By using official time series of the Italian evaded VAT base (Ministry of Finance) for the period 1980-2004 we investigate empirically the long-run characteristics of tax evasion and the relationship with the tax burden. We focus on three important issues not analyzed so far. First, using...

Judd's (1985) finding that the optimal long-run rate of tax on capital is zero—even if equity is an important social objective—has exerted substantial influence in academic and policy circles over the last quarter century. Only very recently has it become clear that Judd's zero-tax result...

This study examines the impact of the tax reform on corporate effective tax rate (ETR) and firm-specifics in Tunisia for the post tax reform period (after the fiscal year 2014).The corporate effective tax rate is a component by major firm-specific characteristics, especially firm size, capital...

This study investigates how sophisticated market participants use tax-based information by examining whether analysts' street effective tax rates (ETRs) are informative. When forecasting and assessing firm performance, analysts often exclude certain items they believe do not reflect current...

In the economic literature the fiscal burden on financial claims is usually measured by the expected tax rate. Auerbach has demonstrated that the use of this method can be seriously misleading. This paper develops a method for defining an effective tax rate adjusted for risk on uncertain...

In this study, we investigate cost behavior of companies in Organisation for Economic Co-operation and Development (OECD) member countries before corporate tax rate cuts become effective. We consider such events to generate strong incentives for intertemporal cost shifting. We analyze the time...

Countries heavily rely on tax revenue for their welfare programs, which aim to reduce inequalities. Taxes are countries' main sources of revenue and provide funding for governmental expenditures. A country's spending is usually divided into categories: mandatory, discretionary, and interest on...

This study examines the effective tax rates of listed companies in Australia for a period of 11 years from 1994 to 2004. Two measures of effective tax rate are used: total tax expense divided by pre-tax accounting profit (ETR), and current tax expense divided by pre-tax accounting profit (ETR')....

Effective tax rates (ETRs) are often used to compare tax avoidance across firms and time. Using firms' detailed tax footnote data, we find that the effect of valuation allowances (VA) related to prior-period losses biases GAAP ETRs. This downward bias explains almost all of the downward trend in...