nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2016‒09‒11
eight papers chosen by

  1. U.S. Corporate Income Tax Reform and its Spillovers By Kimberly Clausing; Edward Kleinbard; Thornton Matheson
  2. Foreign Real Estate Tax Experience and its Applicability to Differentiate Tax Rates in Russia By Ivankina, Elena Vladimirovna; Boronina, A.; Kupriyanov, S.L.
  3. The Impact of Taxes on the Extensive and Intensive Margins of FDI By Ronald B Davies; Iulia Siedschlag; Zuzanna Studnicka
  4. R&D Tax Incentives: Evidence on design, incidence and impacts By Silvia Appelt; Chiara Criscuolo; Fernando Galindo-Rueda; Matej Bajgar
  5. Misled and Mis-sold: Financial Misbehaviour in Retail Banks? By Halan, Monika; Sane, Renuka
  6. Value relevance of companies' financial statements in Poland By Marek Gruszczynski; Rafal Bilicz; Monika Kubik-Kwiatkowska; Aleksander Pernach
  7. Russian Federation; Report on the Observance of Standards and Codes-Basel Core Principles for Effective Banking Supervision By International Monetary Fund. Monetary and Capital Markets Department
  8. A National Wealth Approach to Banking Crises and Financial Stability By Olivier M Frecaut

