The Emergence and Expansion of Tax Havens, 1850–2000: Insights from a New Dataset

Laffitte, Sébastien

doi:10.1007/978-3-031-18119-1_2

Cited by 1 publication

(1 citation statement)

References 27 publications

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“…Among the high-PS-risk jurisdictions we identify, many are also on the Oxfam list of top tax havens (Oxfam, 2016) (Figure 3 or Appendix) and other tax haven lists [see, e.g. Table A.1 in Laffitte (2023)]. This adds credibility to our indicator.…”

Section: Discussionmentioning

confidence: 59%

Assessing the risk of profit shifting among the suppliers to Danish municipalities

Gislason,

Hvid,

Gøth

et al. 2024

JOPP

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Purpose An increasing number of Danish municipalities wish to minimize tax avoidance due to profit shifting in their public procurement. To facilitate this effort, this study aims to develop a firm-level indicator to assess the potential risk of profit shifting (PS-risk) from Danish subsidiaries of multinational corporations to subsidiaries in low-tax jurisdictions. Design/methodology/approach Drawing from previous research, PS-risk is assumed to depend on the maximum difference in the effective corporate tax rate between the Danish subsidiary and other subsidiaries under the global ultimate owner, in conjunction with the tax regulations relevant to profit shifting. The top 400 contractors in Danish municipalities from 2017 to 2019 are identified and their relative PS-risk is estimated by combining information about corporate ownership structure with country-specific information on corporate tax rates, tax regulations and profit shifting from three independent data sets. Findings The PS-risk estimates are highly significantly positively correlated across the data sets and show that 17%–23% of the total procurement sum of the Danish municipalities has been spent on contracts with corporations having a medium to high PS-risk. On average, PS-risk is highest for large non-Scandinavian multinational contractors in sectors such as construction, health and information processing. Social implications Danish public procurers may use the indicator to screen potential suppliers and, if procurement regulations permit, to ensure high-PS-risk bidders document their tax practices. Originality/value The PS-risk indicator is novel, and to the best of the authors’ knowledge, the analysis provides the first estimate of PS-risk in Danish public procurement.

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Section: Discussionmentioning

confidence: 59%