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Tax Policy Assessment in Slovenia – Case of Interest Tax Shield

Author

Listed:
  • Tatjana Jovanovic

    (University of Ljubljana, Faculty of Administration)

  • Maja Klun

    (University of Ljubljana, Faculty of Administration)

Abstract

The tax policy assessment is an indispensable strategy within any modern country's system of governance. There are several types of "impact assessments", with RIA as one of the most commonly used. This tool is used to measure and analyse the benefits, costs and effects of a new or existing legal regime, which can be carried out by collecting and analysing empirical data in the context of a broader decision-making framework. The main objective of the paper is to analyse which stage the Slovenian regulatory impact assessment is in, and whether this stage is sophisticated enough to provide for the essential verification of tax policy and specific instruments, focusing mainly on the case of interest tax shield issues. Methodologically, the paper is based on a systematic literature review, a survey for public consultations and statistical tools for calculating the differences in internal indebtedness in different observed periods. The results show that the Slovenian RIA is not sophisticated enough to evaluate complex tax instruments and policy. Nevertheless, tax policy decision-makers should reconsider the implementation of a thin capitalization rule (but also future tax policy instruments) focusing also on other, non-tax revenue, factors.

Suggested Citation

  • Tatjana Jovanovic & Maja Klun, 2017. "Tax Policy Assessment in Slovenia – Case of Interest Tax Shield," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 1, pages 1-17, March.
    • Handle: RePEc:cmn:journl:y:2017:i:1:p:1-17
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    References listed on IDEAS

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    Cited by:

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    2. Lidija Hauptman & Berislav Zmuk & Ivana Pavic, 2024. "Taxpayers' attitudes toward tax compliance in the Slovenian tax system: differences according to gender, income level and size of settlement," Public Sector Economics, Institute of Public Finance, vol. 48(2), pages 177-201.
    3. Florina Popa, 2025. "Analyzing taxation's impact on economic growth: a comparative study across EU-27," Romanian Journal of Economics, Institute of National Economy, vol. 60(1(69)), pages 143-161, June.
    4. Paukku Eelis, 2022. "How tax policies create unexpected results when interest rates are low: A case study of Finnish housing company debt and private investor return," Nordic Tax Journal, Paradigm, vol. 2022(1), pages 45-57, December.

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