base erosion and profit shifting


  • Tax experts in early 2018 forecast the demise of the two major U.S. corporate tax havens, Ireland and Singapore, in the expectation that U.S. multinationals would no longer
    need foreign BEPS tools.

  • [1][70] Failure of TCJA (2017–2018) See also: Ireland as a tax haven § Impact of TCJA See also: Double Irish arrangement § Effect of Tax Cuts and Jobs Act The Tax Cuts and
    Jobs Act of 2017 (“TCJA”) moved the U.S. from a “worldwide” corporate tax system to a hybrid[e] “territorial” tax system.

  • [57] Other tax experts, including a founder of academic tax haven research, James R. Hines Jr., note that U.S. multinational use of BEPS tools and corporate tax havens had
    actually increased the long–term tax receipts of the U.S. Treasury, at the expense of other higher–tax jurisdictions, making the U.S a major beneficiary of BEPS tools and corporate-tax havens.

  • Furthermore, the EU has been involved in discussions on the common consolidated corporate tax base (CCCTB) development, which reduce the opportunities for tax planning.

  • [b][2] A few studies showed that use of the BEPS tools by American multinationals maximized long–term American Treasury revenue and shareholder return, at the expense of other

  • [78] Setser followed up his New York Times piece on the CoFR website with: So, best I can tell, neither the OECD’s base erosion and profit shifting work nor the U.S. [TCJA]
    tax reform, will end the ability of major U.S. companies to reduce their overall tax burden by aggressively shifting profits offshore (and paying between 0-3 percent on their offshore profits and then being taxed at the GILTI 10.5 percent
    rate net of any taxes paid abroad and the deduction for tangible assets abroad).

  • Pillar Two Overall design Pillar Two consists of: • two interlocking domestic rules (together the Global anti-Base Erosion Rules (GloBE) rules): (i) an Income Inclusion Rule
    (IIR), which imposes top-up tax on a parent entity in respect of the low taxed income of a constituent entity; and (ii) an Undertaxed Payment Rule (UTPR), which denies deductions or requires an equivalent adjustment to the extent the low tax
    income of a constituent entity is not subject to tax under an IIR; and • a treaty-based rule (the Subject to Tax Rule (STTR)) that allows source jurisdictions to impose limited source taxation on certain related party payments subject to tax
    below a minimum rate.

  • [26] Most global jurisdictions operate a “territorial” corporate tax system with lower tax rates for foreign sourced income, thus avoiding the need to “shift” profits (i.e.

  • [75] For example, by accepting Irish tangible, and intangible, capital allowances in the GILTI calculation, Irish BEPS tools like the “Green Jersey” enable U.S. multinationals
    to achieve U.S. effective tax rates of 0–3% via the TCJA’s foreign participation relief system.

  • [21] The popularity of using intra-group debts as a tax avoidance tool is further enhanced by the fact that in general they are not recognized under accounting standards and
    therefore do not affect consolidated financial statements of MNEs.

  • Current efforts OECD[edit] In 2013 the OECD along with G20 has introduced its BEPS Project, which aims to give governments tools to prevent international companies from tax

  • [88] The EU is also involved in forming an international tax framework, through which it aims to establish a global minimum tax rate for multinational companies.

  • [83] The Head of Tax for PwC in Ireland said, “There’s a limited number of [consumers] users in Ireland and [the proposal under consideration] would obviously benefit the
    much larger countries”.

  • BEPS tools could not function if the corporate tax haven did not have a network of bilateral tax treaties that accept the haven’s BEPS tools, which “shift” the profits to
    the haven.

  • [43][44] Tax investigators call such jurisdictions “captured states”,[45][46][47] and explain that most leading BEPS hubs started as established financial centres, where the
    necessary skills and State support for tax avoidance tools, already existed.

  • [5][25] Before the Tax Cuts and Jobs Act of 2017 (TCJA), the U.S. was one of only eight jurisdictions to operate a “worldwide” tax system.

  • — Pierre Moscovici, EU Commissioner on Taxation, Financial Times, 11 March 2018 The complex accounting tools, and the detailed tax legislation, that corporate tax havens require
    to become OECD–compliant BEPS hubs, requires both advanced international tax–law professional services firms, and a high degree of coordination with the State, who encode their BEPS tools into the State’s statutory legislation.

