The Resource A destination based allowance for corporate equity

A destination based allowance for corporate equity

Label
A destination based allowance for corporate equity
Title
A destination based allowance for corporate equity
Creator
Subject
Language
eng
Summary
Following renewed academic and policy interest in the destination-based principle for taxing profits - particularly through a destination-based cash-flow tax (DBCFT) - this paper studies other forms of efficient destination-based taxes. Specifically, it analyzes the Destination-Based Allowance for Corporate Equity (DBACE) and Allowance for Corporate Capital (DBACC). It describes adjustments that are required to turn an origin into a destination-based version of these taxes. These include adjustments to capital and equity, which are additional to the border adjustments needed under a DBCFT. The paper finds that the DBACC and DBACE reduce profit shifting and tax competition, but cannot fully eliminate them, with the DBACE more sensitive than the DBACC. Overall, given the potential major political cost of switching from an origin to a destination-based tax system, the authors conclude that advantages of the DBCFT are likely to outweigh the transitional advantages of the DBACE/DBACC
Citation source
In: International tax and public finance. - New York. - Vol. 27 (2020), no. 3 ; p. 753-777
http://library.link/vocab/creatorName
  • Hebous, S
  • Klemm, A
Geographic coverage
International
Language note
English
http://library.link/vocab/subjectName
  • destination principle
  • corporate income tax
  • cash flow tax
  • allowance for corporate equity
  • border tax adjustment
Label
A destination based allowance for corporate equity
Instantiates
Publication
Label
A destination based allowance for corporate equity
Publication

Library Locations

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      52.3736660 4.9336932
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