Are Tax Incentive Provisions Always Operative? Evidence From The Greek Manufacturing Industry

Anastassiou, Thomas A.

doi:10.19030/jabr.v22i1.1446

Cited by 3 publications

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“…Mainly the curb to liberalized tax laws came after 1973 and the marginal effective tax rates turned positive. As we have seen elsewhere (Anastassiou, 2006a) the application of investment allowances that were legislated for some of the years after 1973 could have caused, in combination with accelerated depreciation, a value of z larger than unity. But it was shown that these investment allowances were inoperative at the margin and then the final result, as can be seen from Table (1), Columns 1 and 3, was a positive marginal effective tax rate.…”

Section: Greek Marginal Effective Tax Rates and Total Averaged Ratesmentioning

confidence: 91%

Marginal Effective Tax Rates And Tax Incentive Structure Evaluation: The Case Of Greece

Anastassiou

2011

JABR

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In addition to the neoclassical theory of investment choice, another way of evaluating a tax incentive structure is through the use of marginal effective tax rates. An attempt is made at present to provide estimates of these rates for Greece, and the research concentrates mainly to the calculation of marginal effective corporate tax rates (i.e. only corporate taxes are considered) while the construction of indices extends to the two categories of capital goods, equipment, and buildings. The theoretical background for constructing these indices is given, with special emphasis attributed to neutrality in the designing of efficient taxation systems. The research showed that the Greek tax incentive system is depressing marginal investments, while it is additionally found that there was a more favorable tax treatment of manufacturing investment in equipment than that of buildings. No attempt on recent formulations of the Greek incentive system was made to provide measures (as for example a net investment credit) that could produce some degree of tax neutrality.

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Section: Greek Marginal Effective Tax Rates and Total Averaged Ratesmentioning

confidence: 91%

Marginal Effective Tax Rates And Tax Incentive Structure Evaluation: The Case Of Greece

Anastassiou

2011

JABR

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“…Of course z refers to a present value of future deductions. But as has been found (Anastassiou, 2005), the amounts of investment expenditures undertaken during all these years were much higher than the amount of profits, and deductions on these investments for depreciation purposes were carried forward so in a specific year they were reducing (if not nullifying) substantially taxable profits. 8.…”

Section: Notesmentioning

confidence: 96%

“…In Table (1), using the depreciation rates for tax purposes 4 , and for Area A (Athens-Piraeus and surrounding areas comprising the Department of Attica), the corresponding values of z have been calculated for equipment and buildings. It was chosen to report on Area A, since it is believed (and there are a lot of indications to support this supposition) 5 that the representative firm is situated in the Attica Department.…”

Section: The Value Of Z In the Greek Manufacturing Industrymentioning

confidence: 99%

“…The application of investment allowances in the value of z will provide a new time series for z under the assumption however that firms' profits were enough to absorb the allowances available to them. In a relevant search (Anastassiou, 2005) it has been found though that investment allowances were not operative for marginal investments and this has been tested by comparing manufacturing investment outlays and the maximum amount of net profits that could be deducted each year for investment expenditures. The later figures (derived from the application of tax allowances to the amount of net profits as defined by Greek law) were found to be on average much lower than gross investment realized each year, suggesting the ineffectiveness of incentive provisions at the margin.…”

Section: The Value Of Z In the Greek Manufacturing Industrymentioning

confidence: 99%

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Tax Incentive Provisions And The User Cost Of Capital: The Case Of Greece

Anastassiou

2011

JABR

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According to the neoclassical framework the quantitative influence of tax policy measures on capital spending is exercised through the parameters that define the desired stock of capital and more specifically through the user cost determinant (c). A tax-adjusted user cost expression is formulated and time series of user cost are calculated using the usual tax parameters (like depreciation allowances, tax credits, investment grants, investment allowances and the like) that are incorporated in the value of c and which have been taken from the Greek tax incentive structure. The test of fiscal parameters on investment was made for the two kinds of capital assets, equipment and structures, since expenditure on these two comprise on average an almost 85 per cent of total manufacturing investment in Greece. What the research showed for the period under investigation was that c, the cost of capital variable, was not affected much by tax provisions, and in its turn could not affect decisively the desired level of capital stock and thus the amount of net investment.(JEL: E62)

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A methodological review of the Greek Annual Industrial Survey

Τσακανίκας

Vassiliadis²

2013

JEM

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This paper is a comprehensive examination of the methodological evolution of the Annual Industrial Survey from its initiation in 1958 until 2010. Emphasis is given to the compliance of the survey with international methodological standards and to its conformity to relevant widely stipulated and accepted regulations. The existing literature using AIS data highlights its contribution to studies in several fields of economic research, going beyond those concerning the manufacturing sector, as well as to policy making.

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Are Tax Incentive Provisions Always Operative? Evidence From The Greek Manufacturing Industry

Cited by 3 publications

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Marginal Effective Tax Rates And Tax Incentive Structure Evaluation: The Case Of Greece

Marginal Effective Tax Rates And Tax Incentive Structure Evaluation: The Case Of Greece

Tax Incentive Provisions And The User Cost Of Capital: The Case Of Greece

A methodological review of the Greek Annual Industrial Survey

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