  • Several multinational companies use IP structuring models to separate the ownership, funding, maintenance and use rights of intangible assets from the actual activities and
    physical location of intangible assets to operate in a manner that the income made from the intangibles in one location is received in another location with a low/no tax regime.

  • Any fees derived by the licensing and patent holding company from the exploitation of the intellectual property will be exempt from the tax or subject to a low tax rate in
    the tax haven jurisdiction, these companies can also be used to avoid high withholding taxes that are normally charged on royalties coming from the country in which they are derived, furthermore they can be reduced by double taxation treaties
    between countries.

  • so that their BEPS tools will be accepted by the higher–tax locations), they go to great lengths to obscure the fact that effective tax rates paid by multinationals in their
    jurisdiction are close to zero percent, rather than the headline corporate tax rate of the haven (see Table 1).

  • TP–based BEPS tools,[d] shifts profits to the haven by asserting that a process performed in the haven (e.g., contract manufacturing), justifies a large increase in the transfer
    price (“TP”) at which the finished product is charged–out by the haven to higher–tax jurisdictions.

  • Google and Facebooks’ Double Irish and Apple’s Green Jersey), tax partner Feargal O’Rourke from PriceWaterhouseCoopers (“PwC), predicted in May 2015 that the OECD’s MLI would
    be a success for the leading corporate tax havens, at the expense of the smaller, less developed, traditional tax havens, whose BEPS tools were not sufficiently robust.

  • In a letter to him the group recommended Ireland not adopt article 12, as the changes “will have effects lasting decades” and could “hamper global investment and growth due
    to uncertainty around taxation”.

  • The letter said that “keeping the current standard will make Ireland a more attractive location for a regional headquarters by reducing the level of uncertainty in the tax
    relationship with Ireland’s trading partners”.

  • profit before tax/revenue) calculated using an averaging mechanism with the turnover threshold to be reduced to 10 billion euros, contingent on successful implementation including
    of tax certainty on Amount A, with the relevant review beginning 7 years after the agreement comes into force, and the review being completed in no more than one year.

  • [76] There is debate as to whether they are drafting mistakes to be corrected or concessions to enable U.S. multinationals to reduce their effective corporate tax rates to
    circa 10% (the Trump administration’s original target).

  • [38][39] An important academic study in July 2017 published in Nature, “Conduit and Sink OFCs”, showed that the pressure to maintain OECD–compliance had split corporate–focused
    tax havens into two different classifications: Sink OFCs, which act as the terminus for BEPS flows, and Conduit OFCs, which act as the conduit for flows from higher–tax locations to the Sink OFCs.

  • Tax base determination: The relevant measure of profit or loss of the in-scope MNE will be determined by reference to financial accounting income, with a small number of adjustments.

  • earnings to offset the very high U.S. 35% corporate tax rate from the historical U.S. “worldwide” corporate tax system (see source of contradictions).

  • As such MNEs can make use of an attractive research infrastructure and generous R&D tax incentives in one country and benefit in another from low tax rates on the income from
    exploiting intangible assets.

  • [59] Dyreng and Lindsey (2009),[4] offer evidence that U.S. firms with foreign affiliates in certain tax havens pay lower foreign taxes and higher U.S. taxes than do otherwise-similar
    large U.S. companies.

  • [7] Corporate tax havens offer BEPS tools to “shift” profits to the haven, and additional BEPS tools to avoid paying taxes within the haven (e.g.

  • As such MNE’s can set up R&D facilities in countries where the best tax advantage can be obtained.

  • [82] Irish-based media highlighted a particular threat to Ireland as the world’s largest BEPS hub, regarding proposals to move to a global system of taxation based on where
    the product is consumed or used, and not where its IP has been located.

  • In June 2017, a U.S. Treasury official explained that the reason why U.S. refused to sign up to the OECD’s MLI, or any of its Actions, was because: “the U.S. tax treaty network
    has a low degree of exposure to base erosion and profit shifting issues”.

  • In 2015, the G20 supported the transfer pricing recommendations, which aims to guide governments on how profits of multinational companies should be divided among individual

  • [90] Moreover, the UN has contributed in the efforts to develop the Automatic Exchange of Information (AEOI) standard, which provides tax authorities with additional information
    about multinational companies, hence helping to identify BEPS issues.

