The paper summarizes the arguments in favor of a shift from comprehensive to dual income taxation and complements the discussion by an overview of tax reforms, which reveals the characteristic features of a dual income tax system. The scope of our analysis is not restricted to the Nordic...

This paper contributes to the literature providing indirect evidence for profit shifting within multinational companies. In contrast to the previous studies, we take account of the tax responsiveness of the capital stock and analyze the effect of corporate taxes on both pre- and posttax...

The European Commission is evaluating the performance of the common VAT, which has many shortcomings. The numerous exemptions and differentiated rate structures violate the logic and functionality of the VAT. The exemptions distort input choices and outsourcing policies. Reduced rates are...

This paper provides an assessment of the revenue consequences that would result from implementation of a common consolidated corporate tax base (CCCTB). We find that the total tax revenue of the EU member states is reduced by 4.56% under a compulsory CCCTB and by 4.65% under an optional CCCTB....

This paper analyzes the influence of statutory corporate tax rates on profits and of double-taxation treaties (DTTs) on multinational firm (MNE) activity at the micro level. It provides an assessment of the effects of these profit tax instruments on the extensive and the intensive margin of...

This paper analyzes how corporate taxation affects the capital structure of subsidiaries of multinational companies. The emphasis is on firm characteristics that proxy for the tax status of a subsidiary, which is crucial for the tax responsiveness of firms. Based on a comprehensive panel of...

This paper examines the impact of three host country government policies (taxation, good governance, and infrastructure) on the host's FDI stock. We focus on whether the impact of these factors differs depending on the level of development of the host country. The regression results indicate...

This paper evaluates three possible explanations for why empirical studies have found a quite moderate response of multinationals' capital structure to tax incentives. Firstly, by concentrating on debt decisions by operating subsidiaries, previous studies may have overlooked the importance of...

We analyze Auerbach´s (1991) proposal of a retrospective capital gains tax, which is equivalent to an accrual tax on an ex ante basis. Using a continuous-time model with stochastic interest rates and serially correlated asset returns, we prove that such an equivalence still holds. This means...

This paper empirically analyzes whether both personal and corporate taxation have an influence on companies´ capital structure decisions. We investigate the effect of the difference in taxation of debt and equity financing on capital structure. Our empirical results, based on a panel of...