International transfer pricing and tax avoidance : evidence from linked trade-tax statistics in the UK
Li Liu, Tim Schmidt-Eisenlohr, Dongxian Guo
This paper employs unique data on export transactions and corporate tax returns of UK multinational firms and finds that firms manipulate their transfer prices to shift profits to lowertaxed destinations. It uncovers three new findings on tax-motivated transfer mispricing in real goods. First, transfer mispricing increases substantially when taxation of foreign profits changes from a worldwide to a territorial approach in the UK, with multinationals shifting more profits into low-tax jurisdictions. Second, transfer mispricing increases with a firm’s R&D intensity. Third, tax-motivated transfer mispricing is concentrated in countries that are not tax havens and have low-to-medium-level corporate tax rates.
Year of publication: |
July 2017
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Authors: | Liu, Li ; Schmidt-Eisenlohr, Tim ; Guo, Dongxian |
Publisher: |
Munich : CESifo, Center for Economic Studies & Ifo Institute |
Subject: | transfer pricing | corporate taxation avoidance | multinational firms | EU-Binnenmarkt | Single European market | EU-Staaten | EU countries | Multinationales Unternehmen | Transnational corporation | Verrechnungspreis | Transfer pricing | Dienstleistungshandel | Trade in services | Unternehmensbesteuerung | Corporate taxation | Gewinnverlagerung | Income shifting | Doppelbesteuerung | Double taxation | Steuerflucht | Cross-border tax evasion | Steuervermeidung | Tax avoidance | Steuerreform | Tax reform |
Saved in:
freely available
Extent: | 1 Online-Ressource (circa 40 Seiten) Illustrationen |
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Series: | CESifo working papers. - München : [Verlag nicht ermittelbar], ISSN 2364-1428, ZDB-ID 2065232-X. - Vol. no. 6594 |
Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature |
Language: | English |
Other identifiers: | hdl:10419/171058 [Handle] |
Classification: | F23 - Multinational Firms; International Business ; H25 - Business Taxes and Subsidies ; H32 - Firm |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10011700556