Debt Taxes And Banks
DOWNLOAD
Download Debt Taxes And Banks PDF/ePub or read online books in Mobi eBooks. Click Download or Read Online button to get Debt Taxes And Banks book now. This website allows unlimited access to, at the time of writing, more than 1.5 million titles, including hundreds of thousands of titles in various foreign languages. If the content not found or just blank you must refresh this page
Debt Taxes And Banks
DOWNLOAD
Author : Mr.Michael Keen
language : en
Publisher: International Monetary Fund
Release Date : 2012-02-01
Debt Taxes And Banks written by Mr.Michael Keen and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2012-02-01 with Business & Economics categories.
Understanding the impact of the asymmetric tax treatment of debt and equity on the capital structures of financial institutions is critical to shaping and assessing responses to the problem of excessive leverage that underlay the 2009 financial crisis - but there is no empirical evidence to draw on. Guided by a simple model of banks? financing decisions in the presence of both regulatory constraints and tax asymmetries, this paper explores the impact of corporate tax bias on bank leverage, the use of hybrid instruments and regulatory capital ratios for a panel of over 14,000 commercial banks in 82 countries over nine years. On average, the sensitivity of banks? debt choices proves very similar to that of non-financial firms, consistent with rough offsetting of two opposing effects suggested by the theory. As the model predicts, somewhat counter-intuitively, the impact of tax on hybrids is generally weak or insignificant. Responsiveness to taxation varies significantly across banks, however: those holding smaller equity buffers, and larger banks, are noticeably less sensitive to tax.
Taxation And Corporate Debt
DOWNLOAD
Author : Mr.Jost Heckemeyer
language : en
Publisher: International Monetary Fund
Release Date : 2013-10-29
Taxation And Corporate Debt written by Mr.Jost Heckemeyer and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2013-10-29 with Business & Economics categories.
This paper explores whether corporate tax bias toward debt finance differs between banks and nonbanks, using a large panel of micro data. On average, it finds that there is no significant difference. The marginal tax effect for both banks and non-banks is close to 0.2. However, the responsiveness differs considerably across the size distribution and the conditional leverage distribution. For nonbanks, we find a U-shaped relationship between asset size and tax responsiveness, although this pattern does not hold universally across the conditional leverage distribution. For banks, in contrast, the tax responsiveness declines linearly in asset size. Quantile regressions show further that capitaltight banks are significantly less responsive than are capital-abundant banks; the same pattern holds for the largest non-banks. Still, even the largest banks with high conditional leverage ratios feature a significant, positive tax response.
Taxation And Leverage In International Banking
DOWNLOAD
Author : Ms.Grace Weishi Gu
language : en
Publisher: International Monetary Fund
Release Date : 2012-11-30
Taxation And Leverage In International Banking written by Ms.Grace Weishi Gu and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2012-11-30 with Business & Economics categories.
This paper explores how corporate taxes affect the financial structure of multinational banks. Guided by a simple theory of optimal capital structure it tests (i) whether corporate taxes induce subsidiary banks to raise their debt-asset ratio in light of the traditional debt bias; and (ii) whether international corporate tax differentials vis-a-vis foreign subsidiary banks affect the intra-bank capital structure through international debt shifting. Using a novel subsidiary-level dataset for 558 commercial bank subsidiaries of the 86 largest multinational banks in the world, we find that taxes matter significantly, through both the traditional debt bias channel and the international debt shifting that is due to the international tax differentials. The latter channel is more robust and tends to be quantitatively more important. Our results imply that taxation causes significant international debt spillovers through multinational banks, which has potentially important implications for tax policy.
Taxation Bank Leverage And Financial Crises
DOWNLOAD
Author : Ruud A. de Mooij
language : en
Publisher: International Monetary Fund
Release Date : 2013-02-25
Taxation Bank Leverage And Financial Crises written by Ruud A. de Mooij and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2013-02-25 with Business & Economics categories.
That most corporate tax systems favor debt over equity finance is now widely recognized as, potentially, amplifying risks to financial stability. This paper makes a first attempt to explore, empirically, the link between this tax bias and the probability of financial crisis. It finds that greater tax bias is associated with significantly higher aggregate bank leverage, and that this in turn is associated with a significantly greater chance of crisis. The implication is that tax bias makes crises much more likely, and, conversely, that the welfare gains from policies to alleviate it can be substantial—far greater than previous studies, which have ignored financial stability considerations, suggest.
Regulation And Taxation Of Commercial Banks During The International Debt Crisis
DOWNLOAD
Author : Jonathan Hay
language : en
Publisher: World Bank Publications
Release Date : 1991
Regulation And Taxation Of Commercial Banks During The International Debt Crisis written by Jonathan Hay and has been published by World Bank Publications this book supported file pdf, txt, epub, kindle and other format this book has been release on 1991 with Banking law categories.
