The Use of International Tax Planning in Subsidiaries from the Financial and ICT Sectors in the Czech Republic

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dc.contributor.authorJedlička, Vít
dc.contributor.otherEkonomická fakultacs
dc.date.accessioned2021-03-16T10:51:28Z
dc.date.available2021-03-16T10:51:28Z
dc.description.abstractTax avoidance is an important element of management in the global economy. Managers use tax havens for reducing a company’s effective tax rate. The most common practices in international tax planning can be divided into three groups: loans and their related interest, royalties, and transfer pricing. The aim of this article is to find the determinants of the tax burden faced by foreign-owned subsidiaries. Therefore, a model was created for the tax burden, focusing on the special position of subsidiaries within international tax planning. For this purpose, taxes/outcomes was established as a new dependent variable. The panel data used include Czech companies that are owned by parent companies located in other EU countries. The model distinguishes EU tax havens from regular member states; sector dummy variables are also included. The regression model that was created did not confirm the assumed dependencies. Rather, it indicated other important determinants: profitability, the share of intangible assets, size, and the dummy variable for the ICT sector. Based on the regression results, the independent variables connected with known tax planning schemes have relatively low importance. The significance of these results can be seen in the subsequent conclusions. First of all, there is no difference between the subsidiaries’ tax burdens based on the parent company’s location. Corporations use international tax planning whether or not they are owned from a tax haven. The second significant conclusion indicates the importance of certain sectors and their attributes concerning the tax burden. Companies from the ICT sector are linked to a lower tax burden. On the other hand, the dependencies within the financial sector are not statistically significant. From the perspective of further research, it would be constructive to incorporate the subsidiary’s position within the group.en
dc.formattext
dc.identifier.doi10.15240/tul/001/2021-1-012
dc.identifier.eissn2336-5604
dc.identifier.issn1212-3609
dc.identifier.urihttps://dspace.tul.cz/handle/15240/159937
dc.language.isoen
dc.publisherTechnická Univerzita v Libercics
dc.publisherTechnical university of Liberec, Czech Republicen
dc.publisher.abbreviationTUL
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dc.relation.ispartofEkonomie a Managementcs
dc.relation.ispartofEconomics and Managementen
dc.relation.isrefereedtrue
dc.rightsCC BY-NC
dc.subjecttax planningen
dc.subjecttax burdenen
dc.subjecttax havensen
dc.subjectpanel dataen
dc.subjectregressionen
dc.subject.classificationF23
dc.subject.classificationH25
dc.subject.classificationH26
dc.titleThe Use of International Tax Planning in Subsidiaries from the Financial and ICT Sectors in the Czech Republicen
dc.typeArticleen
local.accessopen
local.citation.epage196
local.citation.spage182
local.facultyFaculty of Economics
local.filenameEM_1_2021_12
local.fulltextyes
local.relation.abbreviationE+Mcs
local.relation.abbreviationE&Men
local.relation.issue1
local.relation.volume24
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