Arbeitspapier

Tax provisioning by extractive industry multinational subsidiaries

Extractive industries are spread across mining of metal and minerals, oil and gas, among others. Multinationals in these sectors are confronted with different challenges ranging from corruption, political risk, economic uncertainty, sunk costs, and the long-gestation periods to execute projects. As a result, tax payment behaviour of subsidiaries in the extractive sector could be dependent not only on these factors, but also on the life cycle of the subsidiary, profitability, and holding structure. Furthermore, emerging economy multinationals in the extractive industries could be state-owned and may invest in foreign subsidiaries for strategic reasons. We examine tax provision in host countries by India's multinational subsidiaries in the extractive industry. Panel data analysis is carried out for the period 2010-20. It is found that tax provision remains lower in the initial years of subsidiary life and increases with the sustenance of subsidiary in the host country for a longer period. In addition, subsidiaries of public sector enterprises are found to have higher tax provisions than their private counterparts. When it comes to the determinants, economic policy uncertainty, corruption, and political stability are found to significantly affect tax provision.

ISBN
978-92-9267-266-9
Sprache
Englisch

Erschienen in
Series: WIDER Working Paper ; No. 2022/133

Klassifikation
Wirtschaft
Multinational Firms; International Business
Tax Evasion and Avoidance
Natural Resources and Domestic and International Conflicts
Thema
extractive sector
tax provision
economic policy uncertainty
corruption
political stability
public sector

Ereignis
Geistige Schöpfung
(wer)
Das, Khanindra Ch.
Ereignis
Veröffentlichung
(wer)
The United Nations University World Institute for Development Economics Research (UNU-WIDER)
(wo)
Helsinki
(wann)
2022

DOI
doi:10.35188/UNU-WIDER/2022/266-9
Handle
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Das, Khanindra Ch.
  • The United Nations University World Institute for Development Economics Research (UNU-WIDER)

Entstanden

  • 2022

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