Multinational Firms and Tax Havens

@article{Gumpert2016MultinationalFA,
  title={Multinational Firms and Tax Havens},
  author={Anna M. Gumpert and James R. Hines and Monika Schnitzer},
  journal={Review of Economics and Statistics},
  year={2016},
  volume={98},
  pages={713-727}
}
Abstract Multinational firms with operations in high-tax countries can benefit the most from reallocating taxable income to tax havens, though this is sufficiently difficult and costly that only 20.4% of German multinational firms have any tax haven affiliates. Among German manufacturing firms, a 1 percentage point higher foreign tax rate is associated with a 2.3% greater likelihood of owning a tax haven affiliate. This is consistent with tax avoidance incentives and contrasts with earlier… 

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