Knocking on Tax Haven's Door: Multinational Firms and Transfer Pricing

Ronald Davies, Julien Martin, Mathieu Parenti () and Farid Toubal

ULB Institutional Repository from ULB -- Universite Libre de Bruxelles

Abstract: This paper analyzes the transfer pricing of multinational firms. Intra-firm prices may systematically deviate from arm's length prices for two motives: pricing to market and tax avoidance. Using French firm-level data on arm's length and intra-firm export prices, we find that the sensitivity of intra-firm prices to foreign taxes is reinforced once we control for pricing-to-market determinants. Most importantly, we find no evidence of tax avoidance if we disregard tax haven destinations. Tax avoidance through transfer pricing is economically sizable. The bulk of this loss is driven by the exports of 450 firms to ten tax havens.

Date: 2018-03-01
New Economics Papers: this item is included in nep-int and nep-pbe
References: Add references at CitEc
Citations: View citations in EconPapers (61)

Published in: Review of economics and statistics (2018)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Knocking on Tax Haven’s Door: Multinational Firms and Transfer Pricing (2018)
Working Paper: Knocking on Tax Haven’s Door: multinational firms and transfer pricing (2015)
Working Paper: Knocking on Tax Haven?s Door: Multinational Firms and Transfer Pricing (2015)
Working Paper: Knocking on Tax Haven's Door: Multinational Firms and Transfer Pricing (2014)
Working Paper: Knocking on Tax Haven's Door: Multinational Firms and Transfer Pricing (2014)
Working Paper: Knocking on Tax Haven's Door: Multinational Firms and Transfer Pricing (2014)
Working Paper: Knocking on Tax Haven’s Door: Multinational Firms and Transfer Pricing (2014)
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:ulb:ulbeco:2013/254377

Ordering information: This working paper can be ordered from
http://hdl.handle.ne ... lb.ac.be:2013/254377

Access Statistics for this paper

More papers in ULB Institutional Repository from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().