Addressing the Debt Bias: A Comparison between the Belgian and the Italian ACE Systems

Ernesto Zangari ()

No 44, Taxation Papers from Directorate General Taxation and Customs Union, European Commission

Abstract: This paper reviews the experiences of Belgium and Italy with ACE-type systems of corporate taxation. The comparison focusses on the definition of the base for the computation of the allowance and the anti-avoidance framework to tackle abuses. It is argued that the Italian system, with its incremental feature and a comprehensive anti-avoidance framework targeting transactions between related parties, seems a more viable solution for an ACE reform aimed at addressing the debt bias in the corporate sector.

Keywords: Allowance for Corporate Equity; Capital structure; Taxation; Italy; Belgium (search for similar items in EconPapers)
JEL-codes: G32 H25 (search for similar items in EconPapers)
Pages: 74 pages
Date: 2014-07
New Economics Papers: this item is included in nep-acc
References: Add references at CitEc
Citations: View citations in EconPapers (30)

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