Why pay more? Corporate Tax Avoidance through Transfer Pricing in OECD Countries

Eric Bartelsman and Roel Beetsma

No 00-054/2, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: This paper presents suggestive evidence of income shifting in response to differences in corporate tax rates for a large selection of OECD countries. We use a new method to disentangle the income shifting effects from the effects of tax rates on real activity. Our baseline estimates suggest that a substantial share of the revenues from a unilateral increase in the corporate tax rate is lost because of a decline in reported income.

This discussion paper has resulted in a publication in the Journal of Public Economics , 2003, 87(9-10), 2225-52.

Keywords: Profit shifting; Transfer pricing; Corporate tax rates; STAN database (search for similar items in EconPapers)
JEL-codes: F2 H2 (search for similar items in EconPapers)
Date: 2000-07-05
References: Add references at CitEc
Citations: View citations in EconPapers (25)

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Related works:
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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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20000054

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