|
R&D intensity and the effective tax rate - a meta-regression analysis
Belz, Thomas
;
Hagen, Dominik von
;
Steffens, Christian
|
Document Type:
|
Conference presentation
|
|
Year of publication:
|
2015
|
|
Conference title:
|
2015 ZEW Public Finance Conference - European Tax Policy
|
|
Location of the conference venue:
|
Mannheim, Germany
|
|
Date of the conference:
|
27.-28. April 2015
|
|
Publication language:
|
English
|
|
Institution:
|
Business School > ABWL u. Betriebswirtschaftliche Steuerlehre (Schreiber 1999-2019)
|
|
Subject:
|
330 Economics
|
|
Classification:
|
JEL:
F23 , H25 , H26 , M41,
|
|
Keywords (English):
|
Effective tax rate , R&D intensity , Intangible assets , Profit shifting , Tax accounting , Meta-regression analysis
|
|
Abstract:
|
We apply meta-regression techniques to provide a quantitative review of the empirical
literature on how research and development (R&D) expenses affect the effective tax rate (ETR). R&D expenses relate to a well-accepted profit shifting channel, strategic placement of intellectual property within a multinational entity. Using a unique hand-collected data set, we add a new perspective to the current base erosion and profit shifting (BEPS) state of research and debate, in three ways: First, observing that primary studies report mixed evidence on how R&D expenses affect ETR, we provide a consensus estimate for this effect. Second, we consider this effect in more detail by separating a tax accounting effect and a profit shifting effect, which to our knowledge has not yet been investigated. We detect that one-third of the R&D effect on the ETR is due to the tax accounting effect and could be mitigated via book-tax conformity. We further find that 10% of the profit shifting effect can be traced back to R&D tax credits. Third, our meta-regression reveals factors that are possible sources of variation and bias in previous empirical studies.
|
 Search Authors in
You have found an error? Please let us know about your desired correction here: E-Mail
Actions (login required)
 |
Show item |
|
|
