Welcome to Skatteforsk - Centre for Tax Research's April seminar!
This month we are excited to host Manon Francois, researcher at the EU Tax Observatory in Paris, where she works on international corporate tax avoidance. She will present the paper "Lost in Haven".
The event is open and everyone is welcome to join!
Time: Thursday 11th of April, 11:15-12:00. Venue: T451, Tower building, NMBU. Contact person: Benjamin Gøtestam (benjamin.gotestam@nmbu.no)
Title: Lost in Haven
Abstract: This paper starts from the puzzling observation that corporate losses are excessively reported in tax havens. The geography of corporate losses shows a systematic over-representation of loss-making subsidiaries in tax havens. We find that losses are highly concentrated, with 1% of multinationals accounting for approximately 3/4 of total losses. The subsidiaries of the largest multinationals are more likely to report losses, and these losses tend to be reported in tax havens. Using a policy change in Luxembourg in 2015 that facilitated tax consolidation, we show that losses increased dramatically after the reform which resulted in a sharp drop of firms' effective tax rate. This suggests that losses may be a profit-maximizing outcome of multinationals' strategies in tax havens.
It is also possible to participate online using this link. Meeting ID: 383 051 582 044. Passcode: wYV5Xo