This article deals with the integration of taxes into real option-based investment models under risk neutrality and risk averison. It compares the possible approaches dynamic programming and contingent claims analysis to analyze their effects on the optimal investment rules before and after...

The standard tax theory result that investment should not be distorted is based on the assumption that profits are locally bound. In this paper we analyze the optimal tax policy when firms are internationally mobile. We show that the optimal policy response to increasing firm mobility may be...

The international corporate income and capital gains tax (CGT) systems of basically all modern nation states share a common objective. All seek to effectively ‘capture' multinational enterprises (‘MNEs') that are economically present within the respective taxing state's geographical borders...

Today we live in a globalizing economy: national open markets are steadily developing towards a global market. Within the European Union, the internal market without internal frontiers has been established. However, the fiscal sovereignty of nation states remains limited to economic activities...

In the aftermath of the recent financial crisis, a variety of taxes on financial institutions have been proposed or enacted. These taxes' justifications range from punishing those deemed to have caused or unduly profited from the crisis, to addressing the budgetary costs of the crisis, to better...

We examine whether three tax system characteristics – required book-tax conformity, worldwide versus territorial approach, and perceived strength of enforcement – impact corporate tax avoidance across countries after controlling for firm-specific factors previously shown to be associated...

The small business owner can take advantage of borrowing rates of 7-8% to fund tax deductible pensions and profit sharing plans that defer the high marginal tax rates of 30-35%. This form of tax arbitrage will allow a small business owner to quickly build assets for retirement in a safe and...

Section 11 applies a bracket system to corporations, imposing lower tax rates on lower amounts of corporate income. Similarly, section 1 applies a bracket system to individuals. The bracket system in section 1 is intended to adjust the tax rate to the taxpayer's standard of living. Modest and...

The purpose of this article is the presentation of issues related to hybrid instruments. We will primarily focus on the analysis of various aspects of hybrid instruments and entities. The use of these instruments produces fairly significant tax implications that have specific effects on the...

From the 2008 assessment period onwards, a new regulation regarding the loss offset in case of share acquisitions was implemented under section 8c of the German Corporate Tax Code (Körperschaftsteuergesetz). This new provision is particularly important in light of the current financial and...