In this paper we examine the conventional wisdom that ten years of tax deferral is almost as good as exemption. Examining a corporation that invests in a single risk free bond we demonstrate that the conventional wisdom regarding tax deferral does not hold. We go on to demonstrate that deferral...

Every spring, more than a half trillion dollars flow into and out of the financial accounts of American families as they reconcile taxes paid against taxes owed for the prior year. The JPMorgan Chase Institute analyzed daily financial flows and balances for families who receive tax refunds or...

This study provides a comprehensive analysis of various aspects of R&D tax incentives. It explains the economic justification behind the state support of research and development and summarizes its main types. In addition, it gives an overview of the existing R&D tax incentives in Europe and...

Tax-exempt entities may establish as many as three different types of tax-favored retirement plans. They may of course establish qualified retirement plans. They may also establish section 403(b) plans, generally known as tax sheltered annuities (TSAs). The tax law treats distributions from...

Effective (marginal and average) tax rates (ETRs) are frequently used in the analysis and design of tax policies affecting investment, and this article provides various recent examples. The article addresses issues that arise when ETRs are calculated in an international context, such as for...

Factors such as the dividends-received deduction, the corporate AMT, and the Section 382 loss rules complicate the computation of NOLs and affect decisions needed in determining whether to carry the loss back.The NOL procedures provide an effective means of averaging the cyclical swings of...

This study highlights the concept of depreciation and eligibility of assessee for charging depreciation as per Income Tax Act. The rules for charging depreciation have been changed from time to time. The study presents the rules of depreciation from the Assessment Year (AY) 1966-67 to 2012-13....

The add-backs, adjustments, and other computations involved for individuals who incur a NOL, as well as the factors to consider in deciding if the carryback should be waived, can appear daunting.NOLs relate only to business income and deduction items, so an individual taxpayer must separate out...

We examine the extent of implicit taxes at the corporate level and the effect on implicit taxes of the Tax Reform Act of 1986 (TRA86). Using a variety of specifications, we find consistent evidence that implicit taxes eliminate virtually all of the cross-sectional differences in explicit tax...