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...