Steuerwirkungsanalysen unter Verwendung von unternehmensbezogenen Mikrosimulationsmodellen

Reister, Timo

doi:10.1007/978-3-8349-8303-9

Cited by 7 publications

(5 citation statements)

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“…The basic idea of the model is to derive tax payments for a reference and reform scenario from a broad firm-level dataset of financial accounts. The first step consists of adjusting the available data according to the tax code of a reference tax regime (Reister (2009)). This includes for example reversing deductions in financial accounts that are prohibited for tax accounts (e.g.…”

Section: Methodology and Datamentioning

confidence: 99%

Assessing the Impact of Introducing an ACE Regime - A Behavioural Corporate Microsimulation Analysis for Germany

2014

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. May 2014Abstract: In their famous Mirrlees review (2011) on reforming the tax system for the 21st century, the authors put forward the introduction of an allowance for corporate equity regime. In recent years, several countries introduced an ACE regime. The main feature of an ACE regime is that it removes tax distortions on marginal investment and finance distortions. Yet, by narrowing the tax base an ACE regime potentially requires an increase in tax rates which might affect location choices and profit shifting activity negatively. In this paper, we employ a microsimulation model to determine the consequences of introducing an ACE regime in Germany. The simulation results show that granting an ACE for corporate income tax purposes results in a revenue loss of about 18%. This could be financed by an increase of the combined profit tax rate by 6 percentage points. At firm level, our analysis illustrates the heterogeneous distribution of the reform effect accross the sample. For 50% of firms between the 25th and 75th percentile, introducing an ACE regime reduces tax payments between 35% and 2%. If the ACE is combined with a tax rate adjustment, the tax effect ranges between -32% and +7.1% for firms between the 25th and 75th percentile. With respect to behavioural responses on decision margins, we find that introducing the ACE reduces the mean debt-ratio by about 1.5 percentage points in the short run. For the capital-stock we arrive at a mean short-term increase of 2.4%. Finally, our computations show that the ACE regime with adjusted profit tax rate cannot be overall tax neutral. In particular, the increase in the profit tax rate required to finance the equity allowance induces intensified outward profit-shifting activities and affects location choices negatively. In the short-run the tax revenue is therefore shown to decline to about 95% of its original level.

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Section: Methodology and Datamentioning

confidence: 99%

Assessing the Impact of Introducing an ACE Regime - A Behavioural Corporate Microsimulation Analysis for Germany

2014

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“…Such an approach was implemented e.g. by Reister [2009], Finke et al [2012] and Oestreicher et al [2014]. By contrast, looking at a single period only could be misleading since the opposite changes in the tax base to which it comes within a period of several years (a deduction in period t leads to an increase of the tax base in period t+n) would not be taken into account.…”

Section: Research Methodology Of Microsimulationmentioning

confidence: 99%

“…Reversal of such provisions should not be accounted for in the simulation of the tax base. The procedure is based on that implemented by and Reister [2009] who applied the methodology of investment vintages to explain the composition of provisions for warranty obligations and contingent liabilities. However, the model implemented in this paper is first and foremost based on the information on the time structure of provisions as given in firm's balance sheet.…”

Section: Research Methodology Of Microsimulationmentioning

confidence: 99%

“…Moreover, carrying out the analysis for different cross-sections of companies according to their size is a common approach in microsimulation studies and was implemented e.g. in Petersen et al [2003], Reister [2009] and Finke et al [2013]. It allows policy makers to take a closer look at possible implications of tax reforms with a particular focus on small and medium sized enterprises -entities which are often subject to special initiatives within the economic policy.…”

Section: Research Methodology Of Microsimulationmentioning

confidence: 99%

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Provisions for Future Liabilities and Effective Corporate Income Tax Rate

Leszczyłowska

2016

Gospodarka Narodowa

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The paper quantifies the impact of timing differences that emerge in the case of discrepancies between accounting and tax rules on the corporate tax burden. The objective of the paper is to investigate the effect of the accelerated deductibility of company expenses via provisions for future liabilities on the multi-period effective average corporate tax rate (EATR). In the investigation, pension provisions and so-called "other provisions" are taken into account and a multi-period backward-looking measure of the tax burden based on corporate cash flows is developed. The investigated companies are divided into several subgroups according to their size and multi-period cash flow. Under the current tax law, the highest tax burden among companies with positive cash flows is observed for medium-sized firms, at 33%. For small and large enterprises, the burden takes values of 24% and 25% respectively. A different situation is observed among firms with negative cash flows: in general, the EATRs are noticeably higher in this case. Under the current tax law, the average effective tax rates are 60% for all firms and 38%, 45% and 51% for medium-sized, small and large corporations respectively. If changes are made to the ways provisions for future payments are treated under tax regulations, a slight reduction may be observed in the multi-period average effective tax burden. In general, the timing effects of the deductibility of provisions lead to an average change in the effective tax rate from-1 percentage point (in the case of small companies with positive cash flows) to-4 percentage points (in the case of small entities with negative cash flows and medium-sized entities with positive cash flows). Although the differences in the median tax burden may seem to be slight, they are statistically significant.

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“…Tax bases and tax liabilities of some firms may still be overestimated since losses from years prior to 2007 are not contained in the underlying dataset. 2 A multi-period microsimulation approach is used for instance in(Reister, 2009).3 Nominal corporate tax rate in Poland is 19% in the entire period.4 The annual percentage rate is derived from Polish treasury bonds.…”

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confidence: 99%

Microsimulation as an instrument for tax policy analyses

Leszczyłowska

2015

BEH

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The paper deals with microsimulation-an increasingly popular instrument used for policy analysis, especially in the field of individual and corporate income taxation. The aim of the paper is twofold. First, it discusses some key aspects of microsimulation with a particular focus on its types and implementations in tax policy research. Secondly, it presents a microsimulation analysis of the effects of unlimited interperiod loss offset in corporate income tax. The investigation is based on a panel of 222 corporations active in Poland, which was derived from the InfoCredit database. The microsimulation is carried out in a multi-period setting (2007-2012). It considers a perspective of taxpayers with a particular focus on individual tax burden and distributional effects of taxation. The analysis shows that the expected overall consequences of the tax reform in question would be rather moderate, however the size of the effects would vary strongly across firms.

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Steuerwirkungsanalysen unter Verwendung von unternehmensbezogenen Mikrosimulationsmodellen

Cited by 7 publications

References 0 publications

Assessing the Impact of Introducing an ACE Regime - A Behavioural Corporate Microsimulation Analysis for Germany

Assessing the Impact of Introducing an ACE Regime - A Behavioural Corporate Microsimulation Analysis for Germany

Provisions for Future Liabilities and Effective Corporate Income Tax Rate

Microsimulation as an instrument for tax policy analyses

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