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

• 成果类型: Article
• 署名作者: Davies, Ronald B.; Martin, Julien; Parenti, Mathieu; Toubal, Farid
• 署名单位: University College Dublin; University of Quebec; University of Quebec Montreal; Trinity College Dublin; Universite Libre de Bruxelles; Universite Paris Saclay
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00673
• 发表日期: 2018-03
• 页码: 120-134
• 关键词: intrafirm trade prices; oecd; distortions; QUALITY; export

摘要

This paper analyzes the transfer pricing of multinational firms. Intrafirm 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 intrafirm export prices, we find that the sensitivity of intrafirm prices to foreign taxes is reinforced once we control for pricing-to-market determinants. Most important, 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.