Table 2 - uploaded by Gaëtan J.A. Nicodème
Content may be subject to copyright.
Source publication
The current debate in corporate taxation is focussing on leveling the tax playing field within the European Union in order to allow companies incorporated in different countries to face the same competitive conditions. However, various elements of corporate tax rules may discriminate against companies registered in the same country but having diffe...
Similar publications
There has been much interest in studying the capital taxation because capital is the driving force of the economy. Capital taxation systems have been developed in different conditions, which resulted in their heterogeneity. For comparison countries, it is important to determine the indicator reflecting the level of the tax burden on capital. The ai...
The aim of this paper is to summarize an overview about market power, types, concentration and competition in Europe. Second, the current state of the European digital taxation will be analyzed. Therefore, the work will be divided into several parts: First, it will give an overview of the different market types, market power, barriers and protectio...
This paper revisits the standard multiplier-accelerator model, as advanced by Samuelson. While borrowing on the main assumptions of the multiplier-accelerator, we check the validity of Keynesian theory. Using higher-order difference equations and advanced-level mathematical techniques we solve the tax-augmented multiplier-accelerator model, as well...
Citations
... And found that there is significant association of tax reforms and corporates specific variables affecting the effective tax rate. Nicodeme (2002) examined the size and sector effect on corporate effective tax rate in countries of European Union and found that there is significant effect of sectors and size on corporate effective tax rate. Some sector and size have more favourable tax burden with in the country. ...
The paper provides the valuable insight into the determinants of effective tax burden on Indian corporates in India with a different approach. The present paper is an empirical study using the sample of 245 corporates 128 from manufacturing sector and 117 from service sector in India taken for the period of FY 2003-04 to FY 2018-19. For the purpose of study, Data are sourced from CMIE (Centre for Monitoring Indian Economy). The OLS and Quantile regression both are used for comparing the effectiveness of both statistical tools. In the present study, significant difference between tax burden on manufacturing and service sector is evident while the Size, leverage, capital intensity, inventory intensity, profitability and foreign operation of corporates are found significant driving factor of tax burden on corporates in both manufacturing and service sector up to some extent. Quantile regression is more justified tool than linear regression for analysis of possible determinants of tax burden in manufacturing and service sector.
... On the other hand, using gross profits instead of turnover allows us to take into account differences in profitability across sectors. For a more detailed discussion of the options for the denominator in ETR calculation, see Lazăr (2014) and Nicodème (2002). ...
... The micro backward-looking methodology calculates the effective tax rate by using the data from the financial statements of the companies. As mentions Nicodéme (2002) the method allows to compare effective taxation of companies with different size in different sectors. Under that model ratio of the tax on pre-tax profit or gross operating profit is usually computed. ...
... Research on that field using micro data was also done by Gupta and Newberry (2010), Plesko (2003), Janssen and Buijink (2000) and others. Detail survey on sector and size effects on effective corporate taxation in the European Union was done by Nicodéme (2002). ...
At present, corporate tax is applied in all EU Member States with the exception of Estonia. Nevertheless, the nominal corporate tax rate does not reflect the real tax burden. For determination of the effective tax burden for corporations, there are used effective corporate tax rates. The aim of the paper is to quantify the relation between the effective average corporate tax rate and nominal corporate tax rates, depreciations, loss compensation and selected investment incentives and to identify the significance of these factors based on the panel analysis. Based on the panel analysis it was found that effective average tax rate is only statistically dependant on nominal corporate tax rate, on tax loss compensation and on the depreciation tax rate of movable property, while in case of other factors, such as depreciation of immovable property, tax holidays and R&D incentives, the dependence is not statistically significant.
... Também no sentido de mostrar que a taxa efectiva de imposto não é igual para todas as empresas, Nicodème (2002) aponta que existem vários factores para empresas de diferentes tamanhos terem diferentes níveis fiscais. Desde logo, são as PME que mais contribuem para o emprego e desenvolvimento económico o que leva os governos a aprovar alguns tratamentos fiscais mais favoráveis, tais como benefícios fiscais que se traduzem em deduções ao rendimento das PME que realizam avultados investimentos, como acontece em Portugal. ...
... Apesar do modelo geral de tributação ser idêntico para todas as empresas que compõem a amostra é necessário ter em conta que, por um lado, há medidas fiscais mais direccionadas a alguns sectores específicos e, por outro lado, a própria legislação fiscal permite tratamentos alternativos. Neste sentido, as taxas efectivas de imposto variam de sector para sector (Nicodème, 2002) e o IR efectivamente suportado varia, com implicações na variável independente do modelo e consequentemente, na própria influência da fiscalidade na contabilidade. ...
