The Global Scale Weight

 The Global Scale Weight

The “Global Scale Weight” estimates how extensively multinationals are using that jurisdiction. Given that there is no actual data measuring this, the best available proxy we found to estimate this is data on Foreign Direct Investment (FDI) provided by the International Monetary Fund (IMF).

The purpose of the Global Scale Weight is to distinguish among jurisdictions with aggressive tax avoidance provisions but that aren’t used often by multinationals in practice, to identify which are the tax havens that in practice are most likely responsible for the global tax avoidance by multinationals).

(For more details on the methodology, click here).