social-economic system in a few key cities that together have a major share of command and control power within the global economy. Location advantages of such cities attract TNC headquarters, financial services and R&D facilities. Interactions between them lead to further strengthening of the position of the global city and it brings a cumulative effect on the location advantages. This paper examines the global city hierarchy based on the data on 1 500 world's biggest companies headquarters location, as well as location of 1 500 most important R&D institutions and 200 biggest banks. According to the results the triad of New York, London and Tokyo was taken over by Beijing. Correlation analysis of the city rankings in all of the three hierarchies confirms significant geographical link between global arrangement of TNC headquarters, financial services and R&D institutions. Keywords: global city, TNCs, banks, RIS, research and development, geographical organization
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