Indicators of Taxation of Multinational Enterprises in the Czech Republic

Abstract

The article presents the system of indicators for evaluation of taxation of international companies active in the Czech Republic. Based on the identification of the potential channels of corporate tax base erosion and profit shifting of multinational enterprises it enables to recognize companies whose taxation policy might not be in line with the best practice.

Extreme values of the indicators might initiate further examination of a company by state authorities. This research thus complements the existing set of analytical tools of the government agencies and research institutions in the area of taxation of multinational enterprises.

Keywords

• Corporate taxation
• Taxation of multinational enterprises
• Empirical analysis
• Firm-level data
• Corporate tax base erosion
• Profit shifting
• Tax havens
• Czech Republic