Research seminar by Tijmen Tuinsma: Tax Compliance of Multinationals and Industry Concentration in the European Union

Matej Bajgar (IES), Petr Jansky (IES), Tijmen Tuinsma (KU Leuven) in their research examine whether tax compliance of multinationals reduces industry concentration by exploiting a 2016 country-by-country reporting reform in a difference-in-differences approach.

The authors find that increased tax compliance following the reform reduced the consolidated global sales of large multinationals subject to the reform. Specifically, a one percentage point rise in effective tax rates was associated with a 1.8% decrease in sales. They further find that the increased tax compliance was also associated with a decline in the sales of the affected multinationals’ subsidiaries and a decrease in concentration in industries where the top firms were subject to the reform. These findings highlight the potential of reforms of corporate taxation to reduce industry concentration.

The seminar will take place on Wednesday, June 18, 2025, in Room 105 at 16:00.