"Just BEAT it" do firms reclassify costs to avoid the base erosion and anti-abuse tax (BEAT) of the TCJA?

• Main Authors: LAPLANTE, Stacie O., LEWELLEN, Christina M., PYNCH, Daniel P., SAMUEL, Daniel M. P.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2024
• Subjects: Tax planning; income shifting; cost reclassification; foreign tax; tax; TCJA; BEAT; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/2023; https://ink.library.smu.edu.sg/context/soa_research/article/3050/viewcontent/JustBEATit_av.pdf
• Institution: Singapore Management University

This study examines whether multinational corporations (MNCs) reclassify related-party payments to avoid the new base erosion and anti-abuse tax (BEAT). The Tax Cuts & Jobs Act of 2017 included the BEAT to combat income shifting from the U.S. to foreign entities. An exclusion in the tax law prov...