Headlines

• JRC research provides new evidence of mismatches between the location of economic activity and the place of taxation for large web-based enterprises in the EU.
• A large concentration of turnover and profit is found in low-tax jurisdictions, while the underlying economic activity is much more evenly distributed across EU states.
• This hints at potentially large profit shifting for tax avoidance purposes by web-based companies, and provides evidence of structural weaknesses in the existing international corporate tax system.