Tax Evasion and Tax Avoidance in Developing Countries: The Role of International Profit Shifting
AbstractIn the debate on the impact of illicit capital flows on developing countries, the view is widespread that profit shifting to low tax jurisdictions undermines the ability of developing countries to raise tax revenue. While the shifting of income out of developed countries is a widely debated issue, empirical evidence on the magnitude of the problem and on the factors driving income shifting is scarce. This paper reviews the literature on tax avoidance and evasion through border crossing income shifting out of developing countries. Moreover, we discuss methods and available datasets which can be used to gain new insights into the problem of corporate income shifting. We argue that results of many existing studies on tax avoidance and evasion in developing countries are difficult to interpret, mainly because the measurement concepts used have a number of drawbacks. We discuss some alternative methods and datasets and present some empirical evidence which supports the view that profit shifting out of many developing countries and into tax havens takes place.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Oxford University Centre for Business Taxation in its series Working Papers with number 1012.
Date of creation: 2010
Date of revision:
Contact details of provider:
Postal: Park End Street, Oxford OX1 1HP UK
Phone: +44 (0)1865 288800
Fax: +44 (0)1865 288805
Web page: http://www.sbs.ox.ac.uk/ideas-impact/tax/
More information through EDIRC
This paper has been announced in the following NEP Reports:
- NEP-ACC-2010-06-18 (Accounting & Auditing)
- NEP-ALL-2010-06-18 (All new papers)
- NEP-PBE-2010-06-18 (Public Economics)
- NEP-PUB-2010-06-18 (Public Finance)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Shafik Hebous & Vilen Lipatov, 2012.
"A Journey from a Corruption Port to a Tax Haven,"
1204, Oxford University Centre for Business Taxation.
- Shafik Hebous, 2011. "Money at the Docks of Tax Havens: A Guide," CESifo Working Paper Series 3587, CESifo Group Munich.
- Nitsch, Volker, 2011. "Trade Mispricing and Illicit Flows," Darmstadt Discussion Papers in Economics 54540, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute of Economics (VWL).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Li Liu).
If references are entirely missing, you can add them using this form.