  • “[citation needed] Tools Main article: Corporate haven § Global BEPS hubs Research identifies three main BEPS techniques used for “shifting” profits to a corporate tax haven
    via OECD–compliant BEPS tools:[33][34] i. IP–based BEPS tools,[d] which enable the profits to be extracted via the cross–border charge–out of internal virtual IP assets (known as “intergroup IP charging”); and/or ii.

  • Furthermore, intra-group debts provide significant flexibility for manipulations, as explained in a paper released by the United Nations.

  • “Ireland resists closing corporation tax ‘loophole’” (10 November 2017) The acknowledged architect of the largest ever global corporate BEPS tools (e.g.

  • [50] For example, when Ireland was pressured by the EU–OECD to close its double Irish BEPS tool, the largest in history, to new entrants in January 2015,[51] existing users,
    which include Google and Facebook, were given a five-year extension to 2020.

  • [48][49] Agendas Main article: Ireland as a tax haven § Political compromises See also: Tax haven § Benefits of tax havens The BEPS tools used by tax havens have been known
    and discussed for decades in Washington.

  • IP tax planning models such as these successfully result in profit shifting which in most instances may lead to base erosion of the tax base.

  • [10] The Tax Justice Network estimated that profits of $660 billion were “shifted” in 2015 due to Apple’s Q1 2015 leprechaun economics restructuring, the largest individual
    BEPS transaction in history.

  • [78] In February 2019, Brad Setser from the Council on Foreign Relations (CoFR), wrote an article for The New York Times highlighting material issues with TCJA in terms of
    curtailing U.S. corporate use of major tax havens such as Ireland, the Netherlands, and Singapore.

  • Had the U.S. multinationals not used BEPS tools and paid their full foreign taxes, their foreign tax credits would have removed most of their residual exposure to any U.S.
    tax liability, under the U.S. tax code.

  • [2][32] (†) Mostly consists of The Cayman Islands and The British Virgin Islands Research in September 2018, by the National Bureau of Economic Research, using repatriation
    tax data from the TCJA, said that: “In recent years, about half of the foreign profits of U.S. multinationals have been booked in tax haven affiliates, most prominently in Ireland (18%), Switzerland, and Bermuda plus Caribbean tax havens (8%–9%

  • Base erosion and profit shifting (BEPS) refers to corporate tax planning strategies used by multinationals to “shift” profits from higher-tax jurisdictions to lower-tax jurisdictions
    or no-tax locations where there is little or no economic activity, thus “eroding” the “tax-base” of the higher-tax jurisdictions using deductible payments such as interest or royalties.

  • Many countries allow for the deductions in respect of expenditure on research and development (R&D) or on the acquisition of IP.

  • Many tax havens opted out from several of the Actions, including Action 12 (Disclosure of aggressive tax planning), which was considered onerous by corporations who use BEPS

  • [20] They often do not require any movement of assets, functions or personnel within a corporate group, nor any major change of its operations.

  • Scope The GloBE rules will apply to MNEs that meet the 750 million euros threshold as determined under BEPS Action 13 (country by country reporting).

  • [19] Intra group debts are another common way multinationals avoid taxes.

  • Higher–tax jurisdictions do not enter into full bilateral tax treaties with obvious tax havens (e.g.

  • [71] However, by mid–2018, U.S. multinationals had not repatriated any BEPS tools,[g] and the evidence is that they have increased exposure to corporate tax havens.

  • Debt–based BEPS tools, which enable the profits to be extracted via the cross–border charge–out artificially high interest (known as “earnings stripping”); and/or iii.

  • No other non–haven OECD country records as high a share of foreign profits booked in tax havens as the United States.

  • [11][12][13] The effect of BEPS tools is most felt in developing economies, who are denied the tax revenues needed to build infrastructure.

