International Taxation and Cross-Border Banking / Harry Huizinga, Johannes Voget, Wolf Wagner.

Format:

Book

Author/Creator:

Huizinga, Harry.

Contributor:

National Bureau of Economic Research.

Voget, Johannes.

Wagner, Wolf, 1974-

Series:

Working Paper Series (National Bureau of Economic Research) no. w18483.

NBER working paper series no. w18483

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2012.

Summary:

This paper examines empirically how international taxation affects the volume and pricing of cross-border banking activities for a sample of banks in 38 countries over the 1998-2008 period. International double taxation of foreign-source bank income is found to reduce banking-sector FDI. Furthermore, such taxation is almost fully passed on into higher interest margins charged abroad. These results imply that international double taxation distorts the activities of international banks, and that the incidence of international double taxation of banks is on bank customers in the foreign subsidiary country. Our analysis informs the debate about additional taxation of the financial sector that has emerged in the wake of the recent financial crisis.

Notes:

Print version record

October 2012.