Financial capital and taxation policy

Richard Wood

Fiscal Studies, 2006, vol. 27, issue 2, pages 127-155

Abstract: This paper suggests a relatively simple analytical framework for taxing all financial arrangements. The debt/equity distinction is determined by the contingency principle. The accruals/realisation distinction is determined separately by the volatility principle. The capital/revenue character distinction is effectively removed directly or by a character hedging regime. Hybrids, synthetics, hedging arrangements and other portfolios are tax-assessed on an aggregate, rather than a bifurcated, basis. The framework could be applied to both classical and dividend-imputation-based business tax systems.

Date: 2006

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ifs:fistud:v:27:y:2006:i:2:p:127-155

Ordering information: This journal article can be ordered from
The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE

Access Statistics for this article

More articles in Fiscal Studies from Institute for Fiscal Studies
Address: The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE
Series data maintained by Emma Hyman ().