The debt crisis burst upon the world's attention in the summer of 1982 and has generated a great deal of discussion and debate. Most attention has been focused on schemes to solve the crisis, justifications for various forms of debt relief and reduction, and defenses of creditor positions. There has been substantial progress on a number of fronts in the debt crisis. One such example has been the substantial progress made in clarifying and refining the tax and regulatory environments for creditor banks in their own countries. The authors have organized the book with the summary material in the beginning: descriptions of the debt reduction operations and the responses of the commercial banks to them, with particular attention to the influences of the tax and regulatory environments faced in each jurisdiction. The latter part presents much more detail of each creditor country's regulations and is intended to serve as a reference. This book should be a valuable resource for further research and analysis of the debt crisis and the role played by the regulatory environment.
Tax Biases To Debt Finance
DOWNLOAD
Author : Ruud A. de Mooij
language : en
Publisher: International Monetary Fund
Release Date : 2011-05-03
Tax Biases To Debt Finance written by Ruud A. de Mooij and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2011-05-03 with Business & Economics categories.
Staff Discussion Notes showcase the latest policy-related analysis and research being developed by individual IMF staff and are published to elicit comment and to further debate. These papers are generally brief and written in nontechnical language, and so are aimed at a broad audience interested in economic policy issues. This Web-only series replaced Staff Position Notes in January 2011.
Debt Bias And Other Distortions
DOWNLOAD
Author : International Monetary Fund. Fiscal Affairs Dept.
language : en
Publisher: International Monetary Fund
Release Date : 2009-12-06
Debt Bias And Other Distortions written by International Monetary Fund. Fiscal Affairs Dept. and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2009-12-06 with Business & Economics categories.
Tax distortions are likely to have encouraged excessive leveraging and other financial market problems evident in the crisis. These effects have been little explored, but are potentially macro-relevant. Taxation can result, for example, in a net subsidy to borrowing of hundreds of basis points, raising debt-equity ratios and vulnerabilities from capital inflows. This paper reviews key channels by which tax distortions can significantly affect financial markets, drawing implications for tax design once the crisis has passed.
Balancing The Regulation And Taxation Of Banking
DOWNLOAD
Author : Sajid M. Chaudhry
language : en
Publisher: Edward Elgar Publishing
Release Date : 2015-08-28
Balancing The Regulation And Taxation Of Banking written by Sajid M. Chaudhry and has been published by Edward Elgar Publishing this book supported file pdf, txt, epub, kindle and other format this book has been release on 2015-08-28 with Business & Economics categories.
This concise book gives a unique overview of bank taxation as an alternative or a compliment to prudential regulation or non-revenue taxation. Existing bank taxation is reviewed with a view to eliminating distortions in the tax system, which have incen
Debt And Taxes
DOWNLOAD
Author : Jan Bartholdy
language : en
Publisher:
Release Date : 2005
Debt And Taxes written by Jan Bartholdy and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2005 with categories.
This paper analyzes the impact of corporate taxes on the capital structure in a country where bank financing is the main external financing source. It is found that the existence of a debt tax shield and provisions for tax loss carry-forwards has an important impact on the capital structure of the firm. These results differ from the general result in the literature that taxes do not matter for the capital structure decision. The main difference is that these results are obtained from a bank based financing system where asymmetric information and agency problems are solved differently than under a market-based system where most of the general results from the literature are obtained. Consistent with this, the pecking order theory of capital structure is rejected. Finally, it is found that small firms may be credit rationed by the banks.
International Taxation Of Banking
DOWNLOAD
Author : John Abrahamson
language : en
Publisher: Kluwer Law International B.V.
Release Date : 2020-02-20
International Taxation Of Banking written by John Abrahamson and has been published by Kluwer Law International B.V. this book supported file pdf, txt, epub, kindle and other format this book has been release on 2020-02-20 with Law categories.
Banking is an increasingly global business, with a complex network of international transactions within multinational groups and with international customers. This book provides a thorough, practical analysis of international taxation issues as they affect the banking industry. Thoroughly explaining banking’s significant benefits and risks and its taxable activities, the book’s broad scope examines such issues as the following: taxation of dividends and branch profits derived from other countries; transfer pricing and branch profit attribution; taxation of global trading activities; tax risk management; provision of services and intangible property within multinational groups; taxation treatment of research and development expenses; availability of tax incentives such as patent box tax regimes; swaps and other derivatives; loan provisions and debt restructuring; financial technology (FinTech); group treasury, interest flows, and thin capitalisation; tax havens and controlled foreign companies; and taxation policy developments and trends. Case studies show how international tax analysis can be applied to specific examples. The Organisation for Economic Co-operation and Development Base Erosion and Profit Shifting (OECD BEPS) measures and how they apply to banking taxation are discussed. The related provisions of the OECD Model Tax Convention are analysed in detail. The banking industry is characterised by rapid change, including increased diversification with new banking products and services, and the increasing significance of activities such as shadow banking outside current regulatory regimes. For all these reasons and more, this book will prove to be an invaluable springboard for problem solving and mastering international taxation issues arising from banking. The book will be welcomed by corporate counsel, banking law practitioners, and all professionals, officials, and academics concerned with finance and its tax ramifications.