A Fistful of Dollars? Foreign Sales Platforms and Profit Shifting in Tax Havens

28.05.2019 12:30 – 13:30

GENEVA TRADE AND DEVELOPMENT WORKSHOP / ABSTRACT

We use public macro-level data on the activities of U.S. multinational firms to study how they organize internationally to avoid paying corporate taxes. We document that U.S. firms register their sales in low-tax jurisdictions while producing elsewhere. We propose a parsimonious model to shed light on the fundamental role of foreign sales platforms in fuelling profits in tax havens. Our quantification shows that profit shifting by foreign sales platforms in tax havens amounts to about $80bn. Our findings suggest that profit apportionment rules which include sales may not efficiently address profit shifting.

Lieu

Bâtiment: IHEID

Graduate Institute
Maison de la Paix
Petal 2, Room S4
2 Chemin Eugène-Rigot
1202 Geneva

entrée libre