  • That is achieved with financial secrecy laws, and by the avoidance of country–by–country reporting (“CbCr”) or the need to file public accounts, by multinationals in the haven’s


Works Cited

[‘The Capital Allowances for Intangible Assets (CAIA) BEPS tool, also known as the Green Jersey, was the BEPS tool Apple used in Q1 2015 to restructure its non-U.S. IP. It created the famous “leprechaun economics” event in Ireland in August 2016, when
restated Irish GDP rose 34.4% in a single quarter
2. ^ Jump up to:a b The critical component of the most important BEPS tools is intellectual property (“IP”), which the BEPS tool converts into a charge that is deductible against pre–tax income.
Technology, Life Sciences, and industries have the largest pools of IP.
3. ^ The paper lists tax havens as: Ireland, Luxembourg, Netherlands, Switzerland, Singapore, Bermuda and Caribbean havens (page 6.)
4. ^ Jump up to:a b Some academics consider
IP–based BEPS tools to be a subset of TP–based BEPS tools (e.g. the corporate is transfer pricing the IP like any other product), however others consider IP to be a unique item (e.g. the IP is a virtual product whose value is decided internally by
the corporation; it is more of an accounting invention rather than a tangible good), that it is a separate set.
5. ^ The TCJA system is described as hybrid, because it still forces minimum U.S. tax rates on foreign income under the TCJA GILTI regime
6. ^
The FDII regime allows U.S. multinationals to charge-out intellectual property (“IP”) direct from the U.S., at a preferential 13.125% U.S. tax rate
7. ^ This is not to be confused with the repatriation of the circa USD 1 trillion in offshore untaxed
cash; these are the intellectual property (“IP”) assets that U.S. multinationals house in locations like Ireland, which are the raw materials for the BEPS tools. A repatriation of a major U.S. multinational BEPS tool would cause reverse–leprechaun
economics events in various tax havens
8. “Treasury Official Explains Why U.S. Didn’t Sign OECD Super-Treaty”. Bloomberg BNA. 8 June 2017. Archived from the original on 22 May 2018. Retrieved 8 August 2018. The U.S. didn’t sign the groundbreaking
tax treaty inked by 68 [later 70] countries in Paris June 7 [2017] because the U.S. tax treaty network has a low degree of exposure to base erosion and profit shifting issues”, a U.S. Department of Treasury official said at a transfer pricing conference
co–sponsored by Bloomberg BNA and Baker McKenzie in Washington
9. ^ Jump up to:a b c d e f Gabriel Zucman; Thomas Wright (September 2018). “THE EXORBITANT TAX PRIVILEGE” (PDF). National Bureau of Economic Research: 11.
10. ^ Jump up to:a b c
d James R. Hines Jr. (2010). “Treasure Islands”. Journal of Economic Perspectives. 4 (24): 103–125. Lower foreign tax rates entail smaller credits for foreign taxes and greater ultimate U.S. tax collections (Hines and Rice, 1994). Dyreng and Lindsey
(2009), offer evidence that U.S. firms with foreign affiliates in certain tax havens pay lower foreign taxes and higher U.S. taxes than do otherwise-similar large U.S. companies
11. ^ Jump up to:a b c d Scott Dyreng; Bradley P. Lindsey (12 October
2009). “Using Financial Accounting Data to Examine the Effect of Foreign Operations Located in Tax Havens and Other Countries on US Multinational Firms’ Tax Rates”. Journal of Accounting Research. 47 (5): 1283–1316. doi:10.1111/j.1475-679X.2009.00346.x.
Finally, we find that US firms with operations in some tax haven countries have higher federal tax rates on foreign income than other firms. This result suggests that in some cases, tax haven operations may increase US tax collections at the expense
of foreign country tax collections.
12. ^ Jump up to:a b c d Dhammika Dharmapala (2014). “What Do We Know About Base Erosion and Profit Shifting? A Review of the Empirical Literature”. University of Chicago. p. 1. It focuses particularly on the
dominant approach within the economics literature on income shifting, which dates back to Hines and Rice (1994) and which we refer to as the “Hines–Rice” approach.
13. ^ Jump up to:a b “OECD Base Erosion and Profit Shifting”.
