Abstract
As has been pointed out above, hybrid financial instruments are economically and legally challenging. Moreover, within the given tax rules, there is a sharp distinction for the tax consequences of the remuneration derived from debt capital and the one derived from equity capital from a cross-border corporate tax perspective. Hence, guidelines for the assessment of the corporate taxation of hybrid financial instruments and of their classification are presented in the following. They also need to be considered in terms of an optimal design of tax rules.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
There are numerous variable criteria that can be used to evaluate tax rules. With respect to the goals of taxation, revenue promotion, redistribution of wealth in society and regulation of economic activity are also accepted criteria for evaluating tax policy. Cf. e.g. Avi-Yonah 2006: 1 et seq.; Avi-Yonah 2011: 2 et seq.
- 2.
- 3.
- 4.
Cf. e.g. García Novoa 2010: 568, with further reference.
- 5.
- 6.
Cf. e.g. Zuber 1991: 47 et seq.
- 7.
- 8.
- 9.
- 10.
- 11.
- 12.
Cf. Zuber 1991: 51 et seq.
- 13.
- 14.
- 15.
Besides, decisions on different types of fixed asset investment and organizational forms are the most important neutrality considerations. Cf. Kiesewetter 1997: 25; Wagner 1995: 742 et seq.; Homburg 2010: 240 et seq. Here, the financial neutrality is solely crucial because the scope of this thesis lies on the analysis of financial transactions, whereas the decision between fixed asset and financial investments (which concern especially the investment neutrality) has already been taken. Cf. also Spengel 1998: 349; Heinhold 1999: 77.
- 16.
Cf. Sect. 2.1.
- 17.
Edgar 2000: 33.
- 18.
- 19.
Cf. Homburg 2010: 251 et seq.
- 20.
- 21.
Cf. Kemmeren 2001: 523.
- 22.
- 23.
Cf. Sect. 2.3.2.
- 24.
- 25.
Cf. European Commission 2001: 27; Göydeniz 2011: 665; Jacobs et al. 2011: 18 et seq. As widely accepted in international tax literature, the focus is on global economic welfare. But disregarding overall efficiency and focusing merely on national economic welfare, the concept of national neutrality should not be waived as an option for taxation. Cf. Schön 2009: 83 et seq. See further also Graetz 2001: 277 et seq.; Shaviro 2009: 128 et seq.
- 26.
- 27.
Cf. Homburg 2010: 303 et seq.; Thompson 2010: 359 et seq. However, the application of the production efficiency theorem faces criticism. First, and in an international context, the production efficiency theorem may only be relevant if national government budgets are linked through a system of international transfers. Cf. Keen and Wildasin 2004. Second, and already mentioned in a national context, production efficiency is based on the assumption that governments can tax pure profits. In practice, this seems unrealistic.
- 28.
Cf. Mason 2010: 130.
- 29.
- 30.
- 31.
Cf. Couzin 2002: 259 et seq.
- 32.
- 33.
Cf. also Chorvat 2000: 843 et seq.; Schön 2009: 79 et seq.
- 34.
- 35.
Cf. Griffith et al. 2010: 957; Harris 2010: 575. See further also Harris 1996: 504 et seq. For instance, Germany generally imposes a per-country limit on the tax credit. Cf. e.g. Jacobs et al. 2011: 45 et seq. In contrast, the United Sates impose an overall limit on the tax credit. Cf. e.g. Rosen and Gayer 2010: 453; Suringa 2010: 781 et seq.
- 36.
- 37.
Cf. also Thompson 2010: 350 et seq.
- 38.
- 39.
- 40.
Cf. Homburg 2010: 305 et seq.; Mason 2010: 132; Jacobs et al. 2011: 32 et seq. But, capital import neutrality ensures international consumption neutrality. Cf. Homburg 2010: 306 et seq. However, production efficiency is generally preferred over consumption efficiency. Cf. Musgrave 1992: 181 et seq.; Tanzi 1995: 77 et seq.; Bird and Wilkie 2000: 82.
- 41.
- 42.
Cf. Mason 2010: 130.
- 43.
- 44.
Cf. Schön 2009: 80 et seq.
- 45.
- 46.
- 47.
Cf. Schreiber 1994: 241.
- 48.
- 49.
- 50.
