Shifting-Profits through Tax Loopholes. Evidence from Ecuador

Based on a natural experiment that took place in Ecuador in the context of a capital outflow tax, this paper presents suggestive evidence of the emergence of an abnormal transfer pricing behavior. We exploit the fact that some imports were eligible to a tax-credit measure aiming to offset the capital outflow tax. The identification strategy relies on the fact that a foreign multinational enterprise has only an incentive to increase the unit value -transfer price- for profit shifting motivations of products eligible to the tax-credit. Then, comparing the evolution of the unit value of eligible products (the treatment group) with that of non eligible products (the comparison group) before and after the tax-credit measure, we estimate the over-reporting incentive's impact on the reported value. Results show that the declared unit value of eligible imports increased following the introduction of the tax-credit measure. Various tests suggest that this abnormal increase is attributable to a profit-shifting behavior

Use of internal information, external information acquisition and customs underreporting

Etudes & documentsThis paper identifies opportunities for improving the performance of revenue-collectionauthorities. To detect and combat fraud, we argue that revenue-collection authorities should,notably in the absence of reliable third-party information, exploit non-usual sources ofinformation. Specifically, our micro-level study of customs evasion provides evidence thatusing any internal or external available source of information facilitates customsenforcement.Estimates highlight that exploiting historical data and/or relying on aninformation provider - a pre-shipment inspection company - significantly reduces evasion inCameroon. The potential endogeneity of pre-shipment inspections is addressed by usinginstrumental variables. Results are robust to a variety of additional checks

Using Internal and External Sources of Information to Reduce Customs Evasion

This paper aims to identify some factors that reduce evasion of customs duties in developing countries. Following the recent literature on customs evasion, we proxy customs fraud by discrepancies in bilateral trade statistics. Estimates first show that the more frequently a product is imported, the more customs fraud reduces. We argue that this result is indicative of the fact that customs officers use what they have learned from similar import declarations - use customs' internal information - to better assess the compliance of declarations. Then, we show that relying on an information provider - a pre-shipment inspection company in our case - seems to increase tax enforcement. Results indicate that pre-shipment inspections significantly reduce observed discrepancies in trade statistics. In line with previous studies, we find that the semi-elasticity of evasion increases with the tax rate. Finally, estimates confirm that enforcement is product-varying. Results are robust to various robustness checks

Corruption in Customs

This article presents a new methodology to detect corruption in customs and applies it to Madagascar's main port. Manipulation of assignment of import declarations to inspectors is identified by measuring deviations from random assignment prescribed by official rules. Deviant declarations are more at risk of tax evasion, yet less likely to be deemed fraudulent by inspectors, who also clear them faster. An intervention in which inspector assignment was delegated to a third party validates our approach, but also triggered a novel manifestation of manipulation that rejuvenated systemic corruption. Tax revenue losses associated with the corruption scheme are approximately 3% of total taxes collected and are highly concentrated among a select few inspectors and brokers

Distribution horizontale et verticale d'une buse à cône creux : une étude préliminaire pour étudier la réduction de dérive en vergers

International audienceHollow cone nozzles are still widely used in orchard spray applications because of their small droplet sizes, visible sound coverage without air assistance on early vegetation stages. However, drift mitigation issues along water courses, sensitive crops and public areas generally imply the use of larger droplets generated by air injection hollow cone nozzles [Polveche et al., 2011]. This preliminary study aims at better defining the correlation between spray distribution patterns [Tamagnone et al, 2011] and drift curves both measured in IRSTEA wind tunnel equipped with a 9 m long distribution test bench. Vertical and horizontal spray orientations were compared with wind velocities of 0-2-4 and 5 m.s-1

La dispensation des antirétroviraux dans le département de l'Isère : évaluation de l'adéquation entre les attentes des malades et la qualité de l'acte pharmaceutique

Dans une première partie, nous retraçons l'historique de la dispensation des antirétroviratix en France. Puis, nous exposons la mise en place du double circuit de dispensation qui permet la mise à disposition de huit antirétroviraux dans les phannacies de ville, les mesures qui accompagnent ce dispositif, ainsi que ses enjeux. La deuxième partie est consacrée à la présentation des résultats de deux enquêtes. La première a été réalisée auprès de l'ensemble des pharmacies de l'Isère, tandis que la seconde a été menée auprès de 51 malades. L'étude croisée de ces deux enquêtes nous pennet de répondre à notre objectif principal à savoir évaluer l'adéquation entre les attentes des malades vis-à-vis de la dispensation officinale d'antirétroviraux et la qualité de la dispensation offerte par le pharmacien

The Use of Detailed Statistical Data in Customs Reform: The Case of Madagascar

To carry out their various missions (collecting revenue, facilitating trade, and ensuring security), many customs administrations have established a risk management unit. In developing countries, however, because of the lack of dedicated human and material resources, intelligence and risk analysis remain insufficiently developed. In view of the lack of resources, this paper proposes a simple methodology aiming at detecting risky import operations. The mirror analysis first helps to identify and target products or sectors with the greatest risk. Based on the examination of customs declarations patterns (data mining), it is possible to identify and target higher risk economic operators (importers and customs brokers). When implemented in Madagascar, this method has helped to reveal probable fraud cases in the present context of customs reform. Estimates suggest that, in 2014, customs fraud reduced non-oil customs revenues (duties and import value-added tax) by at least 30 percent