... Decorrente da aplicação do modelo por sectores de actividade, confirmou-se que a influência da fiscalidade na contabilidade não é idêntica quando se analisa o sector de actividade em que as empresas operam, o que vai de encontro aos resultados obtidos por Nicodème (2002) que provou que as taxas efectivas de imposto variam de sector para sector, pelo que o IR efectivamente suportado pelas empresas não é similar. ...
... In view of the Maastricht criteria and the Stability pact governments are forced to maintain budgetary discipline. Therefore when governments plan a lower 1 A few other studies have analyzed firm level ETRs using different data sets such as Buijinck et al. (2002), Buijinck et al. (2000), Huizinga & Nicodème (2006), Janssen (2003) and Nicodème (2002). 2 Belgium recently lowered its STR from 40 ...
... Backward-looking tax rates use historic real-life data to estimate the tax burden of a company while forward-looking tax rates consider the tax burden associated with future hypothetical investment decisions. While the advantage of a backward-looking effective tax rate is that it is relatively easy to construct, its use does not only reflect a country's tax incentives embedded in the law but also reflects a country's enforcement policy (Nicodème 2002). The forward looking method considers the tax burden on a hypothetical investment project 8 . ...
... On the other hand there is 'the political power theory' that argues that larger firms have greater resources to influence the political process and therefore larger firms are expected to face lower ETRs. Nicodème (2002) uses 'turnover' as a size variable. Theoretically he derives a positive relationship between a firm's turnover and its tax liability, suggesting that bigger firms would pay more taxes. ...
Dit doctoraat behandelt een vergelijkende empirische studie van vennootschapsbelastingconcurrentie zowel op regionaal als op Europees niveau. Niet alleen landen verschillen onderling, maar ook regio's binnen ��n land kunnen grote economische verschillen vertonen. Dit doctoraat bestaat uit vier hoofdstukken. De eerst twee hoofdstukken bestuderen regionale belastingsverschillen binnen ��n land. Belgi� en Itali� worden als voorbeeld genomen in deze studies omwille van hun sterk verschillende regio's. Ondanks het feit dat de vennootschapsbelasting een federale materie is in deze landen, kan de effectieve belastingdruk van bedrijven en regio's sterk verschillen. Mogelijke redenen zijn de complexiteit van de belastingregels, belastingsaftrekken voor bepaalde ondernemingen of investeringen in bepaalde regio's en voordelige belastingsregimes. Een derde hoofdstuk onderzoekt belastingconcurrentie tussen Europese landen onderling. Tenslotte, behandelt hoofdstuk vier de invloed van belastingen, economische integratie en instituties op export specialisatie in Centraal- en Oost-Europa. Een eerste hoofdstuk in dit doctoraat bestudeert regionale belastingsverschillen in Belgi�. Deze studie, die uitgevoerd werd met gegevens van 12167 jaarrekeningen van grote Belgische ondernemingen, komt tot de conclusie dat de feitelijke belastingdruk van een gemiddeld Belgisch bedrijf 26% in plaats van 40.17% bedroeg tijdens de periode 1993-2002. Ook wijzen de resultaten erop dat de feitelijke belastingdruk tussen 1993 en 2002 gestegen is en dan vooral vanaf 1999. Een mogelijke verklaring is dat de overheid vanaf 1999 de belastbare basis verbreed heeft om in december 2002 het belastingtarief te kunnen verlagen tot 33.99%. Dit is een fenomeen dat ook in andere Europese landen geobserveerd wordt, namelijk het samengaan van een verlaging van de belastingvoet enerzijds maar een uitbreiding van de belastbare grondslag anderzijds om het effect op de begroting van het land te neutralis
... 4 For example, see Milesi-Ferretti and Roubini (1995) and Tanzi and Zee (2000). 5 See Rao and Lukose (2002); Organization for Economic Cooperation and Development (2001); Joumard (2002); and Nicodeme (2002). 6 See Blankenau, Nicole, and Tomljanovich (2004). ...
This paper assesses the effects of India's tax system on growth, through the level and productivity of private investment. Comparison of India's indicators of effective tax rates and tax revenue productivity with other countries shows that the Indian tax system is characterized by: (1) a high dependence on indirect taxes, (2) low average effective tax rates and tax productivity, and (3) high marginal effective tax rates and large tax-induced distortions on investment and financing decisions. The paper finds that the most recently proposed package of reforms would improve tax productivity and lower the marginal tax burden and tax-induced distortions. But firms that rely on internal sources of funds or face problems borrowing would continue to face high marginal tax rates.
