IAS/IFRS in Belgium: Quantitative Analysis of the Impact on the Tax Burden of Companies

Jacqueline Haverals ()

No 05-011.RS, Working Papers CEB from Université Libre de Bruxelles, Solvay Brussels School of Economics and Management, Centre Emile Bernheim (CEB)

Abstract: The adoption of IAS/IFRS in the European Union is part of the European Commission’s globaltax harmonisation policy whose aim is to establish a common (consolidated) corporate tax base. The paper shows that the impact of an IAS/IFRS- based tax accounting on the effective tax burden of Belgian companies is large and not uniform across sectors. Some sectors, like construction and automotive vehicles, experience much larger increases in effective tax burdens than others. Globally the impact is relatively important. The analysis is conducted thanks to the European Tax Analyzer, a multi-period forward looking program. In a European context, an IAS/IFRS-based tax accounting will increase the effective corporate tax burdens in all selected countries. However it will most probably maintain the current tax competitive positions of EU countries. The expected broadening of the tax base could constitute an opportunity to reduce the corporate income tax rate without changing the overall effective burden.

Keywords: International Accounting Standards/International Financial Reporting Standards; Effective Tax Burden; Tax Accounting. (search for similar items in EconPapers)
JEL-codes: H21 H25 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cfn and nep-pbe
Date: 2005-09
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http://www.solvay.edu/EN/Research/Bernheim/documents/wp05011.pdf First version, 2005 (application/pdf)

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Working Paper: IAS/IFRS in Belgium: Quantitative Analysis of the Impact on the Tax Burden of Companies (2005)
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Persistent link: http://EconPapers.repec.org/RePEc:sol:wpaper:05-011

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