Capital Taxation, Investment, Growth and Welfare

Bösenberg, Simon, Peter Egger and Benedikt Zoller-Rydzek (2018) International Tax and Public Finance 25, 325-76. [2015] Abstract This paper formulates a model of economic growth to study the effects of broad capital taxation (of profits, dividends, and capital gains) on macroeconomic outcomes in small open economies. A framework of exogenous growth permits modelling countries in transition to aContinue reading “Capital Taxation, Investment, Growth and Welfare”

Where Does Multinational Investment Go with Territorial Taxation? Evidence from the United Kingdom

Liu, Li (2020) American Economic Journal: Economic Policy 12.1, 325-58. [2014] Abstract In 2009, the United Kingdom changed from a worldwide to a territorial tax system, abolishing dividend taxes on foreign repatriation from many low-tax countries. This paper assesses the causal effect of territorial taxation on real investments, using a unique dataset for multinational affiliatesContinue reading “Where Does Multinational Investment Go with Territorial Taxation? Evidence from the United Kingdom”

Taxes and the location of targets

Arulampalam, Wiji, Michael P. Devereux and Federica Liberini Journal of Public Economics 176, 161-178. [2010] Abstract We use firm-level data to investigate the impact of taxes on the international location of targets in M&A, allowing for domestic acquisitions and heterogeneous responses by companies. The statutory tax rate in the target country is found to haveContinue reading “Taxes and the location of targets”

The impact of thin‐capitalization rules on the location of multinational firms’ foreign affiliates

Merlo, Valeria, Nadine Riedel, Georg Wamser (2020) Review of International Economics 28.1, 35-61. [2014] Abstract This paper examines how restrictions on the tax deductibility of interest cost affect location choices of multinational corporations (MNCs). Many countries have introduced so‐called thin‐capitalization rules (TCRs) to prevent MNCs from shifting their tax base to countries with lower taxContinue reading “The impact of thin‐capitalization rules on the location of multinational firms’ foreign affiliates”

The OECD/G20 Base Erosion and Profit Shifting Initiative and Developing Countries

Collier, Richard and Nadine Riedel (2018) Bulletin of International Taxation 72.12, 704-717. [2018] Abstract This article considers the implications of the OECD/G20 Base Erosion and Profit Shifting (BEPS) initiative by reference to the priorities of developing countries. It also suggests ways in which the Project could be made a better fit for the needs ofContinue reading “The OECD/G20 Base Erosion and Profit Shifting Initiative and Developing Countries”

Comparing UK Tax Returns of Foreign Multinationals to Matched Domestic Firms

Bilicka, Katarzyna American Economic Review 109.8, 2921-53. [2017] In this paper, I use confidential UK corporate tax returns data to explore whether there are systematic differences in the amount of taxable profits that multinational and domestic companies report. I find that the ratio of taxable profits to total assets reported by foreign multinational subsidiaries isContinue reading “Comparing UK Tax Returns of Foreign Multinationals to Matched Domestic Firms”

Former Foreign Affiliates: Cast Out and Outperformed?

Javorcik, Beata and Steven Poelhekke (2017) Journal of the European Economic Association 15.3, 501–539. [2014] Abstract The literature has documented a positive effect of foreign ownership on firm performance. But is this effect due to a one-time knowledge transfer or does it rely on continuous injections of knowledge? To shed light on this question we focusContinue reading “Former Foreign Affiliates: Cast Out and Outperformed?”

Corporate taxation and capital accumulation: Evidence from sectoral panel data for 14 OECD countries

Stephen Bond and Jing Xing Journal of Public Economics 130, 15-31. [2012] Highlights • We use new data sources on capital stocks and corporate taxes for 14 OECD countries • For both total capital and total equipment, we find that corporate taxation affects capital-output ratios • For equipment, these effects are summarised by the taxContinue reading “Corporate taxation and capital accumulation: Evidence from sectoral panel data for 14 OECD countries”

Repatriation taxes and outbound M&As

Feld, Lars, Martin Ruf, Uwe Scheuering, Ulrich Schreiber and Johannes Voget (2016) Journal of Public Economics 139, 13-27. [2013] Abstract Repatriation taxes reduce the competitiveness of multinational firms from tax credit countries when bidding for targets in low tax countries. This comparative disadvantage with respect to bidders from exemption countries violates ownership neutrality, which resultsContinue reading “Repatriation taxes and outbound M&As”

New bank taxes: why and what will be the effects?

Devereux, Michael P. (2014) Ruud de Mooij and Gaëtan Nicodème eds., Taxation and Regulation of the Financial Sector, Cambridge MA: MIT Press, Chapter 2. [2011] Abstract This paper analyses some options for the introduction of new taxes on the financial sector, and in particular analyses the Financial Activities Tax (FAT) and the Financial Services ContributionContinue reading “New bank taxes: why and what will be the effects?”