in the CIT and its impact on Belgium, while Section 5 discusses the options for growth-enhancing reform in the Belgian CIT. Section 6 compares the recent tax CIT reform with our set of growth-enhancing measures.
The corporatetax system
Belgium’s CIT is a relatively important revenue source. In 2014, the CIT raised 3.2 percent of GDP. This is above the EU average of 2.3 percent of GDP (left panel of Figure 1 ). A significant share of CIT payments comes from small firms, partly reflecting a relatively high share of SMEs that are organized as legal
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interchangeably. In this article we primarily use the term ‘company’ when speaking about them as legal entities and investment objectives. The term ‘corporate’ is used in the context of CSR, as well as speaking about corporatetaxes, as it is established. We view terms like ‘firm’, ‘enterprise’ or ‘business’ to primarily refer to something which is physical, like production facilities, operations, or actions. See also Posner 1992 , p. 409.
In many ways, sustainable and responsible investment (SRI) is a mirror image of CSR. When making their investment decisions, investors
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The paper deals with the problem of taxation and its potential impact on economic growth and presents some new empirical insights into this topic. The main aim of the paper is to verify an assumed nonlinear impact of corporate tax rates on economic growth. Based on the theory of public finance and taxation, we hypothesize that at relatively low tax rates it is possible that the impact of taxation on economic growth become slightly positive. On the other hand when the tax rates are higher a negative impact of taxation on economic growth could be expected. Despite the fact that the most of the existing studies find a negative linear relationship between these variables, we can also find strong support for a non-linear relationship from several theoretical models as well as some empirical studies. Based on panel data fixed-effects econometric models, we, as well, find empirical evidence for a non-linear relationship between nominal and effective corporate tax rates and economic growth. Our data consists of annual observations for the period 1999 to 2011 for EU Member States. Based on the results, we also estimated the optimal level of the corporate tax rate in terms of maximizing economic growth in the average of the EU countries.
Introduction: Why is the CorporateTax Robust?
A large puzzle underlies the recent G20 and OECD Base Erosion and Profit Shifting (BEPS) project. If the scope of BEPS is as broad as the reports suggest, why are corporatetax revenues in the OECD so robust?
The final OECD report on BEPS action 11 suggest that BEPS activities result in between $100 and $240 billion in annual lost revenue from corporate income taxes (CIT) on a global basis. The wide spread between these two numbers indicates the significant uncertainty involved. But even the higher number
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