Effective tax rate Research Papers (original) (raw)

Taxation in general and tax evasion in particular are inherently geographical in nature but only a small number of geographers have focused on them. In this progress report I present geographers' research on offshore financial centres... more

Taxation in general and tax evasion in particular are inherently geographical in nature but only a small number of geographers have focused on them. In this progress report I present geographers' research on offshore financial centres alongside the work of researchers from other disciplines to present an overview of what we know about the geographies of tax evasion and avoidance. It is argued that not only much regulatory work but also much research remains to be done on tax havens.
Keywords: offshore financial centre, taxation, tax avoidance, tax evasion, tax haven, economic geography, political geography

This paper investigates the relationship between tax avoidance behavior and state-ownership level at corporates in Vietnam to find out whether state-ownership influence the tax avoidance behavior of Vietnamese firms. Effective tax rate... more

This paper investigates the relationship between tax avoidance behavior and state-ownership level at corporates in Vietnam to find out whether state-ownership influence the tax avoidance behavior of Vietnamese firms. Effective tax rate presents for the tax avoidance level, in which higher effective tax rate means the lower tax avoidance level. In this research, the authors check robustness by using different methods to calculate the level of tax avoidance of corporates. Using Feasible Generalized Least Squares (FGLS) method with data of 460 enterprises listed on Vietnam Stock Exchange market from 2009 to 2015, the empirical result shows that the level of state ownership has an inverse relationship with tax avoidance behavior of corporates. In other words, the higher level of state-owned is, the fewer taxes they avoid. Empirical evidence also confirms that low concentration (≤ 30%) of state ownership has a positive effect on tax avoidance behavior. Besides that, size, firm performance, tangible assets level, and debt ratio have a meaningful positive relationship with the degree of tax avoidance, similarly prior studies. Contribution/ Originality This study provides empirical evidence for prior theory on the relationship between corporate ownership and the manager' behavior. The study results again confirmed that there is a conflict of benefits between business executives and shareholders, by measuring the tax avoidance level of state-owned enterprises in Vietnam. Quyen (2017). The relationship between state ownership and tax avoidance level: empirical evidence from Vietnamese firms. Journal of Asian Business Strategy, 7(1), 1-12.

Based on micro-level longitudinal data spanning the Tax Reform Act of 1986 (TRA86), our study's results suggest that ETRs are not associated with firm size when the relation is examined over time with firms having longer histories.... more

Based on micro-level longitudinal data spanning the Tax Reform Act of 1986 (TRA86), our study's results suggest that ETRs are not associated with firm size when the relation is examined over time with firms having longer histories. However, results show that ETRs are associated with a firm's capital structure, asset mix, and performance, and that some of these associations continued after TRA86. These findings call into question the tendency of interest groups to focus simply on firm size to draw inferences about equity and neutrality of the tax system. The results also cast doubt on whether TRA86 levelled the playing field.

Tax is one of the most major political tools of governments and the most important source of their incomes and costs supplement. The dependency to the oil incomes can be reduced to zero by prevention of tax evasion. For decreasing the... more

Tax is one of the most major political tools of governments and the most important source of their incomes and costs supplement. The dependency to the oil incomes can be reduced to zero by prevention of tax evasion. For decreasing the dependency to the oil incomes, we are needful to increase the levies in country. The optimized levies and actual taxes not only increase the government's tax incomes but lead to a tax justice. The disclosure of accounting information was notified as one of the most important subjects for researchers from long time ago and the final product is considered as an accounting system. Actually, the final purpose of accounting system is providing information for benefited persons in the form of in and out-organization reports and the complete information disclosure can be an underlie of fiscal justice. This study surveys the relationship between the influences of effective tax rate and the level of financial statements disclosure of accepted companies in Tehran Stock Exchange. In this research, the multi variable regression analysis according to the panel data in order to survey the relationship of effective tax rate with the level of financial statements disclosure during the years of 2011 to 2015. The study sample is included of 94 listed companies in Tehran Stock Exchange for a temporal duration of 5 years. The results show that there is a reverse meaningful relationship between the effective tax rate and the level of mandatory financial statements disclosure; means, as effective tax rate gets higher, the level of mandatory disclosure gets lower and also there isn't any meaningful relationship between effective tax rate and the level of voluntary financial statements disclosure.

When minimizing their overall tax liabilities, multinational enter prises exploit the various provisions of interiurisdictional tax arrangements, not hes itating to circulate flows indirectly and through various financial vehicles. This... more

When minimizing their overall tax liabilities, multinational enter prises exploit the various provisions of interiurisdictional tax arrangements, not hes itating to circulate flows indirectly and through various financial vehicles. This pape proposes to nest modeling such strategies into graph theory and network analysis. Such an exercise enables to compute strategy supported effective tax rates and to question the design of interjurisdictional tax arrangements.

