Tax systems and tax reforms in new EU members

Abstract:

The enormity of the changes facing new EU Member States cannot be too strongly stated and this is particularly true of the tax systems. The centrally planned economies of the former communist bloc required only a limited role by the tax system. This book explores the tax reforms in those new EU countries and presents case studies from five of them - the Czech Republic, Estonia, Hungary, Poland and Slovenia.

The book is organised in two parts. Part one provides a general picture of tax systems and tax reforms in new EU Member States. Chapter one offers evidence about the structure and evolution of tax systems. Common current features are illustrated together with quantitative indicators aimed at evaluating their main equity and efficiency profiles. Chapter two explores some broad issues relating to fiscal systems in the new member countries. The problems encountered in developing a new tax system are considered in chapter three, particularly the method of raising revenues and defining the role of government. Chapter four considers the appropriate fiscal policy framework for the enlarged EU in relation to the small and open economies of the accession countries. Efficient tax administration capable of battling the hidden economy and minimising the tax gap are covered in chapter five. The final chapter in part one deals with competition for foreign direct investment and the role of taxation in the decision making process of locating FDI.

Part two is comprised of the country specific case studies. Collectively they offer analysis of budgetary and political constraints, common aspects of taxation, tax policies and the importance of building an efficient tax administration.

The work will interest scholars and students engaged in international economics as well as practitioners in the field.