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European taxation and capital investment

Author

Listed:
  • John Pointon
  • Suzanne Farrar
  • Jon Tucker

Abstract

A simulated study is conducted of the relative tax incentives to capital investment in Europe. For 1994 required pre-tax rates of return vary from 8.5% for plant and machinery investments in Spain to l3.8% for commercial property in Ireland. Within investment categories, however, the spreads between countries are much narrower. After personal tax, the smallest tax disincentives are found in Italy (to invest in plant and machinery and commercial buildings) and the UK (industrial buildings). The largest disincentives occur in the Netherlands (to invest in plant and machinery and industrial buildings) and Ireland (with respect to commercial property).

Suggested Citation

  • John Pointon & Suzanne Farrar & Jon Tucker, 1996. "European taxation and capital investment," The European Journal of Finance, Taylor & Francis Journals, vol. 2(1), pages 57-76.
  • Handle: RePEc:taf:eurjfi:v:2:y:1996:i:1:p:57-76
    DOI: 10.1080/135184796337607
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    References listed on IDEAS

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