The Long Way to Tax Transparency: Lessons from the Early Publishers of Country-by-Country Reports

Sarah Godar, Giulia Aliprandi, Tommaso Faccio, Petr Janský and Katia Toledo
Additional contact information
Tommaso Faccio: Nottingham University Business School [Nottingham]
Katia Toledo: UNamur - Université de Namur [Namur], UCL - Université Catholique de Louvain = Catholic University of Louvain

Working Papers from HAL

Abstract: In this paper, we analyse a sample of voluntarily published country-by-country reports (CbCRs) of 35 multinational enterprises (MNEs). We assess the value added and the limitations of qualitative and quantitative information provided in the reports based on a comparison to individual MNEs' annual financial reports and aggregate CbCR data provided by the OECD. In terms of data quality, we find that the inclusion of intra company dividends and equity-accounted profits are a minor concern on average but that for individual MNEs corrections might be substantial. Our sample MNEs seem to pay higher effective tax rates than the global average and many of them report relatively little profit in tax havens. We only find a very weak correlation of the location of profits and effective tax rates. This might indicate that more tax transparent MNEs avoid taxes less aggressively. However, our assessment of different tax risk indicators reveals important variations between companies.

Keywords: multinational corporation; country-by-country reporting; effective tax rate; profit shifting; tax haven (search for similar items in EconPapers)
Date: 2022-12
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-04103691v2
References: Add references at CitEc
Citations:

Downloads: (external link)
https://shs.hal.science/halshs-04103691v2/document (application/pdf)

Related works:
Journal Article: The long way to tax transparency: lessons from the early publishers of country-by-country reports (2024)
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:hal:wpaper:halshs-04103691

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD (hal@ccsd.cnrs.fr).