Tax Competition

Tax Competition Michael P. Devereux Oxford University Centre for Business Taxation Summary: Corporation tax rates in OECD countries have been falling for the last three decades. This has widely been interpreted as the result of competition between governments to attractboth real economic activity and taxable income. And such a view is supported by some governmentContinue reading “Tax Competition”

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”

Destination-Based Cash Flow Taxation

Destination-Based Cash Flow Taxation Michael Devereux Oxford University Centre for Business Taxation Summary: This paper summarises the concept and properties of a destination-based cash-flowtax (DBCFT). In principle, a DBCFT has several highly attractive properties: it does notdistort the scale and location of investment, assures neutral treatment of debt and equity as sources of finance, isContinue reading “Destination-Based Cash Flow Taxation”

Uncertainty Survey

Measuring corporation tax uncertainty across countries: Evidence from a cross-country survey Michael Devereux Oxford University Centre for Business TaxationEuropean Tax Policy Forum Summary: This paper presents the results of a survey of senior tax professionals in large businesses and in professional firms on the uncertainty of corporation tax in major countries. The survey was undertakenContinue reading “Uncertainty Survey”

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?”

Designing and Implementing a Destination-Based Corporate Tax

De la Feria, Rita and Michael P. Devereux (2014) Oxford University Centre for Business Taxation WP 14/07. [2013] The current international tax system based upon the principles of source and residence is no longer suited to a globalised world economy, and the fundamentals of the international tax system need to be re-examined. An R+F basedContinue reading “Designing and Implementing a Destination-Based Corporate Tax”

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”

UK Government’s corporation tax proposals could damage the UK’s competitiveness

Taxing Foreign Profit: Economic Principles and Feasibility Michael P. Devereux This paper reviews economic principles for optimality of the taxation of international profit, from both a global and national perspective. It argues that for systems based on residence or source, nothing less than full harmonisation across countries can achieve global optimality. The conditions for nationalContinue reading “UK Government’s corporation tax proposals could damage the UK’s competitiveness”

The Direct Incidence of Corporate Income Tax on Wages

Wiji Arulampalam, Michael P. Devereux and Giorgia Maffini European Economic Review 56.6, 1038-1054. [2007] Abstract A stylised model is provided to show how the direct effect of corporate income tax on wages can be identified in a bargaining framework using cross-company variation in tax liabilities, conditional on value added per employee. Using data on 55,082Continue reading “The Direct Incidence of Corporate Income Tax on Wages”

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”