| Summary: | 碩士 === 國立政治大學 === 國際經營與貿易學系 === 105 === Since the leaked Panama Papers, the public’s attention to “who are using tax havens” has peaked. As setting up subsidiaries in tax havens is a usual practice businesses adopt when going global, this study identifies three “corporate traits” of such businesses and explores their link to the number of subsidiaries such businesses have in tax havens.
The greater the extent of a business’s internationalization, the greater its motivation to use tax havens. This study assumes that both the number of overseas subsidiaries (excluding those in tax havens) and the net income of overseas investment positively correlate with the number of subsidiaries a business has in tax havens. Also, when a Taiwanese company has more subsidiaries in China (thus more internationalized), its motivation to register in tax havens tends to be even stronger facing the peculiar cross-Strait relations and regulations imposed by the governments. This study further assumes the number of subsidiaries set up in China positively correlates with the number of subsidiaries a business has in tax havens.
In closing, this study shows that the number of subsidiaries a business has in tax havens positively correlates with (1) the number of its offshore subsidiaries (excluding those tax havens); (2) the net income of its overseas investment; and (3) the number of its subsidiaries in China.
Having a presence in tax havens is sometimes an expedient in the internationalization process of a business. We suggest that both the government and the business recognize the upside of using tax havens rather than just play up its downside.
|
|---|