Cf. also Desai and Hines 2004: 956.
- 51.
Cf. Kane 2006: 53 et seq.
- 52.
Cf. Schön 2009: 82.
- 53.
Fleming et al. 2009: 1091.
- 54.
- 55.
Cf. Schön 2009: 82. Furthermore, and from a theoretical perspective, source-based taxation is actually the preferred implementation, if encouraging the most productive ownership pattern is the overriding goal, since it would maximize the after-tax profitability of domestic firms. Cf. Griffith et al. 2010: 954 et seq.
- 56.
- 57.
- 58.
- 59.
- 60.
- 61.
Cf. Sect. 2.3.2.
- 62.
Even a partial harmonization limited to a certain number of jurisdictions might not be an option since neutrality is not globally achieved. Cf. Schön 2007: 1076 et seq.
- 63.
- 64.
- 65.
- 66.
- 67.
- 68.
- 69.
- 70.
Cf. Musgrave and Musgrave 1989: 219; Tipke and Lang 2008: 88. See also Neumark 1970: 121 et seq.; Haller 1981: 14 et seq.; Schindel and Atchabahian 2005: 31 et seq. See also for France: Marchessou 1999: 80; Comolet-Tirman 2011: 201; for Germany: Vogel and Waldhoff 1999: 99 et seq.; for Italy: Pietro 1999: 118 et seq.; for Spain: Rasembuj 1999: 157 et seq. An alternative equity dogma relies on the benefit principle and implies that the tax burden is distributed among taxpayers in proportion to the benefits received by each individual taxpayer from public goods and services. While justifying source taxation by the fact that income is generated in the source country because of whose economic and legal system, the variety of government expenditures to which this concept can be applied is comparatively limited due to difficulties from the general characteristics of public goods and services. Consequently, most revenues of taxes may not be derived on a received benefits basis. Cf. Musgrave and Musgrave 1989: 219 et seq.; Neumark 1970: 42 et seq.; Fleming et al. 2001: 333 et seq.; Müller 2001: 7 et seq.; Schindel and Atchabahian 2005: 33. For a more detailed and controversial discussion see also Sect. 3.1.3.
- 71.
Cf. Musgrave and Musgrave 1989: 219 et seq.; Tipke and Lang 2008: 88 et seq. The question of the theoretical merits of whether the ability to pay principle is applicable to corporations is controversially discussed, but outside the scope of this study. From a practical perspective, it is at least widely recognized that a corporation’s income must be accepted as a proxy for the ability to pay of their shareholders. Cf. Ault and Bradford 1990: 55; Gammie 1994: 628 et seq.; Harris 1996: 102 et seq.; Fleming et al. 2001: 319 et seq., with many further references; Graetz 2001: 302. See also Schön 2009: 89. For a more comprehensive debate see Hey 1996b: 119; Musgrave 2001: 1339; Tipke and Lang 2008: 91 et seq. The practical perspective corresponds with the acceptance of corporate taxation as such. Cf. Sect. 2.3.1.
- 72.
- 73.
- 74.
- 75.
Cf. Wagner 1992: 4 et seq.
- 76.
- 77.
Cf. Weisbach 1999: 1640.
- 78.
- 79.
In an ideal world, each taxpayer’s individual utility would be measurable and the tax rules would maximize total utility. Since utility is not possible to measure, income has been considered to be a reasonable proxy for utility. Cf. Buehler 1946: 251; Kaufmann 1998: 162 et seq. An alternative indicator of economic ability to pay is consumption, which can be defined as the difference between income and savings. Cf. Bradford 1986; Musgrave and Musgrave 1989: 224 et seq.
- 80.
- 81.
- 82.
- 83.
- 84.
- 85.
- 86.
Cf. also Jacobs et al. 2003: 219.
- 87.
Cf. Musgrave and Musgrave 1972: 68 et seq.; Homburg 2010: 290 et seq.; Fleming et al. 2001: 311 et seq., 352; Schön 2009: 73. See also Schindel and Atchabahian 2005: 31 et seq. For a territorially defined ability to pay with respect to the different taxation of non-residents among each other see Shay et al. 2002: 93 et seq.
- 88.
- 89.
- 90.
- 91.
