TY - JOUR
T1 - Cross-jurisdictional income shifting by U.S. multinationals
T2 - Evidence from international bond offerings
AU - Newberry, Kaye J.
AU - Dhaliwal, Dan S.
PY - 2001/12
Y1 - 2001/12
N2 - We examine whether tax incentives influence where U.S. multinationals locate their interest deductions worldwide. Our sample includes international bond offerings by U.S. multinationals during 1987-1997 denominated in the currencies of Australia, Canada, France, Germany, Italy, Japan, or the United Kingdom. Our results suggest that U.S. multinationals' debt location decisions take into account the effect of jurisdiction-specific tax-loss carryforwards and binding foreign tax credit limitations on the value of debt tax shields. Our results are also consistent with U.S. multinationals locating interest deductions in different tax jurisdictions as a mechanism to achieve tax-motivated income shifting.
AB - We examine whether tax incentives influence where U.S. multinationals locate their interest deductions worldwide. Our sample includes international bond offerings by U.S. multinationals during 1987-1997 denominated in the currencies of Australia, Canada, France, Germany, Italy, Japan, or the United Kingdom. Our results suggest that U.S. multinationals' debt location decisions take into account the effect of jurisdiction-specific tax-loss carryforwards and binding foreign tax credit limitations on the value of debt tax shields. Our results are also consistent with U.S. multinationals locating interest deductions in different tax jurisdictions as a mechanism to achieve tax-motivated income shifting.
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U2 - 10.1111/1475-679X.00032
DO - 10.1111/1475-679X.00032
M3 - Article
AN - SCOPUS:0035731714
VL - 39
SP - 643
EP - 662
JO - Journal of Accounting Research
JF - Journal of Accounting Research
SN - 0021-8456
IS - 3
ER -