Opting for Opting‐In? An Evaluation of the European Commission’s Proposals for Reforming VAT on Financial Services

De la Feria, Rita and Ben Lockwood (2010) Fiscal Studies 31.2, 171 – 202. [2009] Abstract This paper provides a legal and economic analysis of the European Commission’s recent proposals for reforming the application of VAT to financial services, with particular focus on their ‘third pillar’, under which firms would be allowed to opt in toContinue reading “Opting for Opting‐In? An Evaluation of the European Commission’s Proposals for Reforming VAT on Financial Services”

The effects of company taxation in EU accession countries on German FDI

Overesch, Michael and Georg Wamser (2010) Economics of Transition 18.3, 429–457. [2008] Abstract This article investigates how company taxation affects German foreign direct investment (FDI) in European Union (EU) accession countries. In 2004 and 2007, 10 former socialist eastern European countries joined the EU. Although the EU integration is associated with increasingly favourable investment conditions,Continue reading “The effects of company taxation in EU accession countries on German FDI”

Corporate Tax Consolidation and Enhanced Cooperation in the European Union

Bettendorf, Leon, Albert van der Horst, Ruud de Mooij and Hendrik Vrijburg Fiscal Studies 31.4, 453–479. [2009] Abstract We assess the economic impact of introducing consolidation with formula apportionment in the European Union and consider alternative enhanced cooperation agreements. We find that the consolidation is likely to yield a small aggregate welfare gain in Europe.Continue reading “Corporate Tax Consolidation and Enhanced Cooperation in the European Union”

Taxation of outbound direct investment -economic principles and tax policy considerations

Devereux, Michael P. (2008) Oxford Review of Economic Policy 24.4, 698-719. [2008] Abstract This paper reviews economic principles for optimality of the taxation of international profit, from both a global and national perspective. It argues that for traditional systems based on the residence of the investor or the source of the income, nothing less thanContinue reading “Taxation of outbound direct investment -economic principles and tax policy considerations”

Capital structure and international debt shifting

Huizinga, Harry, Luc Laeven and Gaetan Nicodeme (2008) Journal of Financial Economics 88.1, 80-118. [2006] Abstract This paper presents a model of a multinational firm’s optimal debt policy that incorporates international taxation factors. The model yields the prediction that a multinational firm’s indebtedness in a country depends on a weighted average of national tax ratesContinue reading “Capital structure and international debt shifting”

The Effects of EU Formula Apportionment on Corporate Tax Revenues

Devereux, Michael P. and Simon Loretz (2008) Fiscal Studies 29.1, 1-33. [2007] Abstract The European Commission proposes to replace the current system of taxing corporate income using separate accounting by a two‐step ‘consolidation and apportionment’ procedure. This paper uses a large set of unconsolidated firm‐level data to assess the likely impact on corporate tax revenuesContinue reading “The Effects of EU Formula Apportionment on Corporate Tax Revenues”

The Impact of Non-Profit Taxes on Foreign Direct Investment: Evidence from German Multinationals

Büttner, Thiess and Georg Wamser (2009) International Tax and Public Finance 16.3, 298-320. [2006] Abstract This paper provides an empirical analysis of the impact of taxes other than profit taxes on both investment and location decisions of multinationals. Besides effects of corporate income taxes, the results confirm significant adverse effects of nonprofit taxes such asContinue reading “The Impact of Non-Profit Taxes on Foreign Direct Investment: Evidence from German Multinationals”

Globalisation generates higher corporation tax revenues

Internationalization and Business Tax Revenue – evidence from Germany Johannes Becker and Clemens Fuest International Tax and Public Finance 17.2, 174-92. [2007] It is commonly believed that globalisation introduces tax competition as countries reduce tax rates to attract inward investment.  This is supported by evidence of falling corporation at rates in the EU and elsewhere.Continue reading “Globalisation generates higher corporation tax revenues”

Corporate Tax Policy and Unemployment in Europe: An Applied General Equilibrium Analysis

Leon Bettendorf, Albert van der Horst and Ruud A. de Mooij The World Economy,1319-47. [2007] Abstract This paper analyses the impact of corporate taxes on structural unemployment, using an applied general equilibrium model for the European Union. We find that the unemployment and welfare effects of corporate taxes differ considerably among European countries. The magnitudeContinue reading “Corporate Tax Policy and Unemployment in Europe: An Applied General Equilibrium Analysis”