Arbeitspapier
Methods of Mitigating Double Taxation
This paper presents a comprehensive overview of existing methods of mitigating double taxation of corporate income within a standard cost of capital model. Two of the most well-known and most utilized methods, the imputation and the split rate systems, do not mitigate double taxation in corporations where the marginal investment is financed with retained earnings. However, all methods are effective when the marginal investment is financed with new share issues. The corporate tax rate, fiscal allowances, allocation to periodization funds and allocation to tax equalization reserves (or allowance for corporate equity) are effective instruments, independent of the sources of financing. The paper also discusses why so many different methods have been employed in mitigating double taxation.
- Language
-
Englisch
- Bibliographic citation
-
Series: Working Paper ; No. 2002:8
- Classification
-
Wirtschaft
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
Business Taxes and Subsidies including sales and value-added (VAT)
Fiscal Policies and Behavior of Economic Agents: Firm
- Subject
-
Corporate Taxation
Double Taxation
Cost of Capital
Körperschaftsteuer
Einkommensteuer
Körperschaftsteuer
Kapitalkosten
Theorie
- Event
-
Geistige Schöpfung
- (who)
-
Lindhe, Tobias
- Event
-
Veröffentlichung
- (who)
-
Uppsala University, Department of Economics
- (where)
-
Uppsala
- (when)
-
2002
- Handle
- URN
-
urn:nbn:se:uu:diva-2228
- Last update
- 10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Lindhe, Tobias
- Uppsala University, Department of Economics
Time of origin
- 2002
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