The determinants and deterrents of profit shifting : evidence from a sample of South African multinational enterprises

• Main Author: Isaac, Nereen
• Other Authors: Robinson, Zurika
• Format: Others
• Language: en
• Published: 2021
• Subjects: Globalisation; Tax Competition; Corporate Income Tax; Base Erosion and Profit Shifting; BEPS; Profit Shifting; Transfer Pricing; Social media; Transfer Pricing Regulations; Legislative Policy; Ordinary Least Squares; Generalised Least Squares; Seemingly Unrelated Regressions; 336.207; Business tax > South Africa; Taxation > South Africa; Income tax > South Africa
• Online Access: http://hdl.handle.net/10500/27216

This study aimed to assess the determinants and deterrents of profit shifting, which can occur as a result of corporate income tax competition, with a view to aid in collecting sufficient tax revenue to meet public spending requirements. The study theoretically and empirically analysed the effectiveness of the introduction of the South African transfer pricing regulations on deterring the occurrence of profit shifting in South Africa using annual financial information of South African parented multinational enterprises for the period 2010 – 2017. The study established that the implementation of transfer pricing regulations resulted in a reduction in profit shifting that became increasingly more prominent as the rules became stricter. Based on the findings of the study, it is recommended that the South Africa government should allocate sufficient resources to ensure that the transfer pricing regulations are being adhered with an aim to reduce profit shifting from South Africa. === Economics === M. Com. (Economics)