Firms and Tax Havens: Evidence from the Czech Republic
|Název práce v češtině:||Firmy a daňové ráje: případ České republiky|
|Název v anglickém jazyce:||Firms and Tax Havens: Evidence from the Czech Republic|
|Klíčová slova:||daňový ráj, daňový výnos, offshore finanční centrum, daňové plánování|
|Klíčová slova anglicky:||tax haven, tax revenue, offshore financial centre, tax planning|
|Akademický rok vypsání:||2011/2012|
|Typ práce:||bakalářská práce|
|Ústav:||Institut ekonomických studií (23-IES)|
|Vedoucí / školitel:||doc. Petr Janský, M.Sc., Ph.D.|
|Řešitel:||skrytý - zadáno vedoucím/školitelem|
|Datum a čas obhajoby:||17.06.2013 00:00|
|Místo konání obhajoby:||IES|
|Datum odevzdání elektronické podoby:||15.05.2013|
|Datum proběhlé obhajoby:||17.06.2013|
|Oponenti:||Mgr. Michal Paulus|
|Seznam odborné literatury|
|LESERVOISIER, Laurent. Daňové ráje. Paříž: Presses Universitaires de France, 1992. 122 s. ISBN 80-86009-07-6.
KLEIN, Štěpán. Daňové ráje... aby nebyly daňovým peklem. Ostrava: Nakladatelství Jiří Motloch-Sagit, 1998. 197 s. ISBN 80-7208-074-1.
PALAN, R.: “Tax havens and the commercialization of state sovereignty”, International Organization, Vol. 56, No. 1 (Winter, 2002)
DESAI, M. A.; FOLEY, C. F.; HINES, J. R., Jr. (2004): ”Economic Effects Of Regional Tax Havens.” NBER Working Paper Series, No. 10806.
VELO, Lucio: Daňové ráje světa. Praha: Rebo Productions, 1997, 167 s., ISBN 80-85815-93-1
HINES, J. R. (2010): "Treasure Islands." Journal of Economic Perspectives, 24(4): 103–26
OECD. 2000. Towards Global Tax Cooperation: Progress in Identifying and Eliminating Harmful Tax Practices. Paris: Organisation for Economic Co-operation and Development.
HINES, J. R., Jr.; RICE E. M. (1994): “Fiscal Paradise: Foreign Tax Havens and American Business.” Quarterly Journal of Economics, 109(1): 149–82.
MURPHY, R : “The direct tax cost of tax havens to the UK”, available at: http://www.taxresearch.org.uk/Documents/TaxHavenCostTRLLP.pdf
HINES, J. R., Jr.; SCHNITZER, M.; GUMPERT, A. (2011): „The Use Of Tax Havens In Exemption Regimes.“ NBER Working Paper Series, No. 17644
|Předběžná náplň práce v anglickém jazyce|
|Nowadays, there is a growing trend of firms relocating their place of business to tax havens. This can cause a significant outflow of money (in form of income tax) from state budget and also higher unemployment, which can cause serious disturbances in country‘s economy. In this thesis I will focus on the case of the Czech Republic and attempt to answer following questions:
What are the reasons for leaving?
Favourable tax conditions in tax havens are no longer the only incentive of firms’ relocations to tax havens. Though they still remain the most frequent reason, there are a few more that we cannot overlook. Over one third of Czech companies owned from tax havens are registered in the Netherlands, where the corporate tax rate is nearly at the same level as in the Czech Republic. The motivation for moving there is legal certainty, better conditions for entrepreneurship and protection of one’s assets. I will give overview of most common reasons for the use of tax havens.
What firms do most often leave the Czech Republic?
The reasonable assumption is that the most often candidates for moving to tax havens are large firms. Thanks to increasing returns to scale these companies are usually earning high profits and therefore it is desirable for them to try to subject these earnings to lower tax rates. Another category of firms that could have more reason to leave is investment and financial group. They often use tax havens as a means of paying less or no taxes on investment. Thanks to bad availability of this kind of data, I may have to rely only on simple analysis of publicly available data on Czech firms to determine what type of firms are leaving the Czech Republic.
How do tax havens influence the economy of the Czech Republic?
Tax havens constitute a significant problem for countries all over the world. It is estimated that G20 looses annually over 100 billion dollars on tax revenues. Tax revenue losses connected with companies moving to tax havens are significant for Czech state budget as well, particularly at times of insufficient state budget revenues. The amount is not easy to estimate, but we can safely assume that it amounts to tens of billions of Czech crowns. I will attempt to estimate the tax losses to the Czech Republic arising from tax haven activities. I will take inspiration from approach of R. Murphy (2009), who estimated the cost of tax havens for the UK.
What are the most common counter-measures taken?
This problem does not go unnoticed by OECD and EU. OECD launched the “Initiative on Harmful Tax Competition" in 1998 to pressure tax havens to abolish harmful tax provisions and practices. OECD has also started negotiations with tax havens, trying to force them to make agreements concerning exchange of information. The European Union has introduced agreements to increase transparency of financial information and the cooperation between member states. The Czech Republic itself has engaged in these negotiations and so far six of seven prepared agreements have been signed. In addition suggestions have been made, to exclude all companies controlled from offshore destinations from government procurements.
2.Characteristics of tax havens
3.Reasons for relocation to tax havens
4.What firms do most often decide to relocate to tax havens?
5.Influence of tax havens on the economy of the Czech Republic