International Transfer Pricing and Tax Avoidance : Evidence from the Linked Tax-Trade Statistics in the UK
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 lower-taxed 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: |
2017
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Authors: | Liu, Li |
Other Persons: | Schmidt-Eisenlohr, Tim (contributor) ; Guo, Dongxian (contributor) |
Publisher: |
[2017]: [S.l.] : SSRN |
Subject: | Verrechnungspreis | Transfer pricing | Steuervermeidung | Tax avoidance | Multinationales Unternehmen | Transnational corporation | Gewinnverlagerung | Income shifting | Großbritannien | United Kingdom | Steuerreform | Tax reform |
Saved in:
freely available
Extent: | 1 Online-Ressource (38 p) |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 27, 2017 erstellt |
Other identifiers: | 10.2139/ssrn.3009883 [DOI] |
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/10012951007