
Selected values

Personal income tax (including Social Security Contributions) gap
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Date:
14 Dec 2022 - 31 Jul 2024
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Project duration:
14.12.2022 - 31.07.2024
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Adam Śmietanka
Economist
Adam Śmietanka is an Economist at CASE. His areas of expertise include data analysis, data visualization, web scraping, and inflation measurement. At CASE, Mr. Śmietanka is responsible for conducting data analysis, economic research, and developing and maintaining CASE’s online monthly consumer price index. His professional experience includes an internship with PwC’s Advisory Team and a … <a href="https://case.dev10.pro/project/personal-income-tax-including-social-security-contributions-gap/">Continued</a>
Projects from this author:
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The challenges of VAT beyond VAT in the Digital Age
This study should consider possible improvements to the EU VAT system and assess their feasibility and likely consequences, based on the analysis of its current weaknesses, gaps, inefficiencies. As requested by the ToR, this requires a forward-looking analysis and prospective reflection, combined with and based on the retrospective assessment of the current situation. The study requires, on the one side, a thorough re-assessment of well-known problems of the EU VAT systems, which have been discussed for years by policymakers, scholars and in courts and tribunals, the solutions to which have already been long proposed in the academic as well as policy arena. On the other side, it requires a fresh view to identify new solutions to old problems, new problems and their possible solutions, as well as potential unknown problems, i.e. those that may appear in the future given the current economic, political and legal evolution and the megatrends of the EU and global society. Operationally, the activities needed to achieve the objectives of the study are straightforward. For each of the areas or angle of analysis, the study team will have to: Identify existing weaknesses and challenges of the EU VAT system, including those that may appear in the future given the likely evolution of the current situation. Design solutions to the problems identified. Assess the feasibility and consequences of the solutions identified.
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VAT Gap in the EU
The core objective of this study is to inform in an accurate, timely, understandable, and attractive manner the national administrations, Commission, academic community, and a broader audience on the value, development over time, and difference across Member States of tax gaps and related parameters. More specifically, the study will cover the VAT compliance gap, … Continued
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VAT compliance gap due to Missing trader intra-community (MTIC) fraud
Revenues generated by Value-Added Tax (VAT) play an important role in the budgets of European Union (EU) Member States (MS) and the EU; as VAT resource accounts for around 10% of EU own resource revenue and around 26% of MS’s tax revenue. Tax fraud, evasion and avoidance reduce these revenues, and undermine the tax system, affecting … Continued
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The challenges of VAT beyond VAT in the Digital Age
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Agnieszka Skowronek
Economist
Agnieszka holds a Master’s degree in Economic Policy from Utrecht University and a Bachelor’s degree in Econometrics and Information Technology from the University of Warsaw. With interdisciplinary interests, they have additionally undertaken coursework in Gender and Postcolonial Studies. Agnieszka’s research interests include unpaid care work, income inequality, alternative solutions in the field of social welfare, … <a href="https://case.dev10.pro/project/personal-income-tax-including-social-security-contributions-gap/">Continued</a>
Projects from this author:
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The challenges of VAT beyond VAT in the Digital Age
This study should consider possible improvements to the EU VAT system and assess their feasibility and likely consequences, based on the analysis of its current weaknesses, gaps, inefficiencies. As requested by the ToR, this requires a forward-looking analysis and prospective reflection, combined with and based on the retrospective assessment of the current situation. The study requires, on the one side, a thorough re-assessment of well-known problems of the EU VAT systems, which have been discussed for years by policymakers, scholars and in courts and tribunals, the solutions to which have already been long proposed in the academic as well as policy arena. On the other side, it requires a fresh view to identify new solutions to old problems, new problems and their possible solutions, as well as potential unknown problems, i.e. those that may appear in the future given the current economic, political and legal evolution and the megatrends of the EU and global society. Operationally, the activities needed to achieve the objectives of the study are straightforward. For each of the areas or angle of analysis, the study team will have to: Identify existing weaknesses and challenges of the EU VAT system, including those that may appear in the future given the likely evolution of the current situation. Design solutions to the problems identified. Assess the feasibility and consequences of the solutions identified.
