Monitoring of Global Experience of Consolidated Taxation

Abstract

In foreign practice, one of the means of fighting with evasion from taxation of interconnected corporations is special regimes of their taxation. Consolidation supposes unification of several interconnected organizations into one taxpayer – however, it should be noted that consolidation is possible only with several kinds of taxes: corporate profit tax, value added tax, and sometimes excises and other taxes. This regime is aimed at unification of tax administration and change of the order of distribution of tax income from their activities between territorial entities. The purpose of the article is to conduct monitoring of the global practice of taxation of consolidated taxpayers, which is caused by significant drawbacks of Russian regime of consolidated taxation which have already shown themselves during a 3-year practice of its use. Special attention is paid to foreign practice of requirements to participation interest of parent company in the capital of subsidiary company, way of regime selection, possibility of participation for non-resident company, and taxes, for calculation and payment of which unification is allowed. The results of the research allowed developing classification of tax consolidation, within such classification features as subjects of consolidation, legislative consolidation, methods of creation, and taxes which are the object of consolidation. Based on the analysis of historical preconditions for emergence of consolidated groups of taxpayers, three stages of emergence of this institute were determined – period of appearance, fledging period, and period of development. During study of foreign practice of unification of companies into consolidated groups for the purpose of calculation of taxes, similarities and differences of regimes in Russia and foreign countries were revealed.

DOI: 10.5901/mjss.2016.v7n1p410