Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5089653 | Journal of Banking & Finance | 2011 | 11 Pages |
Abstract
Using bank-level data for the period 1990-2005, we investigate to what extent European banks are able to shift their tax-burden forward. We examine the effects of corporate income tax (CIT) and value added tax (VAT) on pre-tax profits and their components, and find that both are shifted forward. The pass-through mainly involves total operating income, but as far as CIT is concerned it also affects loss provisions, with negative implications on stability of the banking systems.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Vincenzo Chiorazzo, Carlo Milani,