Cf. Graetz and O’Hear 1997: 1102 et seq. See also Graetz 2001: 299. Regarding the corporate income tax, see Vann 2010b: 298 et seq. However, there is a tendency to even lower source taxes on mobile activities, in particular on financial (portfolio) income. Cf. Schindel and Atchabahian 2005: 26 et seq., 36 et seq.; Vann 2010b: 298 et seq., 305.
- 92.
- 93.
Cf. Schön 2009: 73.
- 94.
- 95.
- 96.
Cf. Wagner 1992: 4 et seq.
- 97.
- 98.
Cf. also Kaufmann 1998: 202.
- 99.
- 100.
- 101.
For a comprehensive discussion of the justification of the source entitlement see Kaufmann 1998: 183 et seq. One other interpretation is based on the idea that an allocation of taxing rights should be used as an instrument of income redistribution among countries adjusting an unequal historical marginalization in the world. Cf. Brown 2002: 46 et seq.; McDaniel 2003: 265 et seq.; Rosenzweig 2007: 577. However, this interpretation is not accepted at the international level. Cf. Zuber 1991: 107 et seq. See also Graetz 2001: 300 et seq. Another interpretation again is based on the theory of economic rents and on the idea that cross-border transactions generate higher benefits than those which would be obtained from simply domestic transactions justifying a jurisdiction’s taxing right as an economic rental charge for the use of its market and resources. However, this interpretation suffers from implementation difficulties in practice, since the precise level of the rental charge is difficult to isolate and to measure. Cf. Zuber 1991: 110; Musgrave and Musgrave 2000: 315. This approach is often used as a justification of an equitable allocation of taxes directed specifically to economic rents on mineral resources, rather than rents on the use of a capital market. Cf. Vann 2010b: 301.
- 102.
- 103.
- 104.
- 105.
This principle can be invoked by both the source country and the residence country, since income-generating activities will be in both jurisdictions. Cf. Musgrave 2002: 52.
- 106.
- 107.
- 108.
Cf. Oestreicher 2000: 180.
- 109.
Cf. Schreiber 2004: 221.
- 110.
- 111.
Cf. Schindel and Atchabahian 2005: 52, with further references.
- 112.
- 113.
- 114.
For a more differentiated picture distinguishing between active and passive income see Avi-Yonah 2007: 11 et seq.
- 115.
- 116.
- 117.
Cf. Tanzi 1995; Gordon and Hines 2002: 1937 et seq. Moreover, it is often difficult to differentiate the share of the tax revenue that is used for the public goods and services provided from the share that is used to foster distributive objectives of a tax system. Cf. Kaplow 2008: 179 et seq., 403 et seq.
- 118.
- 119.
- 120.
Cf. Schön 2009: 77.
- 121.
Nevertheless, corporate residence as a decisive factor suffers from being elective. Cf. Sect. 3.1.1.
- 122.
- 123.
- 124.
Cf. Schön 2009: 77 et seq., with further references.
- 125.
Cf. Schindel and Atchabahian 2005: 26 et seq., 36 et seq.; Vann 2010b: 298 et seq., 305. See also Schön 2009: 77 et seq. Nevertheless, corporate income tax as an indirect source tax on shareholders has remained notably resilient. Cf. Vann 2010b: 298 et seq. See also Graetz and O’Hear 1997: 1102 et seq.; Graetz 2001: 299.
- 126.
- 127.
- 128.
For the widely agreed income tax treaties between EEA, EU and OECD Member States see Table A.1 in the annex.
- 129.
- 130.
- 131.
- 132.
- 133.
Cf. Arndt and Fischer 2008: 116; Helminen 2009: 10. Regarding the history of the EU, see Arndt and Fischer 2008: 7 et seq.; Helminen 2009: 9. Other supranational organizations are particularly the North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO). However, for the NAFTA region all aspects of direct and indirect taxes have been carved out. Cf. e.g. Cockfield 2005: 46 et seq. The WTO law is also restrained in that it is mostly focused on indirect taxes. Cf. Arndt and Fischer 2008: 241 et seq.; Schön 2004a: 283 et seq. Regarding the limited impact of WTO law on direct taxes, see e.g. Lang et al. 2005.
- 134.
As 19 EU Member States are also OECD Member States, the EU law should not be overlooked by the further developments at the level of the OECD.
- 135.
