IMF: International Corporate Tax Avoidance: A Review of the Channels, Magnitudes, and Blind Spots: A 1 percentage point larger tax rate differential reduces reported pre-tax profits of an affiliate by 1 percent.
According to a recent IMF working paper on tax avoidance, called International Corporate Tax Avoidance: A Review of the Channels, Magnitudes, and Blind Spots, a 1 percentage point larger tax rate differential reduces reported pre-tax profits of an affiliate by 1 percent. The authors believe that this estimate is larger than the consensus so far and the semi-elasticity has increased over time; a value of around 1.5 applies to the most recent years.
The Regional Court in Hradec Králové ruled in favour of the plaintiff (ENERGO CHOCEŇ, s.r.o.), revoking the contested ruling and referring the matter back to the Appellate Financial Directorate for further proceedings, Deloitte writes.
Indirect taxation is still evolving, and an arguable simple tax is growing in its complexity and application as a traditional goods and services model is replaced with digital content; virtual consumption and seamless international trade flows. But how can you stay ahead?
Economic Freedom of the World Index: Czech Republic ranks 30th, Scores Best for Freedom to Trade Internationally
The index published in Economic Freedom of the World measures the degree to which the policies and institutions of countries are supportive of economic freedom. In 2016, the latest year included in the analysis, Hong Kong and Singapore, as usual, occupy the top two positions. The next highest scoring nations are New Zealand, Switzerland, Ireland, United States, Georgia, Mauritius, United Kingdom, Australia, and Canada, the latter two tied for 10th spot. It is worth noting that the United States returned to the top 10 in 2016 after an absence of several years. Canada also returned to the top 10 after coming in 11th in 2015. The Czech Republic ranks 30th.
Strategic Directions for Czech Economic Policy
- 1) The home of value-added manufacturing
- 2) Prague-Brno-Ostrava Creative Triangle
- 3) Health Care as an export industry
- 4) Government as a competitive advantage
In Policy Pipeline policy developments in the Czech Republic and abroad are monitored to bring better understanding of current topics and trends.