scholarly journals The neutrality of taxation of investment projects in Serbia

2021 ◽  
Vol 66 (230) ◽  
pp. 101-133
Author(s):  
Stevan Lukovic ◽  
Stefan Vrzina ◽  
Milka Grbic ◽  
Milos Pjanic
Keyword(s):  
The Other ◽  
Tax Burden ◽  
Tax Rates ◽  
Effective Tax Rates ◽  
Research Results ◽  
Tax Neutrality ◽  
Investment Projects ◽  
Marginal Tax Rates ◽  
Different Types ◽  
Marginal Effective Tax Rates

The paper analyses the neutrality of taxation of investment projects on the example of Serbia. The aim of the research is to confirm/reject the existence of uniformity of the tax burden on investment projects that differ regarding the asset type, industry and the source of finance. The uniformity of tax burden, that is, the absence of discrimination and distortive effects of taxation, may be considered a confirmation of the tax neutrality. To investigate neutrality of taxation the analysis employed King-Fullerton framework of calculating effective marginal tax rates. The research results show that the tax treatment of investment projects in Serbia is nondiscriminatory. Marginal effective tax rates for different types of investment projects do not vary widely; that is, there are no investment projects that have a markedly favourable (unfavourable) tax treatment compared to the other types of investment projects.

scholarly journals Marginal Effective Tax Rates And Tax Incentive Structure Evaluation: The Case Of Greece

2011 ◽  
Vol 27 (4) ◽  
pp. 1
Author(s):  
Thomas A. Anastassiou
Keyword(s):  
Theoretical Background ◽  
Incentive System ◽  
Tax Rates ◽  
Incentive Structure ◽  
Effective Tax Rates ◽  
Tax Neutrality ◽  
Tax Incentive ◽  
Investment Choice ◽  
Structure Evaluation ◽  
Marginal Effective Tax Rates

<span>In addition to the neoclassical theory of investment choice, another way of evaluating a tax incentive structure is through the use of marginal effective tax rates. An attempt is made at present to provide estimates of these rates for Greece, and the research concentrates mainly to the calculation of marginal effective corporate tax rates (i.e. only corporate taxes are considered) while the construction of indices extends to the two categories of capital goods, equipment, and buildings. The theoretical background for constructing these indices is given, with special emphasis attributed to neutrality in the designing of efficient taxation systems. The research showed that the Greek tax incentive system is depressing marginal investments, while it is additionally found that there was a more favorable tax treatment of manufacturing investment in equipment than that of buildings. No attempt on recent formulations of the Greek incentive system was made to provide measures (as for example a net investment credit) that could produce some degree of tax neutrality.</span>

Taxes and Haven Activities: Evidence from Linguistic Cues

2021 ◽  
Author(s):  
Kelvin K. F. Law ◽  
Lillian Mills
Keyword(s):  
Tax Rates ◽  
Economic Activities ◽  
Effective Tax Rates ◽  
Tax Effects ◽  
Tax Haven ◽  
Linguistic Cues ◽  
Different Types ◽  
Information Set ◽  
Mere Existence ◽  
Offshore Activities

Users of Exhibit 21 cannot tell whether a tax haven subsidiary is actively operating or a dormant shell company.  In this paper, we develop a new set of parsimonious measures to highlight the distinct mechanisms and tax effects of offshore sales to, as opposed to purchases from, tax haven countries, offering insights on the effects of certain types of offshoring activities on firms’ tax burdens.  Our main measure has about three times the effect of the mere existence of a haven subsidiary in explaining firms’ effective tax rates.  We detail the processes to predict the offshore activities in tax haven countries for firms without an Exhibit 21 and firms reporting no subsidiary operations in a tax haven country.  Relative to the mere mention of a tax haven subsidiary in Exhibit 21, our new measures provide a richer information set to capture different types of economic activities in tax haven countries.

An Investigation of the Firm Size—Effective Tax Rate Relation in the 1980s

1993 ◽  
Vol 8 (2) ◽  
pp. 167-182 ◽  
Author(s):  
Thomas C. Omer ◽  
Karen H. Molloy ◽  
David A. Ziebart
Keyword(s):  
Firm Size ◽  
Tax Burden ◽  
Tax Rates ◽  
Corporate Tax ◽  
Effective Tax Rate ◽  
Effective Tax Rates ◽  
Policy Makers ◽  
Tax Rate ◽  
Sample Composition ◽  
Rate Relation

Given the recent emphasis on effective tax rates by policy makers and accounting researchers, this study investigates the relation between firm size and corporate tax burdens on a yearly and an industry basis. The analysis is conducted using five effective tax measures employed in previous studies in order to determine the degree to which inferences between size and tax burden are robust across these different effective tax measures. The results indicate that the relation is fairly robust across measures and, in instances in which the relation is not upheld by our analysis, sample composition explains differences in the observed relation between firm size and corporate tax burden.

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