The current OECD process to reform the international rules governing corporate tax, aimed to achieve a consensus solution by 2020, has finally recognised the need to introduce elements of formulary apportionment to allocate the profits of multinationals and is framed explicitly in terms of redistributing taxing rights between countries. In this paper we provide the first public evaluation of the redistribution of taxing rights associated with the leading proposals of the OECD, IMF and the Independent Commission for the Reform of International Corporate Taxation (ICRICT). The first key finding is that that reallocation of taxing rights towards “market jurisdictions”, as it is currently understood, is likely to be of little benefit to non-OECD countries. Indeed, the proposal is likely to reduce revenues for a range of lower-income countries. Second, all of the proposals deliver a much broader distribution of benefits if some element of taxing rights is apportioned according to the location of multinationals’ employment, and not only of sales.

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Tax avoidance by multinational enterprises (MNEs) is a global problem. Most crossborder trade occurs within MNEs, susceptible to abuse of gaps and loopholes in domestic and international tax law that allow "profit shifting" between fiscal jurisdictions in order to reduce corporate tax liability. A lack of transparency makes this kind of tax avoidance difficult to quantify -let alone to monitor and control. This paper provides a case study of profit shifting using publicly available, unique, country-by-country reporting data for Vodafone Group Plc, the first large MNE to voluntarily publish such data. We show the tax impact of a move to formulary apportionment on a global basis, and under the European Union's Common Consolidated Corporate Tax Base proposal. We also consider the rationale for the current proposals for apportionment factors and propose an alternative.

This article surveys the literature on the relationship between corporate income taxation and inequality through the lens of the recent book The triumph of injustice-How the rich dodge taxes and how to make them pay by Saez and Zucman ( 2019). First, we analyze the nexus between corporate taxation and inequality by reviewing both studies that highlight the curbing effect of corporate tax on inequality, and by examining studies claiming that more corporate taxation might paradoxically raise personal inequality. Then we proceed by identifying current practices in taxing multinational entities, and provide an overview of the latest estimates on nations' missing fiscal revenues. Finally, we discuss the policy proposals put forward by Saez and Zucman (2019) to reform corporate taxation at the global level through the introduction of a global corporate minimum tax.

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