Original title: Intertemporal income shifting in expectation of lower corporate tax rates: the tax reforms in Central and Eastern Europe
Authors: Madzharova, Boryana
Document type: Research reports
Year: 2012
Language: eng
Series: CERGE-EI Working Paper Series, volume: 462
Abstract: This paper examines if firms shift income out of years with high corporate tax rates into years when tax cuts are anticipated. Such intertemporal shifting can be one explanation for the stability of corporate tax revenues in Central and Eastern Europe, despite the major decline in the corporate tax rates and overall narrowing of the tax base starting in the late 90s. Using firm-level panel data for Bulgaria, the Czech Republic, Hungary, Poland, Romania and Slovakia from 1999 to 2005, the estimates indicate that the lower corporate tax rates induced a considerable increase in taxable income.
Keywords: corporate tax; income shifting; tax reforms

Institution: Economics Institute AS ČR (web)
Document availability information: Fulltext is available at external website.
External URL: http://www.cerge-ei.cz/pdf/wp/Wp462.pdf
Original record: http://hdl.handle.net/11104/0209191

Permalink: http://www.nusl.cz/ntk/nusl-112730


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