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dc.contributor.authorBuettner, Thiessen_US
dc.contributor.authorRiedel, Nadineen_US
dc.contributor.authorRunkel, Marcoen_US
dc.date.accessioned2009-01-20en_US
dc.date.accessioned2009-07-28T08:47:56Z-
dc.date.available2009-07-28T08:47:56Z-
dc.date.issued2008en_US
dc.identifier.urihttp://hdl.handle.net/10419/26529-
dc.description.abstractThis paper argues that profit-shifting activities of multi-jurisdictional enterprises (MJE) are maintained under a tax system of consolidation and formula apportionment (FA). A theoretical model discusses how an MJE can exploit its impact on the definition of the consolidated group strategically. The analysis shows that the MJE will run individual affiliates as separate un-consolidated firms for tax purposes if intra-group tax-rate differences, and thereby potential gains from profit-shifting, are large. We test this prediction using confidential firm-level tax-return data for the local business tax in Germany. The identification strategy exploits a quasi experiment derived from a major company tax reform in 2001 that reduced the costs associated with separating out individual affiliates. Our results show that, evaluated at the sample mean, an increase in the tax-rate variance among the MJE's affiliates by one standard deviation reduces the number of consolidated affiliates by 20%.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper 2484en_US
dc.subject.jelH32en_US
dc.subject.jelH73en_US
dc.subject.ddc330en_US
dc.subject.keywordCorporate taxationen_US
dc.subject.keywordformula apportionmenten_US
dc.subject.keywordmicro dataen_US
dc.subject.stwKörperschaftsteueren_US
dc.subject.stwSteuerreformen_US
dc.subject.stwFormula Apportionmenten_US
dc.subject.stwSteuerwirkungen_US
dc.subject.stwMultinationales Unternehmenen_US
dc.subject.stwGewinnverlagerungen_US
dc.subject.stwDeutschlanden_US
dc.titleStrategic consolidation under formula apportionmenten_US
dc.typeWorking Paperen_US
dc.identifier.ppn589625810en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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