Cf. Hey 1996b: 80; Terra and Wattel 2008: 18; Helminen 2009: 3 et seq.; Jacobs et al. 2011: 98 et seq.; Lampreave 2011: 17 et seq. See also Spengel 2003: 245 et seq. This is in compliance with the subsidiarity principle established in Art. 5 TEU. Cf. Hey 1996b: 80; Spengel 2003: 245; Helminen 2009: 4, 13; Jacobs et al. 2011: 98 et seq. In contrast, the harmonization of indirect taxes is required (Art. 113 TFEU). See e.g. Terra and Wattel 2008: 10 et seq., 119 et seq., 267 et seq.
- 136.
Cf. among others ECJ of 14/02/1995 (C-279/93, Schumacker), ECR 1995: I-225 Para. 21, 26; ECJ of 11/08/1995 (C-80/94, Wielockx), ECR 1995: I-2493 Para. 16; ECJ of 27/06/1996 (C-107/94, Asscher), ECR 1996: I-3089 Para. 36; ECJ of 13/12/2005 (C-446/03, Marks&Spencer), ECR 2005: I-10837 Para. 29; ECJ of 06/03/2007 (C-292/04, Meilicke), ECR 2007: I-1835 Para. 19; ECJ of 29/03/2007 (C-347/04, Rewe Zentralfinanz), ECR 2007: I-2647 Para. 21. See also Vogel 2005: 373 et seq.; Helminen 2009: 4.
- 137.
- 138.
- 139.
- 140.
Cf. also Terra and Wattel 2008: 44. By contrast, the other fundamental freedoms like the free movement of goods (Art. 28–37 TFEU), persons (Art. 45 TFEU) and services (Art. 59–62 TFEU) as well as the right of residence (Art. 21 TFEU) and prohibition of any discrimination on the grounds of nationality (Art. 18 TFEU) can be neglected in this context. For details see Herzig and Dautzenberg 1997: 10; Cordewener 2004a: 9; Rödder 2004: 1629; Lang 2007a: 22 et seq.; Arndt and Fischer 2008: 132 et seq.; Terra and Wattel 2008: 44 et seq.; Helminen 2009: 60 et seq.
- 141.
Cf. inter alia ECJ of 28/01/1986 (270/83, Avoir Fiscal), ECR 1986: 273 Para. 13; ECJ of 29/04/1999 (C-311/97, Royal Bank of Scotland), ECR 1999: I-2651 Para. 22; ECJ of 13/04/2000 (C-251/98, Baars), ECR 2000: I-2787; ECJ of 13/12/2005 (C-446/03, Marks&Spencer), ECR 2005: I-10837. See also Terra and Wattel 2008: 55 et seq.; Helminen 2009: 73 et seq.
- 142.
- 143.
- 144.
Cf. the guiding ruling of the ECJ of 30/11/1995 (C-55/94, Gebhard), ECR 1995: I-4165 Para. 37. See also ECJ of 12/12/2006 (C-446/04, FII GL), ECR 2006: I-11753 Para. 127 et seq. Even though the freedom of free movement of capital should be interpreted more narrowly as to solely prohibit obstacles to flows concerning investments in which decision of the business activity cannot be influenced. Cf. Schön 2005b: 508 et seq. But see also Helminen 2009: 106 et seq., with further references.
- 145.
Cf. e.g. ECJ of 23/10/2008 (C-157/07, Krankenheim Ruhesitz), ECR 2008: I-8061 Para. 24.
- 146.
Cf. e.g. ECJ of 24/05/2007 (C-157/05, Holböck), ECR 2007: I-4051 Para. 28 et seq.; Terra and Wattel 2008: 54 et seq., 59 et seq.; Helminen 2009: 108; Jacobs et al. 2011: 214 et seq. Regarding the differences of both freedoms in detail, see Jacobs et al. 2011: 207 et seq., with further references; Panayi 2008a: 571 et seq.
- 147.
Cf. Cordewener 2004b: 8; Helminen 2009: 10. See also ECJ of 21/09/1999 (C-397/07, Saint Gobain), ECR 1999: I-6161; ECJ of 11/03/2004 (C-9/02, De Lasteyrie du Saillant), ECR 2004: I-2409; ECJ of 13/12/2005 (C-446/03, Marks&Spencer), ECR 2005, I-10837; ECJ of 14/12/2006 (C-170/05, Denkavit), ECR 2006: I-11949.
