An analysis of development of the number of companies managed from tax-favourable areas

This paper deals with the development of Czech and Slovak companies that changed their residence for tax purposes into the area known as the tax havens, tax-favourable jurisdiction or offshore jurisdiction in the period 2008-2011. The aim of the research was to determine what kind of relationship the respondents of the Czech and Slovak small and medium-sized enterprises have to change their registered office abroad because of favourable tax conditions. Research was conducted through two analyzes and questionnaire surveys. First there was made an analysis of the development of the number of the companies managed from tax-favourable areas in the period 2008-2011 continuing by an analysis of main preferring areas. The questionnaire survey among the small and medium-sized enterprises was made in the Czech Republic and in the Slovak Republic too in order to determine the attitude of the respondents to change their residence for tax reasons. At the time of growing number of tax evasions and fighting against them came to the forefront of international organizations too the territories which offer more favourable tax conditions than those companies achieved in the domestic area. Currently, there is possible to distinguish four groups of territories which can be described as “tax havens or favourable tax jurisdiction”. These are countries that have no corporate taxes and are valid only licensing fees, as well as countries with very low tax, land distinguishing tax from “domestic” and “foreign” income and countries that have specific tax regimes for certain types of companies or some operations. An analysis of the number of companies controlled from the favourable tax territories in the period 2008-2011 showed a growing tendency of change of the residence. From the perspective of the Czech Republic there is possible to recognize a sharp increase in 2008-2009, in the next years 2010-2011 there is following growing trend but much more slowly. The survey was based on questionnaire among the participants of the small and medium-sized enterprises. From the results there is possible to recognize prevalent reluctance to change their residence in foreign areas due to tax savings or favourable tax regime.

This paper is one of the research outputs of the project P403/11/0002 registered at Czech Science Foundation (GACR).