AD ALTA
JOURNAL OF INTERDISCIPLINARY RESEARCH
provisions of IFRS regulating the substance of intangible assets,
their useful lives and, subsequently, their depreciation. There are
a number of expert works demonstrating the growing share of
intangible assets in the structure of corporate assets and their
importance for successful company management. With the
growing importance of intangible assets, space for broad tax
optimization is expanding. Trend analysis of depreciation
utilization development as a tool for tax optimization confirms
these facts. The tax legislation on intangible assets and the
method of depreciation has undergone relatively dynamic
developments. Since 2004, the basic attributes of intangible
assets have stabilized from the point of view of income tax.
However, tax optimization is not only related to depreciation.
Holding structures transfer rights to intangible assets between
affiliates in different countries to optimize their tax liability very
effectively. These practices of aggressive tax planning are
currently facing major criticism and regulation by the OECD and
the EU. The article examines sources of Czech law related to
transactions with intangible assets, or in other words to grant
licenses. Czech tax legislation regulates both the taxation of
income from licenses and the fees for royalties. Different
regimes of licensing taxes are to a different extent reflected in
the revenues of the state budget of the Czech Republic. In the
next period, the research activities of the project will focus on
the issue of intangible assets in the international environment
and wider possibilities of regulation of transnational tax
optimization.
5 Conclusion
The use of intangible assets and their tax optimization is
currently a highly debated issue in the international economic
environment. The OECD and the EU initiatives actively stand up
against the practices of complex holding structures that
purposefully transfer profits from one country and move them to
favorable tax destinations. This aggressive tax planning is based
on several key attributes. An intangible asset is an important tool
in this process. The principle of tax optimization is the transfer
of rights to intangible assets (e.g., transfer of royalties) between
related companies operating within holding structures in
countries with different tax regimes. This situation distorts the
competitive equilibrium of the market, creates room for huge tax
evasion and damages primarily small and medium-sized
enterprises. These companies cannot, by their very nature, create
complicated tax structures and tax fairly on income in the
country in which they operate. In recent years, the pressure of
the international community on the transparency and fairness of
transnational transactions has grown. The backbone of this
process are legislative norms that should eliminate or mitigate
problematic tax transactions. The EU countries adopt the
necessary measures in their tax legislation and national tax
administrations communicate and exchange the necessary
information on tax procedures. It is in the interest of all
developed countries to limit or eliminate the above practices.
The tax on business profits then remains in the jurisdiction in
which it was generated.
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Secondary Paper Section: AE
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