Tax Biases to Debt Finance: Assessing the Problem, Finding Solutions

 
Author/Editor: Mooij, Ruud A.
 
Publication Date: May 03, 2011
 
Electronic Access: Free Full text (PDF file size is 691KB).
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Summary: The note will pursue one of the major themes of the Fund’s report on financial taxation to the G20 and its work on taxation and the crisis: the importance of paying more attention to the tax biases favoring the use of debt rather than equity finance, notably through the deductibility against corporation income tax of interest payments but not the return to equity. It will assess evidence on the size, nature and welfare implications of the consequent distortions, and develop practical for addressing it.
 
Series: Staff Discussion Notes No. 11/11
Subject(s): Tax systems | Debt | Corporate sector | Tax policy

Author's Keyword(s): Corporate taxation | interest deductibility | corporate financial structure | multinational debt shifting | bank leverage | allowance for corporate equity
 
English
Publication Date: May 03, 2011
ISBN/ISSN: 9781463935139 Format: Paper
Stock No: SDNEA2011011 Pages: 25
Price:
US$20.00 (Academic Rate:
US$20.00 )
 
 
English
Publication Date: May 03, 2011
ISBN/ISSN: 978-1-61635-143-4 Format: A web quality merged PDF
Stock No: SDNET2011011 Pages: 25
Price:
Free
 
 
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