The OECD has published the second edition of its Corporate Tax Statistics report. For the first time, the report includes anonymised and aggregated Country-by-Country Reporting (CbCR) statistics for 2016. The statistics have been prepared by 26 OECD Inclusive Framework members and represent almost 4,000 multinational enterprises (MNEs). The report shows that Ireland receives more of its corporation tax revenue from MNEs than any other jurisdiction in the world – MNEs account for 65 per cent of corporation tax receipts in Ireland. The next highest percentage is in the United States at 56 per cent.

The OECD outlines that while the data contain some limitations and it is not possible to detect trends in BEPS behaviour from a single year of data, the statistics suggest a number of preliminary insights:

• There is a misalignment between the location where profits are reported and the location where economic activities occur, with MNEs in investment hubs reporting a relatively high share of profits compared to their share of employees and tangible assets.
• Revenues per employee tend to be higher where statutory CIT rates are zero and in investment hubs.
• On average, the share of related party revenues in total revenues is higher for MNEs in investment hubs.
• The composition of business activity differs across jurisdiction groups, with the predominant business activity in investment hubs being “holding shares and other equity instruments”.

For more information refer to the OECD’s press release and the Corporate Tax Statistics report.