Mandatory CCCTB implementation in the Eurozone and its impact on corporate tax revenues in the Czech Republic

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F18%3A43914150" target="_blank" >RIV/62156489:43110/18:43914150 - isvavai.cz</a>

Result on the web

<a href="https://dx.doi.org/10.15240/tul/001/2018-1-001" target="_blank" >https://dx.doi.org/10.15240/tul/001/2018-1-001</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.15240/tul/001/2018-1-001" target="_blank" >10.15240/tul/001/2018-1-001</a>

Result language

angličtina

Original language name

Mandatory CCCTB implementation in the Eurozone and its impact on corporate tax revenues in the Czech Republic

Original language description

The European Commission has been attempting to coordinate the corporate taxation systems of the EU Member States since 1962. One of the most ambitious projects in the history of the harmonization effort was introduced on 16 March 2011, when the European Commission published, after more than ten years of work, the text of the CCCTB Directive proposal. The directive proposal suggests the consolidation regime and the allocation formula with three equally weighted factors sales, labour and assets, i.e. the consolidated tax base should be shared among the members of the group based on those micro factors. That tax-sharing mechanism as a new allocation rule has raised much discussion and will definitely have an impact on EU Member States&apos; budgets. The aim of the paper is to research the impact of mandatory CCCTB implementation in the Eurozone on tax bases in the Czech Republic and consequently on Czech corporate tax revenues, and to identify whether the implementation of the system in the Eurozone will result in the outflow or inflow of tax bases from/to the Czech Republic. The research is based on empirical data from the Amadeus and Bankscope databases covering 2,424 parent companies with 3,860 Czech subsidiaries. In order to verify the results of the research, a sensitivity analysis was also performed. The research revealed that mandatory implementation of the CCCTB system in the Eurozone would have negative impact on the tax bases currently generated and located in the Czech Republic. As a result of this fact, the Czech Republic would lose between 0.87% and 8.84% of the corporate tax liability recorded in 2011.

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

50202 - Applied Economics, Econometrics

Project

<a href="/en/project/GA13-21683S" target="_blank" >GA13-21683S: The quantification of the impact of the introduction of Common Consolidated Corporate Tax Base on the budget revenues of the Czech Republic</a><br>

Continuities

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year

2018

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

—

Volume of the periodical

21

Issue of the periodical within the volume

1

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

20

Pages from-to

4-23

UT code for WoS article

000429786100001

EID of the result in the Scopus database

2-s2.0-85045064739