Generalised R-based and S-based taxes under uncertainty
This paper considers the relationship between two general neutral business tax structures, which we label the ‘firm tax’ and the ‘shareholder tax’. The well-known R-based and S-based cash flow taxes, analysed by Meade (1978), are special cases of these two taxes. We demonstrate the neutrality of bot...
| Main Authors: | , |
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| Format: | Journal article |
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2003
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| _version_ | 1797100427131486208 |
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| author | Devereux, M Bond, S |
| author_facet | Devereux, M Bond, S |
| author_sort | Devereux, M |
| collection | OXFORD |
| description | This paper considers the relationship between two general neutral business tax structures, which we label the ‘firm tax’ and the ‘shareholder tax’. The well-known R-based and S-based cash flow taxes, analysed by Meade (1978), are special cases of these two taxes. We demonstrate the neutrality of both taxes in the presence of uncertainty, and characterise the tax rules required in the event of default and wind-up. Our analysis provides the first proof of the neutrality of the S-based cash flow tax and the Allowance for Corporate Equity (ACE) corporation tax under uncertainty. We also discuss implementation and tax avoidance issues. |
| first_indexed | 2024-03-07T05:37:20Z |
| format | Journal article |
| id | oxford-uuid:e45d9f4e-aae0-498c-b9be-f7c91da0def9 |
| institution | University of Oxford |
| last_indexed | 2024-03-07T05:37:20Z |
| publishDate | 2003 |
| record_format | dspace |
| spelling | oxford-uuid:e45d9f4e-aae0-498c-b9be-f7c91da0def92022-03-27T10:16:00ZGeneralised R-based and S-based taxes under uncertaintyJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:e45d9f4e-aae0-498c-b9be-f7c91da0def9Saïd Business School - Eureka2003Devereux, MBond, SThis paper considers the relationship between two general neutral business tax structures, which we label the ‘firm tax’ and the ‘shareholder tax’. The well-known R-based and S-based cash flow taxes, analysed by Meade (1978), are special cases of these two taxes. We demonstrate the neutrality of both taxes in the presence of uncertainty, and characterise the tax rules required in the event of default and wind-up. Our analysis provides the first proof of the neutrality of the S-based cash flow tax and the Allowance for Corporate Equity (ACE) corporation tax under uncertainty. We also discuss implementation and tax avoidance issues. |
| spellingShingle | Devereux, M Bond, S Generalised R-based and S-based taxes under uncertainty |
| title | Generalised R-based and S-based taxes under uncertainty |
| title_full | Generalised R-based and S-based taxes under uncertainty |
| title_fullStr | Generalised R-based and S-based taxes under uncertainty |
| title_full_unstemmed | Generalised R-based and S-based taxes under uncertainty |
| title_short | Generalised R-based and S-based taxes under uncertainty |
| title_sort | generalised r based and s based taxes under uncertainty |
| work_keys_str_mv | AT devereuxm generalisedrbasedandsbasedtaxesunderuncertainty AT bonds generalisedrbasedandsbasedtaxesunderuncertainty |