Taxing Multinationals in Europe
Departmental Papers, May 25, 2021
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- Taxing Multinationals in Europe
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Bibliographic details
- Authors: Ernesto Crivelli, Ruud A. de Mooij, J. E. J. De Vrijer, Shafik Hebous, Alexander D Klemm
- Published: May 25, 2021
- Series: Departmental Papers
- DOI: https://doi.org/10.5089/9781513570761.087
Paper objectives and scope
- Aim 1: Review the performance of the CIT in Europe over the past several decades and the important role played by MNEs in European economies.
- Aim 2: Analyse corporate tax spillovers in Europe with a focus on the channels and magnitudes of both profit shifting and CIT competition.
- Aim 3: Examine progress made in European CIT coordination and discuss reforms to strengthen the harmonization of corporate tax policies to effectively reduce both tax competition and profit shifting.
Key findings and analytical focus
- Emphasis on corporate income tax (CIT) performance across Europe over several decades.
- Detailed analysis of corporate tax spillovers, explicitly addressing:
- Profit shifting channels and magnitudes.
- CIT competition among European jurisdictions.
- Assessment of European CIT coordination efforts and proposals for reforms toward greater harmonization.
Policy implications and reform directions
- Strengthen harmonization of corporate tax policies to reduce tax competition.
- Implement reforms aimed at curbing profit shifting through coordinated measures (details and specific recommendations are in the full paper).
Content in this bundle
- Taxing Multinationals in Europe; IMF Departmental Paper No. DP/21/12; May 2021