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on Accounting and Auditing |
| By: | Ojo, Marianne |
| Abstract: | Whilst the predecessor (Part I) to this paper addresses criticisms and challenges which have arisen in response to recent Basel Committee's initiatives aimed at addressing capital and liquidity standards, the present paper highlights further measures which are being introduced by the Basel Committee to address such criticisms and challenges. As well as presenting and drawing attention to proposals which could serve as means of addressing challenges presented by liquidity risks, Part I of the paper concludes with the result that market based regulation is an essential and vital tool in the Basel Committee's efforts to address some of the challenges presented by liquidity risks. The present paper highlights the Basel Committee's acknowledgement of this conclusion. Furthermore, it draws attention to other areas which are considered to constitute fertile substrates for purposes of future research. This paper will also illustrate why the potential of banking regulations and disclosure requirements to impact risk taking levels is not only dependent on certain factors such as the dissemination of information to appropriate recipients, appropriate volume of disseminated information, when to disseminate such information, but also on other factors such as ownership structures and effective corporate governance measures aimed fostering monitoring, supervision and accountability. In arguing that additional leverage ratios which have recently been proposed by the Basel Committee will play a key role in facilitating the diversification of banks‘ liquid assets – via the new liquidity standards (Liquidity Coverage Ratio and the Net Stable Funding Ratio), contribution is also made to the current discussion on the resilience of the banking sector – albeit from the perspective of the stabilisation of the entire system. |
| Keywords: | liquidity risks; systemic risks; capital; standards; Basel III; moral hazard; disclosure; information; Liquidity Coverage Ratio (LCR); Net Stable Funding Ratio (NSFR); accountability; corporate governance |
| JEL: | K2 E32 G3 D8 |
| Date: | 2010–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:32630&r=acc |
| By: | Nadine Riedel (Centre for Business Taxation, University of Oxford) |
| Abstract: | This paper investigates corporate taxation under separate accounting (SA) and formula apportionment (FA) in a model with union wage bargaining and multinational firms. Under SA, we find that increases in the corporate tax rate raise the wage level of domestic workers, while they lower the remuneration of foreign workers. The main insight emerging from a tax competition game is that the endogenous wage level gives rise to an ambiguous fiscal externality, which may dampen the race-to-the-bottom in corporate tax rates. A switch to a tax system with FA principles reverses the impact of corporate taxes on negotiated wages. While increases in the corporate tax rate reduce domestic wages, they raise the wage level of foreign workers. In a tax competition game, the endogenous wage level gives rise to a positive fiscal externality that enforces the race-to-the-bottom in corporate tax rates. |
| Keywords: | corporate taxation, multinational firm, union wage bargaining |
| JEL: | H3 H5 J7 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:btx:wpaper:1106&r=acc |
| By: | Johannes Becker (Institute of Public Economics I, University of Muenster); Clemens Fuest (Oxford University Centre for Business Taxation) |
| Abstract: | In this short paper, we review the criticism of the standard view (the ’old view’) of foreign profit taxation which goes back to Peggy Musgrave (née Richman, 1963). This ?new view of international taxation is based on recent empirical studies and favours a system where foreign profits are exempt from tax. We critically discuss the debate between old view and new view proponents and, finally, confront the two with a ?pragmatic view on foreign profit taxation which crucially builds on compliance and tax administration cost. |
| Keywords: | Corporate Taxation, Multinational Firms, Repatriation |
| JEL: | H25 F23 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:btx:wpaper:1104&r=acc |
| By: | Micheál L. Collins (Department of Economics, Trinity College Dublin); Mary Walsh (Chartered accountant, Wicklow, Ireland.) |
| Abstract: | Tax expenditures are perceived to represent a ‘pervasive and growing’ (OECD, 2010) element of many national taxation systems. Despite this, in many countries, there remains a critical lack of understanding of their impact and scale. A 2010 OECD analysis produced data for only seven of its thirty-four member states. Internationally and nationally, such an information deficit undermines the ability of taxation systems to function efficiently and compromises the ability of policy makers to design, control and evaluate taxation interventions. The latter is all the more relevant in the context of recent economic challenges. This paper derives from the results of the first comprehensive exploration of Ireland’s tax expenditure system. It highlights the previously unknown scale of that system, points towards a series of information deficits and compares the Irish system to that of other OECD countries. Based on this analysis, the paper offers a series of administrative and structural reforms relevant to all tax expenditure systems. |
| Keywords: | Tax Expenditures, Tax Reform, OECD, Ireland |
| JEL: | H21 H24 H29 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:tcd:tcduee:tep1211&r=acc |
| By: | Cok, Mitja; Sambt, Joze; Kosak, Marko; Verbic, Miroslav; Majcen, Boris |
| Abstract: | Slovenia belongs to a group of EU member states that have reduced their personal income tax burden during the current financial and economic crisis. The latest changes, introduced in the personal income tax system during the last two years, have primarily reduced the tax burden on low-income taxpayers. However, this was only the last step in a series of personal income tax reforms since 2004 that have on average reduced the tax burden on all taxpayers. Using an exclusive database of taxpayers and utilising a general-equilibrium modelling platform, we assess the consequences of these reforms at both the micro and the macro level. From a macroeconomic point of view, the initial positive consequences of higher private consumption and welfare are declining over time due the increased budget deficit and reduced investment. |
| Keywords: | general equilibrium model; income inequality; macroeconomic effects; microsimulation; personal income tax; Slovenia; tax reform |
| JEL: | D31 D63 H24 H23 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:32704&r=acc |
| By: | Stacie Beck (Department of Economics,University of Delaware); Alexis Chaves (Bureau of Economic Analysis) |
| Abstract: | Few macroeconomic studies exist on the effects of taxes on international trade. Our hypothesis is that higher tax rates raise a country’s production costs, leading to a decrease in exports in the long run. With panel data for 25 OECD countries, we use average effective tax rates on consumption, labor income and capital income to examine their impact on bilateral trade. We find that that all three types of taxes reduce the flow of international trade. |
| Keywords: | tax ratio, average effective tax rate, international trade |
| JEL: | H20 F10 C23 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:dlw:wpaper:11-09.&r=acc |
| By: | Justin Svec (Department of Economics, College of the Holy Cross) |
| Abstract: | This paper analyzes the impact of consumer uncertainty on optimal fiscal policy in a model with capital. The consumers lack confidence about the probability model that characterizes the stochastic environment and so apply a max-min operator to their optimization problem. An altruistic fiscal authority does not face this Knightian uncertainty. It is shown analytically that the government, in responding to consumer uncertainty, no longer sets the expected capital tax rate exactly equal to zero, as is the case in the full-confidence benchmark model. However, our numerical results indicate that the government does not diverge far from this value. Even though the capital income tax rate is close to zero in expectation, consumer uncertainty leads the altruistic government to implement a more volatile capital tax rate across states. In doing so, the government relies more heavily on the capital tax and, consequently, less heavily on the labor income tax to finance the shock to public spending. |
| Keywords: | Robust control, uncertainty, taxes, capital, Ramsey problem |
| JEL: | E61 E62 H21 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:hcx:wpaper:1108&r=acc |