Cross-border Loss Offset and Investment Decisions - Survey-Based Analysis of Tax Impact

• Autorzy: Wojciech Stiller
• Języki publikacji: EN

Abstrakty

EN

The European Commission holds the opinion that the limited availability of cross-border loss relief is one of the most significant obstacles to cross-border business activity (European Commission, 2006). This opinion probably results from the conviction that the restrictions on the loss offset distort business decisions. Although the influence of loss offset modalities over the investment behavior has already been broadly discussed in the literature, most of the studies are concerned with the modality of utilization of losses in the country of investment. Only very few studies deal with the question of how the treatment of foreign losses affects managerial decisions in the domestic country. Niemann & Treisch (2006) address this issue in the context of the Austrian group taxation, which allows cross-border relief for losses. Based on the Monte Carlo Simulation, the study does not provide clear results concerning the impact of group taxation on the advantageousness of foreign investment. A survey on cross-border loss relief was established in 2000 by the Federation of Swedish Industries (VSI; Federation of Swedish Industries / Industriforbundet). The study seems to show that the missing cross-border loss offset represents a significant barrier to the economic development of the EU market. (fragment of text)

Słowa kluczowe

EN

Investment decisions; Management decision; Cross-border transactions

PL

Decyzje inwestycyjne; Decyzje kierownicze; Transakcje transgraniczne

• Czasopismo: Scientific Publications / University of Economics in Katowice
• Rocznik: 2014
• Tom: Global Business Towards New Paradigm in Time of Crisis
• Strony: 319--334

Twórcy

autor

Wojciech Stiller

• Berlin School of Economics and Law, Germany

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