Theory recommends aligning the tax treatment of debt and equity. A few countries, notably Belgium, have introduced an …

This paper examines how the effects of dividend taxation on the cost of new equity funds depend on whether or not … shareholders can recover their original equity injections without being subject to the dividend tax. We point out the alternative … that the shareholders cannot recover their original equity injections without being subject to the dividend tax …

This paper reconsiders the effects of dividend taxation. Particular attention is paid to the form of the "equity trap …