Detail práce

The Role of Offshore Companies in Public Procurement in the EU

Autor: Bc. Thao Trang Do
Rok: 2019 - letní
Vedoucí: PhDr. Miroslav Palanský M.A., Ph.D.
Typ práce: Bakalářská
Jazyk: Anglicky
Stránky: 82
Abstrakt: Corporate income taxation constitutes a significant share of government revenue on
which public expenditure depends heavily, and when multinational enterprises (MNEs)
engage in abusive tax practices it adds to the average taxpayer’s burden. Additionally,
when awarding public contracts to companies connected to notorious havens the
efficiency of public spending cannot be ensured. Using data on ownership structures of
government suppliers, this paper employs the gravity theory and aims to recognise tax
havens’ activity on the EU’s public procurement market. The gravity model identifies
territories with up to 99% unexplained flows of their total procurement supply. In these
countries increased risk of abuse is expected and outflow of taxable revenue can be
assumed. It is estimated that companies based in or linked to tax havens annually supply
about EUR 67 billion worth of EU’s public contracts above the natural levels predicted by
the gravity model based on economic and geographical determinants.


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