14. ^ “About – OECD
BEPS”. Retrieved 16 April 2023.
15. ^ “BEPS Project Background Brief” (PDF). OECD. January 2017. p. 9. With a conservatively estimated annual revenue loss of USD 100 to 240 billion, the stakes are high for governments around the world.
The impact of BEPS on developing countries, as a percentage of tax revenues, is estimated to be even higher than in developed countries.
16. ^ Gabriel Zucman; Thomas Torslov; Ludvig Wier (June 2018). “The Missing Profits of Nations”. National Bureau
of Economic Research, Working Papers. p. 31. Appendix Table 2: Tax Havens
17. ^ “Zucman:Corporations Push Profits Into Corporate Tax Havens as Countries Struggle in Pursuit, Gabrial Zucman Study Says”. The Wall Street Journal. 10 June 2018. Such
profit shifting leads to a total annual revenue loss of $200 billion globally
18. ^ Jump up to:a b Brad Setser; Cole Frank (25 April 2018). “Tax Avoidance and the Irish Balance of Payments”. Council on Foreign Relations.
19. ^ “Tax avoidance and
evasion: The scale of the problem” (PDF). Tax Justice Network. 17 November 2017.
20. ^ “The scale of Base Erosion and Profit Shifting (BEPS): Tax Justice Network”. Tax Justice Network.
21. ^ “New UN tax handbook: Lower–income countries vs OECD
BEPS failure”. Tax Justice Network. 11 September 2017.
22. ^ “The desperate inequality behind global tax dodging”. The Guardian. 8 November 2017.
23. ^ Jump up to:a b Alex Cobham (24 July 2018). “Progress on global profit shifting: no more hiding
for jurisdictions that sell profit shifting at the expense of others”. Tax Justice Network. ..for US multinationals, the real explosion in profit shifting began in the 1990s. At this point, a ‘mere’ 5–10% of global profits were declared away from
the jurisdictions of the underlying real economic activity. By the early 2010s, that had soared to 25–30% of global profits, with an estimated revenue loss of around $130 billion a year..
24. ^ Andrew Blair-Stanek (2015). “Intellectual Property
Law Solutions to Tax Avoidance” (PDF). UCLA Law Review. Intellectual property (IP) has become the leading tax-avoidance vehicle.
25. ^ “Intellectual Property and Tax Avoidance in Ireland”. Fordham Intellectual Property, Media & Entertainment Law
Journal. 30 August 2016.
26. ^ Jump up to:a b United States Chamber of Commerce (February 2018). “GIPC IP Index 2018” (PDF). p. 6. Figure I: U.S. Chamber International IP Index 2018, Overall Scores
27. ^ “A Brave New World”, Goldilocks and the
water bears, Bloomsbury Methuen Drama, 2018, doi:10.5040/9781472940902.0005, ISBN 978-1-4729-2011-9, retrieved 16 April 2022
28. ^ “An exception whereby a third party may be given the right to enforce a term of a contract between two other parties
where that term expressly or by implication is intended to benefit the third party. But, on the face of it, this merely relaxes the rules on privity of contract and not those relating to consideration. The answer to this problem seems to turn on the
reasoning employed by the Law Commission, on whose report the provisions of the 1999 Act are based. The Law Commission expressed the view that the consideration question related only to the relationship between the original parties to the contract
and should not apply also to the third party, since this would only raise questions of enforceability and would have no bearing on whether or not there was a bargain. Had the reasoning in the report stopped there, there would have been little difficulty.
However, in a later section of the report, there are further views that the 1999 Act may have the effect of relaxing rules on consideration in certain respects. In particular, this view”, Sourcebook on Contract Law, Routledge-Cavendish, p. 757, 12
December 1995, doi:10.4324/9781843141518-296, ISBN 978-1-84314-151-8, retrieved 16 April 2022
29. ^ Limiting Base Erosion Involving Interest Deductions and Other Financial Payments, Action 4 – 2015 Final Report. 18 July 2016. doi:10.1787/9789264261594-ko.
ISBN 9789264261594.
30. ^ Richard Rubin (10 June 2018). “Corporations Push Profits Into Tax Havens as Countries Struggle in Pursuit, Study Says”. The Wall Street Journal. U.S. companies are the most aggressive users of profit-shifting techniques,
