AN INTERNATIONAL COMPARATIVE ANALYSIS OF THE TAXATION OF THE STEEL INDUSTRY

The objective of this study is to provide an overview of the present state of the steel industry in a number of countries in the developed world and compare the incentives provided to corporations to undertake investments that are created by the tax systems in these countries. In all, the tax systems in six countries are examined in some detail. They are: Canada, France, Japan, United Kingdom, United States and West Germany. To undertake this evaluation a computerized model was used to integrate the various provisions of the tax system with the particular characteristics of the investments required to expand steelmaking capacity. This model allowed us to evaluate the impact of the various tax provisions on the overall profitability of the project in terms of their impact on the net present value of the project.