nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2019‒04‒29
four papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Tax Policy for Innovation By Bronwyn H. Hall
  2. Improved productivity measurement in New Zealand's Longitudinal Business Database By Richard Fabling; David C. Maré
  4. Reducing tax compliance costs through corporate tax base harmonisation in the European Union By Salvador Barrios; Diego d'Andria; Maria Gesualdo

  1. By: Bronwyn H. Hall
    Abstract: A large number of countries around the world now provide some kind of tax incentive to encourage firms to undertake innovative activity. This paper presents the policy rationale for these incentives, discusses their design and potential effectiveness, and reviews the empirical evidence on their actual effectiveness. The focus is on the two most important and most studied incentives: R&D tax credits and super deductions, and IP boxes (reduced corporate taxes in income from patents and other intellectual property).
    JEL: H25 O32 O38
    Date: 2019–04
  2. By: Richard Fabling (Independent researcher); David C. Maré (Motu Economic and Public Policy Research)
    Abstract: Accounts information that businesses supply to Inland Revenue for tax purposes provide over 96% of the observations in the productivity dataset in the Longitudinal Business Database. In 2013, material changes in the data collected halted the annual updating of the productivity dataset. This paper describes a method for accounting for these raw data discontinuities, and revisits the prior productivity dataset methodology, implementing wholesale changes that improve the overall quality of the data and the versatility of the productivity dataset.
    Keywords: Stats NZ Longitudinal Business Database; production function; multifactor productivity; administrative data
    JEL: D20 D24
    Date: 2019–03
  3. By: A.bary, amr
    Abstract: The objective of this paper is to develop a framework for measuring the capital adequacy by assessing the bank’s risks according to the basics of Basel’s norms in respect of the component of tire1&2 of capital adequacy.
    Keywords: Capital adequacy ratio (CAR), Liquidity, Credit Risk, Loan to Deposits (LTD), Equity to Assets (ETA), Retained Earnings (RE).
    JEL: G2 G21
    Date: 2019–02–08
  4. By: Salvador Barrios (European Commission - JRC); Diego d'Andria (European Commission - JRC); Maria Gesualdo (European Commission - JRC)
    Abstract: The reform proposal of the European Commission for a Common Consolidated Corporate Tax Base, the so-called CCCTB, is expected to significantly reduce the cost of doing business by lowering tax compliance costs for cross border operations within the European Union. However, to date the scarcity of comparable estimates on tax compliance costs has limited the assessment of such reduction. We exploit recently released and unique survey data designed to provide comparable information on corporate tax compliance costs in order to assess the impact of the CCCTB, using a general equilibrium modelling approach. Our results suggest that the reduction in tax compliance costs implied by the CCCTB would be associated with greater economic efficiency, including increases in both welfare and GDP. Member States resulting with the lowest compliance costs before the reform and having large inward foreign investment stock would benefit more from the CCCTB. Cross-border business operations would also benefit more from the CCCTB compared to domestic ones. The impact of the CCCTB on non-EU countries such as the US and Japan would be limited.
    Keywords: CCCTB, tax compliance costs, European Union
    JEL: H20 H30 C68
    Date: 2019–04

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