which often relocate paper profits without bringing jobs and wages, according to the study by economists Thomas Torslov and Ludvig Wier of the University of Copenhagen and Gabriel Zucman of the University of California, Berkeley
31. ^ “New research
finds 40% of multinationals’ profits shifted to tax havens – EU biggest loser while US firms most shifty”. Business Insider. 20 July 2018. Archived from the original on 31 August 2018. Retrieved 31 August 2018.
32. ^ James R. Hines Jr.; Anna Gumpert;
Monika Schnitzer (2016). “Multinational Firms and Tax Havens”. The Review of Economics and Statistics. 98 (4): 714. Germany taxes only 5% of the active foreign business profits of its resident corporations. [..] Furthermore, German firms do not have
incentives to structure their foreign operations in ways that avoid repatriating income. Therefore, the tax incentives for German firms to establish tax haven affiliates are likely to differ from those of U.S. firms and bear strong similarities to
those of other G-7 and OECD firms.
33. ^ “Territorial vs. Worldwide Corporate Taxation: Implications for Developing Countries” (PDF). IMF. 2013. p. 4.
34. ^ “Tax Reform in the UK Reversed the Tide of Corporate Tax Inversions” (PDF). Tax Foundation.
14 October 2014.
35. ^ “How Tax Reform solved UK inversions”. Tax Foundation. 14 October 2014.
36. ^ “The United Kingdom’s Experience with Inversions”. Tax Foundation. 5 April 2016.
37. ^ Jump up to:a b c d e Gabriel Zucman; Thomas Torslov;
Ludvig Wier (June 2018). “The Missing Profits of Nations”. National Bureau of Economic Research, Working Papers. p. 31. Table 2: Shifted Profits: Country–by–Country Estimates (2015)
38. ^ “Ireland is the world’s biggest corporate ‘tax haven’,
say academics”. The Irish Times. 13 June 2018. New Gabriel Zucman study claims State shelters more multinational profits than the entire Caribbean
39. ^ “Half of U.S. foreign profits booked in tax havens, especially Ireland: NBER paper”. The Japan
Times Online. The Japan Times. 10 September 2018. “Ireland solidifies its position as the #1 tax haven,” Zucman said on Twitter. “U.S. firms book more profits in Ireland than in China, Japan, Germany, France & Mexico combined. Irish tax rate: 5.7%.”
40. ^
Clemens Fuest; Christoph Spengel; Katharina Finke; Jost Heckemeyer; Hannah Nusser (15 October 2013). “Profit Shifting and “Aggressive” Tax Planning by Multinational Firms” (PDF). Centre for European Economic Research, (ZEW).
41. ^ “Intellectual
Property Tax Planning in the light of Base Erosion and Profit Shifting”. University of Tilburg. June 2017.
42. ^ Dhammika Dharmapala (December 2008). “What Problems and Opportunities are Created by Tax Havens?”. Oxford Review of Economic Policy.
24 (4): 3.
43. ^ Philip Baker OBE QC (September 2013). “The Tax Treaty Network of the United Kingdom” (PDF). International Taxation. 9 (13). The United Kingdom has 122 bilateral, comprehensive, double taxation conventions in force. It remains the
largest number of tax treaties of any one country in the world. The United Kingdom may no longer be the world leader in manufacturing cars, or in playing football… however we are still the leading country in the world in negotiating double taxation
44. ^ “UK tops global table of damaging tax deals with developing countries”. The Guardian. 23 February 2016.
45. ^ “Blacklisted by Brazil, Dublin funds find new ways to invest”. Reuters. Reuters. 20 March 2017.
46. ^ “Tax haven
blacklisting in Latin America”. Tax Justice Network. 6 April 2017.
47. ^ “MOF rejects claim of Singapore as tax haven”. The Straits Times. 14 December 2016.
48. ^ “Singapore’s government says it’s not a tax haven, it’s a value-adding IP hub”.
Sydney Morning Hearald. 30 April 2015. Archived from the original on 22 May 2018. Retrieved 9 August 2018.
49. ^ “Multinationals pay lower taxes than a decade ago”. Financial Times. 11 March 2018.
BECAME TAX HAVEN”. Oxfam/De Correspondant. May 2017.
51. ^ George Turner (November 2017). “The Professionals: Dealing with the enablers of tax avoidance and financial crime” (PDF). Tax Justice Network.
