Economics at your fingertips  

Estimating Firm-Level Effective Tax Rates and the User Cost of Capital in New Zealand

Richard Fabling, Norman Gemmell (), Richard Kneller () and Lynda Sanderson

No 2854, Working Paper Series from Victoria University of Wellington, Chair in Public Finance

Abstract: Effective marginal tax rates can be very different from the statutory rate and vary across firms, reflecting such factors as the extent and nature of taxable deductions (losses, depreciation), asset and ownership structures, and debt/equity financing. We estimate firm-specific EMTRs and related user cost of capital (UCC) measures allowing for shareholder-level taxation using data for 2000-2010 from the Longitudinal Business Database. Examining distributions of various UCC measures we find substantial firm-level heterogeneity; systematic changes as a result of tax reforms between 2004 and 2011; and systematic differences between foreignowned and domestically-owned firms. Choices among alternative UCC measures make a difference to interpretations.

Keywords: Tax rates; Taxable deductions; Companies (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cwa and nep-pbe
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)

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:

Access Statistics for this paper

More papers in Working Paper Series from Victoria University of Wellington, Chair in Public Finance School of Accounting & Commercial Law, Victoria University of Wellington, PO Box 600, Wellington, New Zealand. Contact information at EDIRC.
Bibliographic data for series maintained by Library Technology Services ().

Page updated 2019-08-11
Handle: RePEc:vuw:vuwcpf:2854