This study attempts to investigate the tax planning activities of Malaysian public companies listed on Bursa Malaysia during the official assessment system tax regime (OAS) (whereby the tax computation is prepared by tax authorities) and... more

This study attempts to investigate the tax planning activities of Malaysian public companies listed on Bursa Malaysia during the official assessment system tax regime (OAS) (whereby the tax computation is prepared by tax authorities) and the self assessment system tax regime (OAS) (the tax computation is prepared by taxpayers). The objective is to examine the level of corporate effective tax

Objective: This study investigated the effect of effective tax rates and the quality of corporate governance on tax evasion and corruption by using financial variables. Methods: Multiple regression model was used to examine research... more

Objective: This study investigated the effect of effective tax rates and the quality of corporate governance on tax evasion and corruption by using financial variables. Methods: Multiple regression model was used to examine research hypothesis .Data was selected by referring to the financial statements and explanatory notes of the companies listed on Tehran stock exchange, and a sample containing 1600 year-company entries for the period between 2003 to 2018 were selected. Data were analyzed by using Excel and Eviews software. Results: There is a significant positive relationship between the effective tax rate and tax evasion and corruption of companies listed on the stock exchange, but by adding the quality of corporate governance variable to the above relationships, no significant effect on the relationships between the effective tax rate and tax evasion and corruption was found. Conclusion: The findings of the research can be explained from two dimensions. The first dimension is the negative effect of corporate governance quality on tax evasion and corruption, and the second dimension is the lack of effect of corporate governance quality on the relationship between effective tax rate and tax evasion and corruption. Given the fact that corporate governance quality is not fully developed in Iran and its current mechanisms and structures have not yet been implemented in a standard and comprehensive manner, its effect will reduce. Also, the size of the company based on the theory of political power, sales growth according to theory of tax effect, and the rate of return on assets because of affecting the performance of companies, have a positive effect on tax evasion. Changes in tangible fixed assets due to the difference between accounting profit and profit based on calculating higher or lower taxes (depending on tax laws and accounting applicable to property, machinery and equipment) also have a positive effect on tax evasion, while tangible fixed assets have a negative effect on tax evasion. Besides, fluctuations in sales and rate of return on assets positively affected tax corruption, while sales growth, the ratio of market value to stock book, and the age of the company, based on life cycle theory, negatively affect tax corruption.

International Tax and Public Finance, 4, 337–359 (1997) c 1997 Kluwer Academic Publishers, Boston. Manufactured in The Netherlands. ... Measuring Effective Tax Rates in the Presence of ... KENNETH J. MCKENZIE Department of Economics, The... more

International Tax and Public Finance, 4, 337–359 (1997) c 1997 Kluwer Academic Publishers, Boston. Manufactured in The Netherlands. ... Measuring Effective Tax Rates in the Presence of ... KENNETH J. MCKENZIE Department of Economics, The University of ...

Although the population is living longer, the trend in Canada and most OECD countries is towards older workers to retire at an earlier age, which raises public policy challenges in the context of population aging. This paper evaluates the... more

Although the population is living longer, the trend in Canada and most OECD countries is towards older workers to retire at an earlier age, which raises public policy challenges in the context of population aging. This paper evaluates the economic cost of earlier retirement, the benefits of working longer in Canada and the consequences for the financing of social security. The analysis is conducted using a computable overlapping generations model calibrated on the Canadian economy. The paper's key finding indicates that a gradual increase in the average effective retirement age from 61 in the early 2000s to 65 by 2014 could raise real per-capita GDP by more than 8% by 2030. This in turn would give room to reduce effective tax rates and could allow a 25% reduction in the contribution rate to Canada's Pension Plan.

Page 1. 4 Cost of capital, investment location and marginal effective tax rate: methodology and application Marcel Gerard 4.1 INTRODUCTION ... 4 Cost of capital, investment location and marginal effective tax rate: methodology and... more

Page 1. 4 Cost of capital, investment location and marginal effective tax rate: methodology and application Marcel Gerard 4.1 INTRODUCTION ... 4 Cost of capital, investment location and marginal effective tax rate: methodology and application Marcel Gerard 4.1 INTRODUCTION ...

Accession of new member states with lower corporate taxation has raised fears on tax competition within enlarged Europe. This paper addresses the issue by calculating effective tax rates and showing relative tax burden in the new and old... more

Accession of new member states with lower corporate taxation has raised fears on tax competition within enlarged Europe. This paper addresses the issue by calculating effective tax rates and showing relative tax burden in the new and old member states. Then, the issue of tax competition and its effects on investment is examined indirectly by looking at the responsiveness of FDIs to effective taxation. The panel data is analyzed with investors from old member states and EU-8 as receiving countries. The study does not find strong evidence that comparative tax advantage of the new member states expressed by lower statutory and effective corporate tax rates influences the location of FDI coming from EU-15.

