Corporate Income Tax Competition in the Caribbean / Koffie Ben Nassar.

Format:

Book

Government document

Author/Creator:

Ben Nassar, Koffie.

Series:

IMF Working Papers; Working Paper ; No. 2008/077

IMF Working Papers

Language:

English

Subjects (All):

Corporations--Taxation.

Corporations.

Taxation--Rates and tables.

Taxation.

Physical Description:

1 online resource (24 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2008.

Language Note:

English

Summary:

Motivated by the concern that corporate income tax (CIT) competition may have eroded the tax base, this paper calculates average effective tax rates to measure the impact of CIT competition, including the widespread use of tax holidays, on the tax base for 15 countries in the Caribbean. The results not only confirm erosion of the tax base, but also show that CIT holidays must be removed for recent tax policy initiatives (such as accelerated depreciation, loss carry forward provisions, and tax harmonization) to be effective. These findings suggest that the authorities should either avoid granting CIT holidays or rely more on other taxes (including consumption taxes such as the value-added tax) in order to broaden the tax base.

Contents:

Contents; I. Introduction; II. Background and Motivation; III. Related Literature; IV. Developments in Statutory Corporate Income Tax Rates and Bases; A. Corporate Income Tax Rates; B. The Tax Base; V. Evolution of Effective Tax Rates; A. Marginal Effective Tax Rates; B. Average Effective Tax Rates; C. Policy Implications of CIT Holidays; VI. Concluding Remarks; References; Figures; 1. Statutory Corporate Income Rates; 2. Average Statutory Corporate Tax Rates; 3. PDV of Depreciation Allowances; 4. Average PDV of Depreciation Allowances; 5. Marginal Effective Tax Rates

6. Average Effective Tax Rates7. Average and Marginal Effective Tax Rates; 8. Average Effective Tax Rate on Investment, 2005; Tables; 1. Depreciation Allowances for Buildings; 2. Comparison of CITs, METRs, and AETRs; Appendices; I. Average Effective Tax Rate (AETR); A. Marginal Effective Tax Rate; B. Average Effective Tax Rate; II. Derivation of Equation (17)

Notes:

Description based upon print version of record.

Includes bibliographical references.

Description based on online resource; title from PDF cover (ebrary, viewed July 2, 2015).

ISBN:

9786613868657

9781462323517

1462323510

9781451999402

1451999402

9781283556200

1283556200

9781451913927

1451913923