Pregledni rad
https://doi.org/10.3326/fintp.36.4.3
(In)efficiency of corporate income tax expenditures on underdeveloped areas of special tax treatment in Croatia
Vjekoslav Bratić
; Institute of Public Finance, Zagreb, Croatia
Sažetak
The introduction of various tax expenditures by the tax authorities, mostly in corporate income taxation (CIT), in order to kick start development in areas affected by the war as well as in economically underdeveloped areas has been characteristic of the Croatian tax system since 2000. Although the purpose of such forms of state aid was to foster economic development and equalize the level over the entire country, at the same time they caused forgone tax revenues and it is therefore necessary to analyze their advantages and disadvantages and evaluate their possible positive or negative effects. This paper deals with the analysis of tax expenditures in the system of CIT in Croatia and it investigates their effect on the budget and the possible advantages brought by their introduction. The main purpose of the paper is to answer the questions as to whether the expenditures that have been introduced in CIT justify their purpose and the goal of their introduction and what can be done to improve the existing CIT expenditures system.
Ključne riječi
tax expenditures; revenues forgone; corporate income tax; underdeveloped areas with special tax treatment; Croatia
Hrčak ID:
97635
URI
Datum izdavanja:
3.12.2012.
Posjeta: 1.116 *