ASSESSING TAX ASSYMETRIES AND THE INCENTIVE TO INCORPORATE

• Authors: Vlachý Jan
• Languages of publication: EN

Abstracts

EN

The paper uses a single-period option-based model to analyze the net value of business income under uncertainty, focusing on the effects of tax asymmetries and observing the distinct features of individual and corporate forms of business organization. Its parameters include the income tax structure and corporate leverage. Results are illustrated on applications using 2007 data in the Czech Republic and Slovakia. Various asymmetries are identified and discussed, leading to a hypothesis on the incentive to incorporate, less pronounced under the Czech tax framework, which tends to favour the personal form for a range of businesses.

Keywords

EN

CORPORATE LEVERAGE; INCOME TAX; LIMITED LIABILITY; PROGRESSIVE TAXATION

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2008
• Volume: 56
• Issue: 7
• Pages: 649-661
• Document type: ARTICLE

Contributors

author

Vlachý Jan

• University of Economics, Faculty of Informatics and Statistics, nám. W. Churchilla 4, 130 67 Praha, Czech Republic

• J. Vlachy, Ekonomicky ustav SAV, Sancova 56, 811 05 Bratislava 1, Slovak Republic

Identifiers

CEJSH db identifier

08SKAAAA052817