scholarly journals Deferred Tax Positions and Incentives for Corporate Behavior Around Corporate Tax Changes

2010 ◽  
Author(s):  
James M. Poterba ◽  
Nirupama Rao ◽  
Jeri K. Seidman
Keyword(s):  
Corporate Tax ◽  
Corporate Behavior ◽  
Deferred Tax ◽  
Tax Changes

scholarly journals Deferred Tax Positions and Incentives For Corporate Behavior Around Corporate Tax Changes

2011 ◽  
Vol 64 (1) ◽  
pp. 27-57 ◽  
Author(s):  
James M. Poterba ◽  
Nirupama S. Rao ◽  
Jeri K. Seidman
Keyword(s):  
Corporate Tax ◽  
Corporate Behavior ◽  
Deferred Tax ◽  
Tax Changes

scholarly journals Deferred Tax Positions under the Prism of Financial Crisis and the Effects of a Corporate Tax Reform

2015 ◽  
Vol 2 (2) ◽  
pp. 21-58 ◽  
Author(s):  
Evangelos Chytis ◽  
Evangelos Koumanakos ◽  
Spiridon Goumas
Keyword(s):  
Financial Crisis ◽  
Policy Design ◽  
Economic Recession ◽  
Corporate Tax ◽  
Tax Reforms ◽  
Tax Rate ◽  
Deferred Tax Assets ◽  
Corporate Behavior ◽  
Short Run ◽  
Deferred Tax

The effects of corporate tax reforms in reported profits and firms' financial position have been extensively studied in the literature. However, only few studies disaggregate deferred tax items to jointly explore political implications and aspects of corporate behavior around such reforms. Greece's recent financial crisis and economic recession provides an intriguing setting for examining possible incentives and consequences of substantial tax rate changes, such as the 6% increase imposed by the Greek Government in year 2013. Results reveal a totally different picture between financial and non-financial firms, with the former being clearly favored, at least from this short-run effect. These findings seem to coincide with the view that tax policy design is usually shaped by taking into consideration powerful groups' interests. Regarding probable Determinants of Deferred Tax Assets for Tax Loss Carry forwards, the authors find that firms the audit firm may significantly affect recognized amounts due to firm specific internal guidelines and due to the overall quality of the audit.

scholarly journals Who Benefits from State Corporate Tax Cuts? A Local Labor Markets Approach with Heterogeneous Firms

2016 ◽  
Vol 106 (9) ◽  
pp. 2582-2624 ◽  
Author(s):  
Juan Carlos Suárez Serrato ◽  
Owen Zidar
Keyword(s):  
Open Economy ◽  
Structural Parameters ◽  
Heterogeneous Firms ◽  
Reduced Form ◽  
Tax Rates ◽  
Spatial Equilibrium ◽  
Corporate Tax ◽  
Spatial Equilibrium Model ◽  
Tax Changes ◽  
Firm Owners

This paper estimates the incidence of state corporate taxes on the welfare of workers, landowners, and firm owners using variation in state corporate tax rates and apportionment rules. We develop a spatial equilibrium model with imperfectly mobile firms and workers. Firm owners may earn profits and be inframarginal in their location choices due to differences in location-specific productivities. We use the reduced-form effects of tax changes to identify and estimate incidence as well as the structural parameters governing these impacts. In contrast to standard open economy models, firm owners bear roughly 40 percent of the incidence, while workers and landowners bear 30–35 percent and 25–30 percent, respectively. (JEL H22, H25, H32, H71, R23, R51)

The Costs of Corporate Tax Complexity

2021 ◽  
Vol 13 (2) ◽  
pp. 467-500
Author(s):  
Eric Zwick
Keyword(s):  
Small Firms ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Tax Rates ◽  
Corporate Tax ◽  
Corporate Behavior ◽  
Research Designs ◽  
Tax Returns ◽  
Code Complexity ◽  
Tax Loss

Does tax code complexity alter corporate behavior? We investigate this question by studying the decision to claim refunds for tax losses. In a sample of 1.2 million observations from the population of corporate tax returns, only 37 percent of eligible firms claim their refund. A simple cost-benefit analysis of the tax loss choice cannot explain low take-up, motivating an exploration of how complexity alters this calculation. Research designs exploiting tax preparer switches, deaths, and relocations show that sophisticated preparers increase claim rates for small firms. Imperfect take-up has implications for measuring marginal tax rates and for the design of fiscal policy. (JEL D22, D61, E62, H25, K34)

The Effect of Hedge Fund Activism on Corporate Tax Avoidance

2012 ◽  
Vol 87 (5) ◽  
pp. 1493-1526 ◽  
Author(s):  
C. S. Agnes Cheng ◽  
Henry He Huang ◽  
Yinghua Li ◽  
Jason Stanfield
Keyword(s):  
Hedge Fund ◽  
Tax Avoidance ◽  
Securities And Exchange Commission ◽  
Data Availability ◽  
Corporate Tax ◽  
Track Record ◽  
Hedge Fund Activism ◽  
Tax Savings ◽  
Tax Changes ◽  
The Impact

ABSTRACT This paper examines the impact of hedge fund activism on corporate tax avoidance. We find that relative to matched control firms, businesses targeted by hedge fund activists exhibit lower tax avoidance levels prior to hedge fund intervention, but experience increases in tax avoidance after the intervention. Moreover, findings suggest that the increase in tax avoidance is greater when activists have a successful track record of implementing tax changes and possess tax interest or knowledge as indicated by their Securities and Exchange Commission (SEC) 13D filings. We also find that these greater tax savings do not appear to result from an increased use of high-risk and potentially illegal tax strategies, such as sheltering. Taken together, the results suggest that shareholder monitoring of firms, in the form of hedge fund activism, improves tax efficiency. JEL Classifications: G32; G34; H26. Data Availability: Data are available from sources identified in the text.

scholarly journals On the Political Economy of State Corporate Tax Reforms in the U.S.

2019 ◽  
Vol 11 (3) ◽  
pp. 25
Author(s):  
Eliakim Kakpo
Keyword(s):  
Political Economy ◽  
Political Ideology ◽  
The Political ◽  
Tax Rates ◽  
Corporate Tax ◽  
Tax Reforms ◽  
Economic Cycles ◽  
State Tax ◽  
Economic Developments ◽  
Tax Changes

This paper discusses the political economy of U.S. state corporate tax reforms. Using a unique dataset of state effective corporate tax rates over the period 1969-2015, I observe that business tax changes are associated with tax competition, swings in economic cycles, and left-right political ideology. In contrast, long-term debt and budgetary pressures do not correlate with state corporate tax policies. Moreover, I document a regional heterogeneity and notice a slowdown in state tax changes after the Federal Reform Act of 1986. These findings matter for the empirics of corporate tax incidence, which is increasingly concerned with the endogeneity between tax reforms and other economic developments.

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