The Impact of Tax Transparency Initiatives on Multinational Corporate Tax Avoidance

Abstract

This study examines the impact of tax transparency initiatives on multinational corporate tax avoidance, addressing the central question of whether enhanced disclosure can effectively deter aggressive tax planning practices. Situated within the broader context of global concerns over revenue loss and fiscal fairness, the research adopts a systematic literature review approach to synthesize findings from peer-reviewed studies. The analysis highlights that transparency measures, such as country-by-country reporting and beneficial ownership registers, have contributed to increased scrutiny from tax authorities, investors, and civil society, thereby limiting opportunities for profit shifting. The discussion integrates perspectives on policy design, enforcement mechanisms, and the role of international cooperation in amplifying these effects. Findings indicate that while transparency alone is insufficient, it plays a critical role within comprehensive tax governance frameworks. By aligning disclosure requirements with robust enforcement and global coordination, tax transparency initiatives can significantly strengthen fairness and revenue mobilization in international taxation.