The European Commission recently proposed to move towards a consolidated tax base for European multinational companies, to be allocated across EU member states through a system of formula apportionment. This paper argues that while the Commission’s four alternative blueprints for company tax reform may reduce existing problems of transfer pricing, they will also create new distortions as long a...

This study examines the association between auditor-provided tax services (APTS) and financial reporting quality to determine if APTS impairs auditor independence or generates knowledge spillover. Lower (higher) financial reporting quality is generally viewed as evidence supporting auditor independence impairment (knowledge spillover). We use the quality of the income tax accrual estimate from ...

We consider a setting where a firm delegates an investment decision and, subsequently, a sales decision to a privately informed manager. For both decisions corporate income taxes have real effects. We show that compensating the manager based on pre-tax residual income can ensure after-tax NPVmaximization (‘‘goal congruence’’) for each decision problem in isolation. However, this metric fails if...

In the process of studying methodological approaches used in assessing tax burden, it was concluded that is advisable to use a comprehensive assessment costs their relationship with tax-dependent places expenditure, cost centers and responsibilities cause liabilities, this allows us expand cognitive value analysis profitability different species. The lack direct interdependence burden enterpris...