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Showing posts from November, 2015

Profit Shifting: Drivers and Potential Countermeasures

Disclaimer: This article is a summary of other researchers' work. My objective on doing this is to understand and to keep up with international issues and updates in a more practical way. I hope it will help those who read this that certainly has already helped me. It's a pure summary, I didn't give any opinion on the article. Omission of some part could lead to some level of less comprehension, in that case please refer to the original article. (Sebastian Beer et al.) Abstract In trying to explain the drivers of global profit shifting by MNEs authors investigate industry-specific variation in profit shifting and identify determinants thereof. Using the ORBIS database authors show that intangible asset endowment of subsidiaries and the complexity of MNE groups explain aggregate profit shifting trends and tend to drive industry specific results. Moreover, authors incorporate country-specific transfer pricing mitigation measures (documentation requirements) into ou...