Global Tax Residence Database

On the database: For the paper “Tax Avoidance through Cross-Border Mergers and Acquisitions” we have investigated the legal background on tax residence for 151 countries and manually adjusting the data on tax residence for a global data set of publicly-listed firms to accurately reflect their tax residence. As a result, our data is of superior quality for purposes of tax research compared to the country information in standard databases such as SDC Platinum or Orbis, which usually reflects the center of operations or incorporation of a firm instead of its tax residence.

Short summary of the paper: “Tax Avoidance through Cross-Border Mergers and Acquisitions”: We document a novel form of tax avoidance: Cross-border tax-haven mergers and acquisitions (M&A). There are more than 10,000 tax-haven M&A deals from 1990 to 2017. Using hand-collected data on tax residence laws and a gravity model, we find that tax havens have more than $1 trillion in deal value and thus long-term capital flows beyond what is predicted based on their economic fundamentals. Cross-border tax-haven M&A results in substantial tax savings To address alternative explanations, we use a change in US tax law.

Status of paper and database: A publicly available draft of the paper will be available shortly. We are working on a solution to provide public access to our database, which is partly based on commercial data so that we have to clarify legal issues regarding intellectual property.

Conferences*:  EEA, EIASM Conference on Current Research in Taxation.

* including scheduled conferences

About us:

Jean-Marie Meier is an assistant professor of finance at the University of Texas at Dallas. For more information see www.jean-mariemeier.com.

Jake Smith is a finance PhD student at the University of Texas at Dallas. For more information see https://jindal.utdallas.edu/phd-students/jake-smith.