nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2013‒04‒13
eight papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Are IFRS Value-Relevant for Separate Financial Statements? Evidence from the Italian Stock Market By Vera Palea
  2. Corporate taxation and the quality of research and development By Ernst, Christof; Richter, Katharina; Riedel, Nadine
  3. Tax Morale, Tax Compliance and the Optimal Tax Policy By Gaetano Lisi
  4. Efficiency and Equity Effects of Taxing the Financial Sector: Lessons from a CGE Model for Belgium By Chisari, Omar; Estache, Antonio; Nicodème, Gaëtan
  5. Panel Export Taxes (PET) Dataset: New Data on Export Tax Rates By Olga Solleder
  6. Migration and Wage Effects of Taxing Top Earners: Evidence from the Foreigners' Tax Scheme in Denmark By Kleven, Henrik; Landais, Camille; Saez, Emmanuel; Schultz, Esben
  7. From the EU Savings Directive to the US FATCA, Taxing Cross Border Savings Income By Marcel GERARD; Lucia GRANELLI
  8. The Efficiency and Equity of the Tax and Transfer System in France By Balázs Égert

  1. By: Vera Palea (University of Turin)
    Abstract: Using a sample of Italian firms, I nvestigate the value-relevance of separate financial statements as well as the effects of adopting IFRS. I find that separate financial statements provide investors with useful information, regardless of the accounting standard set used for their preparation. I also document significant differences in value‐relevance between Italian GAAP and IFRS, with IFRS being more informative than Italian GAAP. However,while results are robust for book value, they provide mixed evidence on net income. Overall, this study contradicts those who claim that separate financial statements serve taxation purposes only and provides evidence that adopting IFRS has increased the value ‐relevance of accounting data.
    Date: 2012–06
  2. By: Ernst, Christof; Richter, Katharina; Riedel, Nadine
    Abstract: This paper examines the impact of tax incentives on corporate research and development (R&D) activity. Traditionally, R&D tax incentives have been provided in the form of special tax allowances and tax credits. In recent years, several countries moreover reduced their income tax rates on R&D output (patent boxes). Previous papers have shown that all three tax instruments are effective in raising the quantity of R&D related activity. We provide evidence that, beyond this quantity effect, corporate taxation also distorts the quality of R&D projects, i.e. their innovativeness and revenue potential. Using rich data on corporate patent applications to the European patent office, we find that a low tax rate on patent income is instrumental in attracting innovative projects with a high earnings potential and innovation level. The effect is statistically signficant and economically relevant and prevails in a number of sensitivity checks. R&D tax credits and tax allowances are in turn not found to exert a statistically significant impact on project quality. --
    Keywords: corporate taxation,patent quality,micro data
    JEL: H3 H7 J5
    Date: 2013
  3. By: Gaetano Lisi (Creativity and Motivations (CreaM) Economic Research Centre)
    Abstract: Following the behavioural branch of tax compliance literature, this paper tries to incorporate tax morale into the optimal taxation theory. We show that tax morale affects the optimal mix of policy tools of deterrence to clamp down tax evasion. The optimal tax policy in fact differs according to the type of tax payer taken into account. Precisely, in the case of honest taxpayers the optimal strategy from a social welfare standpoint is to substitute a higher taxation/penalty with tighter monitoring; whereas, in the case of tax evaders, the policy maker should enforce both a higher penalty and an increased monitoring
    Keywords: tax evasion, tax compliance, tax morale, taxation, monitoring JEL
    JEL: H26 J64 K42
    Date: 2013–04
  4. By: Chisari, Omar; Estache, Antonio; Nicodème, Gaëtan
    Abstract: This paper assesses the effects of applying VAT or a sales tax on (intermediate or final) sales of the financial sector. It uses a CGE Model calibrated for a small open economy. It highlights the differentiated sectoral and redistributional effects of these taxes and shows the importance of the financial openness of the economy on these results.
    Keywords: Belgium; financial sector; modeling; sales tax; taxation; VAT
    JEL: H20 H25 H30 H87
    Date: 2013–01
  5. By: Olga Solleder (IHEID, The Graduate Institute of International and Development Studies, Geneva)
    Abstract: This paper describes a newly collected dataset on export tax rates, which provides comprehensive coverage for 20 countries, 2 time periods and all products at HS6 level. Export tax rates are based on national government documentation, including preferential provisions for partner countries. The data are organized in a harmonized and comparable format, including ad-valorem equivalents of specific taxes. The dataset can contribute to the empirical analysis of export taxes – an increasingly applied trade policy instrument, which merits further attention from academia and policy makers alike. Furthermore, the paper contains literature review and stylized facts highlighting various aspects of export taxes.
