The implementation of the Common Consolidated Corporate Tax Base (hereinafter CCCTB) in the European Union will probably have an impact on tax revenues of the concerned states since the distribution of the group tax base shall reflect the capacity to earn income by individual group members. This is secured by the employing of the allocation formula containing three factors that shall reflect the profit generating process of individual companies. The paper analyses the explanatory power of the proposed CCCTB formula on the data sample of group companies with a link to the Czech Republic -either parent or subsidiary company in the group covered in dataset is tax resident of the Czech Republic. The obtained results are evaluated on the level of individual economic sector with the aim to verify if the proposed CCCTB formula is the most suitable for them, where the sufficiency of the explanatory power of the allocation formula was indicated based on the assigned change of distributed profit to the respective economic sector.

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Th e allocation formula for the distribution of the Common Consolidated Corporate Tax Base (CCCTB) should be based on three macroeconomics factors which are considered to have the largest impact on profi tability. Th e paper researches the ability of the allocation formula factors to explain variability in profi t/loss generation of single enterprises from the perspective of the Czech Republic with the special focus on the explanation power of the allocation formula on profi t/ loss generation of companies operating in the agriculture sector (NACE A). Th e analysis is based on the comparison of the coeffi cients of determination as an indicator of the explained variability of the proposed simple as well as the multiple regression models. Th e paper concludes that proportion of explained profi tability by the formula factors as are defi ned by the Draft Directive on a Common Consolidated Corporate Tax Base can diff er by more than 30% with regard to the sector of economic activity classifi ed by the NACE, whereas in the individual subsectors of the agriculture the diff erence may amount to 40%.

The mechanism for the distribution of the Common Consolidated Corporate Tax Base will be based on three macroeconomics factors which are considered to be the main indicators of generated profi t/ loss. The paper analyzes the explanatory power of proposed allocation formula for the distribution of the Common Consolidated Corporate Tax Base with respect to the sector of economic activity from the perspective of the Czech independent enterprises. The research is based on the comparison of the coeffi cients of determination indicating the proportion of explained variability of proposed multiple regression models. The paper concludes that the proportion of explained profi tability by the allocation formula factors as are defi ned by the Common Consolidated Corporate Tax Base Dra Directive may diff er up to 34% with regard to the sector of economic activity classifi ed by NACE classifi cation.

There is no doubt about the existence of connection between the stock markets and the real economic activity. Many researchers indicated that the stock markets causally aff ect the economic activity with the lag of three months. Contrary, the other group of researchers suggested, that these relationships are reversal, moreover some of them concluded that these relationships are reciprocal. The paper analyses the relationship between the stock markets and the economic activity in seven countries with the research objective to identify these relationships in relation of cause and eff ect. As the proxy of the stock markets are stock indices considered, while the economic activity is expressed by the Gross Domestic Product at constant prices. The correlation analysis and the Granger causality test applied on suggested vector autoregressive models are employed for the research in the paper. The paper concludes that stock markets may be considered as the signifi cant predictor of the real economic activity with the lag of one quarter, however, there is no reciprocal links between them.