Evidence for Profit Shifting with Tax-sensitive Capital Stocks

Mokkas, Socrates

doi:10.1628/001522115x14206439673251

Cited by 13 publications

(9 citation statements)

References 19 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This argument is supported with evidence found by Bartoloni (2013) and Loretz and Mokkas (2015). Before the results is discussed it is important to note our selection of control variables is in line with Frank and Goyal (2009) who identified that capital structure determinants must include among others firm size and inflation.…”

Section: Effect On Capital Structuresupporting

confidence: 77%

Profit-Shifting Activities in the Mining Sector: Evidence from the Czech Republic

Anarfi¹,

Nerudová²

2017

EJOBSAT

View full text Add to dashboard Cite

The aim of this paper is to measure the magnitude of profit shifting in the Czech Mining industry. The paper source data from AMADEUS provided by the Bureau van Dijk for the 10-year period 2005-2014 to seek evidence of profit-shifting activities and measure the magnitude. The paper applies panel regression model in the analysis to seek evidence and measure the magnitude of profit shifting using random effect model estimations. The paper therefore analyses tax effects on capital structure of subsidiary firms as a means of profit shifting and the results was that, there is substantial evidence of profit shifting with different magnitudes in separate model specifications.

show abstract

Section: Effect On Capital Structuresupporting

confidence: 77%

Profit-Shifting Activities in the Mining Sector: Evidence from the Czech Republic

Anarfi¹,

Nerudová²

2017

EJOBSAT

View full text Add to dashboard Cite

show abstract

“…Dharmapala (2014) reviews the literature on how the reported income changes with respect to tax rates differs across countries, represented by Hines and Rice (1994), Huizinga and Laeven (2008) and Dharmapala and Riedel (2013). Grubert and Mutti (1991), as well as Clausing (2003Clausing ( , 2016, provide evidence for the US; Huizinga and Laeven (2008), Weichenrieder (2009) and Loretz and Mokkas (2015) present more recent evidence for European multinationals. According to the consensus of the recent literature by Heckemeyer and Overesch (2013), who followed the earlier meta-analysis by de Mooij and Ederveen (2008), a semi-elasticity of reported income with respect to the tax rate differential across countries amounts to 0.8.…”

mentioning

confidence: 99%

Measuring misalignment: The location of US multinationals’ economic activity versus the location of their profits

Cobham

Jánský

2018

Development Policy Review

View full text Add to dashboard Cite

The authors of this paper grant to the IDS and the ICTD a perpetual, irrevocable, worldwide, royalty-free, non-exclusive licence, or sublicence, to reproduce, communicate to the public, use, adapt, publish, distribute, display and transmit the work in any and all media, and to sublicense others (including the Crown) to reproduce, communicate to the public, use, adapt, publish, distribute, display and transmit the work in any and all media, for non-commercial purposes and with appropriate credit being given to the authors and ICTD funders.A catalogue record for this publication is available from the British Library.This work has been licensed by the copyright holder for distribution in electronic format via any medium for the lifetime of the OpenDocs repository for the purpose of free access without charge and can be found at http://opendocs.ids.ac.uk/opendocs/ Also Measuring Misalignment: the Location of US Multinationals' Economic Activity Versus the Location of their Profits Alex Cobham and Petr Janský SummaryA major international effort -the OECD Base Erosion and Profit Shifting (BEPS) initiative -aims to reduce the extent of misalignment between the profits of multinational groups, and the location of their real economic activity. Recent research using balance sheet data has shown major misalignments, with a number of small jurisdictions capturing a tax base disproportionate to their economic activity, but has also revealed the limitations of available balance sheet data for lower-income countries. This paper uses survey data on the international operations of USheadquartered multinational groups to expand the research to a broader group of host countries (albeit for only one home economy), and confirms major misalignments of profit. A small number of 'profit-haven' jurisdictions are seen to have captured a disproportionate share of total profits, resulting in serious disadvantages for most G20 countries, regardless of income level.

show abstract

“…See Grubert and Mutti (1991) for early evidence for the US; Huizinga and Laeven (2008), Weichenrieder (2009) and Loretz and Mokkas (2011) for more recent evidence for European multinationals.…”

mentioning

confidence: 99%

International Distribution of the Corporate Tax Base: Implications of Different Apportionment Factors Under Unitary Taxation

Cobham

Loretz

2014

SSRN Journal

View full text Add to dashboard Cite

SummaryUnder the current system of separate accounting, tax-motivated international profit shifting results in misalignment of profits and real economic activity. While the Organisation for Economic Co-operation and Development (OECD) Base Erosion and Profit Shifting initiative aims to measure and curtail this, critics claim serious progress is only possible with greater emphasis on formulary apportionment methods (Picciotto 2013), or other methods outside the present international tax architecture (IMF 2014). In this paper we use the leading global database of company balance sheets to compare the distribution of profit and potential apportionment factors. Although data coverage is problematic for developing countries, we find that apportioning profit according to measures of actual economic activity would result in a major redistribution of the tax base at the expense of a particular group of jurisdictions, and in most cases towards the lower-income countries in the sample. International loss consolidation facilitated by a global switch to unitary taxation would reduce the overall tax base by around 12 per cent.

show abstract

Evidence for Profit Shifting with Tax-sensitive Capital Stocks

Cited by 13 publications

References 19 publications

Profit-Shifting Activities in the Mining Sector: Evidence from the Czech Republic

Profit-Shifting Activities in the Mining Sector: Evidence from the Czech Republic

Measuring misalignment: The location of US multinationals’ economic activity versus the location of their profits

International Distribution of the Corporate Tax Base: Implications of Different Apportionment Factors Under Unitary Taxation

Contact Info

Product

Resources

About