THE USE OF INTERNATIONAL TAX PLANNING IN SUBSIDIARIES FROM THE FINANCIAL AND ICT SECTORS IN THE CZECH REPUBLIC

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216275%3A25410%2F21%3A39917541" target="_blank" >RIV/00216275:25410/21:39917541 - isvavai.cz</a>

Výsledek na webu

<a href="https://dspace.tul.cz/bitstream/handle/15240/159937/EM_1_2021_12.pdf?sequence=1&isAllowed=y" target="_blank" >https://dspace.tul.cz/bitstream/handle/15240/159937/EM_1_2021_12.pdf?sequence=1&isAllowed=y</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.15240/tul/001/2021-1-012" target="_blank" >10.15240/tul/001/2021-1-012</a>

Jazyk výsledku

angličtina

Název v původním jazyce

THE USE OF INTERNATIONAL TAX PLANNING IN SUBSIDIARIES FROM THE FINANCIAL AND ICT SECTORS IN THE CZECH REPUBLIC

Popis výsledku v původním jazyce

Tax avoidance is an important element of management in the global economy. Managers use tax havens for reducing a company&apos;s effective tax rate. The most common practices in international tax planning can be divided into three groups: loans and their related interest, royalties, and transfer pricing. The aim of this article is to find the determinants of the tax burden faced by foreign-owned subsidiaries. Therefore, a model was created for the tax burden, focusing on the special position of subsidiaries within international tax planning. For this purpose, taxes/outcomes was established as a new dependent variable. The panel data used include Czech companies that are owned by parent companies located in other EU countries. The model distinguishes EU tax havens from regular member states; sector dummy variables are also included. The regression model that was created did not confirm the assumed dependencies. Rather, it indicated other important determinants: profitability, the share of intangible assets, size, and the dummy variable for the ICT sector. Based on the regression results, the independent variables connected with known tax planning schemes have relatively low importance. The significance of these results can be seen in the subsequent conclusions. First of all, there is no difference between the subsidiaries&apos; tax burdens based on the parent company&apos;s location. Corporations use international tax planning whether or not they are owned from a tax haven. The second significant conclusion indicates the importance of certain sectors and their attributes concerning the tax burden. Companies from the ICT sector are linked to a lower tax burden. On the other hand, the dependencies within the financial sector are not statistically significant. From the perspective of further research, it would be constructive to incorporate the subsidiary&apos;s position within the group.

Název v anglickém jazyce

THE USE OF INTERNATIONAL TAX PLANNING IN SUBSIDIARIES FROM THE FINANCIAL AND ICT SECTORS IN THE CZECH REPUBLIC

Popis výsledku anglicky

Tax avoidance is an important element of management in the global economy. Managers use tax havens for reducing a company&apos;s effective tax rate. The most common practices in international tax planning can be divided into three groups: loans and their related interest, royalties, and transfer pricing. The aim of this article is to find the determinants of the tax burden faced by foreign-owned subsidiaries. Therefore, a model was created for the tax burden, focusing on the special position of subsidiaries within international tax planning. For this purpose, taxes/outcomes was established as a new dependent variable. The panel data used include Czech companies that are owned by parent companies located in other EU countries. The model distinguishes EU tax havens from regular member states; sector dummy variables are also included. The regression model that was created did not confirm the assumed dependencies. Rather, it indicated other important determinants: profitability, the share of intangible assets, size, and the dummy variable for the ICT sector. Based on the regression results, the independent variables connected with known tax planning schemes have relatively low importance. The significance of these results can be seen in the subsequent conclusions. First of all, there is no difference between the subsidiaries&apos; tax burdens based on the parent company&apos;s location. Corporations use international tax planning whether or not they are owned from a tax haven. The second significant conclusion indicates the importance of certain sectors and their attributes concerning the tax burden. Companies from the ICT sector are linked to a lower tax burden. On the other hand, the dependencies within the financial sector are not statistically significant. From the perspective of further research, it would be constructive to incorporate the subsidiary&apos;s position within the group.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50205 - Accounting

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2021

Kód důvěrnosti údajů

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

Název periodika

E+M Ekonomie a Management

ISSN

1212-3609

e-ISSN

—

Svazek periodika

24

Číslo periodika v rámci svazku

1

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

15

Strana od-do

182-196

Kód UT WoS článku

000630436900012

EID výsledku v databázi Scopus

2-s2.0-85104102233