The Icelandic government has launched a review of the tax system, with a view to improving its income redistribution, growth orientation, and efficiency features, as well as increasing its revenue mobilization potential. It aims at minimizing detrimental effects on employment and growth, and at...

This paper explores the nature, significance and policy implications of spillovers in international corporate taxation-the effects of one country's rules and practices on others. It complements current initiatives focused on tax avoidance by multinationals, notably the G20-OECD project on Base...

One difficulty confronting Harberger’s celebrated model of the corporate income tax is how to treat the noncorporate production in primarily corporate sectors and corporate production in primarily noncorporate sectors. This paper presents a two-good model with corporate and noncorporate...

The classical corporate profits tax in the United States involves non-neutralities between: different sources of financing; different forms of business organization; and retaining or distributing earnings and may result in the U.S. investor being at a disadvantage vis-à-vis foreign investors....

Businesses which seek the location that offers the highest profitability are likely to consider tax incentives and the level of government services available. However, once a business commits itself to a locality, high moving costs render it vulnerable to future tax increases or denial of...

This paper compares the effective rates of taxation faced by a representative investor located in a major capital-exporting country for investments in machinery and buildings in nine capital-importing European countries. Poland and Hungary are found to have relatively high effective tax rates on...

The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and...

This paper discusses key findings of the Detailed Assessment of Observance of Standards and Codes in Sweden. The assessment reveals that the laws and regulations on banking activities and their supervision are in place in Sweden. The composition of the Board of the Swedish Financial Supervisory...

Sweden was among the first to falter in the great recession. The downturn was mitigated by aggressive stabilization policies, led by a sharp relaxation of monetary policy, a slew of emergency financial sector support measures, and actions raising bank capital. The policy actions taken were...

This 2004 Article IV Consultation highlights that the downturn experienced by the Swedish economy in 2002–03 was relatively mild, with growth remaining well above the European Union average. Expansionary fiscal policy in 2002 underpinned private consumption. Private investment, however,...