1. Corporate Board Directors With Island Tax Haven Ties Signal Greater Levels of Tax Avoidance, Study Finds

    Corporate Board Directors With Island Tax Haven Ties Signal Greater Levels of Tax Avoidance, Study Finds

    U.S. companies with board directors who have connections to well-known island tax havens of the Bahamas, Bermuda and the Cayman Islands exhibit significantly greater tax avoidance than other companies, according to a novel study that includes two University of Kansas School of Business professors and one alumnus...

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  2. Quotes

    1. The reduction in effective tax rates translates into millions of dollars in increased earnings for shareholders owning stock.
    2. Nobody has paid attention to the fact that companies were systematically acquiring this tax avoidance expertise.
    3. It's very challenging to disentangle the effect of one specific board member.
    4. We think another important aspect of this is that we're also documenting a phenomenon that may have been underestimated, which is how much being connected to tax havens matters.
    5. This expertise has a really significant effect on U.S. companies, even if they are not located themselves in island tax havens.
    6. If Congress increases tax rates, we're losing competitiveness in terms of the rate difference between U.S. and foreign nations, and we might see companies being more aggressive.
    7. Directors, it turns out, are important in influencing corporate policy. It's not just that every company has a script and everybody does the same thing.
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