Corporate Taxation and Avoidance

Corporate tax avoidance encompasses the legal strategies firms use to reduce their tax liabilities, ranging from transfer pricing arrangements between subsidiaries to the use of tax shelters and offshore structures. Researchers study how executive incentives, financial reporting choices, and the cross-border flexibility of multinational firms shape how much tax corporations actually pay relative to what statutory rates would imply. The gap between what governments expect to collect and what firms ultimately remit has significant consequences for public finances and competitive fairness, making it a matter of both economic and political concern. Open questions include how tax planning interacts with broader corporate behavior—such as investment decisions and social responsibility commitments—and how international coordination of tax rules can close avoidance channels without distorting where firms choose to operate or invest.

Works

129,595

Total citations

474,920

Keywords

Tax AvoidanceCorporate TaxIncentivesMultinational FirmsFinancial ReportingTransfer Pricing