Plausibly Exogenous [872] - Tax Enforcement (06/09/2022)
LHS Variable
Tax payments
RHS Variable
Tax enforcement
Source of Exogenous Variation
In 2011, Chile implemented a big reform aimed at limiting profit shifting. The reform significantly expanded information reporting requirements on international transfers by multinationals, changed legal rules to make it easier for the tax authority to enforce transfer pricing rules, and increased resources devoted to the enforcement of these rules by the tax authority.
- Bustos et al. (2022), “The Race Between Tax Enforcement and Tax Planning: Evidence From a Natural Experiment in Chile”