Work detail

The Role of Offshore Companies in Public Procurement in the EU

Author: Bc. Thao Trang Do
Year: 2019 - summer
Leaders: PhDr. Miroslav Palanský M.A.
Consultants:
Work type: Bachelors
Language: English
Pages: 82
Awards and prizes:
Link: https://is.cuni.cz/webapps/zzp/detail/200743/
Abstract: Corporate income taxation constitutes a significant share of government revenue on
which public expenditure depends heavily, and when multinational enterprises (MNEs)
engage in abusive tax practices it adds to the average taxpayer’s burden. Additionally,
when awarding public contracts to companies connected to notorious havens the
efficiency of public spending cannot be ensured. Using data on ownership structures of
government suppliers, this paper employs the gravity theory and aims to recognise tax
havens’ activity on the EU’s public procurement market. The gravity model identifies
territories with up to 99% unexplained flows of their total procurement supply. In these
countries increased risk of abuse is expected and outflow of taxable revenue can be
assumed. It is estimated that companies based in or linked to tax havens annually supply
about EUR 67 billion worth of EU’s public contracts above the natural levels predicted by
the gravity model based on economic and geographical determinants.
July 2020
MonTueWedThuFriSatSun
  12345
6789101112
13141516171819
20212223242526
2728293031  

Partners

Deloitte

Sponsors

CRIF
McKinsey
Patria Finance