The Centre for Business Prosperity are pleased to announce the third session of its new reading club series presented by CBP Markets and Policy theme, led by Dr Matthew Olczak, entitled “Tax Avoidance and Competition”.

Multinational corporations are estimated to shift $1.38 trillion worth of profit into tax havens every year, costing countries $245 billion in lost corporate tax (Tax Justice Network). This is usually done by MNEs shifting their profits from high-tax to low-tax countries by exploiting loopholes in tax rules to reduce their global tax burden.

This reading club series aims to explore the new research frontier on this topic in the lens of international business strategy, tax regulation and market competition. Recent research has started to measure profit shifting and examine how this is achieved through allocation of multinationals’ intangible asset allocation and international trade in services. The discussions following the reading activities of this series will bring together the expertise on tax haven adoption by Chris Jones, economics of industrial organisation and market regulation by Matthew Olczak, and international trade in services by Jun Du.

Chris and Matthew will shortly start on a Leverhulme funded 3-year project examining the impact of tax avoidance on competition. With new questions emerging and new approaches discovered, there is considerable scope to contribute to this interdisciplinary research.

Each session is based around a recent working paper.

 

Session 3: Wednesday 23 March  2.30 – 4pm
Lead by Jun Du

  • How are profits shifted? Evidence that IP is a route & use Torslov et al. (2018) method to estimate profit shifting
  • Accoto et al. (2021) `Trade in Services, Intangible capital, and the Profit-Shifting Hypothesis’

 

Some overarching questions:

  • What empirical methods are used?
  • What data is used? How does this compare to data we have?
  • What insights can be gained from theoretically modelling tax avoidance?

 

Each session will be in form of a presentation led by the speaker, and a wider discussion focusing on research opportunities. Reading before attending is recommended, but prior knowledge on the topic is not essential.

To register your attendance please: Click here