| In recent years tax authorities and regulators have become focused on eliminating cross-border tax evasion. Current estimates indicate that U.S. multinational companies have parked almost ;The purpose of my dissertation is to examine how U.S. multinational corporations are able to lower tax burdens through the use of foreign affiliates. I first focus on two large technology companies, Google and Oracle, and the recent changes in their disclosure of foreign affiliates. From 2009 to 2010 both companies experienced a precipitous drop in the number of subsidiaries reported to the SEC in the Exhibit 21 Form 10-K. I then examine whether the use of foreign affiliates, specifically those located in tax havens, is associated with higher tax risk. Finally, I examine the impact of tax-motivated transfer pricing on tax disclosures in publicly available financial statements. |
