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The present research identifies a total of nine factors influencing tax avoidance under the international taxation regime of the developing countries and establishes a hierarchical relationship through modeling of the identified factors using modified-total interpretive structural modeling (M-TISM).

Due to “scale without mass” properties of the digital economy, businesses reduce their physical presence in the countries of economic activities. Aided with digital features, multinational enterprises (MNEs) avoid, abolish, or adopt flexible tax burden in the developing nations through by-passing the permanent establishment condition for company taxes or the income characterization prerequisite for royalty taxation. The present research endeavors to identify the drivers of tax avoidance in the developing countries, especially exacerbated due to digital technologies (economy). In addition, the authors also examine the hierarchical relation between the extracted drivers of tax avoidance.

This research presents a considerable driving force of elements like historical foundation of tax-treaties, dominance of the developed countries, influence of trade bodies in policy matters and finally information and communications technologies (ICTs).

Identified elements drive the actors like professional enablers, tax havens, international organizations, and intangible assets in the form of intellectual properties (IPs) which act upon tax arbitrage situations both under the domestic and treaty regulations, finally culminating into profit shifting, tax manipulations or avoidance.

An increasing number of Danish municipalities wish to minimize tax avoidance due to profit shifting in their public procurement. To facilitate this effort, this study aims to develop a firm-level indicator to assess the potential risk of profit shifting (PS-risk) from Danish subsidiaries of multinational corporations to subsidiaries in low-tax jurisdictions.

Drawing from previous research, PS-risk is assumed to depend on the maximum difference in the effective corporate tax rate between the Danish subsidiary and other subsidiaries under the global ultimate owner, in conjunction with the tax regulations relevant to profit shifting. The top 400 contractors in Danish municipalities from 2017 to 2019 are identified and their relative PS-risk is estimated by combining information about corporate ownership structure with country-specific information on corporate tax rates, tax regulations and profit shifting from three independent data sets.

The PS-risk estimates are highly significantly positively correlated across the data sets and show that 17%–23% of the total procurement sum of the Danish municipalities has been spent on contracts with corporations having a medium to high PS-risk. On average, PS-risk is highest for large non-Scandinavian multinational contractors in sectors such as construction, health and information processing.

Danish public procurers may use the indicator to screen potential suppliers and, if procurement regulations permit, to ensure high-PS-risk bidders document their tax practices.

The PS-risk indicator is novel, and to the best of the authors’ knowledge, the analysis provides the first estimate of PS-risk in Danish public procurement.

The purpose of this paper is to explore the emerging discourse on corporate taxation from a corporate social responsibility perspective to develop a consensual definition of corporate tax responsibility (CTR) and to identify a set of indicators that firms should publicly communicate to their stakeholders as an accountability mechanism.

Data were obtained from semi-structured interviews with representatives of stakeholders closely related to taxation: tax authorities, companies, NGOs, tax advisors and academics. Based on a discourse analysis approach, data were coded and analyzed using computer-assisted qualitative data analysis software.

CTR is defined as the set of tax-related practices and policies that allow companies to pay a fair share of taxes as a function of the generated value in each jurisdiction in which they operate and to then publicly disclose them. Disclosure should cover disaggregated quantitative data and information on practices and policies.

Despite the wealth of research on sustainability reporting and increasing public awareness of tax aggressiveness and disclosure, academic research has not explored tax-responsible reporting. Moreover, no consensual definition of CTR has been formulated, and no indicators to properly account for responsible taxation have been identified. This paper contributes to filling these gaps by providing rich interview evidence regarding the nature of the emerging discourse on CTR reporting and a set of material indicators for CTR disclosure. This paper encourages researchers to foster the development of social accountability by engaging in future empirical studies of CTR.

This paper aims to understand the international practices of tax planning. International companies choose their capital structure according to differences in international taxation, in order to minimize the tax burden of the whole company group. This paper reviews the literature that deals with international tax avoidance techniques by highlighting tax planning measurements in the empirical literature. The methodology used is the narrative approach of literature review, which consists on assembling and synthesizing previously published research. The paper concludes that there are several approaches of international tax planning including transfers of revenues by geographical area, redevelopment of the company, haven and loopholes in tax legislation. Moreover, finding more precise measures of tax planning techniques would be of great value to studies in this respect.

