Repatriation Taxes and Foreign Cash Holdings: The Impact of Anticipated Tax Policy

2017 ◽  
Author(s):  
Lisa De Simone ◽  
Joseph D. Piotroski ◽  
Rimmy E. Tomy
Keyword(s):  
Tax Policy ◽  
Cash Holdings ◽  
Repatriation Taxes ◽  
The Impact

Repatriation Taxes and Foreign Cash Holdings: The Impact of Anticipated Tax Reform

2018 ◽  
Vol 32 (8) ◽  
pp. 3105-3143 ◽  
Author(s):  
Lisa De Simone ◽  
Joseph D Piotroski ◽  
Rimmy E Tomy
Keyword(s):  
Financial Reporting ◽  
Cash Holdings ◽  
Behavior Support ◽  
Tax Reduction ◽  
Editorial Decision ◽  
Tax Benefits ◽  
Expected Benefits ◽  
Foreign Corporations ◽  
Repatriation Taxes ◽  
The Impact

AbstractWe examine whether an anticipated reduction in future repatriation taxes affects the amount of cash U.S. multinationals hold overseas. We find that the expected benefits of a repatriation tax reduction are positively associated with accelerated accumulations of global cash holdings once Congress proposed legislation. Additional tests examining domestic and foreign corporations, voluntary disclosures of foreign cash, and corporate payout behavior support our conclusion that observed increases in excess global cash are driven by changes in foreign cash. We also document that U.S. multinationals accumulating excess cash engage in complementary organizational and financial reporting activities designed to maximize expected tax benefits.Received December 7, 2017; editorial decision August 18, 2018 by Editor Andrew Karolyi.

TAX POLICY IN THE FIELD OF EXCISE TAXES ON TOBACCO PRODUCTS IN RUSSIA

2020 ◽  
Vol 3 (3) ◽  
pp. 36-40
Author(s):  
A. A. IDRISOV ◽  
Keyword(s):  
Tax Policy ◽  
Negative Impact ◽  
Tobacco Products ◽  
Excise Tax ◽  
Trade Relations ◽  
Excise Taxes ◽  
Tax Revenues ◽  
Eurasian Economic Union ◽  
Economic Union ◽  
The Impact

The article is devoted to the analysis of the features of excise tax revenues to the budget of the Russian Federation. The analysis of the negative impact on the economy of the distribution of illegal tobacco prod-ucts - cigarettes, as well as the impact of new substitutes for this product. The issues of harmonization of the excise policy of the countries of the Eurasian Economic Union and the regulation of the tax policy in the field of excise taxes on tobacco products, the introduction of new excise taxes on electronic substitutes are considered. These measures are aimed at creating sustainable export-import foreign trade relations and a single market of legalized smoking products. The article is aimed at developing recommendations on strengthening the economy of tobacco production in the context of the creation of the Eurasian Economic Union, as well as on increasing tax revenues from them.

scholarly journals The Impact of Macroeconomic Uncertainty on Cash Holdings for Non-Financial Firms

2004 ◽  
Author(s):  
Christopher F. Baum ◽  
Mustafa O. Caglayan ◽  
Neslihan Ozkan ◽  
Oleksandr Talavera
Keyword(s):  
Cash Holdings ◽  
Financial Firms ◽  
Macroeconomic Uncertainty ◽  
The Impact

scholarly journals HUMAN CAPITAL AND THE IMPACT ON ITS DEVELOPMENT OF THE STATE TAX POLICY

2020 ◽  
Vol 19 (2(45)) ◽  
pp. 70-86
Author(s):  
Є. І. Масленніков ◽  
А. О. Гусєв
Keyword(s):  
Human Capital ◽  
Tax Policy ◽  
The State ◽  
State Tax ◽  
State Tax Policy ◽  
The Impact

scholarly journals Pandemics and Tax Innovations: What can we Learn from History?

