Using IRS Data to Identify Income Shifting to Foreign Affiliates

@inproceedings{Simone2017UsingID,
  title={Using IRS Data to Identify Income Shifting to Foreign Affiliates},
  author={Lisa De Simone and Lillian F. Mills and Bridget Stomberg},
  year={2017}
}
We use confidential Internal Revenue Service data on the magnitude of U.S.-foreign intercompany transactions to develop a measure of the likelihood that U.S. multinational entities (MNEs) shift income out of the U.S. Results show that the likelihood of net outbound income shifting is positively related to tax haven subsidiaries, high tech operations, income tax incentives, R&D, and foreign profitability, and negatively related to foreign sales, gross profits, size, and capital expenditures… CONTINUE READING