<abstract xmlns="http://www.w3.org/1999/xhtml"><p> This article investigates if increasing neutrality between debt and equity capital might improve the efficiency in a corporate tax system. Firm-level and sector- level taxation data from Sweden is used to study if a tax system that is characterized by very few limitations with respect to the deductibility of interest costs leads to systematic differences in the taxes paid by different sectors. This paper finds that there are differences between different sectors’ tax payments and these differences can be explained by the sectors’ use of debt capital.</p></abstract>

This article investigates if increasing neutrality between debt and equity capital might improve the efficiency in a corporate tax system. Firm-level and sector- level taxation data from Sweden is used to study if a tax system that is characterized by very few limitations with respect to the deductibility of interest costs leads to systematic differences in the taxes paid by different sectors. This paper finds that there are differences between different sectors’ tax payments and these differences can be explained by the sectors’ use of debt capital.

Recent developments in Corporate Taxation in Sweden

CESIS – Centre of Excellence for Science and Innivation Studies, Royal Institute of Tecnology

Nordic Tax Journal

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Recent developments in Corporate Taxation in Sweden"}

This article investigates if increasing neutrality between debt and equity capital might improve the efficiency in a corporate tax system. Firm-level and...

Recent developments in Corporate Taxation in Sweden

Publié en ligne: 15 mai 2015

Pages: 195 - 214

DOI: https://doi.org/10.1515/ntaxj-2014-0025

Mots clés
Tax Reform, Corporate Tax, Debt, Equity

© 2015

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Recent developments in Corporate Taxation in Sweden

Publié en ligne: 15 mai 2015

Pages: 195 - 214

DOI: https://doi.org/10.1515/ntaxj-2014-0025

Mots clésTax Reform, Corporate Tax, Debt, Equity

© 2015

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Mots clés
Tax Reform, Corporate Tax, Debt, Equity