International tax planning within the structure of corporate entities owned by the shareholder-individuals through Panama Papers destinations

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F20%3A10407087" target="_blank" >RIV/00216208:11230/20:10407087 - isvavai.cz</a>

Result on the web

<a href="https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=CkZzcQybgj" target="_blank" >https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=CkZzcQybgj</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1111/dpr.12403" target="_blank" >10.1111/dpr.12403</a>

Result language

angličtina

Original language name

International tax planning within the structure of corporate entities owned by the shareholder-individuals through Panama Papers destinations

Original language description

Motivation: The Panama Papers scandal highlighted the scale of financial secrecy, anonymous ownership and shell companies and their role in profit shifting and tax avoidance. We show the importance of international tax planning within the structure of corporate entities owned by shareholder-individuals through Panama Papers destinations. Purpose: To identify profit-shifting channels and to estimate related government revenue losses to European Union Member States. Methods: Using company data from the Amadeus/Orbis database (Bureau Van Dijk, n.d.a, n.d.b), we applied micro-data analysis to the financial statements of multinational companies (MNEs) owned by shareholder-individuals. Two groups-one with and the other without links to Panama Papers tax havens-alongside an analysis of profit-shifting indicators. Findings: Profit is generally shifted by moving operating revenues or costs, though the use of debt channels is also important. Also, groups linked to tax havens pay significantly less tax per unit of profit before tax, and require less operating revenue to achieve higher profits. Finally, related government revenue losses were assessed at EUR 8.67 billion. Policy implication: Our results are relevant to the European Commission&apos;s Comprehensive Common Consolidated Corporate Tax Base (CCCCTB) as it aims to counter profit shifting out of the European Union (EU) into tax havens. Further, our research highlights the importance of setting up registries of ultimate beneficiary owners in EU Member States.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50201 - Economic Theory

Project

—

Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2020

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Development Policy Review

ISSN

0950-6764

e-ISSN

—

Volume of the periodical

38

Issue of the periodical within the volume

1

Country of publishing house

GB - UNITED KINGDOM

Number of pages

16

Pages from-to

124-139

UT code for WoS article

000619418000007

EID of the result in the Scopus database

2-s2.0-85075470964