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Profit shifting by multinational corporations in Kenya: The role of internal debt

Author

Listed:
  • Roseline Misati
  • Kethi Ngoka
  • Anne Kamau
  • Maureen Odongo

Abstract

Illicit financial flows directly impact a country's ability to raise, retain, and mobilize its own resources to finance sustainable development. Against a backdrop of a weak public financial position attributed to capital flight, tax avoidance, and dependence on corporate income taxes, governments in Africa face impediments to their efforts to widen the tax base. Using firm-level annual data from 2015-19 from multinational corporations' audited financial statements, we assess the scale of profit shifting by those corporations with a presence in Kenya.

Suggested Citation

  • Roseline Misati & Kethi Ngoka & Anne Kamau & Maureen Odongo, 2022. "Profit shifting by multinational corporations in Kenya: The role of internal debt," WIDER Working Paper Series wp-2022-39, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2022-39
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    References listed on IDEAS

    as
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    Keywords

    Profit shifting; Corporate tax; Multinational firms;
    All these keywords.

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