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Understanding the global effect of corporate tax reforms

Project description

Tracking international corporate tax policies

As more businesses move across borders, international taxation rules are becoming difficult to coordinate by governments and tricky to navigate by companies. To reduce uncertainty, it is important to increase transparency, especially in integrated economies such as the EU. With this in mind, the EU-funded TAXGLOBAL project will explore cross-border impact of corporate tax policy. It will merge several administrative data sets on the domestic and foreign operations of companies. It will also compile and analyse a comprehensive database of all corporate tax reforms in a broad selection of countries to which firms are exposed via foreign affiliates. The findings will shed light on the global effect of tax policy on real business activity and provide policymakers with a novel understanding of what impact their decisions may have.

Objective

Despite the wide-spread cross-border operations of firms, the lack of appropriate data has so far precluded a knowledge-based understanding of the international repercussions of corporate tax policies. TAXGLOBAL provides novel insights into the cross-border effect of firm taxation on economic activity. Given the recent tax reform in the United States and a surge of corporate tax reforms to be expected in Europe in the near future (e.g. France, the United Kingdom), such insights are now needed more than ever. It is essential to fully understand and quantify the cross-border impact of corporate tax policy in order to enhance job creation, sustainable investment and productivity growth in a globalized economy. TAXGLOBAL will provide a new understanding of the issue by compiling detailed high-quality data from Norway and analysing it in a quasi-experimental research design. In particular, I will (i) merge several administrative data sets on the domestic and foreign operations of companies which are obtained directly from the administrative and statistical authorities to which they report. This new and unique database will provide an unprecedented opportunity to study in detail the cross-border links on the level of the individual firm. I will (ii) compile a comprehensive and complementary database of all corporate tax reforms in a broad selection of countries to which firms are exposed via foreign affiliates. The information will then (iii) be combined and analysed using state-of-the-art regression models. This integral study of cross-border tax effects using administrative data for multinational firms will advance the research field with new insights into the global effect of tax policy on real business activity, as well as providing policy makers with a novel understanding of the implications of their decisions in integrated economies such as the EU.

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Topic(s)

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Funding Scheme

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MSCA-IF - Marie Skłodowska-Curie Individual Fellowships (IF)

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Call for proposal

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(opens in new window) H2020-MSCA-IF-2019

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Coordinator

NORGES HANDELSHOYSKOLE
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 214 158,72
Address
HELLEVEIEN 30
N-5045 Bergen
Norway

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Region
Norge Vestlandet Vestland
Activity type
Higher or Secondary Education Establishments
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Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 214 158,72
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