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Risky Business: The Prosopography of Corporate Tax Planning

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  • Michael P. Donohoe
  • Gary A. McGill
  • Edmund Outslay

Abstract

We trace the history of corporate tax planning from a compliance-focused activity to a profit-enhancing endeavor to a risk management center. Tax directors of U.S. multinational corporations face unprecedented global pressures from taxing jurisdictions seeking to increase their share of the enterprise’s worldwide taxes. Increasingly, corporations must consider the risks that a tax strategy will impose on them, not only in terms of potential lost revenue, but also in terms of reputation and market share. We discuss the components of tax risk management in today’s global environment and speculate how future corporate tax planning will change in light of the Organisation for Economic Co-operation and Development Base Erosion and Profit Shifting project.

Suggested Citation

  • Michael P. Donohoe & Gary A. McGill & Edmund Outslay, 2014. "Risky Business: The Prosopography of Corporate Tax Planning," National Tax Journal, National Tax Association;National Tax Journal, vol. 67(4), pages 851-874, December.
    • Handle: RePEc:ntj:journl:v:67:y:2014:i:4:p:851-874
    DOI: 10.17310/ntj.2014.4.05
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    References listed on IDEAS

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    1. Michael P. Donohoe & Gary A. McGill & Edmund Outslay, 2013. "Back to the Drawing Board: The Structural and Accounting Consequences of a Switch to a Territorial Tax System," National Tax Journal, National Tax Association;National Tax Journal, vol. 66(3), pages 713-744, September.
    2. Graham, John R. & Raedy, Jana S. & Shackelford, Douglas A., 2012. "Research in accounting for income taxes," Journal of Accounting and Economics, Elsevier, vol. 53(1), pages 412-434.
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    6. Boynton, Ce & Dobbins, Ps & Plesko, Ga, 1992. "Earnings Management And The Corporate Alternative Minimum Tax," Journal of Accounting Research, Wiley Blackwell, vol. 30, pages 131-153.
    7. Blouin, Jennifer & Gleason, Cristi & Mills, Lillian & Sikes, Stephanie, 2007. "What Can We Learn About Uncertain Tax Benefits From FIN 48?," National Tax Journal, National Tax Association;National Tax Journal, vol. 60(3), pages 521-535, September.
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    Cited by:

    1. Paul Demeré & Michael P. Donohoe & Petro Lisowsky, 2020. "The Economic Effects of Special Purpose Entities on Corporate Tax Avoidance," Contemporary Accounting Research, John Wiley & Sons, vol. 37(3), pages 1562-1597, September.
    2. Dyck, Daniel & Lorenz, Johannes & Sureth, Caren, 2022. "How do tax technology and controversy expertise affect tax disputes?," arqus Discussion Papers in Quantitative Tax Research 274, arqus - Arbeitskreis Quantitative Steuerlehre.
    3. Isin, Adnan Anil, 2018. "Tax avoidance and cost of debt: The case for loan-specific risk mitigation and public debt financing," Journal of Corporate Finance, Elsevier, vol. 49(C), pages 344-378.
    4. Giese, Henning & Koch, Reinald & Sureth, Caren, 2024. "Where to locate tax employees? The role of tax complexity and tax risk implications," arqus Discussion Papers in Quantitative Tax Research 285, arqus - Arbeitskreis Quantitative Steuerlehre.
    5. Donohoe, Michael P., 2015. "The economic effects of financial derivatives on corporate tax avoidance," Journal of Accounting and Economics, Elsevier, vol. 59(1), pages 1-24.

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