References Amadeus. (2016). A Database Containing Financial Information on Approximately 8 Million Public and Private Companies in 38 European Countries. Retrieved from https://www.bvdinfo.com/en-us/our-products/company-information/international-products/amadeus Badertscher, B., Katz, S. P., & Rego, S. O. (2009). The Impact of Private Equity Ownership on Corporate Tax Avoidance. Harvard Business School Working Papers 10-004. Retrieved from: https://ideas.repec.org/p/hbs/wpaper/10-004.html Devereux, M. P., Griffith, R., & Klemm, A. (2002). CorporateIncomeTax
, |Bases and Revenues. Working Papers, 0704 . Devereux, M.P., Griffith, R., Klemm, A. (2002). CorporateIncomeTax Reforms and International Tax Competition. Economic Policy, 35 , 451-495. Devereux, M.P., Griffith, R., Klemm, A. (2004). Why has the UK Corporation Tax Raised so much Revenue? Fiscal Studies, 25 (4), 367–388. Devereux, M.P., Lockwood, B., Redoano, M. (2008). Do Countries Compete Over Corporate Tax Rates? Journal of Public Economics, 92 , 1210–1235. Diamond, P.A., Mirrlees, J.A. (1971). Optimal Taxation and Public Production II: Tax Rules. The American
The financial crisis has stimulated debate on the taxation of the financial sector. The focus is on the bank levy and financial transaction tax, whereas corporate income tax attracts less attention in the public debate. Accordingly, this study analyses the contribution of the financial sector to Polish revenue from corporate income tax. Based on tax statistics of the Ministry of Finance from 1998 to 2016, the aggregated effective tax burden of the financial sector is determined and compared with the tax burden of corporations from other sectors. In addition, the study deals with loss deduction of the financial sector in comparison to non-financial corporations.
The study shows that the effective tax burden of the financial sector - measured as a ratio of the tax due to income - is higher than the corresponding burden for corporations from outside this sector. A higher corporate income tax burden of the financial sector also applies if it is measured by aggregated profits reduced by losses. An exception to this is the period up to 2002 and the year 2009, when the effective tax burden of the financial sector was lower after the inclusion of losses when compared to other sectors of the Polish economy. This can be explained by the relatively low losses of the Polish financial corporations compared to other corporations. Furthermore, the study shows that tax losses in the financial sector are used much more effectively. The minimum ratio of the expired loss carry-forward - due to its limitation up to five years – to the reported losses accounts for 20.2% for this sector and is thereby significantly lower than the corresponding share of 54.6% for non-financial corporations.
Companies in Lithuania have to follow Business Accounting Standards (BAS) when preparing their financial statements. Recording financial transactions according to BAS ensures that the information a company shares with potential lenders and investors gives a true and fair view of its business situation. However, the tax law prescribes its own set of accounting rules, which can result in a difference between what a business shows in financial statements and what it reports on its tax returns. This paper examines whether Lithuanian companies predominantly use tax accounting principles that migrate into their financial statements to create an inaccurate picture of business performance. The method of experts’ evaluation was chosen for that purpose. The results indicate that Lithuanian companies tend to heavily rely on accounting principles prescribed in corporate income tax law thus distorting information contained in financial statements. The paper contributes to the scarce literature on this issue of high relevance to both academics and practitioners.
The author assesses the opportunities for inclusion of the corporate income tax into the budgets of the local governments on whose territories there are legally registered companies. For this purpose the same territorial code principle is recommended, which is applied to administer personal income tax. In order to motivate companies to register legally and engage in business activities in the regions of Latvia, tax incentives should be established. The application of tax incentives need to be delegated to the local governments, thus ensuring their interest in business development in their territories. The diversion of corporate income tax into the budgets of local governments would significantly strengthen their budget revenue base, increasing the interest of municipalities into the development and modernization of the companies, as well as creation of new jobs. Inherent risks are defined, and possible solutions how to eliminate these risks are suggested.
Nordic Tax Journal 2014:2
Anna Holst Birket-Smith & Anders Fuglsig Larsen 88
Corporate taxation in
Denmark and the
Anna Holst Birket-Smith & Anders Fuglsig Larsen
Abstract: We study the development in the Danish corporateincometax base and
the corporateincometax revenue in the period from 1990 until present. Measured
in per cent of GDP the CIT base has out-paced the revenue due to parallel CIT rate
cuts and base broadening reforms. We seek to explain the development in the CIT
base and discuss whether this is
Management , 5 (1), 1–17. Pogge, T., Mehta, K. (eds.) (2016). Global tax fairness . Oxford University Press. Raza, S.A., Ali, S.A., Abassi, Z. (2011). Effect of corporateincometax and firms’ size on investment: evidence by Karachi stock exchange. European Journal of Economics, Finance & Administrative sciences. Retrieved from: https://mpra.ub.uni-muenchen.de/id/eprint/36800 . Simmons, R.S. (2000). Corporate taxation and the investment location decisions of multinational corporations, (HKIBS working paper series 035-990). Retrieved from Lingnan University website
: Comparing Tax Regimes in Advanced Capi-talist Countries. In V. Nee & R. Swedberg, The Economic Sociology of Capitalism , pp. 391-418. de Mooij, R.A. (2005), Will Corporate Income Taxation Survive? De Economist , 153 (3), pp. 277-301. Devereux, M.P., Grifth, R., Klemm, A. (2002), Corporateincometax reforms and international tax competition. Economic Policy , 35, pp. 451-495. Diamond, P.A., Mirrlees, J.A. (1971), Optimal taxation and public production II: Tax rules. The American Economic Review , 61 (3), pp. 261-278. Fischel, W.A. (1975), Fiscal and Environmental
Although globalization has contributed immensely to growth and prosperity around the world, it is a growing challenge for tax policy makers. Globalization and greater mobility of tax bases increase the relative importance of taxes in corporations’ investment decisions. The combination of highly mobile capital, inadequacies in existing tax laws and a total change of international business environment have led to the fundamental problem in international tax law labeled by the OECD as the problem of BEPS (Base Erosion and Profit Shifting), along with severe competition among countries to attract investments and business activities. These challenges are the topic for the 2014 seminar of the Nordic Tax Research Council. Based on the Nordic national reports we discuss these challenges
This paper discusses the harmful tax practices of multinational enterprises (MNEs) and the fight of international organizations against them. We focus on the anti-tax base erosion and profit shifting project (anti-BEPS project) of the Organisation for Economic Co-operation and Development (OECD), namely its 15 actions, which we present in the first part of the paper, using descriptive and analytical methods. In the second part, we use critical and synthetic methods to assess how the selected aspects of multinational business will be impacted with described actions. Our conclusions show that MNEs will have to adapt their business structures and plans according to new tax regulations, which will also lower their profit levels due to unavailability of established harmful tax structures for lowering their tax bases. At the same time, our results indicate that the legal approach in introducing new measures on the subject field, lead to legal uncertainty in tax matters. Due to the scope of analysed problems, it was impossible to introduce individual problems in depth; however, we provide readers with the general characteristics and goals of introduced actions that are necessary for understanding our evaluation of their impact on certain fields of international business. Our paper contributes to literature and practice, as it provides general insight into recent and important international tax law developments that enterprises will have to consider when doing business across borders.