The Effective Tax Rates in the EU Commission Study on Corporate Taxation: Methodological Aspects

Significance Corporate tax may be one area where it could be possible to find some common ground between the otherwise gridlocked Republican Congress and the Democratic White House. President Barack Obama has proposed a one-time repatriation tax on cash held overseas by companies to be followed by a full-spectrum tax code overhaul. Impacts Lobbyists may support a repatriation amnesty, but will obstruct any initiative that raises effective tax rates. European Commission independence from member states may see the EU lead on corporate tax investigations. Australia will move slowly on corporate tax reform if the coalition government remains distracted by leadership disputes.

Download Full-text

Company Taxation in the European Union

Comparative Economic Research ◽

10.2478/v10103-011-0022-2 ◽

2012 ◽

Vol 14 (3) ◽

pp. 119-136 ◽

Cited By ~ 1

Author(s):

Dorota Wawrzyniak

Keyword(s):

Tax Burden ◽

Tax Rates ◽

The European Union ◽

Corporate Tax ◽

Effective Tax Rates ◽

Tax Rate ◽

Advantages And Disadvantages ◽

Company Taxation ◽

Statutory Tax Rate ◽

The Eu

This paper investigates different measures of corporate tax burden ranging from the most basic ones such as the statutory tax rate to the effective tax rates. Each of these measures has advantages and disadvantages and they may lead to different rankings of countries. One of the reasons lies the fact that they measure different things. The comparison of the statutory tax rates to the effective ones for the EU-27 during the period of 1998-2009 sometimes reveals very significant differences between these indicators. Taking this into consideration, the paper suggests that corporate tax burden analysis should not be limited to the most basic and readily available measure in the form of the statutory tax rate. Different measures are tailored to answer different research questions. Moreover, the article presents changes of company taxation for the EU-27 within 1998-2009.

Download Full-text

Are the tendencies of the race to the bottom real in the European Union?

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis ◽

10.11118/actaun201361040893 ◽

2013 ◽

Vol 61 (4) ◽

pp. 893-898

Author(s):

Veronika Dvořáková

Keyword(s):

European Union ◽

Tax Competition ◽

Debt Crisis ◽

Panel Analysis ◽

Tax Rates ◽

The European Union ◽

Effective Tax Rates ◽

Race To The Bottom ◽

Member States ◽

The Eu

The increasing globalization and integration of markets are one of the causes of tax competition. Even though tax competition may be beneficial for some countries, on the other hand for others states it may mean an erosion of their public budgets. The Member States are therefore forced to compete for a capital by a reducing of the tax burden (especially a cutting of the corporate effective tax rates) to don’t lose their tax bases. At present time of the debt crisis, when most of the Member States look for a solution to a balance of their deficit budgets, there a question arises whether a tendency towards a cutting of corporate effective tax rates does not lead to a race to the bottom and the erosion of their public budgets. In this context, the aim of this paper is to answer whether the race to the bottom is real in the European Union. This paper empirically evaluates the level of the race to the bottom in the European Union and using panel analysis it verifies on a sample of 27 Member States over the period 1998 to 2010 whether the tendencies of the race to the bottom are real. According to the panel analysis this paper concludes that the tendencies of the race to the bottom are particularly evident in the new Member States, i.e. in the EU-12 countries, while for the old Member States, i.e. for the EU-15 countries, the race to the bottom cannot be statistically confirmed.

Download Full-text

Effective tax rates in Ireland

10.26504/rs110 ◽

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.

Download Full-text

The EU Commission’s Digital Tax Proposals and its Cross-platform Impact in the EU and the OECD

10.31235/osf.io/k2t9j ◽

2019 ◽

Author(s):

Wouter Lips

Keyword(s):

Corporate Taxation ◽

Multiple Streams ◽

Policy Entrepreneurship ◽

Policy Documents ◽

Digital Services ◽

Multiple Streams Framework ◽

Cross Platform ◽

Elite Interviews ◽

Eu Commission ◽

The Eu

The EU Commission’s directive proposals on corporate taxation of digital multinationals, especially the digital services tax (DST), show the increased assertiveness of the Commission on taxation matters. Both inward and outwards in the parallel OECD negotiations on digital taxation. By drawing on Kingdon’s Multiple Streams Framework, elite interviews and policy documents, I assess the dynamics of the proposal at the EU and OECD. While the DST will fall short in the EU Council due to unanimity requirements, I argue that the Commission actually achieved its pre-prescribed goals. Within the EU, it provided coherency for unilateral DSTs by member states. At the OECD, the proposals increased the threat of uncoordinated unilateral measures. This created a period of uncertainty and pressured laggard states, which helped lead to a tentative window for reform. As such, the proposals are an example of cross-platform policy entrepreneurship by the EU Commission, projecting influence despite unanimity constraints.

Download Full-text

Corporate Taxation and Capital Structure: Evidence from Russia

Journal of Corporate Finance Research / Корпоративные Финансы | ISSN 2073-0438 ◽

10.17323/j.jcfr.2073-0438.11.2.2017.7-14 ◽

2017 ◽

Vol 11 (2) ◽

pp. 7-14

Author(s):

Evgeny Ilyukhin

Keyword(s):

Panel Data ◽

Capital Structure ◽

Corporate Taxation ◽

Tax Rates ◽

Financial Leverage ◽

Effective Tax Rates ◽

Empirical Results

The study aims to empirically analyze whether corporate taxation has an impact on firm capital structure decisions. The results, based on panel data on Russian private (non-listed), non-financial and non-state owned firms, show that taxation has a significant impact on firm financial leverage (negative in terms of long-term debt and positive in terms of equity). The smallest and largest firms of the sample respond more dramatically to effective tax rates. The results are robust according to the applied tests. Moreover, additional empirical results are obtained for the standard capital structure determinants (size, profitability, tangibility and liquidity of assets), which contribute to capital structure theories.

Download Full-text