K34 - Tax LawReturn

The article looks at exit taxation within the European Union, including how it affects cross-border mergers. It starts with an explanation of the concept of exit tax, followed by an analysis of the current legislation and an analysis of the case law of the European Court of Justice. The article presents the results of the research, the implementation of exit taxes in a particular country, including how it is calculated, the determination of the market and tax value and the tax rate. The second objective is to examine how the rule is applied to cross-border mergers. The data was obtained through a qualitative data collection method in the form of a questionnaire survey from December 2023 to January 2024. The Baker Tilly Group’s advisory network was selected to obtain high quality information. The questionnaire was sent to the employees of this company at the highest management positions who are responsible for tax advisory. The results of the survey showed that all countries analysed have implemented exit tax according to the rules set by the EU and mostly apply this tax to cross-border mergers. However, the application to mergers is not uniform and an assessment is needed for each case implemented as to whether it will be exempt from the exit tax.

This article aims to analyse possible forms of taxation in the financial sector and, based on financial institutions’ data, estimate the potential contribution to the state revenue of the Czech Republic, if the tax is levied on the banks’ assets with the progression tax rate. The exponential smoothing methods were used to predict banks’ assets for the following five years. Actual data from the MagnusWeb database and annual reports for Czech banks from 2008 until 2021 were used. This article estimates tax revenues for the Czech Republic by using the parameters of bank tax proposed by several political parties and comparing the results with the latest windfall tax proposal. Based on the results, the bank tax would represent the additional revenue of CZK 23.4–28.7 bn (0.34–0.39% of GDP) each year for the following five years, with an increasing trend for the basic scenario. The proposed windfall tax should represent the additional tax revenue of CZK 33 bn for 2023 with decreasing trend, as the tax should be temporary and levied only on excessive profits.

The article focuses on the new rules for electronic commerce that came into force on 1 July 2021 in all EU Member States. The main goal is to explain these new rules of taxation of consignments of goods from abroad (both from the European Union and third countries) to non-taxable persons and subsequently to calculate the impact of these new rules on the tax revenues of public budgets of the Czech Republic. The assumption set in advance is that the changes in tax legislation will result in an increase in the Czech public budget revenues due to the boosted revenues from value-added tax collected on foreign shipments. Year-on-year, tax revenues from online purchases will undoubtedly increase also due to the growing popularity of online shopping, currently sustained by the ongoing pandemic situation of covid-19. The calculations of the additional value-added tax revenue are based mainly on the data sourced from the Czech Statistical Office and a study carried out for the European Commission. The additional value-added tax revenue is calculated using the three model situations that assess impacts on the tax revenue of public budgets in the Czech Republic. For 2019, these impacts were estimated at between CZK 3.1 and CZK 6.1 billion.

The aim of the paper is to empirically examine the scale and the distribution of the tax advantage which emerges when provisions for future liabilities are deductible from taxable earnings, as proposed in the CCCTB concept. The paper concentrates on Poland - a country for which the expected economic effects of this proposal are still controversial and ambiguous. The results are also relevant for other European countries in which provisions are currently treated in a different way for financial and for tax accounting purposes. The analysis is based on the information from financial statements of 250 companies from the period 2007 - 2012. The microsimulation method in a multi-period setting is implemented. The results show that in case provisions are deductible for tax purposes the tax due decreases by 5,6 % or and by 9,8 % on average, depending on the liquidity situation of companies. The tax advantage is distributed differently among companies. The majority of taxpayers is expected to gain from the reform. Only for single companies there is an increase in tax, induced by the existing, restricted tax loss carry forward rules. The median change in CIT amounts to -1 % and -2 %.