Profit-shifting behaviour of emerging multinationals from India

Khanindra Ch. Das

No wp-2022-21, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper examines the profit-shifting behaviour of emerging multinational firms from India. It is found that the before-tax profitability of subsidiaries differs according to whether they were established directly or via an Offshore Financial Centre (OFC). The impact of the corporate tax rate on profitability is examined using a fixed-effects model for the period 2010-19. In the case of subsidiaries established via OFCs, a negative relationship between corporate tax rate and profitability is found, indicating profit-shifting behaviour.

Keywords: Corporate tax; Multinational firms; Offshore financial centres; Profit shifting; Panel data; Tax havens (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-acc
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