- 148.
However, discriminations and restrictions may be justified in certain cases. Cf. Hinnekens 2004: 73 et seq. See also in more detail Terra and Wattel 2008: 49 et seq.; Helminen 2009: 111 et seq.; Jacobs et al. 2011: 218 et seq. An exemplary justification is the prevention of tax evasion. Cf. e.g. ECJ of 16/07/1998 (C-264/96, ICI), ECR 1998: I-4695 Para. 26; Helminen 2009: 115 et seq. Another exemplary justification is the need to safeguard the coherence of the tax system. Cf. e.g. ECJ of 28/01/1992 (C-204/90, Bachmann), ECR 1992: I-249; ECJ of 28/01/1992 (C-300/90, Commission/Belgium), ECR 1992: I-305; Helminen 2009: 123 et seq.
- 149.
Cf. Cordewener 2004b: 1 et seq.; Helminen 2009: 49 et seq., 57; Jacobs et al. 2011: 208 et seq. See also inter alia ECJ of 28/01/1986 (270/83, Avoir Fiscal), ECR 1986: 273; ECJ of 13/07/1993 (C-330/91, Commerzbank), ECR 1993: I-4017; ECJ of 11/08/1995 (C-80/94, Wielockx), ECR 1995: I-2493; ECJ of 12/06/2003 (C-234/01, Gerritse), ECR 2003: I-5933.
- 150.
Cf. inter alia ECJ of 27/09/1988 (81/87, Daily Mail), ECR 1988: 5483; ECJ of 30/11/1995 (C-55/94, Gebhard), ECR 1995: I-4165; ECJ of 15/05/1997 (C-250/95, Futura-Singer), ECR 1997: I-2471; ECJ of 16/07/1998 (C-264/96, ICI), ECR 1998: I-4695; ECJ of 13/04/2000 (C-251/98, Baars), ECR 2000: I-2787; ECJ of 14/12/2000 (C-141/99, AMID), ECR 2000: I-11619; ECJ of 21/11/2002(C-436/00, X and Y), ECR 2002: I-10829; ECJ of 11/03/2004 (C-9/02, De Lasteyrie du Saillant), ECR 2004: I-2409; ECJ of 13/12/2005 (C-446/03, Marks&Spencer), ECR 2005, I-10837. See also Jaeger 2001: 61 et seq.; Arndt and Fischer 2008: 124.
- 151.
Cf. Cordewener 2004b: 1 et seq.; Helminen 2009: 57 et seq.; Jacobs et al. 2011: 211. Regarding restrictions by other member states see ECJ of 15/05/1997 (C-250/95, Futura-Singer), ECR 1997: I-2471. Regarding restrictions by their domestic member states see ECJ of 27/09/1988 (81/87, Daily Mail), ECR 1988: 5483; ECJ of 16/07/1998 (C-264/96, ICI), ECR 1998:I-4695; ECJ of 13/04/2000 (C-251/98, Baars), ECR 2000: I-2787; ECJ of 14/12/2000 (C-141/99, AMID), ECR 2000: I-11619; ECJ of 11/03/2004 (C-9/02, De Lasteyrie du Saillant), ECR 2004:I-2409; Schön 2004b: 31. In the event that an obstacle is cause by one member state but is neutralized completely by another member state (e.g. on the basis of tax treaty concluded), this obstacle exists no longer. Cf. e.g. ECJ of 08/11/2007 (C-379/05, Amurta), ECR 2007: I-9569 Para. 26 et seq.
- 152.
- 153.
For an unambiguous example see ECJ of 16/07/2009 (C-128/08, Damseaux), ECR 2009: I-06823.
- 154.
- 155.
- 156.
Cf. e.g. de Wilde 2010: 284.
- 157.
Cf. inter alia ECJ of 12/05/1998 (C-336/96, Gilly), ECR 1998: I-2793 Para. 24, 30; ECJ of 13/12/2005 (C-446/03, Marks&Spencer), ECR 2005: I-10837 Para. 45 et seq.; ECJ of 18/07/2007 (C-231/05, Oy AA), ECR 2007: I-6373 Para. 51 et seq. Cf. also Helminen 2009: 23, 51 et seq.; Schön 2009: 94; Dutch Ministry of Finance 2011: 28.