This paper compares the ways tax and social security systems of seven European countries treat different categories of workers, especially married women in two earner households. We will discuss the tax system and the social security... more

This paper compares the ways tax and social security systems of seven European countries treat different categories of workers, especially married women in two earner households. We will discuss the tax system and the social security system, because both have an important impact on the shape of the budget constraint of workers. Second earners are treated very differently by the

The North American Free Trade Agreement (NAFTA) has had a profound impact on Mexico's economy and institutions. Clearly, no consideration of tax reform can ignore its role. The thinking about tax reform in Mexico requires evaluating... more

The North American Free Trade Agreement (NAFTA) has had a profound impact on Mexico's economy and institutions. Clearly, no consideration of tax reform can ignore its role. The thinking about tax reform in Mexico requires evaluating NAFTA's effect on Mexico's economy, including its tax structure, and the effects of its tax system on trade and capital flows between Mexico and

This paper offers an assessment of European corporate tax regimes using forward-looking indicators for corporate investment based on the Devereux-Griffith methodology. It draws on time series of average effective tax rates (EATR) using a... more

This paper offers an assessment of European corporate tax regimes using forward-looking indicators for corporate investment based on the Devereux-Griffith methodology. It draws on time series of average effective tax rates (EATR) using a detailed set of tax parameters for 27 EU Member States as well as some important non-EU countries. The analysis shows that over time the reduction in the corporate effective average tax rates (EATR) was lower than for the corporate statutory rates and the figures suggest that simple corporate tax base broadening by means of less generous capital allowances is not a sufficient explanation for this phenomenon. Finally, it is shown that the tax gap between the old and new EU Member States has grown over time and even accelerated after accession.

Enterprises engaged in tax avoidance activities, the purpose of which is either paying less tax or deferring tax payment. Therefore, the purpose of this study is to investigate the relationship between tax avoidance and firm value. This... more

Enterprises engaged in tax avoidance activities, the purpose of which is either paying less tax or deferring tax payment. Therefore, the purpose of this study is to investigate the relationship between tax avoidance and firm value. This study used public listed companies on the T aiwan Stock Exchange over the period 2010-2017, based on empirical regression analysis to study the effects of tax avoidance behavior on firm value, and measured with effective tax rates as tax avoidance measures. T he empirical results show that corporate tax avoidance will be reflected in the reduction of the effective tax rates (ET R) and the expanding of the book-tax differences (ET R), which will have a significant negative impact on the value of the enterprise, that is, the reduct ion of the effective tax rate enables the enterprise to pay less tax and raise the firm value. Moreover, when the financial income of enterprises is greater than the income from taxation, the higher the degree of corporate tax avoidance, the higher the ent erprise value.

Traditionally, there is an important role that external conditions such as establishment of tax rules can play in fostering innovation process in companies. When considering Innovation Union in the European Union context, we need to take... more

Traditionally, there is an important role that external conditions such as establishment of tax rules can play in fostering innovation process in companies. When considering Innovation Union in the European Union context, we need to take into consideration the fact that companies meet twenty-eight different tax systems. While the differences concerning the nominal tax rates are obvious, another aspect comprising tax base rules differences is less visible, although they can play a relevant role in stimulating innovation activity. In some countries, the tax base composition is affected by the existence of R&D tax incentives concerning the company’s income tax, but the situation differs according to the EU member state.
Our study questions the existence of the link between the above-mentioned aspects of national tax regulation and a country’s innovation performance with a special emphasis on the entrepreneurial innovation activity. In accordance with a broader definition of innovation activity, both the R&D expenditure and the non-R&D innovation expenditures in the business sector are taken into account in our analysis. For empirical testing, the Granger causality methodology and panel fixed-effect regression analysis are applied.
Our results find evidence that countries proposing more generous possibilities in the statutory or effective tax rates don’t meet more suitable performances in entrepreneurial innovation activity. Similar results can be found in estimating the impact of different tax base rules, approximated by the difference between the statutory and the effective tax rate. Another important aspect of our study concerns testing of correlation between different forms of R&D tax incentives and enterprise innovation activity. Our results indicate a positive relationship between R&D tax incentives and enterprise R&D expenditures while a negative relationship between such incentives and enterprise non-R&D innovation activities can be identified as well. It seems that tax incentives affecting the income tax base composition (enhanced allowances and accelerated depreciation) do not indicate considerably different results from those proposed by the tax incentives affecting the income tax rate (tax credits and patent boxes). In conclusion, the results we have identified are interpreted in the context of the European Commission initiative of the rebirth of the Common and Consolidated Corporate Tax Base (CCCTB) proposal, announced in 2016. Thus, the chapter tries to contribute to the renewal debate concerning the consequences of CCCTB from the perspective of business innovation activities.

One of the important changes of the 1986 tax reform for U.S. multinationals is related to the allocation of interest expense. Prior to 1986, U.S. companies allocated domestic interest expense to the income of foreign affiliates on a... more

One of the important changes of the 1986 tax reform for U.S. multinationals is related to the allocation of interest expense. Prior to 1986, U.S. companies allocated domestic interest expense to the income of foreign affiliates on a non-consolidated basis according to the distribution of gross income or assets. After 1986, a U.S. multinational is required to allocate domestic interest