This paper studies whether and why government-owned firms avoid taxation to a greater extent than private owners do. By considering a sample of Italian listed corporations between 2006 and 2011, it was found that government ownership had a systematically negative effect on corporate income’s effective tax rate, with a prevalence of tax-planning policies being focused on a long-term horizon. Managers of local government-owned firms pursue the goals of focusing on cost-minimizing policies, even to the detriment of national tax-revenue collection.
Tax avoidance in government-owned firms: Evidence from Italy
MAFROLLA, ELISABETTA
2018-01-01
Abstract
This paper studies whether and why government-owned firms avoid taxation to a greater extent than private owners do. By considering a sample of Italian listed corporations between 2006 and 2011, it was found that government ownership had a systematically negative effect on corporate income’s effective tax rate, with a prevalence of tax-planning policies being focused on a long-term horizon. Managers of local government-owned firms pursue the goals of focusing on cost-minimizing policies, even to the detriment of national tax-revenue collection.File in questo prodotto:
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