- 158.
- 159.
Since the abovementioned fundamental freedoms take precedence over the secondary EU law, the latter has to be compliant with primary EU law. Cf. inter alia ECJ of 18/09/2003 (C-168/01, Bosal), ECR 2003: I-9409 Para. 43; ECJ of 23/02/2006 (C-471/04, Keller Holding), ECR 2006: I-2107 Para. 45. See also Rödder 2004: 1633; Schön 2004c: 297; Zanotti 2004: 500 et seq.; Schön and Schindler 2004: 576; Eberhartinger and Six 2007: 215 et seq.; Arndt and Fischer 2008: 73, 119.
- 160.
- 161.
Cf. Council Directive, 90/435/EEC: 6, as lastly amended by Council Directive, 2003/123/EC: 41.
- 162.
Cf. Council Directive, 2003/49/EC: 49.
- 163.
- 164.
- 165.
The Saving Directive (2003/48/EC: 38, as lastly amended by Council Directive, 2006/98/EC: 129) will not be taken into consideration for the further analysis, since its objective and scope of application – it solely affects interest payments to individuals – deviate from those of the EU Parent-Subsidiary Directive and the EU Interest and Royalties Directive as well as the scope of this thesis. Regarding the EU Saving Directive see in more detail, e.g., Panayi 2009: 179 et seq.
- 166.
- 167.
Cf. Lodin 2000: 214; Kalloe 2011: 504 et seq. See also Pinto 1998: 388. A similar initiative comes also from the OECD, but with a different scope as tax havens as such are primarily targeted. Cf. Osterweil 1999: 198 et seq. For this OECD Report on Harmful Tax Competition see inter alia OECD 1998: 7 et seq.; Osterweil 1999: 198 et seq.; McLure 2005: 90 et seq.
- 168.
Cf. also Lampreave 2011: 17 et seq.
- 169.
Cf. Pinto 1998: 388 et seq.; Osterweil 1999: 199 et seq.; Carlos Santos 2000: 419; Hendricks 2000: 413; Lodin 2000: 214; Parly 2000: 407; Bogaerts 2005: 357; Fontana 2006: 329; Terra and Wattel 2008: 198 et seq.; European Commission 2011b: 10. As merely a political commitment, the EU Code of Conduct is part of the European ‘soft law’. Cf. Szudoczky and van de Streek 2010: 274; European Commission 2011b: 10; Lampreave 2011: 17 et seq.; Martínez Bárbara 2011: 273. Cf. contra Meussen 2002: 157 et seq.
- 170.
Cf. also Ellis 2000: 414.
- 171.
- 172.
- 173.
- 174.
- 175.
- 176.
- 177.
European Commission 2011b: 10 et seq.
- 178.
European Commission 2010: 4.
- 179.
- 180.
Euro Summit, 2011: 9.
- 181.
- 182.
- 183.
Cf. also Helminen 2010: 170. For such discrimination see e.g. ECJ of 12/12/2002 (C-324/00, Lankhorst-Hohorst), ECR 2002: I-11779.
- 184.
- 185.
Cf. Koop 1993: 103 et seq.; Obermair and Weninger 2008: 19 et seq.; Evans 2008: 450, 457 et seq.; Rosen and Gayer 2010: 368 et seq.; Shaw et al. 2010: 1103, 1106. For empirical significance see e.g. Slemrod and Blumenthal 1996: 411 et seq.; European Commission 2004a; Laffer et al. 2011: 17 et seq. For a comprehensive literature overview see Evans 2003: 64 et seq.
- 186.
Cf. Koop 1993: 103 et seq.; Graetz 2001: 310; Shaw et al. 2010: 1121 et seq. See also President’s Economic Recovery Advisory Board 2010: 56. Besides, evasion costs can be listed as well, i.e. social costs from engaging in illegal attitudes and to conceal them. Cf. Slemrod and Yitzhaki 1996: 179 et seq.; Rosen and Gayer 2010: 371 et seq. Since the focus is on well-advised taxpayers who comply with the tax rules, evasions costs will be disregarded.
- 187.
