Corporate tax reforms carried out in EU countries since 1980 entail lower statutory tax rates and reductions in generous tax depreciation provisions. Several countries, including the UK, have reduced tax rates for small and medium-sized enterprises (SMEs). This study compares incentive effects...

Presumptive income taxes in the form of a tax on turnover for SMEs are pervasive as a way to reduce the costs of compliance and administration. We analyze a model where entrepreneurs allocate labor to the formal and informal sectors. Formal sector income is subjected either to a corporate income...

In 1996 the Commonwealth Government embarked on a campaign to helping Australia's 860,000 small businesses from the constraints of crippling taxes and red tape with the establishment of the Small Business Deregulation Taskforce. Notwithstanding the efforts of the taskforce the income tax laws...

This paper examines aspects of the policy design processes associated with the 1999 Review of Business Taxation. Given the breadth of the Review’s recommendations this paper focuses on two of its enacted proposals, the non-commercial loss (NCL) rules and the Simplified Tax System (STS). Whilst...

The Norwegian dual income tax system gave incentives for business owners to incorporate and take advantage of the lower tax on capital income. The tax reform of 2006, which was designed to eliminate these incentives, is used to discuss effects of taxation on the choice of organisational form....

We study the responsiveness of small and medium-sized firms to a small-business corporate income tax schedule using population-wide administrative data from South Africa. We find sizeable bunching of firms at the corporate income thresholds where the corporate tax rate increases, implying active...