This study empirically examines whether firms reclassify related-party payments to avoid the base erosion and anti-abuse tax (BEAT) of the Tax Cuts and Jobs Act (TCJA). We leverage the BEAT filing threshold and use both a difference-in-differences design among U.S. firms and a triple-difference design utilizing the parent company's location to provide evidence that firms reclassify related-party payments to avoid the BEAT. This effect is stronger in firms with greater pre-TCJA income shifting incentives. We estimate a $6 billion aggregate reduction in U.S. taxes for our sample firms in 2018. We also examine the consequences of reclassifying related-party payments and find some evidence of an increase in tax reserves and a reduction in internal information quality for firms that engage in cost reclassification to avoid the BEAT. These findings help explain observed BEAT collection shortfalls, contribute to the current policy debate about international tax reform, and document spillover effects of tax policy.

中文翻译：

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“Just BEAT it” 公司是否会重新分类成本以避免 TCJA 的税基侵蚀和反滥用税 (BEAT)？

本研究实证检验企业是否对关联方付款进行重新分类，以避免《减税和就业法案》(TCJA) 的税基侵蚀和反滥用税 (BEAT)。我们利用 BEAT 申报门槛，并使用美国公司之间的双重差异设计和利用母公司所在地的三重差异设计来提供公司重新分类关联方付款以避免 BEAT 的证据。在 TCJA 之前收入转移激励措施较多的公司中，这种效应更为强烈。我们估计 2018 年我们的样本公司的美国税收总共减少了 60 亿美元。我们还研究了重新分类关联方付款的后果，并发现了一些证据表明，对于从事关联方付款的公司来说，税收储备增加，内部信息质量下降。成本重新分类以避免 BEAT。这些发现有助于解释观察到的 BEAT 税收不足，促进当前有关国际税收改革的政策辩论，并记录税收政策的溢出效应。