The authors follow the guideline provided by Templier and Pare (2015) in order to select the type of the literature review to use in this paper. Accordingly, this paper employs the narrative approach of literature review, which consists on assembling and synthesizing previously published research on international tax planning. This narrative review will serve as a starting point for future investigations and research developments. The authors rely on a logic of configuration in order to analyze data. This logic consists on addressing then organizing various aspects of international practices of tax planning.

The paper concludes that there are many aspects of international tax planning that need to be covered by future researchers, especially finding more precise measures of tax planning techniques would be of great value to studies in this respect.

The literature survey reveals the following issues. First, few studies have been conducted to date. Second, several approaches remain unexplored, and studies rely only on surveys' results collected from the annual report of companies (microeconomics variables), while macroeconomic variables can better explain the phenomenon of international tax planning. In this context, studies containing proposals to estimate more accurate international companies' tax planning techniques would also be welcome. Previous literature supposes premises on this issue th:at limit the accurateness of the analysis. Particularly, empirical literature is short of the proper measurement to evaluate corporate tax avoidance. This would explain the various interpretations of research findings. Hence, finding more precise measures of tax planning techniques would be of great value to studies in this respect.

This literature survey highlights recent studies dealing with tax planning theories within the framework of corporate governance. This theoretical framework particularly specifies which key variables are the most suitable for measuring tax planning methods and highlights the need to examine how those key variables might differ and under what circumstances. In addition, it underlines limits on tax planning measurements by addressing the comparison of the empirical measurements.

The paper contributes to the literature on internal tax planning in several ways. First, this study is unique in that it constitutes the only literature review that provides a comprehensive overview of research on international tax planning. Especially, it extends previous studies by considering the specific new trend of empirical literature dealing with the techniques of international tax planning. This literature review identifies two categories of tax planning approaches including techniques related to company internal management practices and international tax planning techniques. In addition, the literature survey helps to determine various strategies used by multinationals for tax planning, through an in-depth review of the existing studies. Finally, it provides researchers with a starting point to further explore issues related to tax avoidance techniques.

The payment of taxes is both a crucial corporate contribution to society and essential to good governance; but it is an under‐researched aspect of corporate social responsibility (CSR). Hence this paper first seeks to examine whether companies that engage in tax avoidance through locating their headquarters in tax havens – or Offshore Finance Centres (OFCs) – make any claims to act socially responsibly. If so, the paper, second, aims to investigate how being based in an OFC impacts on the firm's commitment to key organisational stakeholders.

In the light of the sensitivity of the issue, the research questions are studied through an analysis of the content of codes of conduct that have been adopted by a sample of firms based in OFCs. The results are compared with a sample of US firms.

OFC‐based firms do indeed make claims that they engage in responsible business practices. However, the commitments by OFC‐based companies vis‐à‐vis key stakeholders fall in almost all cases short of those made by the sample of US firms.

With regard to CSR theory, the paper shows how organisational legitimacy is the result of a complex interaction between strategic legitimacy efforts by OFC‐based companies and isomorphic processes in the wider social system. In terms of CSR practice, the paper argues that claims to acting socially responsibly by firms that do not even fully meet their economic responsibilities to society may, in the longer term, undermine the very idea of CSR.

The purpose of this paper is to point out that tax fraud, recognized as a scourge by both governments and responsible tax-payers, hits public finances hard with an inevitable knock-on effect on general welfare. Based on this observation, key players interviewed for this paper, including magistrates, a trade unionist and a high-ranking official, will attempt to provide some possible solutions to help understand why significant sections of public opinion consider this very particular form of financial crime to be legitimate, largely inspired by the notion that tax fraud and evasion are socially acceptable and even seen as a national sport in certain countries.

The survey was carried out among 20 tax officials, a trade unionist, two magistrates and a high-ranking civil servant. The interviewees were carefully chosen for their ability to provide valuable insights into the reasons behind the lenient treatment of fraudsters by a state lacking the necessary means and structures to fight this crime.

The fight against tax fraud has clearly sparked numerous controversies around evaluation, scope, criminal perpetrators and cooperation between services.

