The Tax Burden on the Banking Sector: Some Methodological Issues and Assessments

77 Pages Posted: 4 May 2011

Date Written: December 10, 2010

Abstract

The paper considers several approaches to the measurement of firms’ tax burden in order to identify significant indicators for the banking sector. It also analyses features of tax provisions which are peculiar to the Italian system. On these bases, it looks at measures affecting the tax burden on the Italian banking system over the period 2000-09. Inter alia, the analysis shows the role played by the rules for a firm’s tax base and for tax relief and considers the increasing importance of deferred tax assets. The comparison between the Italian banking sector and those of other countries, in relation to commercial banks, shows that over the period 1998-2008 all jurisdictions experienced a reduction in both effective and statutory tax rates. Even if the tax burden on Italian banks has seen one of the largest reductions, this tax indicator is still the highest among the countries considered.

Keywords: tax burden, banks

JEL Classification: G21, H25, H87, K34

Suggested Citation

Pinelli, Vittorio and Ricotti, Giacomo and Santini, Giovanni and Santuz, Laura and Zangari, Ernesto and Zotteri, Stefania, The Tax Burden on the Banking Sector: Some Methodological Issues and Assessments (December 10, 2010). Bank of Italy Occasional Paper No. 80. Available at SSRN: https://ssrn.com/abstract=1825960 or http://dx.doi.org/10.2139/ssrn.1825960

Vittorio Pinelli

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Giacomo Ricotti

Bank of Italy ( email )

Via Nazionale 91
VIa Pastrengo 14
Rome, 00184
Italy

Giovanni Santini

Bank of Italy ( email )

Via Piacenza, 6
00184 Rome, I - 00184
Italy
+39-06-4792-5783 (Phone)

Laura Santuz

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Ernesto Zangari

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Stefania Zotteri (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

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