Why don't they minimize their tax? An experimental approach to uncertainty and complexity

Using the operationalization of cross-border, intra-
group hybrid finance, we experimentally investi-
gate the effect of legal uncertainty and of cost of tax
complexity on the decision to engage in tax plan-
ning. Our results show that overall tax complexity
costs do have a negative effect on the choice of a
hybrid finance instrument. However, the decision
maker’s risk preferences moderate the impact of the
two variables