The OECD has released the 2nd edition of its annual Corporate Tax Statistics publication. This is one of the more tangible outputs from the CbC Reporting regime impacting Significant Global Entities, though the report touches on other comparisons including trends in effective tax rates, tax revenues as a proportion of GDP, and corporate tax as a share of total tax revenue.
Though the dataset contains some limitations (including as to its currency), it does provide some insights:
- There is a misalignment between the locations where profits are reported and where economic activities occur;
- Entities in investment hub locations report a relatively high share of profits compared to their share of employees and tangible assets, and also a higher share of related party revenue as a proportion of total revenue;
- Revenues per employee tend to be higher where statutory tax rates are zero and in investment hubs.
No doubt these insights will generally be seen by tax authorities as supporting the hypothesis behind the BEPS project.
The publication was published on 8 July 2020, respectively, by OECD.
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