The Impact of the Anti-Tax Avoidance Directive Laws in Combating Profit Shifting by Pharmaceutical Multinationals in France

This study investigates the effect of the Anti-Tax Avoidance Directive on profit shifting by pharmaceutical multinational corporations in France. It analyses how the directive influenced transfer pricing rules, reported profits, and corporate tax revenues. The research combines a legal review of France's implementation with econometric tests of subsidiary revenue data. Additionally, machine learning methods, including clustering and classification models, are employed to identify unusual reporting patterns associated with tax havens. By bringing together law, economics, and computer science, the study highlights both the achievements and the remaining weaknesses of the directive in reducing multinational tax avoidance.