This paper analyzes the impact of taxation on risk-taking under irreversibility. We integrate a simple tax system into a real option model. Under irreversibility and risk neutrality, raising the tax rate can either increase or reduce risk-taking. We numerically derive tax-volatility indifference...

We analyze the impact of taxation on the option to defer an investment decision and derive tax rates that do not influence the extent of postponement. Furthermore, we deduce from this option pricing framework a measure of an investor's disposition towards realizing an investment project under...

In this paper we analyze reform concepts aiming to harmonize group taxation throughout the EU. The Common Consolidated Corporate Tax Base (CCCTB) enables European multinationals to determine their tax burden using a common tax base. By contrast, the European Tax Allocation System (ETAS) is based...

From the 2008 assessment period onwards, a new regulation regarding the loss offset in case of share acquisitions was implemented under section 8c of the German Corporate Tax Code (Körperschaftsteuergesetz). This new provision is particularly important in light of the current financial and...

In entrepreneurial decisions making uncertain future profits often are a main characteristics of real investment opportunities. If investors can react to uncertainty the degree of irreversibility and timing flexibility inherent in the available project should be integrated into the decision...

In this paper we analyze the impact of various minimum taxation concepts on corporate investment decisions. These investments can be realized in the form of either a real or a financial investment. In a quantitative analysis we refer to the future values of the investments as an indicator of...

Als Steuerbelastungsindikator findet die Konzernsteuerquote trotz ihrer methodischen Schwächen zunehmend Verbreitung. Aus steuerlicher Sicht stellt sich die Frage, ob die quantitative Messung der vollständigen und realitätsnahen unternehmerischen Steuerbelastung mit Hilfe der...

Besides the valuation methods commonly used for specific industries, taxpayers can fall back on the simplified discounted cash flow method which, in certain cases, obliterates the need for complex valuations and replaces what is known as the Stuttgart Method for valuing shares in unlisted...

Microsimulation based on income tax statistics may be useful in tax reform discussions. Unfortunately, access to appropriate data is still rather restricted and expensive for ad-hoc analyses, or individual data is often even not available at all. In this paper we take Germany and its data...

With an empirical study of the results of the reduction in the income tax schedule by the German red-green government two suitable scales for an evaluation of distributional effects of tax policy are discussed: the redistribution of tax burden and the redistribution of income caused by the...