Abstract:

This paper focuses on multinational corporate groups that resort to income shifting motivated by tax eva sion, measuring their association with high ownership concentration.

To test our hypothesis, our sample is composed of parent companies located in North Africa as well as subsidiaries with a lower tax rate than the parent company. The model is based on the natural logarithm of pretax profit.

The results show that parent companies with a high concentration of ownership transfer income for tax avoidance purposes.

The result is that governments are reducing their statutory tax rates to encourage investors to focus on high concentration companies to increase economic growth. This study shows that, depending on their characteristics, entreprises can practice tax avoidance strategies, with an emphasis on high levels of ownership concentration.

Keywords:

Ownership concentration, Tax-motivated income shifting, Multinational groups, Tax avoidance.

How to Cite:

Lynda Soltani. The Effect of High Ownership Concentration on Tax-motivated Income Shifting. [ref]: vol.23.2025. available at: https://refpress.org/ref-vol23-a25