Data and code for "Multinationals' Sales and Profit Shifting in Tax Havens."

Principal Investigator(s): View help for Principal Investigator(s) Sébastien Laffitte, ENS Paris Saclay; Farid Toubal, Université Paris Dauphine -- PSL, LEDa

Version: View help for Version V1

Name	File Type	Size	Last Modified
Code			11/02/2021 01:20:PM
Data			11/02/2021 01:19:PM
Results			11/02/2021 01:19:PM
BEA_details.xlsx	application/vnd.openxmlformats-officedocument.spreadsheetml.sheet	11.7 KB	11/02/2021 09:19:AM
CC_LICENSE.txt	text/plain	13.4 KB	11/02/2021 09:19:AM
Etalab_LICENSE.pdf	application/pdf	97.6 KB	11/02/2021 09:19:AM
README.pdf	application/pdf	167.5 KB	11/02/2021 09:19:AM

Project Citation:

Laffitte, Sébastien, and Toubal, Farid. Data and code for “Multinationals’’ Sales and Profit Shifting in Tax Havens.".” Nashville, TN: American Economic Association [publisher], 2022. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2022-10-20. https://doi.org/10.3886/E148301V1

Project Description

Summary: We show that U.S. multinationals record sales and the profit from these sales in tax havens, while their goods and services are physically sold in other countries. We propose a framework illustrating the strategy of sales shifting. Our results reveal the importance of tax havens which attract a disproportionate fraction of worldwide sales. Our quantification shows a large contribution of sales shifting to multinationals' profit shifting that amounts to $80bn in 2013. Our findings suggest that international corporate tax rules based on sales may not efficiently address profit shifting if the policy designs are unable to identify sales by destination.

Scope of Project

JEL Classification:
      F23 Multinational Firms; International Business
      H26 Tax Evasion and Avoidance
      H73 State and Local Government; Intergovernmental Relations: Interjurisdictional Differentials and Their Effects

Geographic Coverage: World

Time Period(s): 1999 – 2013

Universe:
U.S. Multinational Firms Abroad

Data Type(s): aggregate data

Methodology

Data Source:

Bureau of Economic Analysis

CEPII

Penn World Tables

Melitz and Toubal (2014)
Dharmapala and Hines (2009)

OECD

Unit(s) of Observation: Firms

Geographic Unit: Countries

Related Publications

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Published Versions

V1 [2022-10-20]

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DDI 2.5

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