Global distribution of revenue loss from corporate tax avoidance
|Author:||Bc. Marie Anna Richtárová|
|Year:||2022 - summer|
|Leaders:|| doc. Petr Janský Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||Existing empirical results suggest inequality of the global distribution of tax
revenue loss resulting from tax avoidance techniques as base erosion and
profit shifting to the detriment of developing countries. International Monetary Fund researchers conducted a pioneering study in this field in 2016
and introduced an innovative methodology to quantify the revenue impact.
The aim of this thesis is firstly to re-estimate their model. Moreover, among
other changes in the data, we exploit high-quality revenue data from the
International Centre for Tax and Development-World Institute for Development Economics Research Government Revenue Database with an extended
time range offering so more recent and accurate estimates of global revenue
loss. Our findings suggest a slightly lower estimate of US$550 billion revenue
loss globally. In terms of percent of the gross domestic product, the results
indicate a less severe revenue loss compared to previous estimates. Following a previous re-estimation carried out by Cobham and Janský in 2018,
we present updated loss estimates disaggregated for country income groups
and regions. The results present further evidence of greater severity of revenue loss due to tax avoidance in low and lower-middle income countries in
Sub-Saharan Africa, Latin America & the Caribbean, and South Asia.