Tax avoidance and state ownership — The case of Sweden

Axel Hilling, Frederik Lundtofte, Niklas Sandell, Amanda Sonnerfeldt, Anders Vilhelmsson*

*Kontaktforfatter

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1 Citationer (Scopus)
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Abstrakt

We propose a simple theoretical model for how a company with both private and state shareholders decides on its optimal tax policy. The model predicts that even in the absence of state shareholding, a company will not always pick a tax policy that minimizes taxes. Conversely, majority state ownership will generally not result in zero tax avoidance. Using panel regressions on the entire population of state-owned as well as publicly listed Swedish companies from 2000–2019, we find that a one standard deviation increase in state ownership increases corporate tax payments by around 14%.

OriginalsprogEngelsk
Artikelnummer110063
TidsskriftEconomics Letters
Vol/bind208
ISSN0165-1765
DOI
StatusUdgivet - nov. 2021

Bibliografisk note

Funding Information:
We gratefully acknowledge funding from “ Jan Wallander och Tom Hedelius Stiftelse, Sweden ”, grant number P19-139 , Tax Reporting for a Sustainable Society.

Publisher Copyright:
© 2021 The Author(s)

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