nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2021‒09‒13
five papers chosen by

  1. The Effects of R&D Tax Incentive Reform on R&D Expenditures: The Case of 2009 Reform in Japan By OKAMURO, Hiroyuki; SAKUMA, Yohei
  2. Real effects of an international tax reform for MNEs By Ortmann, Regina; Simons, Dirk; Voeller, Dennis
  3. Nota Sobre Algumas Interpretacoes da Teoria de Tributacao Otima By Jose Ricardo Bezerra Nogueira
  4. Making profits by leading retailers in the digital transition: A comparative analysis of Carrefour, Amazon and Wal-Mart (1996-2019) By Céline Baud; Cédric Durand
  5. Multinational enterprises and intangible capital By Charles Cadestin; Alexander Jaax; Sébastien Miroudot; Carmen Zürcher

  1. By: OKAMURO, Hiroyuki; SAKUMA, Yohei
    Abstract: Tax incentives have been implemented in several countries, including Japan, to promote research and development (R&D). Several previous studies evaluate the effects of R&D tax incentives on R&D expenditures, but few address the changes in its conditions. This study fills this gap by focusing on the tax incentive reform in Japan in 2009 and using a comprehensive panel data set of Japanese corporations (TDB COSMOS1). Using DID and fixed-effect panel analyses, we found a positive and significant effect of enhancing the deduction ratio ceiling but not extending the carryover period on R&D expenditures.
    Keywords: R&D, tax incentive reform, policy evaluation, Japan
    JEL: H25 L25 O32 O38
    Date: 2021–08
  2. By: Ortmann, Regina; Simons, Dirk; Voeller, Dennis
    Abstract: With multinational enterprises (MNEs) centralizing production facilities, market countries claim not to receive their fair share of taxes. A reform of international business taxation that includes new profit allocation rules as well as the introduction of minimum taxation is being considered as a problem mitigating mechanism. We analyze theoretically the real effects of the aforementioned tax reform, i.e., MNEs' adjustments of production and sales decisions. Our findings show that the effects of an international tax reform on sales quantities depend on the properties of the underlying product markets. If national demand resembles characteristics of traditional industries, sales quantities remain unchanged. However, sales quantities are affected if specific demand characteristics of modern business models are assumed. For traditional industries a reformed tax regime increases tax revenues in high-tax market countries and even attracts production. In contrast, for modern business models tax revenues of high-tax countries can even decrease.
    Keywords: BEPS,corporate taxation,minimum taxation,profit shifting,tax avoidance
    JEL: C70 H26 H32 M48
    Date: 2021
  3. By: Jose Ricardo Bezerra Nogueira
    Abstract: This note discusses some aspects of interpretations of the theory of optimal taxation presented in recent works on the Brazilian tax system.
    Date: 2021–09
  4. By: Céline Baud; Cédric Durand (UNIGE - Université de Genève, Faculté des sciences de la société, Département d'histoire, économie et société, CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This contribution documents the contrasting fate of three key actors of the retail industry since the mid-nineties: Carrefour, Wal-Mart and Amazon. Stylized facts about their respective financial trajectories and a description of their engagement with digitalization allow to identify their distinct dynamics. Through a combination of accounting, business and economic analyses, this paper clarifies the underlying logics of profit making in the context of retail digitalization and provides new insights concerning the role of fixed costs leveraging in the digital age.
    Keywords: Retailing,digitalization,financialization,profits,accounting JEL codes: L81,L22,M41,D22,G32
    Date: 2021–09–02
  5. By: Charles Cadestin (OECD); Alexander Jaax (OECD); Sébastien Miroudot (OECD); Carmen Zürcher (OECD)
    Abstract: This paper provides new evidence on the role of intangible capital in global value chains (GVCs) by focusing on the role of multinational enterprises (MNEs) and their foreign affiliates in value capture through intangible assets. Industry-level data suggest that foreign affiliates of MNEs generate more income through intangible capital than domestic-owned firms. Intangible returns from foreign affiliates are found both in the host economy and in foreign-owned firms in other countries participating in the GVC. Some heterogeneity is observed across GVCs with returns to intangible capital of foreign-owned firms concentrated in key manufacturing (chemicals including pharmaceuticals, food products, ICT and electronics, and motor vehicles) and services GVCs (finance and insurance, other business services, wholesale and retail, and telecoms). Five case studies (Adidas, AstraZeneca, Rocket Internet, Starbucks and Tata Consultancy Services) complement the analysis by looking at the role of intangible capital in the GVC of specific MNEs.
    Keywords: factor income, foreign affiliates, global value chains, intangible capital, multinational enterprises
    Date: 2021–09–09

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