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Have European Banks Left Tax Havens? Evidence from Country-by-Country Data

Author

Listed:
  • Giulia Aliprandi

    (EU Tax Observatory)

  • Mona Barake

    (EU Tax Observatory)

  • Paul-Emmanuel Chouc

    (EU Tax Observatory)

Abstract

This report documents the activity of European banks in tax havens and how this activity has evolved since 2014. The analysis covers 36 systemic European banks that have been required to publicly report country-by-country data on their activities since 2014. We study the level and evolution of the profits booked by these banks in tax havens over the 2014-2020 period. We also compute their effective tax rates and their tax deficit—defined as the difference between what these banks currently pay in taxes and what they would pay if they were subject to a minimum effective tax rate in each country.

Suggested Citation

  • Giulia Aliprandi & Mona Barake & Paul-Emmanuel Chouc, 2021. "Have European Banks Left Tax Havens? Evidence from Country-by-Country Data," Reports 002, EU Tax Observatory.
    • Handle: RePEc:dbp:report:002
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    References listed on IDEAS

    as
    1. Petr Janský, 2020. "European banks and tax havens: evidence from country-by-country reporting," Applied Economics, Taylor & Francis Journals, vol. 52(54), pages 5967-5985, November.
    2. Mona Baraké & Theresa Neef & Paul-Emmanuel Chouc & Gabriel Zucman, 2021. "Collecting the tax deficit of multinational companies simulations for the European Union," Working Papers halshs-03323095, HAL.
    3. Vincent Bouvatier & Gunther Capelle-Blancard & Anne-Laure Delatte, 2017. "Banks Defy Gravity in Tax Havens," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-03101505, HAL.
    4. Fatica, Serena & Gregori, Wildmer Daniel, 2020. "How much profit shifting do European banks do?," Economic Modelling, Elsevier, vol. 90(C), pages 536-551.
    5. James R. Hines & Eric M. Rice, 1994. "Fiscal Paradise: Foreign Tax Havens and American Business," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(1), pages 149-182.
    6. Dutt, Verena K. & Nicolay, Katharina & Vay, Heiko & Voget, Johannes, 2019. "Can European banks' country-by-country reports reveal profit shifting? An analysis of the information content of EU banks' disclosures," ZEW Discussion Papers 19-042, ZEW - Leibniz Centre for European Economic Research.
    7. Peter Horvát & Colin Webb, 2020. "The OECD STAN Database for industrial analysis: Sources and methods," OECD Science, Technology and Industry Working Papers 2020/10, OECD Publishing.
    8. Mona Barake & Paul-Emmanuel Chouc & Theresa Neef & Gabriel Zucman, 2021. "Collecting the Tax Deficit of Multinational Companies: Simulations for the EU," Reports 001, EU Tax Observatory.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Hackett, Franki & Janský, Petr, 2023. "Incremental improvement: Evaluating the emancipatory impact of public country-by-country reporting," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 96(C).
    2. Collin,Matthew Edward, 2023. "The Impact of Tax Blacklisting," Policy Research Working Paper Series 10435, The World Bank.

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    More about this item

    Keywords

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    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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