Interest on equity capital as an allowance for business income tax - model approaches

Anna Leszczyłowska

Abstract


It is common for the majority of income tax systems all over the world that the cost of debt financ- ing lowers the taxable income while financing with equity is not treated similarly. The question raised in the article is connected with the way the cost of equity financing can be calculated for tax purposes. The aim of the paper is to identify and to analyze some model approaches which allow to lower the taxable base with the cost of equity financing. Some practical experiences form several European countries are analyzed which enables to distinguish between classical model, incremental model and incremental model with a dual tax rate.

Full Text:

PDF (Język Polski)

References


Bardazzi R., Parisi V., Pazienza M.G., Modelling direct and indirect taxes on firms: a policy simulation, "Austrian Journal of Statistics" 2004, vol. 33, no. 1-2.

Boadway R., Bruce N., A General Proposition on the Design of a Neutral Business Tax, "Journal of Public Economics" 1984, no. 24.

Bond S.R., Devereux M.P., On the design of a neutral business tax under uncertainty, "Journal of Public Economics" 1995, no. 58.

Eigenkapitalzuwachsverzinsung nach §§ JJ und 37 Abs. 8 EStG sowie §§ JJ Abs. 2 und § 22 KStG (zu StRefG 2000), s. 1, http://www.finanzjournal.at/assets/files/eigenkapitalzuwachsverzinsung. doc (dostęp: 15.04.2014).

European Commission, Taxation trends in the European Union, Brussels 2012.

European Commission, Taxation trends in the European Union, Brussels 2013.

Eurostat, Taxation trends in the European Union, 2012 edition.

Gammie M. (red.), Equity for Companies: A Corporation Tax for the J990s, Institute for Fiscal Studies, London 1991.

Keen M., King J., The Croatian Profit Tax: An ACE in Practice, "Fiscal Studies" 2002, vol. 23, no. 3.

Klemm A., Allowances for Corporate Equity in Practice, International Monetary Fund Working Paper 2006, no. 06/259.

Leszczyłowska A., Współczesne koncepcje podatku dochodowego, Polskie Wydawnictwo Ekono- miczne, Warszawa 2014.

Mintz J.M., Seade J., Cash Flow or lncome? The Choice of Base for Company Taxation, "The World Bank Research Observer" 1991, vol. 6, no. 2.

OECD, Fundamental Reform of Corporate lncome Tax, OECD Tax Policy Studies 2007, no. 16.

OECD Tax Database. Explanatory Annex. Part ll Taxation of Corporate and Capital lncome, Document updated May 2014.

Oropallo F., Parisi V., Will ltaly's Tax Reform Reduce the Corporate Tax Burden? A Microsimulation Analysis, Societa Italiana di Economia Pubblica, Dipartimento di Economia Pubblica e Territoriale, Universita di Pavia 2005, Working Paper no. 403.

Parisi V., A cross country simulation exercise using the DlECOFlS corporate tax model, European Commission 2003.

Petersen H.-G., Rose M., Schmidt C., Reformvorschlag: Zinsbereinigte Gewinnsteuer (ZGS), Rheinisch-Westfalisches Institut fiir Wirtschaftsforschung 2006, Essen.

Rose M., Konsumorientierung des Steuersystems - theoretische Konzepte im Lichte empirischer Erfahrungen, [w]: „Steuersysteme der Zukunft", G. Krause-Junk (red.), Duncker & Humblot, Berlin 1998.

Schinz P., Zinsbereinigte Gewinnsteuer unter Berucksichtigung von Maximierungskalkulen inter- nationaler Unternehmungen, Verlag Dr. Kovac, Hamburg 2009.

Schreiber S., Liechtenstein: Attraktiver Steuerstandort fur deutsche und schweizerische Unter- nehmen, KPMG 2011, https://www.kpmg.com/CH/de/Library/KPMG-in-the-Media/Documents/ pa_20110904_ Liechtenstein-Attraktiver-Steuerstandort-fur-deutsche-und-schweizerische-Unter- nehmen_DE.pdf (dostęp: 28.04.2014.).

Siemers L.H.R., Zoller D., Das Obergangsmodell der Einfachsteuer: Eine Effiziente Unterneh- mensbesteuerung?, MPRA Paper no. 757, 2006.

Staubli A., Kiittel R., Notional interest deduction. Die Einfuhrung einer zinsbereinigten Gewinnsteuer im Kontext der Unternehmenssteuerreform lll, PWC 2013, http://www.pwc.ch/user_content/editor/ files/ articles13/pwc_20131107_schweizer_treuhaender_staubli_kuettel.pdf (dostęp: 02.05.2014.).

Wenger E., GleichmafJigkeit der Besteuerung von Arbeits- und Vermogenseinkunften, „Finanzar- chiv" 1983, no. 41.

Zodrow G.R., Should capital income be subject to consumption-based taxation?, Oxford University Working Paper 2007.




DOI: http://dx.doi.org/10.17951/h.2014.48.3.197
Date of publication: 2015-05-23 19:36:29
Date of submission: 2015-04-17 20:28:20


Statistics


Total abstract view - 615
Downloads (from 2020-06-17) - PDF (Język Polski) - 0

Indicators



Refbacks

  • There are currently no refbacks.


Copyright (c) 2015 Annales Universitatis Mariae Curie-Skłodowska, sectio H – Oeconomia

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.