IDEAS home Printed from https://ideas.repec.org/p/qed/dpaper/74.html
   My bibliography  Save this paper

Cost-Effectiveness Of After-Tax Financing: Flow-Through Shares And Limited Partnerships

Author

Listed:
  • Glenn Jenkins

    (Queen's University, Kingston, On, Canada)

Abstract

A common assumption in the economic literature when measuring the effective rate of corporation taxation or estimating the cost of capital is that all the tax incentives can be utilized by the firms in the period that the incentives are legally available to them. For this assumption to hold either the firms that receive the tax incentives must always have positive taxable income, or the government provides full and immediate refund of the tax value of taxable losses. In reality, neither of these conditions exists. The potential effectiveness of tax incentives for stimulating total investment, or even of a specific type, is greatly reduced. Two of the more popular types of after-tax financing instruments in Canada that have been designed to address this problem are flow-through shares and limited partnerships.

Suggested Citation

  • Glenn Jenkins, 1987. "Cost-Effectiveness Of After-Tax Financing: Flow-Through Shares And Limited Partnerships," Development Discussion Papers 1988-03, JDI Executive Programs.
    • Handle: RePEc:qed:dpaper:74
    as

    Download full text from publisher

    File URL: https://cri-world.com/publications/qed_dp_74.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    after-tax financing; flow-through shares; partnerships;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:qed:dpaper:74. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mark Babcock (email available below). General contact details of provider: https://edirc.repec.org/data/qedquca.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.