This paper analyzes the optimal level of transfer pricing manipulation when the expected tax penalty is a function of … the tax enforcement and the market price parameter, and the multinational enterprise is subjected to distinct rules of … shaped by market, which influences the probability of tax penalization. It suggests that firms are able to manipulate …

multinational firms to use transfer pricing to allocate profits across tax jurisdictions. We show that source-based taxation is a … Nash equilibrium for tax revenue maximizing jurisdictions if domestic and foreign firms generate large revenues. We also … revenues are intermediate. However, the source principle always tax-dominates the destination principle. …

multinational firms to use transfer pricing to allocate profits across tax jurisdictions. We show that source-based taxation is a … Nash equilibrium for tax revenue maximizing jurisdictions if domestic and foreign firms generate large revenues. We also … revenues are intermediate. However, the source principle always tax-dominates the destination principle …

distorted. Consequently, a national tax policy maker may ask which taxation system improves the position of its multinational …&A prices. Finally, we provide tax policy suggestions. …

This note identifies profit shifting in response to cross-countrydifferences in corporate tax rates as a source of …

financial sector and some European Countries, in the period 2003 -2011. Tax Heaven Countries are excluded.We segmented two … exception) with lower tax rate the profitability of affiliates is lower than profitability of independent companies. The study … gives only circumstantial evidence of the ex ante existence of risk circumstances ‘‘located'' in lower tax jurisdiction …

This study investigates how strategic tax transfer pricing of a multinational company (MNC) and two tax authorities in … different countries affects production and tax avoidance decisions at the firm level and tax revenues at the country level. We … employ a game-theoretical model to analyze the costs and benefits of two tax transfer pricing regimes (consistency vs …

This study investigates how strategic tax transfer pricing of a multinational company (MNC) and two tax authorities in … different countries affects production and tax avoidance decisions at the firm level and tax revenues at the country level. We … employ a game-theoretical model to analyze the costs and benefits of two tax transfer pricing regimes (consistency vs …

little understanding of how profit shifting differs across firm size. Using South African corporate tax returns from 2010 …-14, we investigate the link between firm size and profit shifting. We estimate that firms owned by a parent in a tax haven … avoid taxation on as much as 80 per cent of their true income. However, this aggregate tax loss conceals large differences …