Objective target of this thesis is the development of an own systems (like EMTR or EATR) to measure the international burdens of company taxation with liquidity-oriented appraoch in comparison tothe well known tax measunring maodels. The developed system called "PATK" analyzes the minimumtaxation which would arise without application of detailed national accounting regulations.Any tax privileged by accounting
regulations,investment free allowances or other country typical subsidy are not included in this model
Table of Contents
1. Introducing
1.1 Denotation of the Topic
1.2 Objective target of the thesis
1.3 Strategy
1.4 Basic structure of the thesis
2. Theoretic part
2.1 Comparing the burdens of taxation
2.1.1 Definition: Counting the burdens of Taxation
2.1.2 Content of Counting the burdens of Taxation
2.1.3 Different Methods of Counting the burdens of Taxation
2.1.3.1 Comparing the tax rates
2.1.3.2 National Comparing the tax rates
2.1.3.3 Effective marginal- and effective average Taxrates
2.1.3.4 ETA (European Tax Analyzer)
2.1.3.5 Interest-free Profit tax
2.2 Corporate Taxation – GmbH for example
2.2.1 Taxation in Germany
2.2.2 Taxation in Austria
2.2.3 Taxation in Switzerland
3. Main Part
3.1 Statement of the current situation
3.1.1 Strengths and weakness analysis
3.1.2 Derived problems of known burdens of taxation
3.1.3 Target concept
3.2 Realisation of an quantitativ comparison of the burdens of taxation with an own concept
3.2.1 Method of the burdens of taxation comparison
3.2.2 Calculating the balances of payment
3.2.3 Included Taxes
3.2.4 Base and calculations the different taxes in Germany
3.2.5 EATR
3.2.6 ETA oriented corporate simulation
3.2.7 Company
3.2.8 Business transactions
3.2.9 Year end balance
3.2.10 Period of taxation
3.2.11 Descriptions of the scenarios
3.3 Presentation of the results
3.3.1 Scenario 1
3.3.2 Scenario 2
3.3.3 Scenario 3
3.3.4 Scenario 4
3.3.5 Dependence of the balance structure – Country overview
3.3.5.1 Germany - Intensify of the asset investments
3.3.5.2 Germany - Equityratio
3.3.5.3 10 Year Tax Comparison
3.4 Alternatives
4. Conclusion
4.1 Conclusion of the results
4.2 Critical statement
4.3 Discussion of latent problems
4.4 Outlook
Research Objectives & Topics
The primary objective of this thesis is to develop a liquidity-oriented system to measure international corporate tax burdens, providing an alternative to existing tax measurement models by focusing on actual cash flows rather than traditional accounting regulations.
- Development of a "Professional Advantage Taxation Key" (PATK) system.
- Comparative analysis of corporate taxation in Germany, Austria, and Switzerland.
- Liquidity-oriented assessment of tax burdens for fictional model companies.
- Evaluation of balance sheet structures and their influence on total tax outcomes.
- Scenario-based simulation of different investment and financial configurations.
Excerpt from the Book
1.1 Denotation of the Topic
International company Tax Comparisons are in spite of the harmonization of the international tax rates, also with inclusion of the calculation regulations to the determination of the calculation bases, suitable instruments to support the evaluation of enterprise action alternatives. To quantify the burdens of taxation of an company different methods can be applied, in what way the different methods indicates relevant results for the companies, is not examined in the literature enough.
The system and the approach of the tax comparisons can lead to different results by a company in different industries and with different balance structures. The Choice of the countries was made by territorial aspects.
The actuality of the company taxation, can be shown on the changes and the changes opportunities which depends on tax system. Thus in Austria was the biggest tax reform in 2005 since the existing of the republic passed. In Germany Tax systems will be developed, which should lead to a release of the Company-Taxation e. g. „the simply tax“ 1) developed by Prof. Em. Dr. Manfred Rose and the university of Heidelberg or the development of the " interest-adjusted profits tax “ of the RWI and the Heidelberg tax circle. 2)
The competition of the countries about company settlements or location advantages can be led with quantitative arguments like tax breaks or tax lowerings.
Summary of Chapters
1. Introducing: This chapter defines the scope of international tax comparisons and outlines the objective of creating a novel, liquidity-oriented measurement system for corporate tax burdens.
2. Theoretic part: It provides the theoretical foundation for tax burden quantification, exploring current methods like EATR and the European Tax Analyzer, and introduces specific national taxation contexts for Germany, Austria, and Switzerland.
3. Main Part: This section presents the practical application of the author's own concept (PATK), detailing the simulation of a fictional company across various business scenarios, balance structures, and the subsequent presentation of comparative results.
4. Conclusion: The concluding chapter evaluates the effectiveness of the PATK system, critiques the findings regarding liquidity-based tax assessment, and offers an outlook on future harmonization trends in European tax legislation.
Keywords
Corporate Taxation, Tax Burden, Liquidity-oriented approach, PATK, European Tax Analyzer, EATR, Germany, Austria, Switzerland, Business Simulation, Balance Sheet Structure, Cash-flow, Tax Reform, Investment Analysis, Tax Comparison.
Frequently Asked Questions
What is the core focus of this thesis?
The thesis focuses on developing a new, liquidity-oriented system for measuring the international tax burden of corporations, specifically designed to address limitations in traditional accounting-based models.
What are the primary fields of study covered?
The main fields covered include business administration, international corporate taxation, accounting standards, and comparative financial analysis between Germany, Austria, and Switzerland.
What is the central research goal?
The goal is to create the "Professional Advantage Taxation Key" (PATK), a tool that quantifies tax impact based on actual cash flows to provide better decision support for companies.
Which scientific methods are applied?
The research uses a descriptive comparative method, business simulations, and a scenario-based model approach to analyze how different balance sheet structures influence real-world tax burdens.
What does the main part of the document address?
It details the construction of a model company and the application of the PATK system to simulate tax impacts across different financial scenarios, including varying equity ratios and investment intensities.
Which keywords best characterize this work?
Key terms include Corporate Taxation, Liquidity-oriented approach, PATK, EATR, Tax Burden, Business Simulation, and Comparative Tax Analysis.
How does the PATK system differ from standard EATR models?
Unlike EATR, which relies heavily on profit data according to potentially distortive accounting regulations, the PATK system calculates the tax burden in direct relation to the company's real cash flow.
What conclusions does the author draw regarding German corporate taxation?
The author identifies Germany as a high-tax environment for GmbHs compared to Austria and Switzerland and suggests that reforms like the "dual income tax" could mitigate these burdens.
How do different balance structures affect the results?
The simulation demonstrates that the PATK system is more resistant to changes in balance sheet structures than other models, making it particularly useful for assessing high-investment scenarios.
- Citar trabajo
- Diplom Betriebswirt (FH) Patrick Winfried Köstner (Autor), 2007, Developmenting a system for calculating corporation Taxes at the example of Germany, Austria and Switzerland, Múnich, GRIN Verlag, https://www.grin.com/document/164240
