Resource title

When taxation changes the course of the year: fiscal year adjustments and the German tax reform 2000/2001

Resource image

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Resource description

The paper examines 157 German listed corporations that had the option of changing their fiscal year to achieve a possible tax reduction in connection with the major tax reform of 2000/2001. The tax reduction from a change was larger, the larger the expected profits. However, with costs of changing the fiscal year, not all firms that expect a tax reduction from a change may do so. The paper presents empirical evidence that the propensity to change the fiscal year was significantly related to the amount of expected tax savings. This suggests that the corporate tax reduction in combination with the special German transitory provisions induced a deadweight loss: corporations incurred a non-tax cost to avoid a tax cost.

Resource author

Frank Blasch, Alfons J. Weichenrieder

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/25906

Resource license

Adapt according to the presented license agreement and reference the original author.