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Global distribution of revenue loss from tax avoidance: Re-estimation and country results

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Listed:
  • Alex Cobham
  • Petr Janský

Abstract

International corporate tax is an important source of government revenue, especially in lower-income countries. An important recent study of the scale of this problem was carried out by International Monetary Fund researchers Ernesto Crivelli, Ruud De Mooij, and Michael Keen. We first re-estimate their innovative model, and then explore the effects of introducing higher-quality revenue data from the ICTD-WIDER Government Revenue Database. Whereas Crivelli et al. report results for two country groups only, we present country-level results to make the most detailed estimates available.

Suggested Citation

  • Alex Cobham & Petr Janský, 2017. "Global distribution of revenue loss from tax avoidance: Re-estimation and country results," WIDER Working Paper Series wp-2017-55, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2017-55
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    References listed on IDEAS

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    1. Alex Cobham & Petr Janský & Markus Meinzer, 2015. "The Financial Secrecy Index: Shedding New Light on the Geography of Secrecy," Economic Geography, Taylor & Francis Journals, vol. 91(3), pages 281-303, July.
    2. Gabriel Zucman, 2014. "Taxing across Borders: Tracking Personal Wealth and Corporate Profits," Journal of Economic Perspectives, American Economic Association, vol. 28(4), pages 121-148, Fall.
    3. Peter Reuter, 2012. "Draining Development? Controlling Flows of Illicit Funds from Developing Countries," World Bank Publications - Books, The World Bank Group, number 2242.
    4. Fuest, Clemens & Hebous, Shafik & Riedel, Nadine, 2011. "International debt shifting and multinational firms in developing economies," Economics Letters, Elsevier, vol. 113(2), pages 135-138.
    5. repec:idq:ictduk:10250 is not listed on IDEAS
    6. repec:idq:ictduk:11176 is not listed on IDEAS
    7. S. Abbas & Alexander Klemm, 2013. "A partial race to the bottom: corporate tax developments in emerging and developing economies," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(4), pages 596-617, August.
    8. Kimberly A. Clausing, 2016. "The Effect of Profit Shifting on the Corporate Tax Base in the United States and Beyond," National Tax Journal, National Tax Association;National Tax Journal, vol. 69(4), pages 905-934, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Saila Stausholm & Petr Janský & Marek Šedivý, 2022. "Illicit financial flows and country-by-country reporting in extractive industries," WIDER Working Paper Series wp-2022-76, World Institute for Development Economic Research (UNU-WIDER).
    2. Vincent Vicard, 2019. "The Exorbitant Privilege of High Tax Countries," Working Papers 2019-06, CEPII research center.
    3. Flora Bellone & Charlie Joyez & Xavier Poulet-Goffard, 2026. "Tax Avoidance by Small Multinationals as a Side Effect of Anti Tax Avoidance Policy," GREDEG Working Papers 2026-10, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    4. Avom, Désiré & Wendja Simo, Estelle Saraï & Mignamissi, Dieudonné, 2025. "Does illicit capital flight affect the level of economic complexity in developing countries?," International Economics, Elsevier, vol. 184(C).
    5. Bukhari, Muhammad Zaman & Ali, Amjad & Audi, Marc, 2025. "External Variables Affecting the Transfer Pricing Decisions: Arm’s Length Basis and Transfer Pricing," MPRA Paper 127320, University Library of Munich, Germany.
    6. Kevin Parra Ramirez & Vincent Vicard, 2025. "The Instruments of Profit Shifting," Sciences Po Economics Discussion Papers hal-05496025, HAL.
    7. Gaurav Shukla & Suesh Kumar Pandey & Shiu Lingam, 2020. "Tax Effects of Treaty Shopping and OECD’s BEPS Implications," FIIB Business Review, , vol. 9(2), pages 85-93, June.
    8. Chatjuthamard, Pattanaporn & Chintrakarn, Pandej & Jiraporn, Pornsit, 2026. "Strategic income shifting in uncertain times: Insights from economic policy uncertainty," Economic Modelling, Elsevier, vol. 155(C).
    9. Danuse Nerudova & Veronika Solilova & Marek Litzman & Petr Janský, 2020. "International tax planning within the structure of corporate entities owned by the shareholder‐individuals through Panama Papers destinations," Development Policy Review, Overseas Development Institute, vol. 38(1), pages 124-139, January.
    10. Shivneil Kumar Raj & Mohammed Riaz Azam, 2019. "Journal of Arts and Humanities(JAH)1Anti-Avoidance and Tax Laws: A Case of Fijii," International Journal of Business and Social Research, LAR Center Press, vol. 9(3), pages 1-20, March.
    11. Adamu Jibir & Musa Abdu & Tasiu Muhammad, 2020. "Analysis of Tax Compliance in Sub-Saharan Africa: Evidence from Firm-Level Study," Econometric Research in Finance, SGH Warsaw School of Economics, Collegium of Economic Analysis, vol. 5(2), pages 119-142, December.
    12. Kurauone, Ophias & Kong, Yusheng & Sun, Huaping & Muzamhindo, Simbarashe & Famba, Takuriramunashe & Taghizadeh-Hesary, Farhad, 2021. "The effects of International Financial Reporting Standards, auditing and legal enforcement on tax evasion: Evidence from 37 African countries," Global Finance Journal, Elsevier, vol. 49(C).
    13. Bodo Herzog, 2021. "Sustainable Consumer Tax Evasion Theory under Information Inattention," Sustainability, MDPI, vol. 13(2), pages 1-13, January.
    14. Waldemar Szymanski & Monika Szczerbak & Malgorzata Ozieblo, 2023. "Crisis Averted: Navigating Fiscal Policy Instruments in Member States on the Example of the Covid-19 Pandemic," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 556-569.
    15. Tembo Nakamoto & Odile Rouhban & Yuichi Ikeda, 2019. "Location-Sector Analysis of International Profit Shifting on a Multilayer Ownership-Tax Network," Papers 1904.09165, arXiv.org.
    16. Vincent Vicard, 2023. "Correction: Profit Shifting, Returns on Foreign Direct Investments and Investment Income Imbalances," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 71(2), pages 574-575, June.

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