Advanced Search
MyIDEAS: Login to save this article or follow this journal

Small Corporations' Income Shifting through Choice of Ownership Structure - a Norwegian Case

Contents:

Author Info

  • Annette Alstadsater

    ()
    (Department of Health Management and Health Economics, Faculty of Medicine, University of Oslo)

  • Knut Reidar Wangen

    ()
    (Department of Health Management and Health Economics, Faculty of Medicine, University of Oslo)

Abstract

We analyze how small business owners respond to the tax-minimizing incentives inherent in the Norwegian version of the dual income tax to shift income from the personal to the corporate tax base. The corporations in our sample seem to respond to tax incentives and change their ownership structure to qualify for reduction in overall tax payments. We document substantial cohort effects end suggest that postreform corporations were better able to form tax-reducing coalitions, compared with prereform corporations. It also appears that corporations who participate in this activity are more profitable and have more to gain from tax-minimizing income shifting.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.taloustieteellinenyhdistys.fi/images/stories/fep/fep22010/fep22010alstadsaeter.pdf
Download Restriction: no

Bibliographic Info

Article provided by Finnish Economic Association in its journal Finnish Economic Papers.

Volume (Year): 23 (2010)
Issue (Month): 2 (Autumn)
Pages: 73-87

as in new window
Handle: RePEc:fep:journl:v:23:y:2010:i:2:p:73-87

Contact details of provider:
Web page: http://www.taloustieteellinenyhdistys.fi
More information through EDIRC

Related research

Keywords:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Ruud Mooij & Gaëtan Nicodème, 2008. "Corporate tax policy and incorporation in the EU," International Tax and Public Finance, Springer, vol. 15(4), pages 478-498, August.
  2. Seppo Kari & Hanna Karikallio & Jukka Pirttilä, 2008. "Anticipating Tax Changes: Evidence from the Finnish Corporate Income Tax Reform of 2005," Discussion Papers 447, Government Institute for Economic Research Finland (VATT).
  3. Harri Hietala & Seppo Kari, 2006. "Investment Incentives in Closely Held Corporations and Finland's 2005 Tax Reform," Finnish Economic Papers, Finnish Economic Association, vol. 19(2), pages 41-47, Autumn.
  4. Gordon, R.H. & Mackie-Mason, J.K., 1993. "Tax Distorsions to the Choice of Organizational Form," Memorandum 21/1993, Oslo University, Department of Economics.
  5. Jeffrey K. MacKie-Mason & Roger H. Gordon, 1994. "How Much Do Taxes Discourage Incorporation?," Public Economics 9401002, EconWPA.
  6. Peter Egger & Christian Keuschnigg & Hannes Winner, 2009. "Incorporation and Taxation: Theory and Firm-level Evidence," Working Papers 0908, Oxford University Centre for Business Taxation.
  7. Erik Fjaerli & Diderik Lund, 2001. "The choice between owner's wages and dividends under the dual income tax," Finnish Economic Papers, Finnish Economic Association, vol. 14(2), pages 104-119, Autumn.
  8. Seppo Kari & Hanna Karikallio & Jukka Pirttilä, 2009. "The Impact of Dividend Taxation on Dividends and Investment: New Evidence Based on a Natural Experiment," CESifo Working Paper Series 2756, CESifo Group Munich.
  9. Romanov, Dmitri, 2006. "The corporation as a tax shelter: Evidence from recent Israeli tax changes," Journal of Public Economics, Elsevier, vol. 90(10-11), pages 1939-1954, November.
  10. Thor O. Thoresen & Annette Alstadsæter, 2010. "Shifts in Organizational Form under a Dual Income Tax System," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 66(4), pages 384-418, December.
  11. Gentry, William M., 1994. "Taxes, financial decisions and organizational form : Evidence from publicly traded partnerships," Journal of Public Economics, Elsevier, vol. 53(2), pages 223-244, February.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:fep:journl:v:23:y:2010:i:2:p:73-87. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Editorial Secretary).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.