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on Accounting and Auditing |
| By: | Fossen, Frank; Simmler, Martin |
| Abstract: | Tax competition for the mobile factor capital has led to a trend in many countries to levy lower taxes on interest income, often introducing differential taxation between interest and business income. In this study, we analyze the effect of such differential taxation on the debt ratio of firms. We exploit a 2009 tax reform in Germany as a quasi-experiment, which introduced a flat final withholding tax and opened a gap of 18 percentage points between the tax rate on income from unincorporated businesses and the new lower tax rate on interest income. We apply a regression adjusted semi-parametric difference-in-difference matching strategy based on firm level panel data. In addition, we implement a more structural approach with a tax rate differential, taking into account its endogeneity by using instrumental variables. The results indicate that firms increase their leverage when the tax rate on interest income decreases, albeit to a small degree. -- |
| Keywords: | income taxation,capital taxation,financial structure,leverage,matching |
| JEL: | H25 H24 G32 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fubsbe:20124&r=acc |
| By: | Dr. Mohd Noor Azli bin Ali Khan Author_Email: mnazli@yahoo.com (Faculty of Management and Human Resource Development,Universiti Teknologi Malaysia,Johor Bahru); Prof. Dr. Noor Azizi bin Ismail (College of Business (Accounting), Universiti Utara Malaysia, Sintok Kedah ) |
| Keywords: | Financial Reporting |
| JEL: | M0 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:cms:1asb11:2011-024-163&r=acc |
| By: | Dr. Mohd Noor Azli bin Ali Khan Author_Email: mnazli@yahoo.com (Faculty of Management and Human Resource Development,Universiti Teknologi Malaysia,Johor Bahru); Prof. Dr. Noor Azizi bin Ismail (College of Business (Accounting), Universiti Utara Malaysia, Sintok Kedah ) |
| Keywords: | Financial Reporting |
| JEL: | M0 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:cms:1asb11:2011-023-162&r=acc |
| By: | Ximing Yue; Jing Xu; Qian Liu |
| Abstract: | A new personal income tax reform implemented in China on September 1, 2011. The main content of this amendment is as follows: The first is to raise the pre-tax salary deduction standard from RMB2000/month to 3500/month; the second is to adjust the tax rate structure of salary, reducing from the former 9-grade extra progressive tax rate to 7 grades and adjusting the rate and the ranges of income; This paper researched the income redistribution effect after personal income tax reform. We first decomposed the redistribution effect index of personal income tax by the composition of income according to the current personal income tax collection mode of sub-levied in China. The main analysis results can be summarized in two points: First, the level of the average effective tax rate is the main determinant of the income redistribution effects and progressive is secondary. Due to the reduction of the effective tax rate, the tax reform has weakened the redistribution effects of personal income tax which already very weak in the former tax system. Second, the overall progressivity index of personal income tax was inverted U-shaped with the improvement of deduction in salary income. Coincidentally, the deduction determined by this reform (RMB3500/month) happens to be at the maximum of the inverted U-shaped,so the higher deduction would weaken the progressive. |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:hst:ghsdps:gd11-229&r=acc |
| By: | Idawati Ibrahim Author_Email: idawati@uum.edu.my (College of Business, Universiti Utara Malaysia,Sintok,Kedah,Malaysia); Jeff Pope (School of Economics and Finance, Curtin University,Perth,Western Australia,Australia) |
| Keywords: | Compliance costs, electronic filing, personal income tax, Malaysia. |
| JEL: | M0 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:cms:1icm11:2011-067-242&r=acc |
| By: | Bruno Martorano (UNICEF Innocenti Research Centre, Florence) |
| Abstract: | In 2007, the Uruguayan government implemented a new tax reform which introduced a new progressive labour income tax, a flat capital income tax, and reduced some indirect taxes, with the objective of improving fiscal balance, income distribution and economic growth. This paper presents an evaluation of the impact of such tax reform on equity and efficiency on the basis of data derived from the Encuesta Continua de Hogares (ECH) for the years 2006 and 2009. Using a Difference-in-Differences technique, the paper shows that the new tax system lowered inequality by 2 Gini points without producing any discernible disincentive effect. These results contrast with the conclusions of supply side-economics and suggest that suitably designed reforms of direct taxation can simultaneously achieve the goals of equity and efficiency. |
| Keywords: | Tax reform, tax incidence, income distribution, efficiency, matching estimators |
| JEL: | C14 D63 H21 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:frz:wpaper:wp2012_06.rdf&r=acc |
| By: | Ximing Yue; Jing Xu |
| Abstract: | This paper investigates the statistical measurement of income distribution and evaluates the income redistribution effect of income tax system in Japan, using National Survey of Family Income and Expenditure 1984-2004. This paper finds first that income inequality has been widening over time, especially in the young (age 39 or less) and middle (age 40-59) groups, second that tax role of income redistribution has been weaken since 1984, and third that the income redistribution effect by taxation is strong in the old (age 60 or above) group because distribution of before tax income is already very unequal among them. |
| JEL: | D3 H2 H24 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:hst:ghsdps:gd11-230&r=acc |
| By: | Charlot, S.; Paty, S.; Piguet, V. |
| Abstract: | The main purpose of this paper is to assess the effects of fiscal cooperation on local taxation in a decentralized country, using the French experience in urban municipalities. We estimate a model of tax setting for local business tax using spatial and dynamic econometric techniques, for the period 1993-2003 and an unbalanced data set. As predicted by the theory, we find that reducing the number of municipalities is likely to limit tax competition and, as a consequence, increase local business tax rates. |
| Keywords: | FISCAL COOPERATION;TAX COMPETITION;VERTICAL EXTERNALITIES;LOCAL BUSINESS TAX |
| JEL: | H2 H3 H7 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:gbl:wpaper:201202&r=acc |
| By: | Richard M. Bird (University of Toronto) |
| Abstract: | This paper reviews the evolution and current state of subnational taxation in five large emerging countries: Brazil, Russia, India, China, and Nigeria – BRIC plus one. As these case studies show, intergovernmental fiscal relations in any country are inevitably both path-dependent and context-sensitive. In India and Brazil, for example, subnational governments already have a significant degree of fiscal autonomy in terms of being able to set some key tax rates. In both countries, however, substantial attention still must be paid to improving the general consumption taxes that are the main source of regional government revenues as well as the property taxes on which local governments mainly depend. Although Nigeria, like India and Brazil, is a federation, its fiscal system depends so heavily on oil revenues that almost all political attention has been focused on securing a bigger share of these revenues. Both China and Russia have made a number of important changes in the direction of centralizing rather than decentralizing effective control over subnational taxes. In both countries the key issue is the extent to which fiscal decentralization is to be accompanied by any significant political decentralization. At the present time, in neither China nor Russia is it clear that the central authorities are willing to permit subnational governments much autonomy in this respect. |
| Keywords: | state and local taxation, intergovernmental fiscal relations, Brazil, Russia, India, China, Nigeria |
| Date: | 2012–01–13 |
| URL: | http://d.repec.org/n?u=RePEc:ays:ispwps:paper1201&r=acc |
| By: | Mohd Azmi Mohd Noor Author_Email: mnmazmi@ tm.com.my (Universiti Utara Malaysia); Dr. Faudziah Hanim Bt Fadzil (Universiti Utara Malaysia) |
| Keywords: | Corporate Governance, Board, Audit Committee, Firms’ Performance |
| JEL: | M0 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:cms:1asb11:2011-039-124&r=acc |