Base erosion and profit shifting by Google and platform market competition in Korea

The adoption of Google Taxes is often mentioned with respect to corporate taxes avoided for a MNE that does not have a permanent establishment in the domestic market. None has looked at the implications of avoided corporate taxes on platform market competition. Using Google as a representative MNE that employs the DIDS framework, the present study, using publicly disclosed financial statements information, documents that if a MNE with a permanent establishment in Korean market had generated profits of 520.9b KRW in 2017.