Profit shifting to onshore and offshore tax havens: the case of Visegrad countries

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F20%3A43917199" target="_blank" >RIV/62156489:43110/20:43917199 - isvavai.cz</a>

Výsledek na webu

<a href="https://doi.org/10.1080/14631377.2019.1705083" target="_blank" >https://doi.org/10.1080/14631377.2019.1705083</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1080/14631377.2019.1705083" target="_blank" >10.1080/14631377.2019.1705083</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Profit shifting to onshore and offshore tax havens: the case of Visegrad countries

Popis výsledku v původním jazyce

This paper is concerned with profit shifting within multinational groups. The aim is to investigate the occurrence of pre-tax income shifting from foreign owned affiliates based in Visegrad countries to their sister companies based in onshore and offshore tax havens. We analyse the sensitivity of the profits before taxation to the tax differentials and determine whether tax incentives play a significant role in profit shifting from Visegrad countries towards tax havens. The semi-elasticity of profits before taxation to tax differentials is estimated separately for manufacturing and service sector industries. We find that subsidiaries based in Visegrad countries that are involved in the manufacturing sector are more affected by tax differentials for onshore tax havens, while subsidiaries that operate in the service sector are highly sensitive to tax differentials for offshore tax havens. Moreover, we calculate the approximate corporate income tax revenues losses due to pre-tax profits sensitivity to tax differentials. We find that a one-unit increase in tax differential will lead to a less than one-percent tax revenue loss in the Visegrad countries.

Název v anglickém jazyce

Profit shifting to onshore and offshore tax havens: the case of Visegrad countries

Popis výsledku anglicky

This paper is concerned with profit shifting within multinational groups. The aim is to investigate the occurrence of pre-tax income shifting from foreign owned affiliates based in Visegrad countries to their sister companies based in onshore and offshore tax havens. We analyse the sensitivity of the profits before taxation to the tax differentials and determine whether tax incentives play a significant role in profit shifting from Visegrad countries towards tax havens. The semi-elasticity of profits before taxation to tax differentials is estimated separately for manufacturing and service sector industries. We find that subsidiaries based in Visegrad countries that are involved in the manufacturing sector are more affected by tax differentials for onshore tax havens, while subsidiaries that operate in the service sector are highly sensitive to tax differentials for offshore tax havens. Moreover, we calculate the approximate corporate income tax revenues losses due to pre-tax profits sensitivity to tax differentials. We find that a one-unit increase in tax differential will lead to a less than one-percent tax revenue loss in the Visegrad countries.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50902 - Social sciences, interdisciplinary

Projekt

<a href="/cs/project/GA18-14082S" target="_blank" >GA18-14082S: Férové korporátní zdanění: Měření dopadu přesunu zisků na rozpočet České republiky</a><br>

Návaznosti

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

Rok uplatnění

2020

Kód důvěrnosti údajů

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

Název periodika

Post-Communist Economies

ISSN

1463-1377

e-ISSN

—

Svazek periodika

32

Číslo periodika v rámci svazku

7

Stát vydavatele periodika

GB - Spojené království Velké Británie a Severního Irska

Počet stran výsledku

43

Strana od-do

904-946

Kód UT WoS článku

000505095600001

EID výsledku v databázi Scopus

2-s2.0-85078594957