Global profit shifting, 1975–2019

Ludvig Wier () and Gabriel Zucman ()
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Ludvig Wier: Ministry of Finance, Denmark
Gabriel Zucman: UC Berkeley and EU Tax Observatory

No 7, Working Papers from EU Tax Observatory

Abstract: This paper constructs time series of global profit shifting covering the 2015–19 period, during which major international efforts were implemented to curb profit shifting. We find that (i) multinational profits grew faster than global profits, (ii) the share of multinational profits booked in tax havens remained constant at around 37 per cent, and (iii) the fraction of global corporate tax revenue lost due to profit shifting rose from 9 to 10 per cent. We extend our time series back to 1975 and document a remarkable increase of multinational profits and global profit shifting from 1975 to 2019.

Keywords: multinationals; profit shifting; factor shares; taxation (search for similar items in EconPapers)
JEL-codes: E25 F23 H26 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2022-12
References: View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:dbp:wpaper:007

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