The aim of the paper is to reveal the parameters of tax systems – in both the investor and the recipient state – that influence FDI allocation in post-socialist EU countries and cross-border flows of selected types of payments. Our results confirm that investors from EU countries strive to take advantage of both tax rate differences and aggressive tax planning strategies. Regression model estimates show that the investor’s national tax system is of key importance if it allows for the non-taxation of interest income, application of lower rates to royalties and use of special purpose entities. Moreover, the size of FDI is relatively strongly linked to the amount of payments for advisory services and royalties which are often used for aggressive tax planning. The estimated elasticity of FDI to the tax rate is around 1.1 and 1.9 for statutory and effective rates, respectively.

Perception of tax evasion by individual citizens is of considerable interest to politicians, since people’s perceived attitudes affect the approach to tax compliance throughout the society. It is thus worth identifying personal characteristics that are related to a higher degree of tolerance and justification for tax evasion. Based on the 2008 European Values Survey data and using descriptive statistics, the paper discusses the relationship between the respondents’ characteristics and their tendency to justify tax evasion. The study finds a strong relationship between this tendency and age, educational attainment and economic activity, the two other variables (parenthood and income) indicating only a weak relationship. Moreover, the current issue allows us to convincingly argue against the regression analysis stereotypes which often yield biased and confl icting results. The paper confirms our constructive criticism, thus opening up space for an extended discussion of a more balanced use of both descriptive statistics and regression models.

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, the scientific journal of the Mendel University in Brno, Czech Republic

The anti-tax avoidance directive (ATAD) implemented in the EU countries in 2019 has brought, among other things, a common rule for tax-deductibility of exceeding borrowing costs of corporate taxpayers – the interest limitation rule. For interest limitation, the Czech Republic had so far used the so-called safe haven thin capitalisation rule. With the implementation of ATAD, companies need to test not only the thin capitalisation rule but also the new interest limitation rule according to ATAD. This paper aims to review the impact of the new interest limitation rule on the 200 largest Czech companies by their 2017 revenue as recorded in the Albertina database. Results covering the new rules, i.e. following the ATAD implementation, are being compared to the situation before the implementation. Most of the analysed companies seem unaffected by the new interest limitation rule. The analysis also showed that most of the analysed companies do not imply exceeding borrowing costs, either before or following the ATAD implementation.

Personal income taxation in?the?Czech Republic has undergone significant changes in?the?last 20 years. Among main changes is replacing of?deductions from the?tax base with tax credits in?2006, as?well as?linking income tax and contributions on... Personal income taxation in?the?Czech Republic has undergone significant changes in?the?last 20 years. Among main changes is replacing of?deductions from the?tax base with tax credits in?2006, as?well as?linking income tax and contributions on...