This paper analyzes the implications of foreign firm ownership and international profit shifting through thin capitalization for corporate tax policy. We consider a model of interjurisdictional tax competition where the corporate tax serves as a backstop to the personal income tax, interest on...

Does the reduction of the effective tax burden on corporations trigger foreign direct investment? We take the German tax reform of 2000 as a natural experiment in order to isolate the impact of corporate taxation on the investment of foreign-held affiliates in Germany. We do so by exploiting the...

This paper studies the link between corporate income tax (CIT) reforms and domestic banks’ financing decisions. We use a dataset of CIT reforms and estimate the effect of tax rate changes on leverage, dividend policies and earnings management of banks. The results suggest that taxation...

The use of receipt-based tax lotteries to increase (VAT) tax compliance has been of growing interest amongst EU Member States. Some countries have introduced such lottery schemes, namely Malta in 1997, Slovakia in 2013 and Portugal in 2014. Others have been intrigued about the possibility of...

This paper analyses the effects of introducing a common EU tax base with formula apportionment on the size of the EU wide tax base and on the distribution of the tax base between the EU member countries. We use a combined dataset of Deutsche Bundesbank's Foreign Direct Investment data (MiDi) and...

Seit einigen Jahren stellt der Europäische Gerichtshof vermehrt Regelungen der nationalen Steuersysteme in Hinblick darauf in Frage, ob sie mit dem EG-Recht konform gehen. Im aktuellen Fall Marks & Spencer entscheidet der Gerichtshof, ob Konzerne Verluste ausländischer Töchter mit...