Are Less Developed Countries More Exposed to Multinational Tax Avoidance? Method and Evidence from Micro-Data

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Standard

Are Less Developed Countries More Exposed to Multinational Tax Avoidance? Method and Evidence from Micro-Data. / Johannesen, Niels; Tørsløv, Thomas; Wier, Ludvig.

I: The World Bank Economic Review, 24.10.2019, s. 1-20.

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningfagfællebedømt

Harvard

Johannesen, N, Tørsløv, T & Wier, L 2019, 'Are Less Developed Countries More Exposed to Multinational Tax Avoidance? Method and Evidence from Micro-Data', The World Bank Economic Review, s. 1-20. https://doi.org/10.1093/wber/lhz002

APA

Johannesen, N., Tørsløv, T., & Wier, L. (2019). Are Less Developed Countries More Exposed to Multinational Tax Avoidance? Method and Evidence from Micro-Data. The World Bank Economic Review, 1-20. [lhz002]. https://doi.org/10.1093/wber/lhz002

Vancouver

Johannesen N, Tørsløv T, Wier L. Are Less Developed Countries More Exposed to Multinational Tax Avoidance? Method and Evidence from Micro-Data. The World Bank Economic Review. 2019 okt 24;1-20. lhz002. https://doi.org/10.1093/wber/lhz002

Author

Johannesen, Niels ; Tørsløv, Thomas ; Wier, Ludvig. / Are Less Developed Countries More Exposed to Multinational Tax Avoidance? Method and Evidence from Micro-Data. I: The World Bank Economic Review. 2019 ; s. 1-20.

Bibtex

@article{b1e8a0a19c4a4f77b914f03d70de54b8,
title = "Are Less Developed Countries More Exposed to Multinational Tax Avoidance?: Method and Evidence from Micro-Data",
abstract = "This paper uses a global dataset with information about 210,000 corporations in 142 countries to investigate whether tax avoidance by multinational firms is more prevalent in less-developed countries. The paper proposes a novel approach to studying cross-border profit shifting, which has relatively low data requirements and is therefore particularly well-suited for the context of developing countries. The results consistently show that the sensitivity of reported profits to profit-shifting incentives is negatively related to the level of economic and institutional development. This may explain why many developing countries opt for low corporate tax rates in spite of urgent revenue needs and severe constraints on the use of other tax bases.",
keywords = "Faculty of Social Sciences, tax systems in developing countries, fiscal capacity, international taxation, profit shifting, multinational firms, tax avoidance",
author = "Niels Johannesen and Thomas T{\o}rsl{\o}v and Ludvig Wier",
year = "2019",
month = "10",
day = "24",
doi = "10.1093/wber/lhz002",
language = "English",
pages = "1--20",
journal = "World Bank Economic Review",
issn = "0258-6770",
publisher = "Oxford University Press",

}

RIS

TY - JOUR

T1 - Are Less Developed Countries More Exposed to Multinational Tax Avoidance?

T2 - Method and Evidence from Micro-Data

AU - Johannesen, Niels

AU - Tørsløv, Thomas

AU - Wier, Ludvig

PY - 2019/10/24

Y1 - 2019/10/24

N2 - This paper uses a global dataset with information about 210,000 corporations in 142 countries to investigate whether tax avoidance by multinational firms is more prevalent in less-developed countries. The paper proposes a novel approach to studying cross-border profit shifting, which has relatively low data requirements and is therefore particularly well-suited for the context of developing countries. The results consistently show that the sensitivity of reported profits to profit-shifting incentives is negatively related to the level of economic and institutional development. This may explain why many developing countries opt for low corporate tax rates in spite of urgent revenue needs and severe constraints on the use of other tax bases.

AB - This paper uses a global dataset with information about 210,000 corporations in 142 countries to investigate whether tax avoidance by multinational firms is more prevalent in less-developed countries. The paper proposes a novel approach to studying cross-border profit shifting, which has relatively low data requirements and is therefore particularly well-suited for the context of developing countries. The results consistently show that the sensitivity of reported profits to profit-shifting incentives is negatively related to the level of economic and institutional development. This may explain why many developing countries opt for low corporate tax rates in spite of urgent revenue needs and severe constraints on the use of other tax bases.

KW - Faculty of Social Sciences

KW - tax systems in developing countries

KW - fiscal capacity

KW - international taxation

KW - profit shifting

KW - multinational firms

KW - tax avoidance

U2 - 10.1093/wber/lhz002

DO - 10.1093/wber/lhz002

M3 - Journal article

SP - 1

EP - 20

JO - World Bank Economic Review

JF - World Bank Economic Review

SN - 0258-6770

M1 - lhz002

ER -

ID: 234023646