Home or Away? Profit Shifting with Territorial Taxation, with Dominika Langenmayr, forthcoming, Journal of Public Economics
CESifo Working Paper Series 8047
Abstract: In 2009, the United Kingdom abolished the taxation of profits earned abroad and introduced a territorial tax system. Under the territorial system, firms have strong incentives to shift profits abroad. Using a difference-in-differences research design, we show that the profitability of UK subsidiaries in low-tax countries increased after the reform compared to subsidiaries of non-UK multinationals in the same countries by an average of 2 percentage points. The shifted profits originate largely in the UK headquarters and its domestic affiliates, not in other high-tax affiliates.
Exploring Residual Profit Allocation, with Sebastian Beer, Ruud de Mooij, Shafik Hebous, and Michael Keen, forthcoming, American Economic Journal: Economic Policy
Presentation: OUCBT 2019 Summer Conference
VAT Notches, Voluntary Registration, and Bunching: Theory and UK Evidence, with Ben Lockwood, Miguel Almunia and Eddy Tam, Review of Economics and Statistics, (2021) 103 (1): 151–164
Previous versions:
An Assessment of Global Formula Apportionment, with Ruud de Mooij and Dinar Prihardini, National Tax Journal, June 2021, Volume 74, Number 2
At A Cost: the Real Effects of Thin Capitalization Rules, with Ruud de Mooij, Economics Letters, March 2021, Volume 200 ,109745
International Transfer Pricing and Tax Avoidance: Evidence from the linked Tax-Trade Statistics in the UK, with Tim Schmidt-Eisenlohr and Dongxian Guo, Review of Economics and Statistics, 102(4), 766-778, October 2020
Working-paper Version: FRB International Finance Discussion Paper No. 1214
International Corporate Tax Avoidance: A Review of the Channels, Magnitudes, and Blind Spots, Journal of Economic Surveys, 34 (3): 660-88, July 2020
Income Tax Progressivity: Trends and Implications, with Claudia Gerber, Alexander Klemm, and Victor Mylonas, Oxford Bulletin of Economics and Statistics, 82(2): 365-386, April 2020
At A Cost: the Real Effects of Transfer Pricing Regulations, with Ruud de Mooij, IMF Economic Review, 68(1), 268-306, March 2020
Presentation at the 19th IMF Annual Research conference
Where Does Multinational Investment Go with Territorial Taxation? Evidence from the UK, American Economic Journal: Economic Policy, 12 (1): 325-58, February 2020
UK Accelerated Depreciation Policy in an International Context, with Andrew Harper, British Tax Review, Issue 3 2019, 257 - 264 , August 2019
International Effects of the U.S. Tax Reform: A View from the Front Line, with Peter Harris and Michael Keen, Canadian Tax Journal, Vol. 67, No. 1, 2019
This paper is a shorter/updated version of Canada: Taxing Business in A Changing World, Selected Issues for Canada, IMF Country Report No. 18/222.
Effectiveness of Fiscal Incentives for R&D: Quasi-Experimental Evidence, with Irem Guceri, American Economic Journal: Economic Policy, 11 (1): 266-91
Previous versions:
Oxford University Centre for Business Taxation Working Paper No.15/12; Winner of the 2015 Young Economists Award at the 2015 IIPF Annual Congress
Income Taxes and Business Incorporation: Evidence from the Early Twentieth Century National Tax Journal, June 2014, 67(2)
Media coverage: the Independent (March 28, 2012)
The Elasticity of Corporate Taxable Income: New Evidence from UK Tax Records, with Michael Devereux and Simon Loretz, American Economic Journal: Economic Policy, May 2014, 6(2)
Media coverage: the Economist (July 20, 2013)
Temporary Increase in Annual Investment Allowance, with Andrew Harper, British Tax Review, Issue 4, 2013
Measuring the Burden of the Corporate Income Tax under Imperfect Competition, with Rosanne Altshuler, National Tax Journal, March 2013, 66 (1), 215–238
Technical Appendix
Media coverage: Forbes (April 25, 2013), CBC (April 15, 2011)