Are Spanish companies involved in profit shifting? Consequences in terms of tax revenues

Ángela Castillo Murciego and Julio López Laborda
Authors registered in the RePEc Author Service: Julio López-Laborda

No 2016-28, Economics Discussion Papers from Kiel Institute for the World Economy

Abstract: In this paper the authors analyze the existence of profit shifting by companies located in Spain. Using a sample of 1,380 Spanish subsidiaries owned by foreign OECD and EU parent companies from the AMADEUS Database for the period 2005-2014 and a simple tax rate difference as a measure of the profit shifting tax incentive, the authors obtain a negative effect of corporate income taxes on reported profits, which is consistent with the profit shifting activity of corporations and matches the empirical results in the literature. Furthermore, they derive a negative effect from this profit shifting activity in terms of tax revenues for Spain.

Keywords: profit shifting; multinational corporations; tax revenues; Spain (search for similar items in EconPapers)
JEL-codes: F23 F69 H25 H26 H32 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-eur and nep-ger
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Are Spanish companies involved in profit shifting? Consequences in terms of tax revenues (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:201628

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