2020 ◽  
Vol 6 (3) ◽  
pp. 270-297
Author(s):  
A. I. Pogorletskiy ◽  
◽  
F. Söllner ◽  
Keyword(s):  
Tax Policy ◽  
Large Scale ◽  
Inductive Method ◽  
Tax Administration ◽  
The European Union ◽  
The Past ◽  
Tax Incentive ◽  
Tax Systems ◽  
The Impact ◽  
Tax Regulation

In this article, we shall see how pandemics of deadly diseases have changed tax systems over the past two millennia, each time leading to the emergence of new forms of taxation and tax administration. The purpose of the article is to prove that pandemics and the most notable innovations in tax policy are closely interrelated and that the consequences of the largest pandemics in the history of mankind are new approaches to the organization of national tax systems as well as the formation of interstate tax regulation. The lessons from history can be applied to the current corona crisis and may help us devise the appropriate anti-crisis tax policy. The study is based on the historical empirical-inductive method applied to reliable facts of the past related to pandemics and taxation. We trace the evolution of tax policy under the impact of the most significant pandemics and identify patterns of taxation and tax administration that are specific to their eras and are still relevant in the course of the pandemic COVID-19. Our analysis allows us to draw the following conclusions: (1) There is a historical link between pandemics and tax regulation. Many tax innovations originated in response to the consequences of large-scale epidemics of deadly diseases. (2) Many of the tax incentive tools used today in the fight against the corona crisis have already been used during previous pandemics so that we may learn from the experience of earlier times. (3) The COVID-19 pandemic can be expected to have several important consequences for taxation and public finance: innovations in tax administration with an emphasis on remote fiscal audits and digital control; innovations in the taxation of digital companies and their operations at the national and international level; possibly fundamental changes in the tax system of the European Union; and possibly a return of the inflation tax.

scholarly journals The Impact of Inflation and Operating Cycle on the Corporate Cash Holdings in South-East Europe

2018 ◽  
Author(s):  
Aleksandar Naumoski ◽  
Péter Juhász
Keyword(s):  
Cash Flow ◽  
Financial Management ◽  
Cash Holdings ◽  
Governance Structure ◽  
Operating Cycle ◽  
East European ◽  
Explanatory Variables ◽  
South East Europe ◽  
The Impact ◽  
Corporate Cash Holdings

Determining optimal cash holding is one of the most crucial issues in the corporate financial management aiming to maximise the shareholder value. The optimum of corporate cash amount is not only dependent on many company-specific factors, but it is also associated with both the corporate governance structure and the institutional and macroeconomic environment. Earlier research papers showed that at the macro level, companies adjust their cash holdings to the changes in the level of the inflation and, at the micro level, to the changes of the operating cycle linked to the turnover of the corporate cash flow. This paper investigates the determinants of corporate cash holdings for a sample of 868 firms from ten South-East European countries (Bosnia and Herzegovina, Bulgaria, Montenegro, Croatia, Greece, Romania, Macedonia, Slovenia, Serbia and Turkey). More specifically, we investigate the influence of the inflation and the corporate operating cycle on the corporate cash holdings. Using company financial data and the country CPI for the period 2006-2015, we apply a balanced panel regression model involving the yearly change of the cash ratio as a dependent variable, and country CPI, operating cycle and other firm-specific control variables as explanatory variables.  Results confirm that both the inflation rate and the operating cycle have substantial influence on the change of the corporate cash holdings also in the region. The relationship of the change in cash and the inflation is non-linear and best described by a U-shaped curve. That means that corporate cash holdings decrease as the level of inflation increases to a critical point but beyond that, the cash holdings start to increase. At the same time, we identified a straight linear relationship between the change in cash holdings and the length of the operating cycle. Also, we found that the change in the corporate cash holdings is positively related to the size of the company, the operating cash flow and the capital expenditures. In addition, it is inversely associated with both the change of the net working capital and the change of short and long-term debt.

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