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The indirect costs of corporate tax avoidance exacerbate cross-country inequality

Author

Listed:
  • Javier Garcia-Bernardo
  • Daniel Haberly
  • Petr Janský
  • Miroslav Palanský
  • Valeria Secchini

Abstract

Corporate tax avoidance hampers domestic revenue mobilization and, with it, the development of lower- and middle-income countries. While a wide range of studies has shed light on the magnitude of profit shifting by multinational corporations, the indirect costs of this behaviour is underexplored. These indirect costs are likely to be skewed based on a country's level of income.

Suggested Citation

  • Javier Garcia-Bernardo & Daniel Haberly & Petr Janský & Miroslav Palanský & Valeria Secchini, 2022. "The indirect costs of corporate tax avoidance exacerbate cross-country inequality," WIDER Working Paper Series wp-2022-33, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2022-33
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    References listed on IDEAS

    as
    1. Hearson, Martin, 2018. "When do developing countries negotiate away their corporate tax base?," LSE Research Online Documents on Economics 87762, London School of Economics and Political Science, LSE Library.
    2. Jannick Damgaard & Thomas Elkjaer & Niels Johannesen, 2019. "What Is Real and What Is Not in the Global FDI Network?," IMF Working Papers 2019/274, International Monetary Fund.
    3. Michelle Harding & Melanie Marten, 2018. "Statutory tax rates on dividends, interest and capital gains: The debt equity bias at the personal level," OECD Taxation Working Papers 34, OECD Publishing.
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    Cited by:

    1. Katarzyna Bilicka & Evgeniya Dubinina & Petr Janský, 2022. "Fiscal consequences of corporate tax avoidance," WIDER Working Paper Series wp-2022-97, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    Keywords

    Profit shifting; Tax avoidance; Tax havens; Multinational firms; Costs; Inequality; Corporate tax;
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