The impact of taxation on bank profits: Evidence from EU banks
Vincenzo Chiorazzo () and
Carlo Milani ()
Journal of Banking & Finance, 2011, vol. 35, issue 12, 3202-3212
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.
Keywords: Bank profitability; Tax-shifting; Taxation; Financial stability (search for similar items in EconPapers)
JEL-codes: E63 G21 H20 H21 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (36)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0378426611001634
Full text for ScienceDirect subscribers only
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: https://EconPapers.repec.org/RePEc:eee:jbfina:v:35:y:2011:i:12:p:3202-3212
DOI: 10.1016/j.jbankfin.2011.05.002
Access Statistics for this article
Journal of Banking & Finance is currently edited by Ike Mathur
More articles in Journal of Banking & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().