Estimation of International Tax Planning Impact on Corporate Tax Gap in Czech Republic

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F49777513%3A23510%2F19%3A43953841" target="_blank" >RIV/49777513:23510/19:43953841 - isvavai.cz</a>

Result on the web

<a href="http://hdl.handle.net/11025/34889" target="_blank" >http://hdl.handle.net/11025/34889</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.15240/tul/001/2019-1-011" target="_blank" >10.15240/tul/001/2019-1-011</a>

Result language

angličtina

Original language name

Estimation of International Tax Planning Impact on Corporate Tax Gap in Czech Republic

Original language description

There are many studies focusing on VAT (value added tax) tax gap but very few relevant studies that deal with the corporate income tax loss. The studies vary particularly in their methodology, databases and interpretation. In the case of the Czech Republic the studies resulted in a range betweenCZK 57 billion tax gap and CZK 12.5 billion corporate tax revenue gain caused by the tax planning. The main aim of the paper is to calculate the corporate income tax efficiency rate for the Czech Republic and compare it with other member states. The indicator of corporate income tax efficiencyis important for the calculation of the tax revenue without profit shifting (RWS) indicator and then thesubsequent corporate income tax gap estimation for 2013 - 2015, which is the second goal of the paper. The RWS indicator gives an overview of the Czech Republic´s amount of loses/gains relating to the corporate tax base erosion and corporate profit shifting. In the case when the actual corporate income tax revenue takes a higher value than the revenue without profit shifting indicator the jurisdiction benefits from the profit shifting operations. The opposite situation results in tax revenue losses caused by profit shifting to other “more attractive” tax jurisdictions. Authors’ study re-estimation results in approximately CZK 9.404 billion tax gap caused by base erosion and profit shifting instead of 12.5 billion CZK that shows EPRS’s study for period 2013. The third aim of the paper is to deal with the difference between input data from Eurostat database and official data from General Financial Directorate.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50206 - Finance

Project

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Continuities

V - Vyzkumna aktivita podporovana z jinych verejnych zdroju

Publication year

2019

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

E+M Ekonomie a management

ISSN

1212-3609

e-ISSN

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Volume of the periodical

22

Issue of the periodical within the volume

1

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

15

Pages from-to

157-171

UT code for WoS article

000461177700011

EID of the result in the Scopus database

2-s2.0-85069202703