Implementation of ATAD Directive and its impact on public budgets

The ATAD directive has introduced tools to combat the undesirable erosion of corporate tax bases and the artificial transfer of profits to tax jurisdictions with lower levels of taxation into the tax legislation of the EU Member States. These instruments are as follows: interest deductibility limitations, exit taxation, general anti-abuse rule, controlled foreign company rule and hybrid mismatches. The aim of my diploma thesis is to propose a method for quantifying the impacts of the ATAD directive (including the individual impacts of individual instruments) on budget revenues based on the summary values reported on selected lines of the income tax return form for the period since the implementation of the ATAD directive and the quantification of these budget impacts. The result of my analysis is the finding that the implementation of ATAD itself did not bring a significant increase in public budget revenues. In addition, the key role of the instrument of interest deductibility limitation was confirmed.