BASE EROSION, PROFIT SHIFTING (BEPS) AND TAX REVENUE: ANALYSIS IN SOUTHEAST ASIAN COUNTRIES
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Published:
Sep 4, 2019
Keywords:
BEPS, Southeast Asian countries, tax revenue
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Abstract
This paper analyzes the impact of base erosion and profit shifting (BEPS)on tax revenue in Southeast Asian countries for the period of 2012-2017. ASEAN countries are mostly developing countries with little experience dealing with the aggressive tax strategies of multinational corporations (MNEs). Accordingly, measuring the impact of BEPS on tax revenue in Southeast Asian countries is essential and urgent. Specifically, this paper measures BEPS by offshore index using the Offshore Investment Matrix approach proposed by UNCTAD (2015). According to this approach, 3.6% of inflow foreign direct investment in six Southeast Asian countries for the period of 2012-2017 originated from tax havens and specialpurpose tax countries. The empirical simulation shows that about $ 2.195 billion of the tax revenue of Southeast Asian countries in2017 is lost because of BEPS.
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1.
Tran K, Huynh M. BASE EROSION, PROFIT SHIFTING (BEPS) AND TAX REVENUE: ANALYSIS IN SOUTHEAST ASIAN COUNTRIES. journal [Internet]. 4Sep.2019 [cited 25Apr.2024];9(35):1-. Available from: https://journal.tvu.edu.vn/index.php/journal/article/view/197
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References
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BEPS. Transnational Corporations. 2018;25(2):107–43.
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fiscal effects of base erosion and profit shifting:
data availability and analytical issues. Transnational
Corporations. 2018;25(2):91–106.
[4] Brauner Y. What the BEPS. Florida Tax Review.
2014;16:55.
[5] Casella B. Looking through conduit FDI in search of
ultimate investors–a probabilistic approach. Transnational Corporations. 2019;26(1):109–146.
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at SSRN 2486926. 2014;.
[7] UNCTAD. The Fiscal Role of Multinational Enterprises: Towards Guidelines for Coherent International Tax and Investment Policies. UNCTAD; 2015.
[8] Fuest C, Spengel C, Finke K, Heckemeyer J,
Nusser H. Profit shifting and’aggressive’tax planning
by multinational firms: Issues and options for reform.
ZEW-Centre for European Economic Research Discussion Paper. 2013;13-078.
[9] Clausing K A. The effect of profit shifting on the
corporate tax base in the United States and beyond.
National Tax Journal. 2016;69(4):905–934.
[10] Cobham A, Janský P. Global distribution of revenue
loss from corporate tax avoidance: re-estimation and
country results. Journal of International Development. 2018;30(2):206–232.
[11] OECD. Oecd/G20 Inclusive Framework on Beps:
Progress Report July 2018-May 2019. OECD; 2019.
[12] Crivelli E, De Mooij R A, Keen M M. Base
Erosion, Profit Shifting and Developing Countries.
International Monetary Fund. 2015;.
[13] Janský P, Kokes O. Corporate tax base erosion and ˇ
profit shifting out of the Czech Republic. PostCommunist Economies. 2015;27(4):537–546.
[14] Janský P, Kokes O. Profit-shifting from Czech multi- ˇ
national companies to European tax havens. Applied
Economics Letters. 2016;23(16):1130–1133.
[15] Janský P, Palanský M. Estimating the scale of profit
shifting and tax revenue losses related to foreign
direct investment. International Tax and Public Finance. 2017;p. 1–56.
[16] Janský P, Sedivý M. Estimating the revenue costs ˇ
of tax treaties in developing countries. The World
Economy. 2019;.
[17] Juruss M, K ˇ uma E. BEPS: Impact of international tax ¯
measures on business environment in Latvia. XVII
International. 2016;104.
[18] Leino Topias, Jyrki Ali-Yrkko. How Well Does ¨
Foreign Direct Investment Measure Real Investment
by Foreign-Owned Companies?: Firm-Level Analysis.
Firm-Level Analysis (May 15, 2014) Bank of Finland
Research Discussion Paper. 2014;12.
[19] UNCTAD. UNCTADSTAT. United Nations Conference on Trade and Development; 2015.
[20] Ross James, Matthew Herrington. A Call to Rewrite
the Fundamentals of International Taxation: The
Oecd Beps Action Plan. International tax journal
. 2013;39:15.
[21] OECD. Measuring and Monitoring Beps, Action
11. Paris, France: Organisation for Economic Cooperation and Development; 2015.
[22] Cobham A, Loretz S. International distribution of
the corporate tax base: Implications of different apportionment factors under unitary taxation. Institute
of Development Studies, International Centre for Tax
and Development. 2014;.
[23] IMF. Balance of Payment and International Investment Positions Statistics; 2019.
[24] IMF. Coordinated Direct Investment Survey; 2019b