... While the advantage of a backward-looking Effective Tax Rate is that it is relatively easy to construct, its use does not only reflect a country's tax incentives embedded in the law but also reflects a country's enforcement policy (Nicodème, 2002). The forward looking method considers the tax burden on a hypothetical investment project. ...
... The empirical model we introduce in this section closely follows the literature by including firm characteristics and sector dummies to explain firm level ETRs (Huizinga & Nicodème, 2003;Nicodème, 2002;Gupta & Newberry, 1997and Buijink et al., 2000b, 2002). In addition to this literature we also include year dummies, location dummies and statutory tax concessions. ...
... The empirical model we introduce in this section closely follows the literature by including firm characteristics and sector dummies to explain firm level ETRs (Huizinga & Nicodème, 2003;Nicodème, 2002;Gupta & Newberry, 1997and Buijink et al., 2000b, 2002). In addition to this literature we also include year dummies, location dummies and statutory tax concessions. ...
This is the first Paper that looks at regional tax competition within one single country. In many countries in Europe, regions within a country differ substantially in their economic development and attractiveness to firms. Belgium is a typical example of a country where the economic situation of its three regions is very different. Our findings are indicative of regional tax competition, with a lower Effective Tax Rate (ETR) in the peripheral region of Wallonia than in Flanders. In addition to location variables, our empirical model explaining firm level heterogeneity in ETRs includes firm characteristics, sector membership and variables capturing statutory tax breaks.
... Deze studies hebben doorgaans betrekking op de VS. Voor Europa vond Nicodeme (2002) onlangs dat grote multinationals gemiddeld minder belasting betalen dan kleine ondernemingen die hun winst niet internationaal kunnen heralloceren. 30 Op basis van deze bevindingen concluderen Hines en Rice dat kleine tax havens hun VPB-opbrengst zouden maximaliseren bij een tarief van tussen de 5 en 8%. ...
... The specification of the model closely follows the literature by including variables that control for legal tax incentives (capital and R&D intensity, LT leverage, foreign ownership), other firm characteristics (firm size), time dummies, sector dummies and regional dummies (Buijinck et al. (2002), Buijinck et al. (2000), Nicodème (2002), Huizinga & Nicodème (2003), Gupta & Newberry (1997), Collins & Shackelford (2002), Janssen (2005), and Vandenbussche & Tan (2005)). The definitions of the variables are described in Table 13 in Appendix. ...
... On the other hand, 'the political power theory' argues that larger firms have greater resources to influence the political process and therefore are expected to face lower ETRs (Gupta & Newberry 1997). Nicodème (2002), using 'turnover' as a size variable, derived a theoretical, positive relationship between a firm's turnover and its tax liability, suggesting that bigger firms would pay more taxes. However, empirically he found a negative relationship between size variables and tax liabilities, suggesting that larger firms pay lower taxes. ...
... After testing the regression model, the author determined that in the period 1992-2004, for 21 European countries, a correlation is validated between the effective tax rate and the size of the company tested based on total assets, the model not being valid in the case of the number of employees. Also, in his work, Nicodeme G. (2002) draws attention to the importance of the size of companies for the analysis of the effective tax rate, because these companies benefit from more resources than a normal one and thus the possibility to do profit shifting increases, even if there are various collaboration mechanisms between states in place and also convention such are the tax avoidance ones. ...
In the context of the permanent global evolution and the flexible economic framework that investors encounter in the decision-making process, this paper aims to analyze the evolution of the effective tax rate in the context of the Coronavirus pandemic in Romania, as well as the factors of influence associated with it, results in the mentioned period. In order to answer these objectives, a quantitative research was carried out for the 85 companies listed on the regulated trading market on the website of the Bucharest Stock Exchange, where a retrospective methodology was applied based on the financial statements published by them for the years 2020 and 2021. Regarding the determination of the influencing factors associated with the evolution of the effective tax rate, it was performed a regular regression for both mentioned years, noticed that in 2020 the size of the companies (SIZE), their solvency (SOLV), as well as the return on assets (ROA), influenced the variation of the effective tax rate, aspect that could not the noticed in 2021. Regarding the evolution of the effective tax rate, it was found that the companies listed on the Bucharest Stock Exchange were undertaxed in the period 2020-2021.
