Base Erosion, Profit Shifting and Developing Countries

Crivelli, Ernesto; Mooij, Ruud de; Keen, Michael

doi:10.5089/9781513563831.001

Cited by 83 publications

(105 citation statements)

References 17 publications

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“…In response to these limitations, other data have been used to examine profit shifting. For example, tax revenue data are the basis for the estimations of the IMF’s Crivelli, de Mooij, and Keen () and Cobham and Janský (). Another alternative to Orbis are datasets that exist for a few countries with information on MNEs headquartered there.…”

Section: Literature Reviewmentioning

confidence: 99%

International tax planning within the structure of corporate entities owned by the shareholder‐individuals through Panama Papers destinations

Nerudová

Solilová

Litzman

et al. 2019

Development Policy Review

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Motivation The Panama Papers scandal highlighted the scale of financial secrecy, anonymous ownership and shell companies and their role in profit shifting and tax avoidance. We show the importance of international tax planning within the structure of corporate entities owned by shareholder‐individuals through Panama Papers destinations. Purpose To identify profit‐shifting channels and to estimate related government revenue losses to European Union Member States. Methods Using company data from the Amadeus/Orbis database (Bureau Van Dijk, n.d.a, n.d.b), we applied micro‐data analysis to the financial statements of multinational companies (MNEs) owned by shareholder‐individuals. Two groups—one with and the other without links to Panama Papers tax havens—alongside an analysis of profit‐shifting indicators. Findings Profit is generally shifted by moving operating revenues or costs, though the use of debt channels is also important. Also, groups linked to tax havens pay significantly less tax per unit of profit before tax, and require less operating revenue to achieve higher profits. Finally, related government revenue losses were assessed at EUR 8.67 billion. Policy implication Our results are relevant to the European Commission’s Comprehensive Common Consolidated Corporate Tax Base (CCCCTB) as it aims to counter profit shifting out of the European Union (EU) into tax havens. Further, our research highlights the importance of setting up registries of ultimate beneficiary owners in EU Member States.

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Section: Literature Reviewmentioning

confidence: 99%

International tax planning within the structure of corporate entities owned by the shareholder‐individuals through Panama Papers destinations

Nerudová

Solilová

Litzman

et al. 2019

Development Policy Review

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show abstract

“…22 Developing countries lose $100bn every year to tax dodging. 23 Countries lose billions more through providing tax holidays and exemptions. It is the poorest people who lose out the most, as they are most reliant on the public services that these forgone billions could have provided.…”

Section: Dodging Taxmentioning

confidence: 99%

“…The IMF estimates that as much as 1% of GDP is lost in revenue from OECD countries, and the United Nations Conference on Trade and Development (UNCTAD) estimates that developing countries are losing at least $100bn each year. 131 That is more than enough to ensure that all of the 124 million children currently out of school get an education.…”

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confidence: 99%

An Economy for the 99%: It’s time to build a human economy that benefits everyone, not just the privileged few

Hardoon¹

2017

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Members of the Shining Mothers group, a community-based women's group helping to teach business skills and raise awareness of their rights. The Shining Mothers discuss issues which affect them in their community and raise these at public meetings to ensure their voice is being heard by local government. Kawangware, Nairobi, Kenya. 2016. Photo: Allan Gichigi/Oxfam AN ECONOMY FOR THE 99%It"s time to build a human economy that benefits everyone, not just the privileged few New estimates show that just eight men own the same wealth as the poorest half of the world. As growth benefits the richest, the rest of society -especially the poorestsuffers. The very design of our economies and the principles of our economics have taken us to this extreme, unsustainable and unjust point. Our economy must stop excessively rewarding those at the top and start working for all people. Accountable and visionary governments, businesses that work in the interests of workers and producers, a valued environment, women's rights and a strong system of fair taxation, are central to this more human economy.

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“…The casualization of labour has led to the loss or erosion of work‐related social protection, leaving more and more people reliant on state provision or on family and community support. At the same time, nation states are becoming less able to derive taxation from multinationals, corporations and wealthy individuals (Crivelli, De Mooij and Keen, ; OECD, ). The G20/OECD estimate that global corporate income tax losses could be between USD 100 billion and USD 240 billion annually (OECD, ).…”

Section: Recognizing Informal Workers As Economic Agentsmentioning

confidence: 99%

Approaches to social protection for informal workers: Aligning productivist and human rights‐based approaches

Alfers

Lund²,

Moussié³

2017

Int Social Security Review

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There has been increasing recognition of the growth of informal employment in the global South and North. Most informal work is precarious and low paid, with workers having little or no access to social protection. It is sometimes suggested that an approach that moves away from productivism – the idea of work as a pathway to access social protection – and towards a universal human rights‐based approach is important. However, this article argues that a large and growing informal economy does not provide justification for abandoning certain key productivist ideas. Key ideas that should not be abandoned include the focus that this approach has on establishing a link between workers and capital and the importance of social services within a social protection discourse that is presently dominated by cash grants. Also important, productivist ideas emphasize the economic contributions of informal workers as a means by which to complement a human rights‐based argument for the extension of workplace protection to all workers, regardless of employment status. Overall, the hard binary that is sometimes drawn between human rights‐based approaches and productivist (or “instrumentalist”) arguments may not always be as definitively delineated as some might suggest.

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Base Erosion, Profit Shifting and Developing Countries

Cited by 83 publications

References 17 publications

International tax planning within the structure of corporate entities owned by the shareholder‐individuals through Panama Papers destinations

International tax planning within the structure of corporate entities owned by the shareholder‐individuals through Panama Papers destinations

An Economy for the 99%: It’s time to build a human economy that benefits everyone, not just the privileged few

Approaches to social protection for informal workers: Aligning productivist and human rights‐based approaches

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