Cf. Holtzman 2007: 426 et seq.; Evans 2008: 454 et seq. For an increase of complexity in tax law over time in most jurisdictions, which will raise administration and compliance costs as mentioned below, see Holtzman 2007: 426 et seq.; Evans 2008: 447 et seq.; Lang et al. (2008); Evans 2010: 83 et seq., with further references; World Bank/International Finance Corporation/PricewaterhouseCoopers 2010: 44
- 188.
- 189.
Cf. Chessman et al. 2010: 744 et seq.
- 190.
- 191.
- 192.
- 193.
Cf. Koop 1993: 103; Harris 1996: 7; European Commission 2001: 28; Nobes 2004: 40; Holtzman 2007: 419; Shaw et al. 2010: 1107 et seq. However, in some cases, taxpayer’s private costs are not identical to social costs, e.g. in case of penalties for non-compliance with tax rules. Cf. Shaw et al. 2010: 1111.
- 194.
- 195.
Cf. Thuronyi 1998: 72 et seq.; Holtzman 2007: 425; Obermair and Weninger 2008: 20; Woellner et al. 2009: 24; Shaw et al. 2010: 1119. See also German Council of Economic Experts 2010: 217, with further reference; HM Revenue & Customs 2010a: 11; HM Revenue and Customs 2010b: 6, 10; President’s Economic Recovery Advisory Board 2010: 56 et seq.; Laffer et al. 2011: 8 et seq.
- 196.
- 197.
- 198.
- 199.
- 200.
- 201.
- 202.
- 203.
- 204.
For this, but with regard to inconsistencies between different types of tax of only one jurisdiction, see Woellner et al. 2009: 26, 33; Shaw et al. 2010: 1119. See also Cooper 1993: 417 et seq. For inconsistencies due to the disregard of economic substance see Strnad 1994: 573. Cf. also Chessman et al. 2010: 719.
- 205.
- 206.
- 207.
Cf. Schizer 2000: 1353; European Commission 2001: 28; Evans 2010: 84 et seq.; Shaw et al. 2010: 1120. See also President’s Economic Recovery Advisory Board, 2010: 56 et seq.; Lipin 2011: 665 et seq.; Schnitger 2011: 367. Additionally, frequent changes are making it more difficult for a taxpayer to foresee and estimate his/her tax burden, which may negatively effect on investment decisions. Cf. Wendt 2009: 49. See further also Schnitger 2011: 367.
- 208.
- 209.
Cf. further Scientific Advisory Committee of the German Federal Ministry of Finance 2007: 20 et seq.
- 210.
- 211.
Cf. Shaw et al. 2010: 1120, with further reference.
- 212.
- 213.
Cf. Harris 1996: 9; European Commission 2001: 28. See also Cooper 1993: 417 et seq.; Treisch 2004: 103 et seq.; Andersson 2007: 84, 94 et seq.; Chessman et al. 2010: 719; HM Revenue & Customs 2010a: 10 et seq., 15 et seq.; President’s Economic Recovery Advisory Board 2010: 56; Lipin 2011: 665 et seq. However, defining borderlines and criteria that are as detailed and thus include as few open-ended tax rules may improve legal certainty, but not simplicity. Cf. Holtzman 2007: 419, 421. For a different view cf. Pinder 2005: 85. See in general also Turnbull 1997: 24 et seq.
- 214.
- 215.
Cf. Cooper 1993: 417 et seq.; Turnbull 1997: 21 et seq.; Andersson 2007: 94 et seq.; Holtzman 2007: 418; European Commission 2001: 28; Evans 2010: 83. For some empirical evidence see e.g. Jorgenson 1971: 1111 et seq.; Chirinko 1993: 1987 et seq.; Andersson 2007: 94 et seq., with further references. Regarding the general relevance of legal certainty in international law, cf. Maxeiner 2007: 541 et seq.; Maxeiner 2008: 27 et seq. For legal certainty in the sense of predictability see also Raitio 2003: 372 et seq.; Raitio 2006: 395 et seq.
- 216.
- 217.
- 218.
- 219.
Cf. also Graetz 2001: 312 et seq.
- 220.
Cf. Treisch 2004: 107 et seq.
- 221.
- 222.
- 223.
- 224.
- 225.
Cf. e.g. Becker and Fuest 2011: 96 et seq.
- 226.
- 227.
Cf. also Weisbach 1999: 1627 et seq.
- 228.
