Český finanční a účetní časopis 2007(2):55-72 | DOI: 10.18267/j.cfuc.222

Tax Competition in the European Union and Its Influence on the Shift in the Tax Burden

Danuše Nerudová1, Svatopluk Kapounek2, Jitka Poměnková3
1 Ing. Danuše Nerudová, Ph.D. - odborná asistentka; Ústav účetnictví a daní, Provozně ekonomická fakulta, Mendelova zemědělská a lesnická univerzita v Brně, Zemědělská 1, 613 00 Brno; <d.nerudova@seznam.cz>.
2 Ing. Svatopluk Kapounek - odborný asistent; Ústav financí, Provozně ekonomická fakulta, Mendelova zemědělská a lesnická univerzita v Brně, Zemědělská 1, 613 00 Brno; <kapounek@tiscali.cz>.
3 RNDr. Jitka Poměnková, Ph.D. - odborný asistent; Ústav statistiky, Provozně ekonomická fakulta, Mendelova zemědělská a lesnická univerzita v Brně Zemědělská 1, 613 00 Brno; <pomenka@mendelu.cz>.

The paper deals with the testing of the hypothesis, whether there is negative correlation between the time series of corporate income tax yield and personal income tax yield in the states of EMU and the Czech Republic. The correlation analysis has not proved the negative correlation (except Netherlands) on 5% level of importance. It can be assumed, that in most cases the present competition in the filed of corporate income taxation in the EU does not lead to the shift in the tax burden from corporations on the individuals. The differences of corporate income taxation in individual member states reflect the different economic conditions - countries with higher tax rates offers more quality labor force and stable business environment, while the newly accessed countries use the lower tax rates for their establishment on the internal market of the European union.

Keywords: Tax competition; Shift in the tax burden; European Monetary Union; Corporate Income Tax, Personal Income Tax.
JEL classification: C22, H21

Published: June 1, 2007  Show citation

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Nerudová, D., Kapounek, S., & Poměnková, J. (2007). Tax Competition in the European Union and Its Influence on the Shift in the Tax Burden. Czech Financial and Accounting Journal, 2007(2), 55-72. doi: 10.18267/j.cfuc.222
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