  1. By: Kimberly Clausing; Edward Kleinbard; Thornton Matheson
    Abstract: This paper examines the main distortions of the U.S. corporate income tax (CIT), focusing on its international aspects, and proposes a set of reforms to alleviate them. A bold reform to replace the CIT with a corporate-level rent tax could induce efficiency-enhancing reform of the international tax system. Since fundamental reform is politically difficult, this paper also proposes an incremental reform that would reduce tax expenditures, reduce the CIT rate to 25-28 percent, and impose a minimum rent tax on foreign earnings. Finally, this paper analyzes empirically the likely impact of the incremental on corporate revenues outside the U.S.: Though a U.S. rate cut would likely lower revenues elsewhere, implementation of a strong minimum tax could more than offset that effect for most countries with effective tax rates above 15 percent.
    Keywords: Corporate income taxes;United States;Tax reforms;Positive spillovers;International taxation;Tax systems;Corporate income tax, tax reform, international taxation
    Date: 2016–07–05
  2. By: Ivankina, Elena Vladimirovna (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Boronina, A. (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Kupriyanov, S.L. (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: The work is devoted to analysis of foreign countries the taxation system in order to develop differentiated approaches and rates of taxation of real estate in Russia. In Russia, begins to form on the taxation of property of citizens. The first results of the tax reform will be possible to bring in the end of 2016 - early 2017. Since the reform will be introduced throughout 2016, study foreign experience of taxation is one of the most urgent tasks. Tax Investigation in foreign countries was carried out using both the expert method, and based on the study of existing international information system data.
    Keywords: property tax, land tax, taxation of foreign experience
    Date: 2016–05–16
  3. By: Ronald B Davies; Iulia Siedschlag; Zuzanna Studnicka
    Abstract: The design of optimal tax policy, especially with respect to attracting FDI, hinges on whether taxes affect multinational firms at the extensive or the intensive margins. Nevertheless, the literature has not yet explored the simultaneous impact of taxation on FDI on these two margins. Using firm-level cross-border investments into Europe during 2004-2013, we do so with a Heckman two-step estimator, an approach which also allows us to endogenize the number of investments and include home country and parent firm characteristics. We find that taxes affect both margins, particularly for firms that invest only once, with 92 percent of tax-induced changes in aggregate inbound FDI driven by movements at the extensive margin. In addition, we find significant effects of both home country and parent firm characteristics, pointing towards the granularity of investment decisions.
    Keywords: Foreign direct investment; Taxation; Extensive margin; Intensive margin
    JEL: F23 F14 H25
    Date: 2016–08
  4. By: Silvia Appelt; Chiara Criscuolo; Fernando Galindo-Rueda; Matej Bajgar
    Abstract: This policy paper provides an overview of OECD work on measuring the extent and impact of public support for R&D through tax incentives. It discusses the policy rationale for tax incentives in the broader context of public support for business R&D, describing the main features of different modes of expenditure-based tax relief for R&D. It presents evidence on how much financial support is provided through tax incentives, how this has evolved in recent years and the variation in implied R&D tax subsidy rates across OECD countries and partner economies. The document also reviews empirical evidence on the impact of tax incentives, covering in detail different categories of impacts including potentially unintended effects. It further includes evidence on the use and impacts of income-based R&D tax incentives. The paper concludes with a synthesis of the main policy recommendations contained in key OECD policy documents and highlights future measurement and analytical work planned in this area.
    Date: 2016–09–10
  5. By: Halan, Monika (National Institute of Public Finance and Policy); Sane, Renuka (ISI, Delhi)
    Abstract: We use an audit methodology where auditors ask for tax-saving instruments from banks and document the disclosures made on product features at the time of sale. In private sector banks with high sales incentives, the high commission product is recommended. In public sector banks, where there are deposit mobilisation targets, fixed deposits are recommended. Banks rarely make voluntary disclosures on product features. When specifically requested, information provided is inaccurate or incomplete. Our results demonstrate the challenges of mandating disclosures when buyers have little understanding of the relevance of product characteristics, and distributors are themselves ignorant or influenced by incentives.
    Keywords: Retail Finance ; Banks ; Consumer-Protection ; Disclosure ; Sales Incentives ; India
    JEL: D14 D18 G21
    Date: 2016–08
  6. By: Marek Gruszczynski; Rafal Bilicz; Monika Kubik-Kwiatkowska; Aleksander Pernach
    Abstract: Paper presents three attempts to model the relationship between financial reports of the companies listed on the Warsaw Stock Exchange and their market valuation. Main sections of the paper include: (1) overview of the contemporary issues in the ''value relevance'' studies with reference to the methodology of financial microeconometrics, (2) outcome of the research by M. Kubik-Kwiatkowska on value relevance of annual and quarterly reports, (3) results of the attempts by R. Bilicz on the association between E/P ratio and quarterly accounting data, (4) findings by A. Pernach on the relationship between ROIC or revenue and the market value. All results show that various connections between financials and valuation exist, depending on the approach.
    Keywords: value relevance of accounting statements, financial microeconometrics, comparative valuation
    Date: 2016–08
  7. By: International Monetary Fund. Monetary and Capital Markets Department
    Abstract: This paper presents an assessment of the level of implementation of Basel Core Principles for Effective Banking Supervision in Russian Federation. The legal framework currently in place provides the Central Bank of the Russian Federation (CBR) with necessary powers and responsibilities. The Russian licensing regime for banks appears exhaustive. The legal and regulatory framework provides CBR with a set of instruments and tools to ensure that the licensing process is sound. CBR also has the power to review, reject, and impose prudential conditions on any proposals to transfer significant ownership or controlling interests held directly or indirectly in existing banks to other parties. However, the legal regime for major acquisitions in Russia is found to be weak.
    Keywords: Banking sector;Basel Core Principles;Bank supervision;Bank resolution;Reports on the Observance of Standards and Codes;Russian Federation;
    Date: 2016–07–13
  8. By: Olivier M Frecaut
    Abstract: The paper explores a different, supplementary way to assess and manage a particular type of banking crises, those arising from a rise of nonperforming loans to the corporate sector. It relies on a “national wealth approach,†focusing on the distribution of net wealth among economic sectors and its interaction with developments in the banking system. It identifies avenues for policy response optimization, based on an integrated macrofinancial analytical framework, both for the prevention and the resolution of these types of economic events.
    Keywords: Accounting procedures;Banking crisis;Crisis management;Financial stability;Banking sector;Banking sector distress, National accounts, Macro-financial analysis integration
    Date: 2016–07–05

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.