Tanulmányok

Corporate tax - a new paradigm is needed! -II. A new global value-added tax is needed instead of a corporate tax

Megjelent:
November 30, 2021
Szerző
Megtekintés
Kulcsszavak
Licenc

Copyright (c) 2021 László Török

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How To Cite
Kiválasztott formátum: APA
Török, L. (2021). Corporate tax - a new paradigm is needed! -II. A new global value-added tax is needed instead of a corporate tax. Competitio, 20(1-2), 31-47. https://doi.org/10.21845/comp/2021/1-2/3
Beküldött 2020-12-04
Elfogadott 2021-01-11
Publikált 2021-11-30
Absztrakt

Abstract: The corporate tax system is easy to manipulate in modern economies, with high explicit and implicit costs of maintaining it. Attempts to reform it have been unsuccessful, with aggressive tax planning and tax evasion gaining ground at the international level. The source of constant conflicts between national tax administrations and companies is also the corporate tax base and tax accounting. Therefore, based on a new paradigm, I have developed a new, globally introduce, corporate value-added tax on corporate adjusted sales. Revenues from this tax would replace general government revenues lost due to the abolition of corporate tax. Based on the GDP of the member states of the European Union, I calculated the rate of the new tax for all member states. In the study, I present in detail, the mechanism of operation of the new tax, then describe the advantages of the introduction of the new tax compared to the corporate tax. Finally, I will thoroughly present how the taxation of dividends from company owners/shareholders would change if the new tax I planned was introduced and operated. This new type of taxation of dividends would, in my view, contribute more fairly to the burden-sharing.