52. ^ “Explainer: what is a tax haven? The
most important feature of a secrecy jurisdiction is that local politics is captured by financial services interests”. The Guardian. 9 January 2011. This political capture produces one of the great offshore paradoxes: these zones of ultra–freedom are
often highly repressive places, wary of scrutiny and intolerant of criticism.
53. ^ “Tax Justice Network: Captured State”. Tax Justice Network. November 2015. Archived from the original on 20 June 2018. Retrieved 10 August 2018.
54. ^ “Revealed:
Project Goldcrest, how Amazon worked with the Luxembourg Government to avoid huge sums in tax with IP”. The Guardian. 18 February 2016.
55. ^ Alex Cobham; Chris Jones; Yama Temouri (2017). “Tax haven networks and the role of the Big 4 accountancy
firms” (PDF). Journal of World Business. Our key findings demonstrate that there is a strong correlation and causal link between the size of an MNE’s tax haven network and their use of the Big 4
56. ^ Nicholas Shaxson (November 2015). “How Ireland
became an offshore financial centre”. Tax Justice Network.
57. ^ “INTERNATIONAL TAXATION: Large U.S. Corporations and Federal Contractors with Subsidiaries in Jurisdictions Listed as Tax Havens or Financial Privacy Jurisdictions” (PDF). U.S. GAO.
18 December 2008. p. 12. Archived from the original (PDF) on 20 August 2018. Retrieved 13 August 2018. Table 1: Jurisdictions Listed as Tax Havens or Financial Privacy Jurisdictions and the Sources of Those Jurisdictions
58. ^ “Brussels in crackdown
on ‘double Irish’ tax loophole”. Financial Times. October 2014.
59. ^ “Ireland’s move to close the ‘double Irish’ tax loophole unlikely to bother Apple, Google”. The Guardian. October 2014.
60. ^ “Multinationals replacing ‘Double Irish’
with new tax avoidance scheme”. RTÉ.ie. 14 November 2017.
61. ^ “How often is the ‘Single Malt’ tax loophole used? The government is finding out”. 15 November 2017.
62. ^ Gabriel Zucman; Thomas Tørsløv; Ludvig Wier (November 2017).
“€600 billion and counting: Why high-tax locations let tax havens flourish” (PDF). National Bureau of Economic Research, Working Papers.
63. ^ Gabriel Zucman; Thomas Torslov; Ludvig Wier (June 2018). “The Policy Failure of High-Tax Countries” (PDF).
National Bureau of Economic Research, Working Papers. pp. 44–49.
64. ^ Ronen Palan; Richard Murphy (1 July 2011). “Tax havens: how globalization really works: Ronen Palan, Richard Murphy and Christian Chavagneux”. Journal of Economic Geography.
11 (4): 753–756. doi:10.1093/jeg/lbr008.
65. ^ “Gimme shelter – A survey of globalisation and tax”. The Economist. 27 January 2000.
66. ^ Jump up to:a b c James R. Hines Jr.; Eric M. Rice (February 1994). “FISCAL PARADISE: FOREIGN TAX HAVENS AND
AMERICAN BUSINESS” (PDF). Quarterly Journal of Economics (Harvard/MIT). 9 (1). Archived from the original (PDF) on 25 August 2017. Retrieved 8 August 2018. We identify 41 countries and regions as tax havens for the purposes of U. S. businesses. Together
the seven tax havens with populations greater than one million (Hong Kong, Ireland, Liberia, Lebanon, Panama, Singapore, and Switzerland) account for 80 percent of total tax haven population and 89 percent of tax haven GDP.
67. ^ “Action Plan on
Base Erosion and Profit Shifting” (PDF). OECD. 2013.
68. ^ “Base Erosion and Profit Shifting”.
69. ^ “TAX ANNEX TO THE SAINT PETERSBURG G20 LEADERS DECLARATION” (PDF). St Petersburg Tax Annex OECD. September 2013.
70. ^ “What’s Wrong
With Intercompany Accounting? Plenty”. BlackLine Magazine. 15 August 2018. Retrieved 7 February 2019.
71. ^ “FEARGAL O’ROURKE: Man Making Ireland Tax Avoidance Hub Proves Local Hero”. Bloomberg News. 28 October 2013.
72. ^ “After a Tax Crackdown,
Apple Found a New Shelter for Its Profits”. The New York Times. 6 November 2017. A key architect [for Apple] was Baker McKenzie, a huge law firm based in Chicago. The firm has a reputation for devising creative offshore structures for multinationals
and defending them to tax regulators. It has also fought international proposals for tax avoidance crackdowns.
