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Why pay more? Corporate tax avoidance through transfer pricing in OECD countries

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  • Bartelsman, Eric J.
  • Beetsma, Roel M. W. J.

Abstract

This paper presents suggestive evidence of income shifting in response to differences in corporate tax rates for a large selection of OECD countries. We use a new method to disentangle the income shifting effects from the effects of tax rates on real activity. Our baseline estimates suggest that a substantial share of the revenues from a unilateral increase in the corporate tax rate is lost because of a decline in reported income. This discussion paper has resulted in a publication in the Journal of Public Economics , 2003, 87(9-10), 2225-52.
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  • Bartelsman, Eric J. & Beetsma, Roel M. W. J., 2003. "Why pay more? Corporate tax avoidance through transfer pricing in OECD countries," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 2225-2252, September.
    • Handle: RePEc:eee:pubeco:v:87:y:2003:i:9-10:p:2225-2252
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    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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