Estimating the revenue losses of international corporate tax avoidance: the case of the Czech Republic |
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Authors: | Petr Janský |
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Institution: | Faculty of Social Sciences, Institute of Economic Studies, Charles University, Prague, Czech Republic |
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Abstract: | International corporate tax avoidance by multinational enterprises likely lowers the Czech Republic’s corporate income tax revenue, but it is not clear by how much. To clarify this I first review existing estimates of the revenue losses of international corporate tax avoidance to government revenue worldwide. I then discuss revenue estimates relevant for the Czech Republic and develop a few new, albeit only illustrative, ones. None of the existing research focused on the Czech Republic nor did the six recent international studies I examine provide reliable estimates for the Czech Republic. The extrapolations from these studies result in a revenue loss of a quite wide range with a median of 10% of current corporate income tax revenues. The other newly prepared estimates, based on firm-level and aggregate data, are of similar magnitude. I conclude with a discussion of these rough estimates as well as questions for further research and policy recommendations. |
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Keywords: | Corporate income tax international taxation tax avoidance BEPS Czech Republic |
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