The influence of the tax system on the location of holding companies in Switzerland. Issue 2 (16th March 2015)

• Record Type: Journal Article
• Authors: Cárdenas Cárdenas, Gilberto; García Gamez, Sofía
• Is Part Of: Competitiveness review. Volume 25:Issue 2(2015)
• Page Start: 218
• Page End: 237
• Publication Date: 2015-03-16
• Subjects: International taxation -- Swiss holding company -- Tax planning; Competition -- Periodicals; Competition, International -- Periodicals; Competition -- United States -- Periodicals; United States -- Economic policy -- 1981- -- Periodicals; United States -- Commercial policy -- Periodicals; 338.604805
• DOI: 10.1108/CR-08-2014-0022
• Languages: English
• ISSNs: 1059-5422

Abstract

Abstract : Purpose: – The purpose of this study is to determine the extent to which the tax system constitutes a first-order element influencing the location of holding companies in Switzerland. Design/methodology/approach: – To achieve this goal, the authors have estimated an econometric model using ordinary least squares. The authors also provide a unique statistical database of holding companies established in Switzerland. The independent tax variables revolve around concepts of tax burden and effort, whereas the non-tax variables are generally those referred to in the literature on location of investments. Findings: – The study concludes that, in addition to the tax burden, there are other qualitative variables that show the same influence on the geographic location of holding companies in Switzerland. Originality/value: – The study of holding companies as instruments of international tax planning is usually linked to law offices or consulting firms that specialize in the international tax system – not university academic research per se . The interaction of academic theory and international fiscal praxis provides an interesting perspective from which to approach this topic.