Despite the general recognition that taxes are generally a strong policy tool for assessing the macroeconomic impact of the country's alternative tax policies, taxes are often weakened by restrictions on tax revenue measurement. The aim of the contribution is to quantify the impact of selected macroeconomic indicators (gross domestic product, level of employment, public debt, foreign direct investments, effective tax rate, statutory tax rate) on the total amount of tax revenues, taking into account the tax competitiveness of the 28 EU member states. There was used methods of three models of regression analysis: the pooling model, the fixed effects model and the random effects model. The hypothesis that the gross domestic product has the greatest impact on tax revenue has been tested. In conclusion, the analysis confirmed that the strongest correlation is between tax revenues and employment rate. Followed by foreign direct investment and gross domestic product. Increasing these determinants by 1 mil. € (increase in employment by 1%) would increase tax revenues by 10 072 mil. € at the employment rate, by 383.1 thousand € for gross domestic product and by 434.2 thousand € for foreign direct investment. JEL classification:H21, H25.
VAT is one of the most decisive tax revenues sources in the EU Member States. Due to financial frauds and insufficient tax system, there is a billion loss of EUR every year in the European budget. The article deals with the impact of the tax evasion on economies of the EU Member States. By applying the top-down approach, we observed tax gaps as a quantifier of tax evasion from 2004 to 2017. The period around the economic crisis in 2009 was examined in more detail, as there was a sharp change in the evolution of tax gaps. We constructed a regression model, which examined the relationship of the tax gap and VAT tax revenues to selected determinants of tax evasion. The results showed that tax gaps in the Member States have been growing every year. We also found that there is an increase in tax revenues, but tax liabilities increase to greater extent.
Mobility of capital and the effi ciency of corporate taxation are important terms for investors who are deciding on the allocation of investment. At present, capital mobility is a modern phenomenon that cuts budgets for tax revenues and affects overall employment and economic growth. The corporate taxation principle means the profi t is immediately taxed at the shareholders' level and the tax rate of the shareholders is used as a tax rate for investment profi ts. The aim of the article is quantifying the degree of dependence between the effective rate and the selected microeconomic determinants, which infl uence the investment decisions of foreign investors. To achieve the aim, we have selected and analyzed the microeconomic determinants that monitored the economic indicators in the companies. In the article, we focused on the leverage effect, the capital intensity, the company's profi tability, the share of development and research spending that companies are willing to provide, and the nominal tax rate, which is the most generalized and primary information for investors. Data for the empirical research are from the fi nancial statements of companies listed on stock exchanges, which lead the business activities in the Member States of the European Union. The data comes from the Amadeus database (2018). Through linear regression analysis, we research the impact of microeconomic determinants and effective tax rates over the period 2008 to 2016. The analysis has confi rmed the established hypothesis. The results of the analysis pointed to the profi tability of the company as the indicator that most infl uence the effective tax rate. Increasing it by 1% will bring down the effective tax rate by 2.451%. The results were confronted with the theoretical theories of many authors who evaluated this relationship.
Tax Competitiveness of EU Member States in the Context of Corporate Taxation Despite the tax coordination and harmonisation, as the tax burden convergence processes, the corporate taxation systems differ among EU Member States, which can affect the development of economies to various degrees. The main objective of the paper is to assess whether the EU-27 countries are competitive in the field of corporate taxation and to verify whether "new Member States" are considered more competitive than the "old Member States". Empirical research from 2004 to 2014 used traditional quantitative indicators and specific quantitative methods in the form of tax rate relations, cluster analysis and constant market shares method, the application of which in the tax field is one of the main benefits of the research. Empirical results have highlighted the significant and positive impact of tax competitiveness on growth of corporate earnings growth. It has also shown that tax competition among countries is not clearly associated with a decrease in tax rates and will persist unless harmonization efforts are successful.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
customersupport@researchsolutions.com
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.