INFLATION AND THE TAXATION OF CAPITAL INCOME IN THE CORPORATE SECTOR

The paper provides new survey evidence on effects of concentrated ownership upon investment and performance in Russian industrial enterprises. Authors trace major changes in their ownership profile, assess pace of post-privatization redistribution of shareholdings and provide evidence on ownership concentration in the Russian industry. The major econometric findings are that the first largest shareholding is negatively associated with the firm’s investment and performance but surprisingly the second largest shareholding is positively associated with them. Moreover, these relationships do not depend on identity of majority shareholders. These results are consistent with the assumption that the entrenched controlling owners are engaged in extracting "control premium" but sizable shareholdings accumulated by other blockholders may put brakes on their expropriating behavior and thus be conductive for efficiency enhancing. The most interesting topic for further more detailed analysis is formation, stability and roles of coalitions of large blockholders in the corporate sector of post-socialist countries.

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Mergers And Acquisitions In Corporate Sector

International Journal of Scientific Research ◽

10.15373/22778179/sep2012/34 ◽

2012 ◽

Vol 1 (4) ◽

pp. 97-99

Author(s):

Dr. M. Venkatasubba Reddy ◽

◽

B. Swetha B. Swetha ◽

T. Srinivasaroa T. Srinivasaroa

Keyword(s):

Mergers And Acquisitions ◽

Corporate Sector

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Hungarian small business tax and possibilities to minimize distortions from capital income taxation

Society and Economy ◽

10.1556/204.2015.37.s.6 ◽

2015 ◽

Vol 37 (s1) ◽

pp. 87-105

Author(s):

Benedek Nobilis ◽

András Svraka

Keyword(s):

Small Business ◽

Cash Flow ◽

Capital Accumulation ◽

Value Added ◽

Regulatory Elements ◽

Capital Income ◽

Potential Growth ◽

Elegant Method ◽

Business Tax ◽

Working Out

Governments throughout the EU and OECD countries rely on revenues raised on capital income. Albeit several arguments can be made for keeping these taxes, in their widespread form they hinder capital accumulation and significantly lower potential growth due to their savings and investment distorting nature. At the same time, the actual economic impact of tax types is largely influenced by their structure. An elegant method, which is also simple in its concept, for eliminating the economic distortions of profit taxes is cash-flow taxation which moves income taxes closer to the more growth-friendly value-added taxes. The small business tax, which was introduced in Hungary in 2013, was designed along these principles. In this paper we review the theoretical literature on cash-flow taxation and discuss the main regulatory elements of the small business tax, as well as the solutions elaborated for working out the challenges related to its implementation.

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