Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/286326 
Year of Publication: 
2022
Series/Report no.: 
IES Working Paper No. 30/2022
Publisher: 
Charles University in Prague, Institute of Economic Studies (IES), Prague
Abstract: 
Corporate profit shifting to tax havens negatively impacts corporate tax revenue, particularly in low-income countries. Two studies published in 2016 and 2018 have proven this correlation using data from 2013. In this paper, I use the most recent version of the UNU-WIDER Government Revenue Dataset (GRD) to estimate government revenue losses in 2019 and to observe possible changes associated with the release of the new dataset. My estimations indicate that global tax revenue losses in 2019 are around USD 480 billion, compared to USD 500 billion in 2013. In terms of GDP percentage, my estimations confirm the presence of a higher share of losses in low-income, and more generally, in non-OECD countries, and they show a higher intensity of tax avoidance practices in those countries. The results also suggest that the total level of tax revenue losses has plateaued, with no increase in losses occurring since 2013.
Subjects: 
international taxation
corporate income tax
tax avoidance
tax havens
base erosion
profit shifting
income inequality
developing countries
JEL: 
F21
F23
H25
Document Type: 
Working Paper

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