In 2005, Austria changed its group taxation and now provides an option for cross-border loss-offset. We analyze the combined impact of Austria's new group taxation and loss-offset limitations on cross-border investment decisions of Austrian corporations. Monte Carlo-simulations in an...

With an empirical study of the results of the reduction in the income tax schedule by the German red-green government two suitable scales for an evaluation of distributional effects of tax policy are discussed: the redistribution of tax burden and the redistribution of income caused by the...

Microsimulation based on income tax statistics may be useful in tax reform discussions. Unfortunately, access to appropriate data is still rather restricted and expensive for ad-hoc analyses, or individual data is often even not available at all. In this paper we take Germany and its data...

The income tax code of law (EStGB) of Paul Kirchhof (Judge of the Federal Constitutional Court, retd.) is a proposal to reform the income tax and the corporate tax, which was much-noticed in politics and media. The article examines the taxation of shares under the EStGB. In particular effects on...

Since 2005, European companies have to draw up their consolidated financial statements in accordance with the international accounting standards IAS/IFRS. Due to the German authoritative principle, this might also affect tax accounts. Therefore, several scenarios concerning the development of...

Investment and finance decisions are often made under consideration of taxes. But the applied models use a very simplified tax base. This paper analyses the economic effects resulting from such a simplified tax planning. The analysis is based on a business model simulation applying empirical...

In entrepreneurial decisions making uncertain future profits often are a main characteristics of real investment opportunities. If investors can react to uncertainty the degree of irreversibility and timing flexibility inherent in the available project should be integrated into the decision...

In this paper we analyze the impact of various minimum taxation concepts on corporate investment decisions. These investments can be realized in the form of either a real or a financial investment. In a quantitative analysis we refer to the future values of the investments as an indicator of...

The introduction of a common consolidated corporate tax base (CCCTB) and tax allocation via formula apportionment (FA) is hotly debated in the European Union (EU) since more than a decade. While the literature has thoroughly analyzed the economic effects of FA from a macro-level perspective, the...

This paper analyzes the impact of taxation on risk-taking under irreversibility. We integrate a simple tax system into a real option model. Under irreversibility and risk neutrality, raising the tax rate can either increase or reduce risk-taking. We numerically derive tax-volatility indifference...