Establishing the baseline: estimating the fiscal contribution of multinational enterprises

Bruno Casella, Richard Bolwijn and Davide Rigo

MPRA Paper from University Library of Munich, Germany

Abstract: ax revenues from multinational enterprises (MNEs) are an important source of public finance in developing economies. The research and policy debate so far have mostly focused on the “missing” part, i.e. the government revenues lost due to the tax avoidance practices of MNEs (Bolwijn et al., 2018). In this study, we take a different, but complementary, approach, looking at the taxes and other revenues actually paid by foreign affiliates of MNEs to developing-country governments. We present two alternative methodologies to estimate foreign affiliates’ fiscal contribution – the contribution method and the foreign direct investment (FDI) income method – and show that they lead to the same order of magnitude. The findings allow us to set a baseline for an informed discussion on tax avoidance by MNEs.

Keywords: multinational enterprise; fiscal contribution; BEPS; domestic revenues; developing countries (search for similar items in EconPapers)
JEL-codes: F2 F21 F23 (search for similar items in EconPapers)
Date: 2018-11-20
New Economics Papers: this item is included in nep-int and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Published in Transnational Corporations 3.25(2018): pp. 111-142

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:95190

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