Journal article

Multinational corporations and profit shifting: problems and policy options

John Freebairn

Australian Tax Forum: a journal of taxation policy, law and reform | Taxation Institute of Australia | Published : 2019


Multinational corporations have opportunities, and face competitive pressures, to shift profits from high corporate tax rate to low corporate tax rate countries. Reasons behind the growth, and likely further growth, of profit shifting to reduce global corporate tax paid are explored. The adverse revenue, efficiency and equity effects of profit shifting provide arguments for reforms to the current system of autonomous country corporate income taxation. Four reform options are described, and their pros and cons are assessed: maintain individual country profit measures and augment regulations and international cooperation as proposed by the OECD; all countries adopt a common corporate income ta..

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University of Melbourne Researchers