scholarly journals Recent developments in Corporate Taxation in Sweden

2014 ◽  
Vol 2014 (2) ◽  
pp. 195-214 ◽  
Author(s):  
Christian Thomann
Keyword(s):  
Corporate Taxation ◽  
Equity Capital ◽  
Corporate Tax ◽  
Firm Level ◽  
Tax System ◽  
Debt Capital ◽  
Recent Developments ◽  
Tax Payments ◽  
Interest Costs ◽  
Taxation Data

Abstract This article investigates if increasing neutrality between debt and equity capital might improve the efficiency in a corporate tax system. Firm-level and sector- level taxation data from Sweden is used to study if a tax system that is characterized by very few limitations with respect to the deductibility of interest costs leads to systematic differences in the taxes paid by different sectors. This paper finds that there are differences between different sectors’ tax payments and these differences can be explained by the sectors’ use of debt capital.

MNE tax strategies and Ireland

2018 ◽  
Vol 14 (4) ◽  
pp. 338-361 ◽  
Author(s):  
Jim Stewart
Keyword(s):  
Industrial Policy ◽  
Multinational Enterprise ◽  
Detailed Examination ◽  
Tax Rates ◽  
Corporate Tax ◽  
Firm Level ◽  
Effective Tax Rates ◽  
Content Type ◽  
The Usa ◽  
Tax Payments

Purpose A systematic assessment of multinational enterprise (MNE) tax minimisation strategies at the firm level is difficult. This paper aims to present systematic evidence for Ireland of tax minimisation strategies at both an aggregate and individual firm level. The paper uses Apple and Google as its case studies. Design/methodology/approach The paper is based on 31 US intellectual property (IP)-intensive MNEs with substantial operations in Ireland. Financial and other data including tax payments were extracted from Form 10K and filings in Companies Registration Office in Ireland. Findings The paper develops three different measures of effective tax rates and that tax strategies have resulted in effective tax rates lower than the nominal US tax rate and far lower than those published in company accounts. Although two-thirds of profits are earned outside the USA, around 70 per cent of corporate tax is paid in the USA. Research limitations/implications The paper relies on data from a subset of MNEs operating in Ireland. The paper also uses publicly available data which may not be available for all firms. Practical implications The findings have implications for European Union (EU) tax policy and tax revenues in countries where MNEs operate. The paper also has implications for industrial policy based on attracting Foreign Direct Investment (FDI). Social implications The study has implications not only for the equitable distribution of corporate tax payments and income distribution but also especially for a tax-based industrial policy. Originality/value MNE tax strategies, although of considerable public interest, are often obscure and poorly understood. The paper is original in providing a detailed examination of MNE tax strategies at the firm level and discussing some implications from a public policy perspective.

scholarly journals THE EU APPORTIONMENT FORMULA: INSIGHTS FROM A BUSINESS CASE

2013 ◽  
Vol 14 (2) ◽  
pp. 235-251 ◽  
Author(s):  
Annelies Roggeman ◽  
Isabelle Verleyen ◽  
Philippe Van Cauwenberge ◽  
Carine Coppens
Keyword(s):  
Business Case ◽  
Multinational Companies ◽  
Corporate Tax ◽  
Firm Level ◽  
Tax Base ◽  
Tax System ◽  
Level Data ◽  
Tax Harmonization ◽  
The Common ◽  
The Eu

In this paper we use firm level data from a listed multinational to investigate how several designs for the Common Consolidated Corporate Tax Base (CCCTB) formula could affect the allocation of the consolidated tax base. The design is relevant in the light of member states’ concern for protecting their tax revenues, as well as for the multinational companies’ tax minimizing possibilities. Moreover, it plays an important role in achieving an efficient and simple tax system. Simulating different apportionment formulas, the results show that including more factors and using more equal weights distributes the common tax base more equally, which could reduce the incentive to shift factors from high to low tax countries. The results also indicate that simplifying the factor definitions, leads to rather minor changes in the allocation. Using unpublished data, this study allows to investigate the consequences of different formulas in detail, which contributes to the current discussion on corporate tax harmonization in the EU.

scholarly journals Steuerwettbewerb ein Ende setzen

2009 ◽  
Vol 39 (154) ◽  
pp. 65-82
Author(s):  
Nicola Liebert
Keyword(s):  
Multinational Corporations ◽  
Tax Competition ◽  
Tax Planning ◽  
Tax Rates ◽  
Corporate Tax ◽  
Profit Shifting ◽  
Tax System ◽  
Tax Havens ◽  
Global Mobility ◽  
Tax Payments

The global mobility of capital and the availability of tax havens enable multinational corporations and wealthy individuals to escape tax payments due in their home countries. Most states react by shifting more of the tax burden onto labour and consumption, while lowering corporate tax rates in an effort to remain internationally competitive, thereby creating a tax system that is both inequitable and socially and economically unsustainable. However, there is scant evidence that lower taxes on capital in fact contribute to higher investment, but they do lead to profit shifting for the purpose of tax planning. Alternative tax systems such as unitary taxation could help to stop profit shifting and slow down tax competition.

