Why Pay More? Corporate Tax Avoidance Through Transfer Pricing in OECD Countries

Roel Beetsma and Eric Bartelsman

No 2543, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: 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.

Keywords: Profit shifting; Transfer pricing; Corporate tax rates; Stan database (search for similar items in EconPapers)
JEL-codes: F20 H20 (search for similar items in EconPapers)
Date: 2000-08
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Citations: View citations in EconPapers (25)

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Journal Article: Why pay more? Corporate tax avoidance through transfer pricing in OECD countries (2003)
Working Paper: Why Pay More? Corporate Tax Avoidance through Transfer Pricing in OECD Countries (2000)
Working Paper: Why pay more? Corporate Tax Avoidance through Transfer Pricing in OECD Countries (2000)
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