Tax fraud, an offence committed with the aim of avoiding taxation or reducing the amount of tax to be paid, ranges from low-level illegal activity, such as undeclared work to make ends meet, to more serious offences, such as value-added tax carousel fraud. All the unpaid tax resulting from such blatant flouting of the law represent a serious loss of revenue for the state and local authorities.

The fight against tax fraud is crucial in determining taxpayers’ acceptance of the contribution required for state expenditure and investment. In a country such as France, where tax fraud is almost a national sport, combating this scourge will help restore the state’s budgetary sovereignty by making it central to people’s concerns about redistributive justice, tax equality and fair access to public goods.

The purpose of this paper is to analyze the Double Irish and Dutch Sandwich (DIDS) tax schemes used by international companies. Companies using these schemes are enabled to transfer a large amount of their profits to offshore tax havens by using wholly owned subsidiaries located in Ireland and the Netherlands. This paper also analyzes the US General Anti-Avoidance Rule (GAAR) to see whether it can effectively detect and counteract this scheme. This analysis is furthermore enhanced by applying the Mauritian GAAR through Section 90 of the Income Tax Act to the said schemes.

Concerning research methods, the library and the internet will be the main sources of information to be used for this paper. Through the usage of library research, the Mauritian Income Tax Act, US GAAR, European Commission decisions and scholar writings will further enhance this paper on the structure and preventive actions that can be taken against the DIDS scheme. This paper will also use a case study coupled with a theoretical analysis of current anti-avoidance rules.

The paper then concludes that it is possible to counteract the schemes using the Mauritian law but under specific circumstances. It is then revealed that there is a fundamental flaw in the current tax systems, which is the inability to regulate the intangible nature of resources and technology-based transactions.

To the author's knowledge, this paper is among the first literature on the subject of DIDS strategies conducted in the context of Mauritius.

The purpose of this paper is to address the internationalization of Russian multinationals by critically challenging existing assumptions about “springboard” foreign market selection by emerging market firms.

The authors studied foreign market selection decisions for 497 international merger and acquisition (M&A) and joint venture (JV) deals completed by Russian multinational enterprises (MNEs) between 1997 and 2009. The statistical model tests the impact of the geographic, political and economic distances of the host country from Russia on Russian MNEs' foreign market selection decisions.

Contrary to existing assumptions, the host country's geographic closeness to Russia, and its being an ex‐USSR republic or a tax haven, positively affected the country's probability of attracting an M&A or JV deal by a Russian MNE, while the similar level of economic development did not significantly influence the MNEs' foreign market selection decisions. The patterns of significance among the explanatory variables vary for Russian MNEs operating in the natural resources industries.

Further studies may extend the observation period, enlarge the database with Greenfield and export deals by Russian MNEs, and add cross‐country cultural distances to the explanatory variables.

Russian managers should consider the “distances” that might influence firms' foreign investment decisions. This paper also allows host country governments willing to formulate policies aimed at the attraction of Russian outward foreign direct investments to obtain a better understanding of Russian MNEs' international strategies.

One of the few quantitative studies on the topic, this research suggests that Russian MNEs choose their own means of foreign market selection, combining gradual and leapfrog approaches to internationalization.

The purpose of this paper is to offer a critical and broad perspective on how transnational companies (TNCs) behave in the global context, focussing its attention on the controversial issue of tax avoidance in the UK. It pursues this aim by taking into account not only economic globalisation, mobility of capital and tax havens but also ethics and corporate social responsibility.

This paper seeks to provide an interdisciplinary viewpoint drawing not only from well-established scholarly literature but also from real cases and evidence, such as the scandals involving corporate giants, such as Starbucks, Google and Amazon in the UK.

This paper highlights the fundamental interplay and mutual aid of ethics and international laws, underlining the increasing importance of corporate social responsibility principles in today’s business practices. However, it also emphasises the need of reinforcing these principles with either regional or universalistic legal approaches to tackle TNCs’ misconduct in the international arena.

This paper suggests that by establishing and enforcing international business laws, increasingly aligned with ethical principles, the gap between ethics and legislation can be consistently bridged. Hence, TNCs’ behaviour could be more efficiently controlled.

The paper contributes to the literature on modern economic globalisation by providing a comprehensive and integrative perspective on TNCs’ behaviour, accounting for the interplay of socio-ethical, legal and business principles.