Calendrier du 13 septembre 2022
Applied Economics Lunch Seminar
Du 13/09/2022 de 12:30 à 13:30
Salle R1.09, Campus Jourdan
FRANçOIS Manon (PSE)
The complexity of multinational entreprises and tax avoidance
écrit avec Vincent Vicard (CEPII)
Does the complexity of multinational enterprises’ (MNEs) ownership structure serve tax avoidance? We use cross-country firm-level data to show that affiliates belonging to more complex MNEs are more likely to bunch around zero profit, consistent with complexity enabling tax avoidance by multinational firms. Our results show that only more complex MNEs shift profits away from their high-tax affiliates, while MNEs with flat ownership structures do not display such pattern. Our analysis also shows that affiliates directly held through tax havens are more
likely to report zero profit than other affiliates in more complex MNEs.