The Scope of Corporate Profit Tax Consolidation: the Effect of Changing the CGT Entry Threshold

DOI

10.2991/itsmssm-16.2016.31How to use a DOI?

Keywords

Consolidated group of taxpayers, corporate profit tax, assets, revenue

Abstract

In the Russian Federation, corporate profit tax consolidation implicates rather tight restrictions on organizing a CGT. Even though earlier it was announced that the restrictions would be loosened, a moratorium has been declared on organizing consolidated groups of taxpayers since 2015. The purpose of our study is to outline existing criteria for creation CGTs and their influence on the scale of corporate profit tax consolidation in Russia as well as giving an outlook on CGTs expansion by assets and revenue. The results of organizing the CGT institution in 2012-2015 revealed their crucial significance for the Russian economy in terms of paid corporate profit tax. A model was based on the data collected from 10,000 major Russian companies describing the change of CGT share in CPT proceeds in case of lowering the CGT entry threshold. It was concluded that the relation between the CPT share and assets value or revenue differs only in case of major companies. It is expedient to specify only one criterion-either assets value or revenue-for lowering the threshold. Either choice requires a separate argumentation. In the Russian Federation, corporate profit tax consolidation implicates rather tight restrictions on organizing a CGT. Even though earlier it was announced that the restrictions would be loosened, a moratorium has been declared on organizing consolidated groups of taxpayers since 2015. The purpose of our study is to outline existing criteria for creation CGTs and their influence on the scale of corporate profit tax consolidation in Russia as well as giving an outlook on CGTs expansion by assets and revenue. The results of organizing the CGT institution in 2012-2015 revealed their crucial significance for the Russian economy in terms of paid corporate profit tax. A model was based on the data collected from 10,000 major Russian companies describing the change of CGT share in CPT proceeds in case of lowering the CGT entry threshold. It was concluded that the relation between the CPT share and assets value or revenue differs only in case of major companies. It is expedient to specify only one criterion-either assets value or revenue-for lowering the threshold. Either choice requires a separate argumentation. In the Russian Federation, corporate profit tax consolidation implicates rather tight restrictions on organizing a CGT. Even though earlier it was announced that the restrictions would be loosened, a moratorium has been declared on organizing consolidated groups of taxpayers since 2015. The purpose of our study is to outline existing criteria for creation CGTs and their influence on the scale of corporate profit tax consolidation in Russia as well as giving an outlook on CGTs expansion by assets and revenue. The results of organizing the CGT institution in 2012-2015 revealed their crucial significance for the Russian economy in terms of paid corporate profit tax. A model was based on the data collected from 10,000 major Russian companies desc

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Alena Khaperskaya
AU  - Natalia Pokrovskaia
AU  - V.V. Ivanov
AU  - Kristina Bannova
PY  - 2016/05
DA  - 2016/05
TI  - The Scope of Corporate Profit Tax Consolidation: the Effect of Changing the CGT Entry Threshold
BT  - Proceedings of the 2016 Conference on Information Technologies in Science, Management, Social Sphere and Medicine
PB  - Atlantis Press
SP  - 150
EP  - 154
SN  - 2352-538X
UR  - https://doi.org/10.2991/itsmssm-16.2016.31
DO  - 10.2991/itsmssm-16.2016.31
ID  - Khaperskaya2016/05
ER  -