EconPapers    
Economics at your fingertips  
 

Tax Evasion and Tax Avoidance in Developing Countries: The Role of International Profit Shifting

Clemens Fuest () and Nadine Riedel ()

No 1012, Working Papers from Oxford University Centre for Business Taxation

Abstract: In the debate on the impact of illicit capital flows on developing countries, the view is widespread that profit shifting to low tax jurisdictions undermines the ability of developing countries to raise tax revenue. While the shifting of income out of developed countries is a widely debated issue, empirical evidence on the magnitude of the problem and on the factors driving income shifting is scarce. This paper reviews the literature on tax avoidance and evasion through border crossing income shifting out of developing countries. Moreover, we discuss methods and available datasets which can be used to gain new insights into the problem of corporate income shifting. We argue that results of many existing studies on tax avoidance and evasion in developing countries are difficult to interpret, mainly because the measurement concepts used have a number of drawbacks. We discuss some alternative methods and datasets and present some empirical evidence which supports the view that profit shifting out of many developing countries and into tax havens takes place.

Date: 2010
New Economics Papers: this item is included in nep-acc, nep-pbe and nep-pub
References: Add references at CitEc
Citations: View citations in EconPapers (17) Track citations by RSS feed

Downloads: (external link)
http://www.sbs.ox.ac.uk/sites/default/files/Busine ... Series_10/WP1012.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.sbs.ox.ac.uk/sites/default/files/Business_Taxation/Docs/Publications/Working_Papers/Series_10/WP1012.pdf [301 Moved Permanently]--> https://www.sbs.ox.ac.uk/sites/default/files/Business_Taxation/Docs/Publications/Working_Papers/Series_10/WP1012.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:btx:wpaper:1012

Access Statistics for this paper

More papers in Working Papers from Oxford University Centre for Business Taxation Contact information at EDIRC.
Bibliographic data for series maintained by Dongxian Guo (). This e-mail address is bad, please contact .

 
Page updated 2020-04-05
Handle: RePEc:btx:wpaper:1012