Highlights This paper directly estimates the deviation in prices between those done within a multinational and those done at arm's length while controlling for firm and destination characteristics. We find significant transfer pricing behavior, with prices diverging by 11%. Transfer pricing is due primarily to tax havens, not simply low-tax countries. During our sample, transfer pricing resulted in a 1% reduction in French corporate tax revenue. Knocking on Tax Haven's Door: Multinational Firms and Transfer Pricing No 2014-21 – December Working Paper Ronald B. Davies, Julien Martin, Mathieu Parenti & Farid Toubal