Quantifying the Effects of International Tax Reforms

16.10.2019 14:15 – 15:00

INSTITUTE OF ECONOMICS AND ECONOMETRICS /

ABSTRACT

A number of reforms have been proposed to ensure that multinational firms pay their taxes where they carry on their activities. Predicting the impact of a reform of the current international corporate taxation regimes requires counterfactual analysis that takes into account the level of corporate taxation and the set of factors influencing the location of sales, production and profits of multinational firms. We build a quantitative general equilibrium model featuring multinational activities, which take into account the effect of international corporate taxation. The model is calibrated using recent data on bilateral trade of goods and services, multinational sales and profits for 40 countries including 7 major tax havens. Specifically, we propose a new methodology to infer the amount of bilateral profits shifted by multinational corporations. The model predicts the change in relative attractiveness of countries, the variation of tax revenues and the adjustment of real wages of workers and entrepreneurs as well as the world-level efficiency induced by the implementation of a broad range of different reforms. These include scenarios that either reallocate taxing rights across countries and/or address profit shifting to entities subject to no or very low taxation. We show that reforms that are targeted to address profit shifting are more likely to gain political consensus than those which redistribute taxing rights.

Lieu

Bâtiment: Uni Mail

Bd du Pont-d'Arve 40
1205 Geneva

Room: M 5220, 5th floor

Organisé par

Faculté d'économie et de management
Research Center for Statistics

Intervenant-e-s

Mathieu PARENTI, Université libre de Bruxelles, ECARES and CEPR

entrée libre

Classement

Catégorie: Séminaire

Plus d'infos

www.unige.ch/gsem/en/research/seminars/rcs/

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