Tag Archives: Tax regulation

How Can Governments Tax Multinational Enterprises More Fairly?

Morrell et alKevin Morrell, Orlando Fernandes and Loizos Heracleous

The Organisation for Economic Co-operation and Development (OECD) estimate USD$240 billion is lost annually to national governments as a result of corporate tax avoidance by Multinational Enterprises (MNEs). This happens because MNEs can shift profits across their national subsidiaries to exploit differences in tax regimes. In our recent article in Policy & Politics, we explain how in 2013, the British subsidiary of Amazon was able to do this lawfully so it only paid £4.2 million in tax despite UK sales being worth more than £4.3 billion. Similarly, in a 14-year period, Starbucks generated more than £3 billion in sales to the UK but paid just £8.6 million in tax to the British government. Continue reading How Can Governments Tax Multinational Enterprises More Fairly?