The relevant information extracted from this base is the position of the firm within the group (parent, subsidiary), the list of subsidiaries abroad as well as their nationalities, the nationality of the parent when a French firm is a subsidiary of a foreign com- pany and the amount of direct participation of the main shareholders. [...] The identification strategy lies in the fact that the effect of the ECJ decision on the variables of interest at the level of the firm could not possibly be anticipated by the treated firms. [...] Even though the concept of ”wholly artificial arrangement” is not defined in law, the ECJ decision certainly increased the need of demonstrating that the presence in the tax havens is not driven by the sole purpose of tax and regulatory avoidance in the case of letterboxes.13. [...] Hence, the simultaneous absence of effect for workers in services and the strong negative effect for those in the manufacturing explains the weak overall effect for blue col- lars in the static estimation both in the static (Table 2) and in the dynamic estimations (panel (d) in Figure 2 and in column (5) in Table 5 in the appendix). [...] The reason for this choice is that in the treated group some outliers are at the top of the distribution and in the control group some other outliers are at the bottom of the distribu- tion.
- Pages
- 34
- Published in
- France
