Evaluating Neutrality Properties of Corporate Tax Reforms

Devereux, Michael and Loretz, Simon (2010) Evaluating Neutrality Properties of Corporate Tax Reforms. Centre for Business Taxation WP 10/07.

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Abstract

We propose a methodology for assessing the neutrality of corporate tax reform proposals in an open economy. The methodology identifies variation in effective tax rates to assess the proximity of a tax system to capital export neutrality (CEN) and to market neutrality (MN, which holds if all potential competitors in a single market face the same effective tax rate). We apply the methodology to two reform options in the EU. Optional international loss consolidation would move the EU tax system away from both CEN and MN. The proposed common consolidated corporate tax base (CCCTB) has mixed effects which depend on the precise comparisons made.

Item Type: Other Working Paper
Keywords: Corporate Taxation; International Loss Consolidation; Ap- portionment Rules; Common Consolidated Tax Base; Neutrality;
Centre: Oxford University Centre for Business Taxation > CBT Working Papers
Date Deposited: 25 Apr 2012 10:46
Last Modified: 15 Oct 2015 02:18
URI: http://eureka.sbs.ox.ac.uk/id/eprint/3248

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