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40% Of Multinational Profits Go To Tax Havens, Study Says

By Yvonne Juris · June 11, 2018, 7:03 PM EDT

Close to 40 percent of multinational corporations' profits are shifted to low-tax countries each year, with profit-shifting highest among U.S. multinationals, according to a new academic study.

In the current international tax system, high-tax countries do not have incentives to combat profit shifting to tax havens but instead focus their enforcement on relocating profits booked in other high-tax places, “in effect stealing revenue from each other,” according to the June 5 report, authored by economist Gabriel Zucman of the University of California, Berkeley, and University of Copenhagen...

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