Since 2016, Country-by-Country reporting has provided tax authorities with information about multinationals' worldwide activities. It has been hailed as a game-changer for corporate taxation, enabling tax authorities to target multinational firms with high profits in tax havens.
- Speaker
- Date
- Thursday 22 Feb 2024, 12:00 - 13:00
- Type
- Seminar
- Room
- Kitchen/Lounge E1
- Building
- E Building
We model Country-by-Country reporting as increasing both tax planning and audit costs for profit-shifting multinationals, where the latter depend on the share of profits held in tax havens.
Then, Country-by-Country reporting makes shifting profits from a high-tax country to a tax haven relatively more attractive than shifting from a low-tax country. Under plausible conditions, profit shifting from high-tax affiliates may increase relative to no Country-by-Country reporting.
We confirm these changes in profit-shifting patterns using a staggered difference-in-differences design. The opposing effects for low-tax and high-tax countries also explain the mixed findings of previous empirical evidence on Country-by-Country reporting.
Registration
To participate, please send an email to: ae-secr@ese.eur.nl
