Tax competition in the presence of profit shifting q

• 成果类型: Article
• 署名作者: Mongrain, Steeve; Oh, David; van Ypersele, Tanguy
• 署名单位: Simon Fraser University; Aix-Marseille Universite; Centre National de la Recherche Scientifique (CNRS)
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2023.104940
• 发表日期: 2023
• 关键词: Tax competition; Profit shifting; international taxation; capital mobility

摘要

The popular view is that governments should crack down on tax avoidance by multinational corpora-tions, but in practice, lax anti-profit-shifting policies are common. Here, we analyze how controlling profit shifting influences fiscal competition. Equilibrium tax rates are determined by the elasticities of two components: retained profit and capital mobility. Anti-profit-shifting policies decrease the elasticity of the first, but increase the elasticity of the second. The impact of these policies on equilibrium tax rates is then ambiguous. We show that there are cases in which laxer policies increase equilibrium tax rates and countries' well-being by favoring investments. We use estimates of different elasticities to show that our model can support lax enforcement.(C) 2023 Elsevier B.V. All rights reserved.