ANTI-AVOIDANCE AND PROFIT SHIFTING IN ASEAN MULTINATIONAL ENTERPRISES: IS IT EFFECTIVE?

Rizki Adhi Pratama

Abstract


Using ORBIS company micro-level data, this paper discussed the effectiveness of anti-avoidance regulation in tackling outbound profit shifting in ASEAN. Using fixed effect panel data for the period from 2009 - 2018,  the thesis found that the elasticity of outbound profit shifting to positive tax rate differential is roughly 1.56%, where anti-avoidance effect brings back profit by 1.06%, which resulted in net impact of 0.5% of outbound profit shifting. While negative tax rate differential brings inbound profit shifting by 0.75%. Also, this paper conclude too strict anti-avoidance regulation will result in the decreasing effect.

 

Dengan menggunakan data mikro yang disediakan oleh ORBIS, penelitian ini ini mencoba mengukur tingkat efektivitas  peraturan anti penghindaran pajak di ASEAN dalam mencegah pergeseran laba keluar negeri. Dengan menggunakan metode efek tetap data panel yang mencakup periode 2009 – 2018, thesis ini menemukan bahwa tingkat elastisitas atas outbound profit shifting terhadap perbedaan tarif pajak positif adalah 1,56%, dimana efek aturan penghindaran pajak dapat mencegah pergeseran profit sebesar 1,06%, yang menghasilkan dampak bersih pergeseran laba keluar negeri yang tidak bisa dicegah sebesar sebesar 0,5%.Selain itu, thesis ini juga menyimpulkan bahwa peraturan anti penghindaran pajak yang terlalu ketat akan menurunkan efektivitas peraturan anti penghindaran pajak.


 


Keywords


tax revenue, transfer pricing, anti avoidance, profit shifting, tax policies

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References


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DOI: http://dx.doi.org/10.31092/jia.v4i1.641

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