scholarly journals Intellectual Property Box Regimes: Effective Tax Rates and Tax Policy Considerations

2013 ◽  
Author(s):  
Lisa Evers ◽  
Helen Miller ◽  
Christoph Spengel
Keyword(s):  
Intellectual Property ◽  
Tax Policy ◽  
Tax Rates ◽  
Effective Tax Rates

scholarly journals Effective tax rates in Ireland

2020 ◽  
Author(s):  
Ilias Kostarakos ◽  
◽  
Petros Varthalitis ◽  
Keyword(s):  
Economic Performance ◽  
Tax Policy ◽  
Descriptive Analysis ◽  
Tax Rates ◽  
The European Union ◽  
Policy Mix ◽  
Macroeconomic Performance ◽  
Effective Tax Rates ◽  
Distortionary Taxes ◽  
The Eu

This article provides estimates of the effective tax rates in Ireland for the 1995-2017 period. We use these aggregate tax indicators to compare the developments in the Irish tax policy mix with the rest of the European Union countries and investigate any potential relation with Ireland’s macroeconomic performance. Our findings show that distortionary taxes, e.g. on factors of production, are significantly lower while less distortionary taxes, e.g. on consumption, are higher in Ireland than most European countries. Thus, the distribution of tax burden falls relatively more on consumption and to a lesser extent on labour than capital; while in the EU average the norm is the opposite. The descriptive analysis indicates that this shift in the Irish tax policy mix is correlated with the country’s strong economic performance.

The impact of tax policy uncertainty on forecasting

2021 ◽  
Author(s):  
Jennifer L. Brown ◽  
K.C. Lin ◽  
Jared Moore ◽  
Laura A. Wellman
Keyword(s):  
Tax Policy ◽  
Policy Uncertainty ◽  
Tax Rates ◽  
Firm Level ◽  
Effective Tax Rates ◽  
Market Participants ◽  
Regulatory Processes ◽  
Definition Of ◽  
The Impact ◽  
Real Costs

This study examines the impact of tax policy uncertainty (TPU) on analysts' forecasts and managers' interim estimates of effective tax rates (ETRs). We adopt a broad definition of TPU that encompasses both the legislative and regulatory processes and perform tests to validate a news-based measure of TPU consistent with our definition. We document that 1) analysts' implied ETR forecasts are less accurate and more disperse during periods of high TPU, 2) managers' ETR estimates are less accurate during periods of high TPU, and 3) the presence of relatively inaccurate management ETR estimates strengthens the effects of TPU on analysts' ETR forecasts. We further find that firm-level tax-related complexity exacerbates the effects of TPU on analysts' and managers' ETR predictions. Overall, our results are consistent with uncertainty surrounding tax policy impairing analysts' and managers' ability to assess and predict future tax-related fundamentals, thus imposing real costs on managers and market participants.

Partisanship, Tax Policy, and Corporate Profit-Shifting in a Globalized World Economy

2017 ◽  
Vol 50 (14) ◽  
pp. 1998-2026 ◽  
Author(s):  
Mi Jeong Shin
Keyword(s):  
Tax Policy ◽  
Multinational Firms ◽  
Transfer Pricing ◽  
Tax Rates ◽  
Growth Data ◽  
Profit Shifting ◽  
Effective Tax Rates ◽  
The Difference ◽  
Globalized World ◽  
The Impact

Political science scholarship has found mixed evidence on the impact of partisanship on the taxation of firms. In this article, I show that although left-leaning governments set tax rates at higher levels than right-leaning governments, the difference in the effective tax rates paid by firms is much less dramatic between left and right governments. I argue that left-leaning governments maintain high tax rates, a visible policy their constituency supports, while allowing firms to transfer profits abroad to minimize their tax burden (transfer pricing). Constituency costs hinder them from cutting tax rates to avoid backlash from voters, but they impose fewer restrictions on profit-shifting to attract investment by multinational firms for economic growth. Data covering 19 advanced economies between 2006 and 2009 support my theoretical expectation. My analyses suggest that the effect of government partisanship on corporate tax policy can be ambiguous when political parties consider various policy tools.

The Effect of Voluntary Clawback Adoptions on Corporate Tax Policy

2019 ◽  
Vol 95 (1) ◽  
pp. 259-285
Author(s):  
Thomas R. Kubick ◽  
Thomas C. Omer ◽  
Zac Wiebe
Keyword(s):  
Financial Reporting ◽  
Tax Policy ◽  
Income Tax ◽  
Spillover Effect ◽  
Tax Planning ◽  
Tax Rates ◽  
Corporate Tax ◽  
Effective Tax Rate ◽  
Effective Tax Rates ◽  
Earnings Expectations

ABSTRACT Companies are adopting executive compensation recoupment (“clawback”) policies to discourage aggressive financial reporting choices. Recent research suggests clawback policies encourage other means of meeting earnings expectations. We suggest that reducing income tax expense is a means of meeting earnings expectations. We find that effective tax rates are lower after clawback adoption due to increased investments in tax planning. We identify three tax planning activities that clawback companies invest in to lower effective tax rates: purchases of auditor-provided tax services, increased connections to other low-tax companies, and use of tax havens. We provide evidence that effective tax rate decreases do not result from use of opportunistic income tax accruals, and that decreases are stronger among companies that adopt robust clawback policies. Additional tests indicate lower tax outcome volatility and longer, more readable tax footnotes following clawback adoption. Our results suggest a positive spillover effect of clawback adoption on corporate tax policy.

THE USE OF EFFECTIVE TAX RATES IN TAX POLICY

1986 ◽  
Vol 39 (3) ◽  
pp. 285-292
Author(s):  
DON FULLERTON
Keyword(s):  
Tax Policy ◽  
Tax Rates ◽  
Effective Tax Rates

A Study of Perceived Ethicality of Low Corporate Effective Tax Rates

2017 ◽  
Vol 32 (1) ◽  
pp. 87-104 ◽  
Author(s):  
F. Todd DeZoort ◽  
Troy J. Pollard ◽  
Edward J. Schnee
Keyword(s):  
Mediation Analysis ◽  
General Public ◽  
Tax Avoidance ◽  
Tax Rates ◽  
Perceived Fairness ◽  
Effective Tax Rate ◽  
Effective Tax Rates ◽  
Tax Rate ◽  
Policy Practice ◽  
Participant Group

SYNOPSIS U.S. corporations have the ability to avoid paying domestic taxes to achieve an effective tax rate that is much lower than the statutory federal tax rate. This study evaluates the extent that individuals differ in their attitudes about the ethicality of corporations avoiding domestic taxes to achieve low effective tax rates. We also examine the extent to which the specific tax avoidance method used by corporations to access a low effective tax rate affects perceived ethicality. Eighty-two members of the general public and 112 accountants participated in an experiment with two participant groups and three tax avoidance methods manipulated randomly between subjects. The results indicate a significant interaction between participant group and tax avoidance method, with the general public considering shifting profits out of the country to achieve a low effective tax rate to be highly unethical, while the accountants find tax avoidance from carrying forward prior operating losses to be highly ethical. Further, mediation analysis indicates that perceived fairness and legality mediate the effects of participant type on perceived ethicality. Mediation analysis also reveals that sense of fairness and legality mediate the link between tax avoidance method and perceived ethicality. We conclude by considering the study's policy, practice, and research implications.

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