Paul L. Caron

Tuesday, February 26, 2019

De Mooij Presents International Corporate Tax Avoidance: A Review Today At NYU

MoojRuud de Mooij (International Monetary Fund) presents International Corporate Tax Avoidance: A Review of the Channels, Magnitudes, and Blind Spots, 33 J. Econ Surveys ___ (2019), at NYU today as part of its Tax Policy Colloquium Series hosted by Lily Batchelder and Daniel Shaviro:

This paper reviews the rapidly growing empirical literature on international tax avoidance by multinational corporations. It surveys evidence on the main channels of corporate tax avoidance including transfer mispricing, international debt shifting, treaty shopping, tax deferral, and corporate inversions. Moreover, it performs a meta-analysis of the extensive literature that estimates the overall size of profit shifting. We find that the literature suggests that, on average, a 1 percentage-point lower corporate tax rate will expand before-tax income by 1%—an effect that is larger than reported as the consensus estimate in previous surveys and tends to be increasing over time.

The literature on tax avoidance still has several unresolved puzzles and blind spots that require further research.

Colloquia, Scholarship, Tax | Permalink


Until value creation and decent governing can compete with accommodation-partying on price (*it can't*) or tax "structuring" becomes more expensive than tax-paying (there are huge economies of scale), won't enforcement and less manipulable rules need to be a big part of the tax solution?

Posted by: Anand Desai | Feb 26, 2019 7:35:33 PM