    Keywords: Export taxes, trade taxes, taxation of exports, export levies, export duties, export tax rates, export tax data, export tax agreements, export restrictions
    JEL: C81 F13 F42 H21 Y10
    Date: 2013–04–04
  6. By: Kleven, Henrik; Landais, Camille; Saez, Emmanuel; Schultz, Esben
    Abstract: This paper analyzes the effects of income taxation on the international migration and earnings of top earners using a Danish preferential foreigner tax scheme and population-wide Danish administrative data. This scheme, introduced in 1991, allows new immigrants with high earnings to be taxed at a preferential flat rate for a duration of three years. We obtain three main results. First, the scheme has doubled the number of highly paid foreigners in Denmark relative to slightly less paid ineligible foreigners, which translates into a very large elasticity of migration with respect to the net-of-tax rate on foreigners, between 1.5 and 2. Hence, preferential tax schemes for highly paid foreign workers could create severe tax competition between countries. Second, we find compelling evidence of a negative effect of scheme-induced increases in the net-of-tax rate on pre-tax earnings at the individual level. This finding cannot be explained by the standard labor supply model where pay equals marginal productivity, but it can be rationalized by a matching frictions model with wage bargaining where there is a gap between pay and marginal productivity. Third, we find no evidence of positive or negative spillovers of the scheme-induced influx of high-skilled foreigners on the earnings of highly paid natives.
    Keywords: International Migration; Taxation; Wage Bargaining
    JEL: H22 H31 J61
    Date: 2013–03
  7. By: Marcel GERARD (UNIVERSITE CATHOLIQUE DE LOUVAIN and CESifo); Lucia GRANELLI (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))
    Abstract: This paper is motivated by the recent innovations regarding the taxation of cross-border savings that took place in the European Union and the United States. We develop a model to assess the functioning of the different systems of international taxation used on both sides of the Atlantic Ocean. We consider agents as investors able to diversify their portfolio between countries and kinds of financial assets. Furthermore, we show the effects of the various settings investigated not only on the taxation of foreign savings income, but also on the tax rates applied to domestic savings. Finally, comparing the respective merits of diverse regimes of information exchange and coordinated withholding taxation, we explore the consequences of the loopholes in both the EU Savings Directive and the US Qualified Intermediary mechanism, and cope with the cost of information sharing. We find that only three tax designs ensure efficiency: a framework of taxation based on the principle of residence, perfect information exchange for all substitutable assets and strategies, and a system of withholding taxation where the residence country can choose the withholding tax rate and also receives all the withholding tax revenues collected abroad.
    Keywords: International Taxation, Taxation of Personal Income, Savings Taxation, European Integration
    JEL: H24 H26 H31 F36 F55
    Date: 2013–03–25
  8. By: Balázs Égert
    Abstract: Taxes and cash transfers reduce income inequality more in France than elsewhere in the OECD, because of the large size of the flows involved. But the system is complex overall. Its effectiveness could be enhanced in many ways, for example so as to achieve the same amount of redistribution at lower cost. The French tax code should be simplified and changed less frequently. High statutory rates are coupled with a wide range of effective tax rates resulting from a multitude of tax expenditures. There is a need for base broadening combined with lower rates throughout the system, including VAT. The tax wedge on labour is high, except at the bottom of the wage distribution, which can reduce worker participation and job offers. Greater neutrality both across different capital asset classes but also within specific taxes, and shifting taxes from labour and capital inputs to environmental and property taxes would improve economic outcomes. Likewise, the system of social and family benefits should be simplified to enhance transparency and consistency. Eliminating schemes that let people leave the labour market early, abolishing the pension privileges of specific occupational groups and internalising the costs of survivors’ pension benefits would increase fairness while at the same time generating savings. Better labour-market performance would result from increasing job-search incentives and shortening the parental leave allowance. This Working Paper relates to the 2013 OECD Economic Survey of France (
    Keywords: taxation, redistribution, income inequality, cash transfers
    JEL: D30 H20 H30 H50 H55 H70 J20 J30
    Date: 2013–03–27

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