Value-added tax systems across the world are afflicted with size-dependent regulations. The benefit of such regulations to the tax authority is unclear. In this paper, we use an administrative dataset from the state of Delhi in India to first show that a policy which mandated different...

Using pairs of similar US and European firms listed on the S&P500 or StoxxEurope600, we examine effective tax differentials between US multinational corporations (MNCs) and their European peers. We show that statutory tax rates and profit shifting opportunities are important determinants of...

Profit shifting of multinational corporations (MNCs) negatively affects citizens, governments as well as other companies in the European Union. This consensus seems to be emerging in spite of the fact that the phenomenon of profit shifting is unobservable directly and therefore only indirect and...

In this paper, first, the MIMIC estimation method is described and criticized and due to a double counting problem a correction is suggested. Second, the measurement methods used for National Accounts Statistics - the discrepancy method and two new micro survey methods - are described and a...

In this paper, first, the MIMIC estimation method is described and criticized and due to a double counting problem a correction is suggested. Second, the measurement methods used for National Accounts Statistics - the discrepancy method and two new micro survey methods - are described and a...

One of the most serious problems of fiscal character is the issue of the tax gap. The tax gap is defined as the amount of tax liability faced by taxpayers that is not paid on time. The tax gap comes from three main areas of noncompliance with the tax law − firstly from underreporting of...

Using pairs of similar US and European firms listed on the S&P500 or StoxxEurope600, we examine effective tax differentials between US multinational corporations (MNCs) and their European peers. We show that statutory tax rates and profit shifting opportunities are important determinants of...

Taxes levied on production processes (e.g. VAT), are today a very important source of government revenues in developed economies. Theories of optimal taxation conclude that these taxes are detrimental to production efficiency, when firms operate in perfectly competitive markets. These theories...

The principle of VAT neutrality is among the fundamental characteristics of this tax. It is implemented through reduction of VAT output by the amount of VAT input. The right of deduction constitutes an integral part of the VAT mechanism and is intended to free the entrepreneur entirely from the...

This research highlights the extent to which fiscal policies, along with government effectiveness, trade, economic growth, and education, influence the entrepreneurial environment, starting from the assumption that the effectiveness of public policies and the public administration support for...