The paper analyzes corporate tax spillovers in Europe with a focus on the channels and magnitudes of both profit shifting and corporate income tax competition.
The International Monetary Fund has released a paper, which aims to contribute to the European policy debate on corporate income tax reform.
Entitled “Taxing Multinationals in Europe,” the paper – released on May 25 – reviews the performance of the corporate income tax in Europe over the past several decades and the important role played by multinational enterprises (MNEs) in European economies.
The paper analyzes corporate tax spillovers in Europe with a focus on the channels and magnitudes of both profit shifting and corporate income tax competition.
Last, the paper examines the progress made in European corporate income tax coordination and discusses reforms to strengthen the harmonization of corporate tax policies, in order to effectively reduce both tax competition and profit shifting.
The paper has been prepared by Ernesto Crivelli, Ruud A. de Mooij, J. E. J. De Vrijer, Shafik Hebous, and Alexander D Klemm. The full paper is available on the IMF website.
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable at editor@transferpricingnews.com