Publication detail

Estimating the costs of international corporate tax avoidance: the case of the Czech Republic

Author(s): Petr Janský Ph.D.,
Type: IES Working Papers
Year: 2016
Number: 21
ISSN / ISBN:
Published in: IES Working Papers 21/2016
Publishing place: Prague
Keywords: corporate income tax; international taxation; tax avoidance; BEPS; Czech Republic
JEL codes: F23, H25, H26, O19
Suggested Citation: Jansky P. (2016). "Estimating the costs of international corporate tax avoidance: the case of the Czech Republic” IES Working Paper 21/2016. IES FSV. Charles University.
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 costs of international corporate tax avoidance to government revenue worldwide. I then discuss research and revenue estimates relevant for the Czech Republic and develop a few new ones, albeit only illustrative. None of the existing research focused on the Czech Republic nor the five recent international studies I examine provide reliable estimates for the Czech Republic. The extrapolations from these studies result into a range from 6 to 57 billion CZK (4-38 % of current corporate income tax revenue) with a median of 15 billion CZK (10 %) in annual corporate income tax revenue loss. This scale is comparable with the responses of 35 Czech experts with a median of 20 billion CZK (13 %). I conclude with a discussion of these rough estimates as well as questions for further research and policy recommendations.
Downloadable: wp_2016_21_jansky

Partners

ČSOB
Deloitte
McKinsey & Company

Sponsors

CRIF