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Why pay more? Corporate Tax Avoidance through Transfer Pricing in OECD Countries

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  • Eric J. Bartelsman

    () (VU University Amsterdam)

  • Roel Beetsma

    () (University of Amsterdam, and CEPR)

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.

Suggested Citation

  • Eric J. Bartelsman & Roel Beetsma, 2000. "Why pay more? Corporate Tax Avoidance through Transfer Pricing in OECD Countries," Tinbergen Institute Discussion Papers 00-054/2, Tinbergen Institute.
  • Handle: RePEc:tin:wpaper:20000054
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    References listed on IDEAS

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    More about this item

    Keywords

    Profit shifting; Transfer pricing; Corporate tax rates; STAN database;

    JEL classification:

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

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