When Taxation Changes the Course of the Year – Fiscal Year Adjustments and the German Tax Reform 2000/2001
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.
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- Spengel, Christoph, 2000. "Effektive Steuerbelastung der grenzüberschreitenden Geschäftstätigkeit nach den Vorschlägen zur Reform der Unternehmensbesteuerung," ZEW Discussion Papers 00-15, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Eggert Wolfgang & Weichenrieder Alfons J., 2002. "Steuerreform und Unternehmensfinanzierung / Tax Reform and Corporate Finance," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 222(5), pages 531-555, October.