Journal of Economic Literature (JEL) codes: C 53, E 62, H 24, K 34

Hivatkozások
  1. Blesse, S., Buhlmann, F. and Dörrenberg, P. (2019) ‘Do People Really Want a Simple Tax System? Evidence on Preferences Towards Income Tax Simplification’, January 2019, SSRN Electronic Journal, Available at: DOI: 10.2139/ssrn.3515915 (Accessed: 5 May 2020)
  2. Cavelti, U. L., Jaag C. and Rohner T. F. (2019) ‘Why Corporate Taxation Means Source Taxation: A Response to the OECD’s Actions Against Base Erosion and Profit Shifting’, January 2016, SSRN Electronic Journal, Available at: DOI:10.2139/ssrn.2773614 (Accessed: 29 May 2020)
  3. Chelyadina, I. (2019) ‘Harmonization of Corporate Tax Base in the EU: An Idea Whose Time Has Come?’ Bruges Political Research Papers / Cahiers de recherche politique de Bruges, No. 76 / April 2019, p 1-44.
  4. CNBC (2020) “These European countries are refusing to offer bailouts to companies linked to offshore tax havens”, Available at: https://www.cnbc.com/2020/05/19/coronavirus-eu-countries-deny-bailouts-to-firms-linked-to-tax-havens.html
  5. (Accessed: 8 May 2020)
  6. Devereux, M. P. and Griffith, R. (2003) ‘The Impact of Corporate Taxation on the Location of Capital’, A Review, Economic Analysis and Policy Volume 33, Issue 2, September 2003, p 275-292. https://doi.org/10.1016/S0313-5926(03)50021-2
  7. European Commission (2016) “Anti-tax avoidance directive”, Available at: https://ec.europa.eu/taxation_customs/business/company-tax/anti-tax-avoidance-package/anti-tax-avoidance-directive_en, (Accessed: 6 May 2020).
  8. Fuller, C. S. and Santoro R. J. (2016) ‘Reassessing the Fair Tax, University of Pittsburgh law review’. The University of Pittsburgh. School of Law 77(3), DOI:10.5195/lawreview.2016.406
  9. Gunnarsson, A., Nerudova, D. and Schratzenstaller M.W. (2019) ‘FairTax Intereconomics’: Review of European Economic Policy, 2019, vol. 54, issue 3, 133-133. DOI: 10.1007/s10272-019-0809-0
  10. Kendall, B. (2019) “Justice Department to Open Broad, New Antitrust Review of Big Tech Companies”, The Wall Street Journal, Available at: https://www.wsj.com/articles/justice-department-to-open-broad-new-antitrust-review-ofbig-tech-companies-11563914235, (Accessed: 6 May 2020)
  11. International Monetary Found (2013) “Taxing Immovable Property Revenue Potential and Implementation Challenges”, IMF Working Paper, Available at: https://www.imf.org/external/pubs/ft/wp/2013/wp13129.pdf, (Accessed: 4 March 2021)
  12. Institute of World Economics (2014) “Tax avoidance or tax optimization”, Available at: https://vilaggazdasagi.blog.hu/2014/11/06/adoelkerules_vagy_adooptimalizalas_a_vallalati_jovedelemado_a_nemzetkozi_es_europai_vitakban, (Accessed: 30 April 2020).
  13. Kendal, B. (2019) “Justice Department to Open Broad” New Antitrust Review of Big Tech Companies, The Wall Street Journal, Available at: www.wsj.com/articles/justice-department-to-open-broad-new-antitrust-review-of-big-techcompanies-11563914235?mod=hp_lead_pos1&, (Accessed: 08 July 2020).
  14. Kenny, L. and Winer, S. L. (2006) ‘Tax Systems in the World: An Empirical Investigation into the Importance of Tax Bases, Administration Costs, Scale and Political Regime’, International Tax and Public Finance 13(2):p 181-215, DOI:10.1007/s10797-006-3564-7
  15. Kirchler E., Hoelz, E. and Wahl, I. (2007) ‘Enforced versus voluntary tax compliance: The „slippery slope” framework’, Journal of Economic Psychology, 2, p 210-225. https://doi.org/10.1016/j.joep.2007.05.004
  16. Kong-Pin, C., and C.Y. Cyrus, C. (2005) ‘Internal Control versus External Manipulation: A Model of Corporate Income Tax Evasion’ March 2005, The RAND Journal of Economics 36(1):151-164, DOI: 10.2139/ssrn.353860,
  17. KSH (2010) “Taxation in the European Union”, Available at: http://www.ksh.hu/docs/hun/xftp/gyor/jel/jel31007.pdf, (Accessed: 06 July 2020).
  18. Lampreave P, (2011) ‘Fiscal Competitiveness Versus Harmful Tax Competition in the European Union’, Bulletin for international taxation, – Amsterdam – Vol. 65 (2011), no. 6; 17 p, https://doi.org/10.2139/ssrn.1932257
  19. Mankiw, N. G. (2014) “One Way to Fix the Corporate Tax: Repeal It”, Available at: https://www.nytimes.com/2014/08/24/upshot/one-way-to-fix-the-corporatetax-repeal-it.html, (Accessed: 02 Aug 2020).
  20. OECD (2015) “Tax Administration (2015), Comparative Information on OECD and Other Advanced and Emerging Economies”, OECD, Publishing, Available at: https://doi.org/10.1787/23077727 (Accessed: 05 March 2021)
  21. Pukeleiné, V. and Nesavaité, G. (2019) ‘The Impact of the Wealth Taxes on Income Inequality and Poverty in OECD Countries’, Finance and Financial Economics, No. 13.1 (2019), DOI: https://doi.org/10.7220/AESR.2335.8742.2019.13.1.1.5
  22. Schanz, D. and Schanz, S. (2011) ‘Neutral Income Tax Systems’, Business Taxation and Financial Decisions, p 159-213, DOI: 10.1007/978-3-642-03284-4_5
  23. Skačkauskienė, I. (2010) ‘Tax system evaluation model’, 6 th International Scientific Conference, May 13–14, 2010, Vilnius, Lithuania, Selected papers. Vilnius, DOI: 10.3846/bm.2010.095
  24. Sorrensen, P. B. (2007) ‘Can Capital Income Taxes Survive? And Should They?’ CESifo Economic Studies, Volume 53, Issue 2, June 2007, p 172–228, https://doi.org/10.1093/cesifo/ifm010
  25. Tax Fundation (2019) “International tax competitiveness Index”, Available at: https://files.taxfoundation.org/20190930115625/2019-
  26. International-Tax-Competitiveness-Index.pdf, (Accessed: 30 June 2020)
  27. Tax Justice Network (2020) “The axis of tax avoidance, Time for the EU to close Europe’s tax havens”, Available at: https://www.taxjustice.net/wp-content/uploads/2020/04/The-axis-of-tax-avoidance_Tax-Justice Network_April-2020-1.pdf Network_April-2020-1.pdf (Accessed: 1 November 2020)
  28. Taylor, H. (2014) ‘How Apple managed to pay a 0.005 percent tax rate in 2014’, Available at: www.cnbc.com/2016/08/30/how-apples-irish-subsidiaries-paida-0005-percent-tax-rate-in-2014.html, (Accessed: 21 June 2020).
  29. Torslov, T. R., Wier, L. S. and Zucman, G. (2018) ‘The missing profits of nations’, Working Paper 24701, Available at: http://www.nber.org/papers/w24701, https://doi.org/10.3386/w24701, (Accessed: 5 November 2020)
  30. Török, L. (2020) ‘Corporate tax - a new paradigm is needed! – I: Income tax versus value added tax’ ‘Társasági adó – új paradigmára van szükség! – I.: Jövedelemadó versus hozzáadottérték-adó’ Competitio, 19(1-2), p 26–47. https://doi.org/10.21845/comp/2020/1-2/3
  31. UNCTAD (2013) ‘World investment report’, UN, New York, Geneva, Available at: https://unctad.org/en/PublicationsLibrary/wir2013_en.pdf, (Accessed:06 May 2020).
  32. UNU-WIDER (2017) ‘Global distribution of revenue loss from tax avoidance’, WIDER Working Paper 2017/55, Available at: https://www.wider.unu.edu/sites/default/files/wp2017-55. pdf, https://doi.org/10.35188/UNU-WIDER/2017/279-3 (Accessed: 04 May 2020)
  33. Weichhenrieder, A. J. (2005) ‘Why do we need corporate taxation’, CESifo Working Paper No. 1495, Available at: https://www.ifo.de/DocDL/cesifo1_wp1495.pdf, (Accessed: 03 Oktober 2020).