Corporate and Statutory Tax Rates

CEU Department of Economics Working Paper No. 4/2002

25 Pages Posted: 14 May 2002

See all articles by Max Gillman

Max Gillman

Central European University (CEU) - Department of Economics

Mark N. Harris

Curtin University

Simon Feeny

RMIT University - School of Economics, Finance and Marketing

Date Written: March 22 2002

Abstract

The paper investigates the factors that cause effective corporate tax rates (ETRs) to diverge from the statutory rate of corporation tax (SRCT). Based on accounting identities, a model of ETRs is specified that allows quantification of the effects of observed firm heterogeniety on how its ETRs may differ fromt he SRCT. Results suggest that significant factors are interest payments, R&D expenditure, foreign ownership, stock-market listing and the number of subsidiaries. The results also suggest that unobserved firm heterogeneity plays a significant role.

Keywords: firms, effective tax rate

JEL Classification: H25

Suggested Citation

Gillman, Max and Harris, Mark N. and Feeny, Simon, Corporate and Statutory Tax Rates (March 22 2002). CEU Department of Economics Working Paper No. 4/2002, Available at SSRN: https://ssrn.com/abstract=309940 or http://dx.doi.org/10.2139/ssrn.309940

Max Gillman (Contact Author)

Central European University (CEU) - Department of Economics ( email )

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Budapest H-1051
Hungary
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+36 1 327 3232 (Fax)

Mark N. Harris

Curtin University ( email )

Kent Street
Bentley
Perth, WA WA 6102
Australia

HOME PAGE: http://business.curtin.edu.au/contact/staff_directory/?profile=Mark-Harris

Simon Feeny

RMIT University - School of Economics, Finance and Marketing ( email )

Business
Level 12, 239 Bourke Street
Melbourne, Victoria 3000
Australia
+(61 3) 9925 5901 (Phone)

HOME PAGE: http://www.rmit.org.au/browse;ID=vizkot5w8t4kz

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