Are tax base erosion and profit shifting countermeasures effective

This project aims to develop indicators to evaluate the effectiveness of measures to combat tax avoidance by multinational enterprises. Estimates suggest that tax base erosion and profit shifting threatens up to 10 per cent of Australias corporate tax revenues. This project adopts an interdisciplinary approach with the intended outcome to establish benchmark indicators for the first time in Australia, based on financial and tax data for Australian and foreign-owned companies, and testing them on proposed policy changes up to 2018. The project aims to expand knowledge of tax behaviour of multinational firms while providing timely and critical information for policy makers on whether measures actually improve integrity of corporate tax.