Tax sparing occurs when a country with a worldwide tax system grants its citizens foreign tax credits for the taxes that they would have paid on income earned abroad, but that escapes taxation by virtue of foreign tax incentives. The supporters of tax sparing argue that it is a form of foreign...

Each year the Heritage Foundation and The Wall Street Journal publish the Index of Economic Freedom. This major study compiles economic data on more than 150 countries. The compilers divide the data into ten categories, ranging from business freedom to labor freedom. One of the ten categories is...

Each May, Forbes magazine publishes a study on tax misery. The Forbes Tax Misery Index is a proxy for evaluating whether tax policy attracts or repels capital and talent. It is computed by adding the top marginal tax rate for the corporate income tax, individual income tax, wealth tax,...

This paper describes the EC directive on capital duties and its evolution or gradual suppressing. The paper is meant to form a chapter on a book on EU taxation. It reviews case law and modifications to the directive

This paper is meant to be a chapter in an eventual book on EU taxation: a chapter which provides preliminary notions required for an understanding of the EU Parents-Subsidiary Directive. Before the parent-subsidiary directive can be studied, it is essential to have notions on international...

Do corporate tax avoidance activities advance shareholder interests? This paper tests alternative theories of corporate tax avoidance that yield distinct predictions on the valuation of corporate tax avoidance. Unexplained differences between income reported to capital markets and to tax...

In 1993, Section 162(m) of the U.S. Internal Revenue Code was passed into law. The intent of this law was to reign in outsized executive compensation by eliminating the tax-deductibility of executive compensation above $1 million unless the excess compensation was performance-based. One...

The power of financial accounting to shape corporate behavior is underappreciated. Positive accounting theory teaches that even cosmetic changes in reported earnings can affect share value, not because market participants are unable to see through such changes to the underlying fundamentals, but...

Taxation and corporate governance interact in various ways. Tax law influences corporate governance structures in companies by offering tax privileges or imposing penalties. On the other hand actual corporate governance structures in place have an impact on the way companies manage their tax...

The US Treasury has issued revised regulations, under section 1.482-7, that require taxpayers to include costs associated with stock-based compensation in cost pools for fiscal years starting after August 26, 2003. The new regulations' impact on cost pools due to inclusion of employee stock...