The impact of transfer pricing regulations on profit shifting within European multinationals

Lohse, Theresa; Riedel, Nadine

The impact of transfer pricing regulations on profit shifting within European multinationals

dc.contributor.author	Lohse, Theresa	de
dc.contributor.author	Riedel, Nadine	de
dc.date.accessioned	2024-04-08T08:47:49Z
dc.date.available	2024-04-08T08:47:49Z
dc.date.created	2012-12-18
dc.date.issued	2012
dc.description.abstract	Over the past decade, several countries augmented their national tax law by transfer pricing legislations in order to limit opportunities for tax- motivated transfer price distortions and the associated relocation of multna- tional income from their borders. The aim of this paper is to empirically investigate the impact of transfer pricing laws on multinational profit shifting behaviour. To do so, we collect unique data on the evolution of national trans- fer price requirements in Europe over the past decade. This data is linked to accounting information on multinational firms in the EU and to corporate tax rate data. In line with previous studies, we find that multinational firms engage in significant tax-motivated profit shifting behaviour. The analysis fur- thermore suggests that transfer price documentation rules are instrumental in restricting income shifting activities. The effect is statistically significant and economically relevant. Our analysis thus underpins the benefits of im- plementing transfer price documentation requirements and suggests that they may be socially desirable despite the high administrative burden they impose on firms and tax authorities.	en
dc.identifier.swb	37659182X
dc.identifier.uri	https://hohpublica.uni-hohenheim.de/handle/123456789/5656
dc.identifier.urn	urn:nbn:de:bsz:100-opus-7962
dc.language.iso	ger
dc.relation.ispartofseries	FZID discussion papers; 61
dc.rights.license	publ-ohne-pod	en
dc.rights.license	publ-ohne-pod	de
dc.rights.uri	http://opus.uni-hohenheim.de/doku/lic_ubh.php
dc.subject.ddc	330
dc.subject.gnd	Steuerrecht	de
dc.subject.gnd	Verrechnungspreis	de
dc.title	The impact of transfer pricing regulations on profit shifting within European multinationals	de
dc.type.dcmi	Text	de
dc.type.dini	WorkingPaper	de
local.access	uneingeschränkter Zugriff	en
local.access	uneingeschränkter Zugriff	de
local.bibliographicCitation.publisherPlace	Universität Hohenheim	de
local.faculty.number	7	de
local.faculty.number	3	de
local.institute.number	795	de
local.institute.number	520	de
local.opus.number	796
local.series.issueNumber	61
local.series.title	FZID discussion papers
local.university	Universität Hohenheim	de
local.university.faculty	Landesanstalten	de
local.university.faculty	Faculty of Business, Economics and Social Sciences	en
local.university.faculty	Fakultät Wirtschafts- und Sozialwissenschaften	de
local.university.institute	Forschungszentrum Innovation und Dienstleistung	de
local.university.institute	Institute for Economics	en
local.university.institute	Institut für Volkswirtschaftslehre	de

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