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Uchman Jacek (Wroclaw University of Economics)
The Taxation of Controlled Foreign Corporations' Income and its Selected Consequences
Optimum : Economic Studies, 2020, nr 4(102), s. 3-14, wykr., tab., bibliogr. s. 13-14
Podatek odroczony, Zagraniczne spółki zależne, Rentowność
Deferred tax, Foreign subsidiaries, Profitability
JEL Classification: H25, H26, F21
Purpose - The aim of this study is an evaluation of the possibility of maximiszing budget income due to the tax regulations concerning controlled foreign corporations. The objective is to gain an understanding of these regulations for shaping the profitability of the investments performed abroad. Research method - The study approach uses a method of analysis of financial consequences resulting from the regulations existing in this area and the simplified analysis of profitability allowing for the tax factor. In the study companies and corporate income tax were taken into consideration. Results - It has been proven that taxation without deferral influences the tax amount and the rate of return of a taxpayer being the shareholder of these corporations. The implication of certain mechanisms in foreign controlled corporations' regulation has been estimated. A relatively small scale of the investments coming from Polish residents has been shown. The phenomenon may result in comparatively minor income coming from these regulations. Originality / value / implications / recommendations - The author has shown economic conditionings and the consequences of the analysed regulations. In Polish sources concerning this issue, legal challenges had previously dominated. In this study, the estimates of shaping profitability post taxation have been performed on the basis of the available data. The analysed mechanism is one of the several regulations concerning the regulation of the taxation of companies acting on an international scale. Due to their abundance, the remaining solutions have been used as the reference for the examined mechanism. (original abstract)
The Library of Warsaw School of Economics
The Library of University of Economics in Katowice
Full text
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