In the article "Will poorer countries benefit from international tax reform?", which discusses the broader context of the international tax reform and what makes it so complicated for the 139 countries in the forum led by OECD to reach a consensus, the current issue of the printed version of The Economist cites the research and refers to the estimates by our colleague Petr Janský and Javier Garcia-Bernardo of the Tax Justice Network:
"The current system for global tax dings poor countries in two ways. For a start, multinational companies shift their reported profits to low-tax havens, depriving them of revenue. Then the rules allocate taxing rights to countries that are home to company headquarters, which tend to be rich. Poor countries’ tax revenues are depressed by as much as 5% relative to an alternative system in which profits are taxed based on the current location of companies’ revenues, their employees and their wage bills ... By contrast, those in rich countries are only 1% lower. "
If you are interested in this topic and the future developments in the research of our colleagues, we also recommend following the CORPTAX project website as well as the newly launched EU TAX Observatory
Autor - Barbora Holková