US EditionThe Firm as Tax Shelter
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The Firm as Tax Shelter
Authors:David Leite, Paris School of Economics Abstract: I present evidence that firms serve as tax-free consumption vehicles. Drawing on a unique combination of data from an electronic invoicing program in Portugal (e-Fatura), I show that individuals who control firms shift 36% of their monthly personal expenditures to firms and 31% of their household expenditures. The effects are driven by owner-managers of small closely held firms through exp…
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