Lower-income countries in general suffer the greatest shrinkage of the tax base as a result of corporate profit-shifting. In a new working paper, Simon Loretz and I find that the multinational tax bases of some lower-income countries could even be double their current size. We also find that some of the ‘tax haven’ jurisdictions that benefit most have received surprisingly little attention. Any guesses?
CGD Policy Blogs
Aside from lurid revelations about individual companies and the big four accounting firms, the leaks of multinationals’ tax deals with Luxembourg confirm—and expose to a wider audience—the true nature of the tax ‘competition’ that prevents the emergence of effective international rules.
Originally posted on Richard Murphy's Tax Research UK.org blog on November 21st.
A new paper from Gabriel Zucman (of London School of Economics, and erstwhile co-author of Thomas Piketty) in the (free-to-view) Journal of Economic Perspectives represents a milestone in the academic economics literature.
Last years’ G-20 and G-8 meetings produced important commitments to bolster tax systems and to fight corruption. The upcoming G-20 meeting in Brisbane will show just how serious member countries are about delivering on them.
Illicit financial flows (IFF) is a broad term which conflates a lot of different things, including cross-border laundering of the proceeds of crime, the financing of terrorism, the theft of state assets, private-sector bribery and—of course—abuses of taxation, both personal and corporate.
OECD countries and others have agreed on a new standard for multinational companies to report their economic activities, including profits and tax payments, on a country-by-country basis.
Did you know that Iran had tax revenues greater than its GDP for three years in the late 1980s? Or at least that’s the impression you’d get if you — like many researchers — were to combine tax data from the IMF’s Government Financial Statistics and the GDP series from the IMF’s International Financial Statistics.