Transfer pricing documentation rules are a central element of the international anti-profit-shifting architecture: They are designed to curb the strategic pricing of intra-firm transactions, and, thereby, the shifting of taxable income to low-tax jurisdictions. Despite their widespread adoption, relatively little is known about their effectiveness and their implications for…
Read moreTax audits are a cornerstone of effective tax enforcement. They generate substantial additional tax revenues, help reinforce compliance and enhance trust in the tax system. Yet tax administrations everywhere face the same issue: limited resources. So what makes a tax audit efficient, and how can tax administrations organize their…
Read moreIn an increasingly interconnected global economy, transfer pricing has become a critical issue for multinational enterprises, tax authorities, and policy makers. A recent TRR 266 “Accounting for Transparency” research paper sheds light on the complex dynamics of transfer pricing harmonization and challenges some common beliefs about who benefits from harmonization.
Read moreTransparency within organizations plays a pivotal role in modern economic systems. Defined as the quality of information shared and processed between senders and receivers, transparency can enhance decision-making, improve market efficiency, and mitigate information asymmetries. However, achieving transparency is often complex and comes with trade-offs. The TRR 266…
Read moreHow do corporate taxes influence consumers? Do consumers actually pay part of the corporate tax? A comprehensive study by TRR 266 researchers Martin Jacob (WHU – Otto Beisheim School of Management), Maximilian Müller (Cologne University) and Thorben Wulff (WHU – Otto Beisheim School of Management), recently published in…
Read moreIn 2013, the European Commission started a wave of investigating tax arrangements between several EU countries, including some tax havens (e.g., Belgium, Ireland, Luxembourg, and the Netherlands) and multinational enterprises (MNEs), especially U.S. firms. Tax arrangements that were agreed upon years ago suddenly moved into the focus of the…
Read moreDue to increased pressure from a variety of sources, the attention around corporate tax risk management has recently grown. While the relation between tax planning and tax risk is well researched, little is known about tax risk management and how it influences tax outcomes,…
Read moreThe introduction of the global minimum tax (GloBE, also known as Pillar Two) leads to criticism by affected firms. The solution: firms should be exempted from filing a GloBE declaration for those countries where it is likely that they easily meet the agreed minimum tax rate via.
Read moreTRR 266‘s main locations are Paderborn University (Coordinating University), HU Berlin, and University of Mannheim. All three locations have been centers for accounting and tax research for many years. They are joined by researchers from LMU Munich, Frankfurt School of Finance and Management, Goethe University Frankfurt, University of Cologne, Leibniz University Hannover and TU Darmstadt who share the same research agenda.