<abstract xmlns="http://www.w3.org/1999/xhtml"><p> 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.</p></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.

Tax Policy Assessment in Slovenia – Case of Interest Tax Shield

University of Ljubljana, Faculty of Administration, Gosarjeva ulica 5, SI-1000 Ljubljana,

DANUBE

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"Tax Policy Assessment in Slovenia \u2013 Case of Interest Tax Shield"}

The tax policy assessment is an indispensable strategy within any modern country’s system of governance. There are several types of “impact assessments”, with...

Tax Policy Assessment in Slovenia – Case of Interest Tax Shield

Published Online: Apr 11, 2017

Page range: 1 - 17

DOI: https://doi.org/10.1515/danb-2017-0001

Keywords
Regulatory Impact Assessment, Tax Policy, Thin Capitalisation, Multinational Companies

© by Tatjana Jovanovic

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Tax Policy Assessment in Slovenia – Case of Interest Tax Shield

Published Online: Apr 11, 2017

Page range: 1 - 17

DOI: https://doi.org/10.1515/danb-2017-0001

KeywordsRegulatory Impact Assessment, Tax Policy, Thin Capitalisation, Multinational Companies

© by Tatjana Jovanovic

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
Regulatory Impact Assessment, Tax Policy, Thin Capitalisation, Multinational Companies