Implicit Taxes Amid Race to the Bottom in a Global Tax Game

2020 ◽  
Vol 27 (2) ◽  
pp. 42
Author(s):  
Igor Semenenko ◽  
Junwook Yoo ◽  
Parporn Akathaporn
Keyword(s):  
Capital Mobility ◽  
Tax Rates ◽  
Corporate Tax ◽  
Firm Level ◽  
Race To The Bottom ◽  
Tax Subsidy ◽  
Tax Subsidies ◽  
Level Data ◽  
Tax Returns ◽  
Tax Hypothesis

Growing tax competition among national governments in the presence of capital mobility distorts equilibrium in the international corporate tax market. This paper is related to the literature that examines impact of international tax policies on corporate accounting statements. Employing international firm-level data, this study revisits the race-to-the-bottom hypothesis and documents that tax exemptions lowering effective tax rates relative to statutory rates increase pre-tax returns. This finding directly contradicts the implicit tax hypothesis documented by Wilkie (1992), who provided empirical evidence on inverse relationship between pre-tax return and tax subsidy. We also find evidences that relative importance of permanent versus timing component depends on the geography and that decline in corporate tax rates reduces impact of tax subsidies on profitability. Our findings suggest that tax subsidies play a different role than in 1968-1985, which was examined by Wilkie (1992). These results are consistent with the race-to-the-bottom hypothesis and income shifting explanation

Firm‐level political risk and Shari’ah compliance: equity capital cost and payouts policy

2020 ◽  
Author(s):  
Jamshid Karimov ◽  
Faruk Balli ◽  
Hatice Ozer‐Balli ◽  
Anne Bruin
Keyword(s):  
Political Risk ◽  
Capital Cost ◽  
Equity Capital ◽  
Firm Level

scholarly journals CSR and corporate taxes: Substitutes or complements?

2021 ◽  
pp. 234094442110022
Author(s):  
Lukas Timbate
Keyword(s):  
Social Responsibility ◽  
Theory Of The Firm ◽  
Jel Classification ◽  
Aspiration Level ◽  
Corporate Tax ◽  
Business World ◽  
Conflicting Evidence ◽  
Tax Payments ◽  
Corporate Social ◽  
The Relationship

There is a debate in academia and the business world on whether tax payments should be considered part of firms’ social responsibility. Existing literature provides conflicting evidence on the relationship between corporate tax payments and corporate social responsibility (CSR). Borrowing a concept from a behavioral theory of the firm (BTOF), this study attempts to present a more refined model on the relationship between the two. The results in this study reveal that as firms’ performance rises further above their aspiration level, they are less likely to show better CSR performances and are also less likely to avoid taxes. Firms performing just above their aspiration level show higher CSR performances and firms performing nearby (both below and above) their aspiration level avoid more taxes. In conclusion, firms’ CSR and tax payment decisions are related to the desire to meet or beat an aspiration level or sustain competitive advantage than being ethical or unethical. JEL CLASSIFICATION M14; H26

scholarly journals Unified Reporting on Personal Income Tax and Unified Social Tax: Simplification or Additional Complication of Conditions for Business Operation?

2020 ◽  
pp. 48-54
Author(s):  
Andrii Boichuk ◽  
Keyword(s):  
Income Tax ◽  
Personal Income ◽  
Effective Control ◽  
Personal Income Tax ◽  
Tax System ◽  
Doing Business ◽  
Tax Simplification ◽  
Processing Information ◽  
Tax Payments ◽  
The Military

In the context of the reform of the tax system and the accounting and reporting system, as well as the integration of Ukraine with the European Community, the issue of simplifying the conditions for doing business, building an effective and understandable system for administering taxes and other duties acquire special significance. One of the important aspects of reforming the tax system of Ukraine is the introduction of unified reporting on personal income tax and unified social tax. The purpose of the article is to identify the positive and negative aspects of the process of reforming the reporting on personal income tax and unified social tax and scientifically substantiate the structure of such unified reporting. The existing forms of reporting on personal income tax and unified social tax, proposed by government agencies, were analyzed. In addition, the unified reporting models from these taxes proposed by scientists were critically assessed by the author. It was found that such indicators as the presence of Ukrainian citizenship, gender and the sign of a new job, do not participate in the process of monitoring the completeness of tax payments. Therefore, it is impractical to fill in these indicators for each employee, and it is enough to submit the total number and structure of these indicators on the reporting title page. The opposite situation exists with the military tax, which is advisable to display for each employee in the reporting for more effective control over its accrual and payment. The author has improved the structure of unified reporting on personal income tax and unified social tax, which will reduce the time spent on filling out such reports, increase the efficiency of control by the fiscal authorities and simplify the process of processing unified reporting data. The main advantages of the proposed form of unified reporting are: significant reduction in the number of indicators; simplicity and compactness; personalized registration of military tax; ease of filling and processing information.

scholarly journals The Effect of Chief Executive Officer Dominance and Shareholder Rights on Cost of Equity Capital in Pakistan

2020 ◽  
Vol V (III) ◽  
pp. 84-93
Author(s):  
Yawar Miraj Khilji ◽  
Shehzad Khan ◽  
Muhammad Faizan Malik
Keyword(s):  
Chief Executive Officers ◽  
Stock Exchange ◽  
Chief Executive ◽  
Fixed Effect Model ◽  
Equity Capital ◽  
Shareholder Rights ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Firm Level ◽  
The Impact

This Research explores the effect of Chief executive Dominance and Shareholder rights on Cost of equity of listed companies in an emerging equity market, Pakistan. The research is for the period of 2012 to 2018 for which firm level data of top 100 non-financial listed firms from Pakistan Stock Exchange has been examined by using descriptive statistics, a correlation -matrix, Pooled OLS and Fixed Effect Model approach. The impact of controlled variables which includes firm size, Financial Leverage, and Book to market ratio influence on the firms cost of equity has also been investigated. Research results indicate that when Chief executive officers align their interest with that of shareholders, the risk of agency problem is mitigated thus leading to lower cost of equity.

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