Do large companies actually pay corporate taxes? Using data from over 18,000 firms across 27 countries, this analysis examines effective tax rates—what companies actually pay relative to their profits. The findings reveal a more complex picture than political rhetoric suggests, with significant variation across countries and important exceptions to common assumptions.
Corporate tax avoidance remains a central concern in public debate, with claims that multinational companies exploit loopholes to reduce their tax burdens. But much of the evidence cited comes from decades-old data. This analysis examines how international tax rules have fundamentally changed over the past ten years, and asks whether policy discussions have kept pace with regulatory reforms already in place.
Policymakers worldwide are requiring companies to publicly disclose tax information, with the goal of helping investors and consumers identify aggressive tax avoidance. But does public tax transparency actually work as intended? Recent experimental research examines whether ordinary users of information can meaningfully interpret corporate tax disclosures—and the findings challenge common assumptions about disclosure’s effectiveness.