DP2543 Why Pay More? Corporate Tax Avoidance Through Transfer Pricing in OECD Countries
|Author(s):||Eric J Bartelsman, Roel Beetsma|
|Publication Date:||August 2000|
|Keyword(s):||Corporate Tax Rates, Profit Shifting, STAN Database, Transfer Pricing|
|Programme Areas:||International Macroeconomics, Public Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=2543|
This paper presents evidence of profit shifting in response to differences in corporate tax rates for a large selection of OECD countries. In our estimates we control for the effects of tax rate changes on real activity. Our baseline estimates suggest that, on average, a unilateral increase in the corporate tax rate does not lead to an increase in corporate tax revenues owing to a more than offsetting decline in reported profits.