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Compliance with base erosion and profit shifting action 13: Insights from tax consultants and tax officials
Ghent University, Department of Accounting, Corporate Finance and Taxation, Ghent, Belgium.ORCID iD: 0000-0002-7717-2447
Ghent University, Department of Accounting, Corporate Finance and Taxation, Ghent, Belgium.ORCID iD: 0009-0001-9207-3236
Ghent University, Department of Accounting, Corporate Finance and Taxation, Ghent, Belgium.ORCID iD: 0000-0003-3065-5158
2025 (English)In: European Research on Management and Business Economics, E-ISSN 2444-8834, Vol. 31, no 1, article id 100267Article in journal (Refereed) Published
Abstract [en]

To combat firms exploiting transfer pricing as a tool for tax avoidance, the Organisation for Economic Co-operation and Development (OECD) introduced the Base Erosion and Profit Shifting Action 13 (BEPS 13), enhancing tax transparency and the exchange of information with tax authorities. Interviewing senior-level transfer pricing advisors and tax officials, we investigate how and why multinational enterprises (MNEs) respond to this new regulation. By conducting this research, we contribute to the scarce literature assessing the impact of tax disclosure to tax authorities and, specifically, the implications of BEPS 13. The study finds that MNEs attach more importance to tax compliance and are more averse towards tax avoidance, which is mainly driven by higher audit pressure. Additionally, MNEs experience additional costs to comply with the different implementations in countries, centralise tax data with IT systems within the organisation, and set up multilateral Advance Pricing Arrangements (APAs) and Mutual Agreement Procedures (MAPs). To avoid (other forms of) tax avoidance being considered by companies, policymakers should address these concerns of increased compliance costs.

Place, publisher, year, edition, pages
Elsevier, 2025. Vol. 31, no 1, article id 100267
Keywords [en]
Tax compliance, Tax consultants, Tax officials, Transfer pricing documentation
National Category
Business Administration
Research subject
Business Studies
Identifiers
URN: urn:nbn:se:oru:diva-117819DOI: 10.1016/j.iedeen.2024.100267ISI: 001374632400001Scopus ID: 2-s2.0-85211048074OAI: oai:DiVA.org:oru-117819DiVA, id: diva2:1921577
Available from: 2024-12-16 Created: 2024-12-16 Last updated: 2025-08-11Bibliographically approved

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Aro-Sati, Leila

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CiteExportLink to record
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Citation style
  • apa
  • ieee
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