Banks as Tax Planning Intermediaries

Banks as Tax Planning Intermediaries PDF Author: John Gallemore
Publisher:
ISBN:
Category :
Languages : en
Pages : 77

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Book Description
We provide the first large-scale empirical evidence of banks functioning as tax planning intermediaries. We posit that some banks specialize in assisting corporate clients with tax planning. In this role, banks make use of their centrality in financial relationships; access to private information; and ability to structure, execute, and participate in tax planning transactions for clients. We measure bank-client relationships using loan contracts and measure client tax planning using either the cash effective tax rate or the unrecognized tax benefit balance. Using a difference-in-differences design, we find that firms experience meaningful tax reductions when they begin a relationship with a bank whose existing clients engage in above-median tax planning. The effects of pairing with such tax intermediary banks are concentrated in relationships with larger or longer maturity loans, clients with foreign income or greater credit risk, and when the bank is an industry specialist or has above-median investment banking activities. Finally, we find that potential clients are more likely to choose tax intermediary banks than non-tax intermediary banks, suggesting that tax intermediary banks benefit by attracting new business. Collectively, our results suggest that some banks act as tax planning intermediaries, a role beyond the traditional one of financial intermediary.

Banks as Tax Planning Intermediaries

Banks as Tax Planning Intermediaries PDF Author: John Gallemore
Publisher:
ISBN:
Category :
Languages : en
Pages : 77

Get Book Here

Book Description
We provide the first large-scale empirical evidence of banks functioning as tax planning intermediaries. We posit that some banks specialize in assisting corporate clients with tax planning. In this role, banks make use of their centrality in financial relationships; access to private information; and ability to structure, execute, and participate in tax planning transactions for clients. We measure bank-client relationships using loan contracts and measure client tax planning using either the cash effective tax rate or the unrecognized tax benefit balance. Using a difference-in-differences design, we find that firms experience meaningful tax reductions when they begin a relationship with a bank whose existing clients engage in above-median tax planning. The effects of pairing with such tax intermediary banks are concentrated in relationships with larger or longer maturity loans, clients with foreign income or greater credit risk, and when the bank is an industry specialist or has above-median investment banking activities. Finally, we find that potential clients are more likely to choose tax intermediary banks than non-tax intermediary banks, suggesting that tax intermediary banks benefit by attracting new business. Collectively, our results suggest that some banks act as tax planning intermediaries, a role beyond the traditional one of financial intermediary.

Study into the Role of Tax Intermediaries

Study into the Role of Tax Intermediaries PDF Author: OECD
Publisher: OECD Publishing
ISBN: 9264041818
Category :
Languages : en
Pages : 92

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Book Description
This report examines the role tax intermediaries play in the operation of tax systems and specifically to understand their role in “unacceptable tax minimisation arrangements” as well as to identify strategies for strengthening the relationship betweeen tax intermediaries and revenue bodies.

Building Transparent Tax Compliance by Banks

Building Transparent Tax Compliance by Banks PDF Author: OECD
Publisher: OECD Publishing
ISBN: 926406785X
Category :
Languages : en
Pages : 139

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Book Description
This book analyses the nature of banking, its complex financing transactions and how they are used by both banks and their clients in tax planning. It also explores the processes that banks use to manage tax risk and the prevention, detection and response strategies applied by revenue bodies.

Addressing Tax Risks Involving Bank Losses

Addressing Tax Risks Involving Bank Losses PDF Author: OECD
Publisher: OECD Publishing
ISBN: 9264088687
Category :
Languages : en
Pages : 91

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Book Description
This book provides an overview of the tax treatment of banks’ tax losses losses in 17 OECD countries; describes the tax risks that arise in relation to these losses; outlines the incentives that give rise to these risks, and describes how these risks can be reduced.

Addressing Tax Risks Involving Bank Losses

Addressing Tax Risks Involving Bank Losses PDF Author: OECD
Publisher: OECD Publishing
ISBN: 9789264088672
Category :
Languages : en
Pages : 88

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Book Description
This book provides an overview of the tax treatment of banks’ tax losses losses in 17 OECD countries; describes the tax risks that arise in relation to these losses; outlines the incentives that give rise to these risks, and describes how these risks can be reduced.

Introduction to Business

Introduction to Business PDF Author: Lawrence J. Gitman
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 1455

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Book Description
Introduction to Business covers the scope and sequence of most introductory business courses. The book provides detailed explanations in the context of core themes such as customer satisfaction, ethics, entrepreneurship, global business, and managing change. Introduction to Business includes hundreds of current business examples from a range of industries and geographic locations, which feature a variety of individuals. The outcome is a balanced approach to the theory and application of business concepts, with attention to the knowledge and skills necessary for student success in this course and beyond. This is an adaptation of Introduction to Business by OpenStax. You can access the textbook as pdf for free at openstax.org. Minor editorial changes were made to ensure a better ebook reading experience. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution 4.0 International License.

Corporate Loss Utilisation through Aggressive Tax Planning

Corporate Loss Utilisation through Aggressive Tax Planning PDF Author: OECD
Publisher: OECD Publishing
ISBN: 9789264119215
Category :
Languages : en
Pages : 92

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Book Description
After describing the size of corporate tax losses and the policy issues related to their tax treatment, this report identifies three key risk areas in relation to use of losses for tax purposes: corporate reorganisations, financial instruments and non-arm’s length transfer pricing.

Advances in Taxation

Advances in Taxation PDF Author: John Hasseldine
Publisher: Emerald Group Publishing
ISBN: 1839091878
Category : Business & Economics
Languages : en
Pages : 156

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Book Description
This volume presents studies from expert contributors exploring topics such as: corporate tax planning, tax-related accounting misstatements and uncertain tax positions, financial statement readability, the tax effects of a major pension scheme change, and non-professional investor and taxpayer judgments and perceptions.

Banking on Failure

Banking on Failure PDF Author: Richard S Collier
Publisher: Oxford University Press
ISBN: 0192603469
Category : Business & Economics
Languages : en
Pages : 368

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Book Description
Banks seem all too often involved in cases of misconduct, particularly involving the exploitation of tax systems. Banking on Failure explains why and how banks "game the system", accounting for these misconduct cases and analysing the wider implications for financial markets and tax systems. Banking on Failure: Cum-Ex and Why and How Banks Game the System explains why banks design and use structured products to exploit tax systems. It describes one of the biggest and most complex cases - the "cum-ex" scandal - in which hundreds of banks and funds from across the globe participated in the raid on the public exchequers of a number of countries, with losses in the tens of billions of euros. The book then draws on the significance of this case study, and what this tells us about modern banks and their interactions with tax systems. Banking on Failure demonstrates why the exploitation of tax systems by banks is an inevitable feature of the financial markets landscape, and suggests possible responses.

Taxation of Banks and Non-bank Financial Intermediaries in the Philippines

Taxation of Banks and Non-bank Financial Intermediaries in the Philippines PDF Author: Benedicta Du-Baladad
Publisher:
ISBN: 9789719492917
Category : Taxation
Languages : en
Pages : 544

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Book Description