73. ^ Jack Power (10 November 2017). “Ireland resists closing corporation tax ‘loophole'”. The Irish Times.
74. ^ “Scion of a prominent
political dynasty who gave his vote to accountancy”. The Irish Times. 8 May 2015. Of the wider tax environment, O’Rourke thinks the OECD base-erosion and profit-shifting (BEPS) process is “very good” for Ireland: “If BEPS sees itself to a conclusion,
it will be good for Ireland.”
75. ^ Cobham, Alex (24 August 2016). “The US Treasury just declared tax war on Europe”. Second, it confirms (once again) that the OECD BEPS process has failed.
76. ^ “OECD’s BEPs measures seriously flawed”. economia.
9 December 2016. The major problem, it says, has been the decision by the Organisation in 2013 when it came up with its standard on country–by–country reporting (CBCR) to give into intense lobbying, largely from US multinationals, and place limits
on access to the data.
77. ^ “International Tax Advisory: Impact of the Multilateral Instrument on U.S. Taxpayers: Why Didn’t the United States Choose to Sign the MLI?”. Alston & Bird. 14 July 2014.
78. ^ Mihir A. Desai (June 2018). “Tax Reform:
Round One”. Harvard Magazine.
79. ^ “Google, Facebook and dramatically expand their Dublin office hubs”. Irish Independent. 26 July 2018.
80. ^ “Irish Microsoft firm worth $100bn ahead of merger”. Sunday Business Post. 24 June 2018.
81. ^
Seamus Coffey, Irish Fiscal Advisory Council (18 July 2018). “When can we expect the next wave of IP onshoring?”. IP onshoring is something we should be expecting to see much more of as we move towards the end of the decade. Buckle up!
82. ^ Ben
Harris (25 May 2018). “6 ways to fix the tax system post TCJA”. Brookings Institution.
83. ^ “A Hybrid Approach: The Treatment of Foreign Profits under the Tax Cuts and Jobs Act”. Tax Foundation. 3 May 2018.
84. ^ “Donald Trump seeks to slash
US corporate tax rate”. Financial Times. 27 September 2017. Cutting the official corporate tax rate to 20 per cent from its present 35 per cent — a level that US companies say hurts them in global competition — would leave companies short of the 15
per cent Mr Trump promised as a candidate
85. ^ Jump up to:a b Brad Setser, Council on Foreign Relations (6 February 2019). “The Global Con Hidden in Trump’s Tax Reform Law, Revealed”. The New York Times. Retrieved 24 February 2019.
86. ^ Brad
Setser (19 February 2019). “Why the U.S. Tax Reform’s International Provisions Need to Be Reformed”. Council on Foreign Relations. Retrieved 24 February 2019.
87. ^ “Why BEPS 2.0 makes tax heads nervous”. International Tax Review. 4 February 2019.
Retrieved 26 February 2019.
88. ^ Daniel Bunn (14 February 2019). “Ready to go on BEPS 2.0?”. Tax Foundation. Retrieved 26 February 2019.
89. ^ Jump up to:a b Cantillion (2 February 2019). “Ireland may soon run out of road on tax”. Irish Times.
Retrieved 26 February 2019. In a policy note, the Washington-based think tank said US proposals to ensure companies pay taxes based on where they make their sales were gathering momentum and already had the backing of Brazil, China, India, and other
emerging economies. Currently, the tax big companies such as Google and Facebook pay largely depends on where their assets, employees and head offices are located.
90. ^ Dan O’Brien (3 February 2019). “Dan O’Brien: ‘As Brexit gets all the attention,
changes are afoot further afield'”. Irish Independent. Retrieved 26 February 2019.
91. ^ Gavin McLoughlin (31 January 2019). “Irish corporation tax faces new squeeze as OECD kicks off digital reform probe”. Irish Independent. Retrieved 26 February
92. ^ “Base erosion and profit shifting – OECD BEPS”. Retrieved 16 April 2023.
93. ^ “G20 Finance Communiqué, July 2021”. Retrieved 16 April 2023.
94. ^ “The Anti Tax Avoidance Directive”.
Retrieved 16 April 2023.
95. ^ “Tax Alert: Mandatory Disclosure Rules In Europe”. vLex. Retrieved 16 April 2023.
96. ^ “Common Consolidated Corporate Tax Base (CCCTB)”. Retrieved 16 April 2023.
97. ^ “Financing
for Sustainable Development”. Retrieved 16 April 2023.
98. ^ “Standard for Automatic Exchange of Financial Account Information in Tax Matters, Second Edition | READ online”. Retrieved 16 April 2023.
Photo credit:’]