Network analysis - Dutch tax treaties and developing countries
This sub-study of the IOB evaluation on strengthening tax systems in developing countries examines to what extent Dutch tax treaties with developing countries could lead to tax revenue losses for these countries and to diverted income flows via the Netherlands.
For this purpose, the Netherlands Bureau for Economic Policy Analysis (CPB) has employed a network analysis that computes the taxation on dividend, interest and royalty flows. This has then been used to simulate the diversion of these flows across the international tax network. Rerouting income flows reduces the tax burden for multinational enterprises and leads to tax revenue losses for national governments.
The report of this study was drafted by Maarten van ‘t Riet en Arjan Lejour of the Netherlands Bureau for Economic Policy Analysis (CPB), commissioned by IOB. The views, findings and conclusions expressed in this report belong solely to the authors.