Proceedings of the 2016 Conference on Information Technologies in Science, Management, Social Sphere and Medicine

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

Authors
Alena Khaperskaya, Natalia Pokrovskaia, V.V. Ivanov, Kristina Bannova
Corresponding Author
Alena Khaperskaya
Available Online May 2016.
DOI
https://doi.org/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
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Proceedings
Information Technologies in Science, Management, Social Sphere and Medicine
Part of series
Advances in Computer Science Research
Publication Date
May 2016
ISBN
978-94-6252-196-4
ISSN
2352-538X
DOI
https://doi.org/10.2991/itsmssm-16.2016.31How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

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  - Information Technologies in Science, Management, Social Sphere and Medicine
PB  - Atlantis Press
SN  - 2352-538X
UR  - https://doi.org/10.2991/itsmssm-16.2016.31
DO  - https://doi.org/10.2991/itsmssm-16.2016.31
ID  - Khaperskaya2016/05
ER  -