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Allowances for Corporate Equity in Practice [electronic resource] Klemm, Alexander.

Author/Creator:
Klemm, Alexander.
Publication:
Washington, D.C. : International Monetary Fund, 2006.
Series:
IMF eLibrary
IMF Working Papers; Working Paper No. 06/259.
IMF Working Papers; Working Paper No. 06/259
Format/Description:
Government document
Book
1 online resource (33 p.)
Local subjects:
Average tax rate.
Business income tax.
Business taxation.
Business Taxes and Subsidies.
Capital gains tax.
Capital stock.
Capital structure.
Capital taxes.
Corporate income tax.
Corporate income taxation.
Corporate income taxes.
Corporate tax base.
Corporation tax.
Dividend payments.
Dividend taxation.
Effective tax rates.
Efficiency.
Fiscal affairs.
Fiscal affairs department.
Fiscal reference.
Fiscal studies.
Income tax system.
Income taxes.
Increases in tax rates.
Interest taxation.
International tax.
International tax competition.
Lower tax rates.
Marginal tax rate.
Marginal tax rates.
Models with Panel Data.
National tax journal.
Optimal Taxation.
Personal income tax.
Personal income tax system.
Personal income taxes.
Personal taxes.
Profits.
Public finance.
Tax advantages.
Tax base.
Tax burden.
Tax changes.
Tax competition.
Tax credit.
Tax cut.
Tax deductible.
Tax deduction.
Tax free dividends.
Tax harmonization.
Tax journal.
Tax on capital.
Tax payments.
Tax policy.
Tax profits.
Tax purposes.
Tax rates.
Tax reform.
Tax reform process.
Tax reforms.
Tax revenues.
Tax system.
Tax systems.
Taxable profits.
Taxation.
Brazil.
Croatia.
Italy.
Summary:
This paper provides an overview of full and partial allowance for corporate equity (ACE) tax systems in practice. In the recent past, ACE systems have been used in Austria, Croatia, and Italy. Brazil still applies a variant of such a system and Belgium introduced one this year. This paper summarizes the empirical literature on past ACE systems, and provides a theoretical and empirical assessment of the Brazilian ACE variant. The main finding is that the Brazilian reform introduced an ACE system for a minority of firms only, with the majority instead having a system of dividend deductibility. Despite the reduction in the tax preference for debt finance, capital structures have not changed much, but dividends have increased. Investment appears to have benefited from the reform, although the extent to which this was due to the new structure rather than the tax cut is unclear.
Notes:
Description based on print version record.
Contributor:
Klemm, Alexander.
Other format:
Print Version:
ISBN:
1451865198:
9781451865196
ISSN:
1018-5941
Publisher Number:
10.5089/9781451865196.001
Access Restriction:
Restricted for use by site license.
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