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Wealth taxation, including net-wealth, capital and exit taxes
The study aims to provide further information regarding the uptake and economic consequences of introducing wealth-related taxes. The purpose of the study is to shed further light firstly into recurrent wealth related taxes by (i) reviewing the conditions for the implementation of a net wealth tax and its consequences, to provide a detailed literature review on recurrent capital taxes in the EU and analyse their economic consequences; and secondly (ii) to provide an overview of existing non-recurrent wealth related taxes, namely, by providing an overview of capital taxes, inheritance and gift taxes and the existing exit tax provisions in the field of personal income taxation (including relevant statutory references), and how these interrelate with and complement the legal framework of taxing net wealth and capital gains. The study builds on previous research work mapping wealth taxes and estimating the consequences of their introduction. It is structured along two parts comprised of two and three workstreams respectively, related to the topics outlined above. Part 1 – Recurrent taxation, Workstream 1 – Net wealth taxes Part 1 – Recurrent taxation, Workstream 2 – Capital taxes Part 2 – Non-recurrent taxation, Workstream 3 – Capital taxes Part 2 – Non-recurrent taxation, Workstream 4 – Inheritance and gift taxes Part 2 – Non-recurrent taxation, Workstream 5 – Exit taxes
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Global value chains
The idea of European strategic autonomy has its origins in the fields of security and defense, but has started to resonate beyond these areas extending to foreign and trade policies. The Covid pandemic and more recently the Russian invasion in Ukraine, have made clear the vulnerability of global value chains and the need to … Continued
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The challenges of VAT beyond VAT in the Digital Age
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Marek Peda
Marek Peda is responsible for managing research projects funded by European, national, multilateral, and private donors. Mr. Peda has over 10 years of professional experience as a project manager and in conducting research. He gained international exposure while working on projects for international organizations and academic institutions in Spain and the United States. Mr. Peda … <a href="https://case.dev10.pro/project/personal-income-tax-including-social-security-contributions-gap/">Continued</a>
Projects from this author:
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How the EU should prepare for the enlargement in terms of governance, policies and investments: options and choices made from a territorial perspective
In its 2023 enlargement package, the European Commission recommended that the Council open accession negotiations with Ukraine and Moldova. Moreover, it recommended that the Council grant Georgia the status of candidate country and open accession negotiations with Bosnia and Herzegovina, once the necessary degree of compliance with the membership criteria has been achieved. The … Continued
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The means for cities and regions to support the energy transition in the Mediterranean
Since February 2022, the war in Ukraine has significantly reshaped the geopolitical landscape and exacerbated the multiple challenges and tensions in the Mediterranean region. The conflict has highlighted the vulnerability of traditional energy supply routes, and the need to reassess future energy development strategies in the Mediterranean region. Like the COVID-19 pandemic, geopolitical uncertainties … Continued
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Natural disasters: anticipatory governance and disaster risk management from a local and regional perspective
The COVID-19 pandemic, the war right on our doorstep, the devastating floods in Slovenia, wildfires in Greece and Cyprus, relentless heatwaves in Italy and Spain, to name just a few: all of them highlight the need to better prepare for, cope with and recover from disasters and crises. It is one of the most important challenges for … Continued
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How the EU should prepare for the enlargement in terms of governance, policies and investments: options and choices made from a territorial perspective
Personal Income Tax (PIT) and social security contributions (SSC) are the core source of government revenue in all EU Member States. In 2020, PIT and SSC contributions across Member States ranged from 49 to 75 percent and accounted in total for approximately 67 percent of total receipts from taxes and social contributions in the EU-27. To meet the fiscal objectives of PIT and achieve fairness of the PIT and SSC system, it is important to minimise the impact of non-compliance or, in other words, seal the tax and contributions gap. The gap is the difference between the theoretically collectible revenue in accordance with the law and the value that is actually collected. This difference, denoted often both in nominal terms and in relation to the total liability, accounts for the overall non-compliance.
The study aims to provide support in harmonising and streamlining the various approaches currently used in Member States when estimating tax gaps. The purpose of the study is:
- to review the tax gap methodologies available for PIT/SSC gap,
- to recommend a common method for the estimation of PIT/SSC gaps, that could be implemented in all EU Member States’ tax administrations,
- to use the identified method to calculate the gap for the EU Member States over a number of years.
The scope of the study is the assessment of methods currently used by tax authorities within the EU and a selected number of tax authorities outside of the EU and international organisations to calculate PIT/SSC gaps. The study will identify a common method to be applied across all Member States and which ensure reliable tax gap estimates whilst addressing the characteristics of Member States’ tax administrations. The study will also include a recommendation of the requisite method from the set of methods analysed by the contractor. Phase 2 of the project should then involve the calculation of the PIT/SSC gap for EU Member States.
Client: European Commission (DG Taxud)
Lead partner: CASE
Partners: Austrian Institute of Economic Research (WIFO), PricewaterhouseCoopers (PwC), and the ifo Institut (ifo)