The Direct and Indirect Costs of Tax Treaty Policy : Evidence from Ukraine
This study combines macro and micro data to quantify the revenue effects of double tax treaties. First, drawing on administrative information, the study estimates the tax sensitivity of income flows (dividend, interest, and royalty payments) at an...
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| Format: | Working Paper |
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/534391488205311904/The-direct-and-indirect-costs-of-tax-treaty-policy-evidence-from-Ukraine http://hdl.handle.net/10986/26181 |
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okr-10986-261812021-06-08T14:42:47Z The Direct and Indirect Costs of Tax Treaty Policy : Evidence from Ukraine Balabushko, Oleksii Beer, Sebastian Loeprick, Jan Vallada, Felipe tax treaty transfer pricing domestic resource mobilization fiscal policy revenue collection multinational corporations affiliates This study combines macro and micro data to quantify the revenue effects of double tax treaties. First, drawing on administrative information, the study estimates the tax sensitivity of income flows (dividend, interest, and royalty payments) at an aggregate level. The analysis finds important direct revenue costs linked to treaty restrictions on taxing rights, especially for flows into a few major investment hubs. However, high elasticities of income flows also suggest that increases in withholding rates at the individual treaty partner level would not necessarily result in more revenue collection. Second, the study uses firm-level information to estimate the sensitivity of reported profitability to changes in the relevant treaty network. The analysis of the reported earnings of multinational enterprise affiliates in Ukraine suggests that the ownership structure and operations with affiliates in certain jurisdictions explain reported profitability, and should thus receive increased attention in risk assessment and transfer pricing audit activities. 2017-03-01T21:31:02Z 2017-03-01T21:31:02Z 2017-02 Working Paper http://documents.worldbank.org/curated/en/534391488205311904/The-direct-and-indirect-costs-of-tax-treaty-policy-evidence-from-Ukraine http://hdl.handle.net/10986/26181 English en_US Policy Research Working Paper;No. 7982 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Europe and Central Asia Eastern Europe Ukraine |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
tax treaty transfer pricing domestic resource mobilization fiscal policy revenue collection multinational corporations affiliates |
| spellingShingle |
tax treaty transfer pricing domestic resource mobilization fiscal policy revenue collection multinational corporations affiliates Balabushko, Oleksii Beer, Sebastian Loeprick, Jan Vallada, Felipe The Direct and Indirect Costs of Tax Treaty Policy : Evidence from Ukraine |
| geographic_facet |
Europe and Central Asia Eastern Europe Ukraine |
| relation |
Policy Research Working Paper;No. 7982 |
| description |
This study combines macro and micro data
to quantify the revenue effects of double tax treaties.
First, drawing on administrative information, the study
estimates the tax sensitivity of income flows (dividend,
interest, and royalty payments) at an aggregate level. The
analysis finds important direct revenue costs linked to
treaty restrictions on taxing rights, especially for flows
into a few major investment hubs. However, high elasticities
of income flows also suggest that increases in withholding
rates at the individual treaty partner level would not
necessarily result in more revenue collection. Second, the
study uses firm-level information to estimate the
sensitivity of reported profitability to changes in the
relevant treaty network. The analysis of the reported
earnings of multinational enterprise affiliates in Ukraine
suggests that the ownership structure and operations with
affiliates in certain jurisdictions explain reported
profitability, and should thus receive increased attention
in risk assessment and transfer pricing audit activities. |
| format |
Working Paper |
| author |
Balabushko, Oleksii Beer, Sebastian Loeprick, Jan Vallada, Felipe |
| author_facet |
Balabushko, Oleksii Beer, Sebastian Loeprick, Jan Vallada, Felipe |
| author_sort |
Balabushko, Oleksii |
| title |
The Direct and Indirect Costs of Tax Treaty Policy : Evidence from Ukraine |
| title_short |
The Direct and Indirect Costs of Tax Treaty Policy : Evidence from Ukraine |
| title_full |
The Direct and Indirect Costs of Tax Treaty Policy : Evidence from Ukraine |
| title_fullStr |
The Direct and Indirect Costs of Tax Treaty Policy : Evidence from Ukraine |
| title_full_unstemmed |
The Direct and Indirect Costs of Tax Treaty Policy : Evidence from Ukraine |
| title_sort |
direct and indirect costs of tax treaty policy : evidence from ukraine |
| publisher |
World Bank, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/534391488205311904/The-direct-and-indirect-costs-of-tax-treaty-policy-evidence-from-Ukraine http://hdl.handle.net/10986/26181 |
| _version_ |
1764461078763274240 |