| Abstract [eng] |
This thesis covers the design theoretical model, which covers the relationship among international tax planning and foreign direct investment, by deriving dependence between international tax planning and effective tax rate. In order to identify existing problems in the international tax system in absence of tax planning, the first part analysis the theoretical literature, which is associated to international tax planning and foreign direct investment. According to theoretical literature new concept evolved in recent past 100 years. Which formulates the problematic aspects, that fast technological and economy development increased global economic development of integrity. Such rapid acceleration caused tax planning processes, that causes pressure to high developed countries budgets. In order to avert system errors, when the competitive environment becomes distorted because of tax planning such situation increases scientific and practical needs to deal with this problem. Such analysis is being made, in order to evaluate the different scientists findings related to existing problem. Second part of the paper covers theoretical findings, in which we analysed five different theoretical models, related to tax planing and foreign direct investment. First two models are based on foreign direct investment and tax planning by deriving effective tax rates. The first model derives effective tax rate for whole economy, second derives effective tax rates for economy sectors. Three and four models uses game theory to evaluate and model situation. It is noteworthy that fourth model is derivative and expansion of third model. The last five model analyzes the situation by using different methodology –the corporate income shocks. Later all five models were evaluated and by using qualitative and quantitative methods by electing the most suitable model. The selected model is based on links between international tax planning and foreign direct investment, which in turn gives an effective corporate tax rate. It is noteworthy, that selected model was adjusted, by calculating effective corporate tax rates to every economy sector and further weighted average effective tax rate is calculated. In the last part of the text modeling is made. Based on modeled data weighted average effective corporate tax rate for whole economy is derived. It is found, that eliminating tax planning process gives us 10,38 percent weighted average effective tax rate. Incorporating tax planning process, gives us five different effective corporate tax rates base to revenue transfer rate. Rate refers to situation, the higher the ratio the higher corporate tax rate. |
