Profit shifting by multinational corporations is thought to reduce tax revenue around the world. This paper provides a comprehensive analysis of the introduction of standard regulations to limit profit shifting. Using administrative tax and customs data from Chile, we find that the reform was...

Profit shifting by multinational corporations is thought to reduce tax revenue around the world. This paper provides a comprehensive analysis of the introduction of standard regulations to limit profit shifting. Using administrative tax and customs data from Chile, we find that the reform was...

In recent years, a growing number of countries have enacted tax rules that require multinational enterprises (MNEs) to document their intra-firm trade prices and show that they are set as in third-party trade. The objective of these rules is to limit opportunities for strategic trade mis-pricing...

This paper examines whether multinational enterprises (MNEs) adapt to international anti–tax avoidance regulation by intensifying domestic profit shifting activities. We compile a novel dataset by mapping MNE ownership network structures that link international to sub-national tax haven...

By focusing exclusively on large multinational groups, the global minimum tax (GMT) aims to target most of the world's profit shifting while keeping aggregate compliance costs at an acceptable level. This policy brief presents new evidence on profit shifting behavior across the size distribution...

This paper presents a comparative empirical analysis of multinational profit shifting using two principal data sources: the OECD Country-by-Country Reporting (CbCR) statistics and ORBIS firm-level financial data. We begin by systematically examining structural and reporting differences across...

By focusing exclusively on large multinational groups, the global minimum tax (GMT) aims to target most of the world's profit shifting while keeping aggregate compliance costs at an acceptable level. This policy brief presents new evidence on profit shifting behavior across the size distribution...

Using exhaustive microdata on the worldwide activity of multinational firms from Country-by-Country Reports linked to employer-employee data, we study how profit shifting affects workers' earnings. We estimate that large French multinationals shift 19% of their foreign profits annually to...

In this paper we theoretically analyse the European Union's ongoing political impasse regarding the choice of a single method to allocate multinational enterprises' profits across countries and we find that this strategic situation resembles a coordination game with distributional consequences....

Tax havens represent the largest financing hub for financial institutions. For banks, they account for more than 20% of all cross-borders banking debt worldwide. Yet, our understanding of the underlying drivers remains limited. Drawing on a unique global dataset covering major international...

This paper characterizes profit shifting behavior across the size distribution of multinational enterprises (MNEs) to evaluate the targeting of the recently introduced Global Minimum Tax (GMT). Using German microeconomic administrative data with no reporting gaps for tax havens, we first...

To combat firms exploiting transfer pricing as a tool for tax avoidance, the Organisation for Economic Co-operation and Development (OECD) introduced the Base Erosion and Profit Shifting Action 13 (BEPS 13), enhancing tax transparency and the exchange of information with tax authorities....

We investigate how tax authorities use joint tax audits as a coordinated enforcement tool in cross-border transactions of a multinational firm. Joint tax audits aim to resolve potential tax disputes early, before such disputes escalate into costly and time-consuming resolution procedures that...

This literature review draws on Foucault’s concept of problematization to examine how academic discourse "stages" debates on whistleblowing. By staging these debates, different streams of literature assign distinct roles and "scripts" to whistleblowing, shaping the practice of whistleblowing...

Digital Services Taxes (DSTs) and the OECD/G20 BEPS reforms are central pillars of current efforts to tax multinational digital platforms, yet their joint effects remain poorly understood. We develop a model of a platform that sells hardware to consumers and advertising to firms, with the two...

This paper characterizes optimal labour and capital income taxation when access to income shifting opportunities is heterogeneous. I develop a two-period model in which individuals can reclassify labour income as capital income by paying a fixed cost (an extensive margin, e.g. incorporation or...

This paper analyzes how (local) tax havens function. Using the German municipal business tax setting as a laboratory, I investigate the characteristics and emergence of local tax havens. I demonstrate that local tax havens are situated in close proximity to large agglomeration areas, while...

We provide estimates of profit shifting for over 2 million firm-year observations in 100 countries over the period 2009-2020. Employing nonparametric estimation techniques within a mainstay model of profit shifting, we examine how the profits of both parent and subsidiary firms within a...

We assess the welfare implications of the Global Minimum Tax (GMT) on corporate income in a multi-country macroeconomic model. The objectives of the GMT are to mitigate harmful tax competition and to curb wasteful profit shifting. The theoretical literature suggests that the welfare effects of...

This paper characterizes optimal labour and capital income taxation when access to income shifting opportunities is heterogeneous. I develop a two-period model in which individuals can reclassify labour income as capital income by paying a fixed cost (an extensive margin, e.g. incorporation or...

We develop a methodology to decompose the tax revenue impact of the global minimum tax introduced in 2024 into several components and quantify its potential impact on profit shifting. We apply it to 34 thousand multinational-country observations from tax returns, financial statements and...