TY  - JOUR
AU  - Markle, Kevin S
AU  - Shackelford, Douglas A
TI  - The Impact of Headquarter and Subsidiary Locations on Multinationals' Effective Tax Rates
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 19621
PY  - 2013
Y2  - November 2013
DO  - 10.3386/w19621
UR  - http://www.nber.org/papers/w19621
L1  - http://www.nber.org/papers/w19621.pdf
N1  - Author contact info:
Kevin S. Markle
University of Waterloo
E-Mail: ksmarkle@gmail.com

Douglas Shackelford
University of North Carolina at Chapel Hill
Kenan-Flagler Business School
Campus Box 3490, McColl Building
Chapel Hill, NC  27599-3490
Tel: 919/962-3197
Fax: 919/962-4727
E-Mail: doug_shack@unc.edu
M1  - published as Kevin S. Markle, Douglas A. Shackelford. "The Impact of Headquarter and Subsidiary Locations on Multinationals' Effective Tax Rates," in Jeffrey R. Brown, editor, "Tax Policy and the Economy, Volume 28" University of Chicago Press (2014)

M2  - featured in NBER digest on 2014-03-26
M3  - presented at "Tax Policy and the Economy", October 3, 2013
AB  - We examine effective tax rates (ETRs) for 9,022 multinationals from 87 countries from 2006 to 2011.  We find that, despite extensive investments in international tax avoidance, multinationals headquartered in Japan, the U.S., and some high-tax European countries continue to face substantially higher worldwide taxes than their counterparts in havens and other less heavily taxed locations.  Other findings include: (a) Effective tax rates remained steady over the investigation period; (b) Entering a tax haven country for the first time results in a slight reduction in the firm's ETR; (c) ETR changes vary depending on whether the subsidiary is a financial conduit or an operating subsidiary.  These results should aid ongoing international tax policy debates and expand scholars' understanding about the taxation of multinationals.
ER  -