Abstract
International corporate tax is an important source of government revenue, especially in lower-income countries. An innovative study of the scale of this problem was carried out by International Monetary Fund researchers and published in 2016.
We first re-estimate their model and then explore the effects of introducing higher-quality revenue data from the International Centre for Tax and Development-World Institute for Development Economics Research Government Revenue Database. Whereas IMF researchers report results for two country groups only, we present country-level results to make the most detailed estimates available.
Our findings support a somewhat lower estimate of global revenue losses of around US$500 billion annually and indicate that the greatest intensity of losses occurs in low-income and lower middle-income countries and across sub-Saharan Africa, Latin America and the Caribbean and South Asia. (c) 2018 UNU-WIDER. Journal of International Development published by John Wiley & Sons, Ltd.