German Economic Institute
Logo German Economic Institute
DE
The Unanimity rule and corporate tax revenue in the EU
  • Martin Beznoska / Tobias Hentze ·
  • IW-Kurzbericht No. 31 ·
  • 20 May 2019

The Unanimity rule and corporate tax revenue in the EU

Politicians accuse corporations of sneakily shifting their profits to tax havens. In fact, tax revenues in low-tax countries such as Ireland and Malta have risen sharply over the past 20 years. However, revenue growth in large countries like Germany and France is not slow. Interestingly, EU countries which favor the unanimity rule in tax issues show higher growth rates in tax revenue than countries preferring a qualified majority system.
The challenge of moving to a Common Consolidated Corporate Tax Base in the EU
  • Tobias Hentze ·
  • IW-Report No. 2 ·
  • 14 January 2019

The challenge of moving to a Common Consolidated Corporate Tax Base in the EU

International tax competition has been an emerging issue for years. There are various political approaches to agree on common standards on a supranational level. In 2013, the OECD presented a first draft of its action plan against Base Erosion and Profit Shifting (BEPS), which has been eventually finalized.
(Un-)Fair taxation of the digital economy
  • Martin Beznoska / Tobias Hentze ·
  • IW News ·
  • 6 March 2018

(Un-)Fair taxation of the digital economy

The EU would neglect its responsibility for the mismatch of tax policies among member states by implementing a taxation of the digital economy. It would translate into a tax increase for a specific group of companies, which would make the classification of digital companies alone highly controversial. This would further enlarge distortions instead of guaranteeing a level playing field. Instead of the taxation of the digital economy, the German Economic Institute suggests a two-step approach in order to avoid distortions and unfair taxation.
Proposals for the short term and the long term
  • Santiago Díaz de Sarralde/ Christian von Haldenwang / Tobias Hentze / Nara Monkam in Economics ·
  • External Publications ·
  • 14 February 2018

Tax certainty: Proposals for the short term and the long term

Tax certainty aims at the stabilization of expectations of both, taxpayers and governments. Improving tax payer service, easing cooperation channels and clarifying legal framework are strategies already in place to increase tax certainty, even though to different extent depending on the countries level of development.
The Distribution of the Tax Burden in Germany
  • Martin Beznoska / Tobias Hentze ·
  • IW-Trends ·
  • 18 April 2017

The Distribution of the Tax Burden in Germany

An analysis of the distribution of the most revenue-productive types of tax shows that in Germany the broadest shoulders bear the heaviest burden.
The Effect of the Recent Influx of Refugees on Germany’s Economy
  • Tobias Hentze / Galina Kolev ·
  • IW-Trends No. 4 ·
  • 16 January 2017

The Effect of the Recent Influx of Refugees on Germany’s Economy

In the course of 2015 and 2016 about 1.2 million refugees entered Germany. The authors estimate the short- to medium-term effects of this on the country’s economic development using a macro-econometric model.
The Effect of Demographic Transition on Tax Revenues in Germany
  • Martin Beznoska / Tobias Hentze ·
  • IW-Trends No. 3 ·
  • 11 October 2016

The Effect of Demographic Transition on Tax Revenues in Germany

The fall in income tax revenues resulting from a shrinking and ageing society will place a huge strain on government finances. In 20 years’ time the annual price-adjusted revenue from income tax is simulated to be € 18 billion or almost 7 per cent lower than today.
Refugees will contribute to growth in Germany
  • Tobias Hentze and Sandra Parthie on EUobserver ·
  • Contribution ·
  • 9 August 2016

Refugees will contribute to growth in Germany

Germany will benefit in the long term from accommodating and preparing refugees for the job market, argue Tobias Hentze and Sandra Parthie in a guest commentary for EUobserver.
The Effects of Low Interest Rates on Corporate Pension Provisions in Germany
  • Tobias Hentze ·
  • IW-Trends No. 3 ·
  • 1 August 2016

The Effects of Low Interest Rates on Corporate Pension Provisions in Germany

The zero interest rate policy of the European Central Bank is placing a huge burden on company pension schemes. As a result, companies are being forced to increase provisions for their direct pension obligations to their workforce.
The Fiscal Revenue Effects of International Tax Planning
  • Martin Beznoska / Tobias Hentze ·
  • IW-Kurzbericht No. 25 ·
  • 24 May 2016

Tax Policy: The Fiscal Revenue Effects of International Tax Planning

In the course of the “Panama Papers” discussion, questions arise concerning the fiscal effects of international profit shifting and tax avoidance. A recent OECD study estimates the worldwide corporate tax losses to lie between 4 and 10 percent of the revenues. Applied to Germany, this would reflect between 3 and 7 billion Euro or maximum 1 percent of total tax revenues. However, the estimation underlies questionable assumptions and therefore severe uncertainties.
More