Modern Trends in Taxation in Europe
Tetiana Paientko (Kyiv National Economic University, Ukraine named after Vadym Hetman)Motivation
The rapid transformation of the global economy due to digitalization has put more pressure on national tax systems. The transformation of economic relations due to the development of information technologies, appearing new types of e-businesses, creates new conditions for tax evasion (Wilks, Cruz, & Sousa, 2018). This means that governments are expected to develop new approaches to tax administration which will help to prevent increasing risks of tax evasion.
The negative impact of the COVID19-pandemic on economic development has increased necessity in strengthening of government support for citizens and businesses. This situation requires the development of new approaches to improving taxation considering the effects of income redistribution and tax shifting (Conard, 2016; Rephann, 2019).
Another key issue in modern societies is an income inequality, especially in developing countries, which leads to social tension, political and economic instability (Alstadsæter, Johannesen, & Zucman, 2019). Modern taxation shall consider possibilities of decreasing the level of income inequality in developing countries.
The main instruments of tax avoidance such as transfer mispricing, international debt shifting, tax deferral, and corporate inversions have negative influence on the wellbeing of many countries. The world trends in preventing aggressive tax planning requires changes in taxation of all European countries. (Armstrong, Blouin, & Larcker, 2012; Watrin & Weiß, 2019).
We invite you to submit articles that focus on the following research questions:
- Can taxation have positive impact on managing income inequality?
- Which types of taxes should be used in the e-economy?
- How current pandemic crises will affect taxation?
- What kind of government activities are needed to prevent aggressive tax planning?
- What are the determinants of the modern trends in taxation in Europe?
We especially welcome papers analysing the above-mentioned topics in Central and Eastern European countries.
References
Alstadsæter, A., Johannesen, N., & Zucman, G. (2019). Tax Evasion and Inequality. American Economic Review, 109(6), 2073-2103. https://doi.org/10.1257/aer.20172043
Armstrong, C.S., Blouin, J.L., & Larcker, D.F. (2012). The incentives for tax planning. Journal of Accounting and Economics, 53(1-2), 391-411.
Conard, E. (2016). The Upside of Inequality: How Good Intentions Undermine the Middle Class. New York: Penguin Random House.
Wilks, D.C., Cruz, J., & Sousa, P. (2019). “Please give me an invoice”: VAT evasion and the Portuguese tax lottery. International Journal of Sociology and Social Policy. https://doi.org/10.1108/ IJSSP-07-2018-0120
Rephann, T. (2019). COVID-19 Economic and Tax Revenue Impacts Estimates for the Commonwealth of Virginia and Localities. Center for Economic and Policy Studies, Weldon Cooper Center for Public Service, University of Virginia. Retrieved from https://ceps.coopercenter.org/sites/ceps/files/Cooper_Center_Covid19_Updated.pdf
Watrin, C., & Weiß, F. (2019). Unravel Tax Planning Differences between Multinational and Domestic Firms (Working Paper, January 2019). Retrieved from https://ntanet.org/wp-content/uploads/2019/03/Session1235_Paper1354_FullPaper_1.pdf
