Arbeitspapier
International Transfer Pricing and Tax Avoidance: Evidence from Linked Trade-Tax Statistics in the UK
This paper employs unique data on export transactions and corporate tax returns of UK multinational firms and finds that firms manipulate their transfer prices to shift profits to lower-taxed destinations. It uncovers three new findings on tax-motivated transfer mispricing in real goods. First, transfer mispricing increases substantially when taxation of foreign profits changes from a worldwide to a territorial approach in the UK, with multinationals shifting more profits into low-tax jurisdictions. Second, transfer mispricing increases with a firm’s R&D intensity. Third, tax-motivated transfer mispricing is concentrated in countries that are not tax havens and have low-to-medium-level corporate tax rates.
- Language
-
Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 6594
- Classification
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Wirtschaft
Multinational Firms; International Business
Business Taxes and Subsidies including sales and value-added (VAT)
Fiscal Policies and Behavior of Economic Agents: Firm
- Subject
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transfer pricing
corporate taxation avoidance
multinational firms
- Event
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Geistige Schöpfung
- (who)
-
Liu, Li
Schmidt-Eisenlohr, Tim
Guo, Dongxian
- Event
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Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
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Munich
- (when)
-
2017
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Liu, Li
- Schmidt-Eisenlohr, Tim
- Guo, Dongxian
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2017
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Can increased tax transparency curb corporate tax avoidance?
Tariff elimination versus tax avoidance: Free trade agreements and transfer pricing
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Who Participates in Tax Avoidance?
Do tax information exchange agreements curb transfer pricing-induced tax avoidance?
Transfer pricing as tax avoidance under different legislative schemes
Essays on tax evasion and tax avoidance
Tax avoidance and optimal income tax enforcement
Book-tax conformity, earnings quality, and tax avoidance
Can increased tax transparency curb corporate tax avoidance?
Tariff elimination versus tax avoidance: Free trade agreements and transfer pricing
Tax avoidance, tax evasion, and tax flight: Do legal differences matter?
Determinants of Aggressive Tax Avoidance
Legal institutions and tax avoidance
Die Anti-Tax-Avoidance-Richtlinie