Cf. Pratt 2000: 1056 et seq., 1065 et seq.; MacNeil 2005: 96 et seq., 209 et seq.; Franke and Hax 2009: 32; Schön 2010: 80 et seq. See also Matre 2002: 456, 458; Rudolph 2006: 5; Baums 2007: 957 et seq.; Brealey et al. 2008: 366 et seq.; Helminen 2010: 165 et seq. For a more detailed reflection of the non-tax legal nature of financial instruments in Germany see Briesemeister 2006: 68 et seq., with further references. Moreover, there are timing differences between the remuneration derived from interest-generating debt and dividend-generating equity: While the remuneration derived from the former is realized when it is accrued, the remuneration derived from the latter is basically only realized when it is actually received. Cf. Benshalom 2010: 1230 et seq. See also Pratt 2000: 1119.
- 229.
Cf. Sect. 2.2.
- 230.
- 231.
- 232.
- 233.
In contrast, the difference between fixed and contingent payments can be substituted for each other through the use of put and call options, so that debt and equity capital do not differ economically in kind to that effect. For the put-call parity theorem see Warren 1993: 465 et seq.; Shaviro 1995: 652 et seq.; Edgar 2000: 21 et seq., 94 et seq.
- 234.
Cf. Sect. 2.2.12.
- 235.
Cf. Sect. 2.2.2.
- 236.
- 237.
Cf. Sect. 2.2.1.
- 238.
- 239.
- 240.
- 241.
- 242.
For the same result see Emmerich 1985: 139; Benshalom 2010: 1261; HM Treasury 2010: 14; Schön 2010: 82 et seq. See also Sanger 2011: 8. Nevertheless, a fundamental tax reform in terms of an elimination of the debt/equity distinction for tax purposes should be the overall goal, not least because of its contribution to the development of the financial and economic crisis in 2008–2009. Regarding this contribution see Sullivan 2008: 1241; Benshalom 2010: 1222; Hemmelgarn and Nicodème 2010: 17 et seq.; Shackelford et al. 2010: 783 et seq. See also Harris 2010: 588. Generally differently cf. Emmerich 1985: 121, 139.
- 243.
- 244.
- 245.
Cf. also Lawrence 1990: 118; Collado and Rey 1993: 110; Essers et al. 1994: 170; Engle and Raineri 1996: 777; Carlisle 2000: 105; Briesemeister 2006: 68, 72; Bogenschütz 2008b: 52 et seq.; Franke and Hax 2009: 31, 33; Helminen 2010: 166; Bourtourault and Bénard 2011: 187. See further Küting and Dürr 2005: 1529; Hoor and Kreemer 2011: 654.
- 246.
Cf. Lang 1991: 123; Thiele 1998: 22 et seq.; Lamon 2005b: 118; Flora 2006a: 78 et seq.; Franke and Hax 2009: 34 et seq. See further Sauer 1993: 40 et seq.; Haun 1996: 31; Lamon 2002: 66 et seq.; Matre 2002: 456, 458; Serbini and Flora 2005: 20. For another, more simplified systematization see Wöhe et al. 2009: 174.
- 247.
Yet, exceptions exist – particularly in the case of obligations toward third parties. Cf. Thiele 1998: 22.
- 248.
- 249.
- 250.
- 251.
- 252.
- 253.
- 254.
- 255.
- 256.
Cf. Briesemeister 2006: 74 et seq.; Flora 2006a: 79; Franke and Hax 2009: 45 et seq. See also Sauer 1993: 55 et seq.; Haun 1996: 33; Lamon 2002: 66 et seq. Since the acquiescence of the modification right by one party corresponds to the right to modify rights and obligations by the other party, solely the latter (here: from the view of the investor) will be examined in the following.
- 257.
- 258.
Cf. Franke and Hax 2009: 50 et seq. See also Lang 1991: 123; Sauer 1993: 55 et seq.; Lamon 2005b: 118; Ross et al. 2008: 408. See further Lamon 2002: 66 et seq.; Rudolph 2006: 5. For the importance of control rights from an economic point of view see Tirole 2006: 389 et seq., with further references. Moreover, other, particularly corporate related rights are to participate in general meetings and to table resolutions. Cf. European Commission 2004b: 5 et seq. See Förster 2011: 366 et seq., for Germany.
- 259.
- 260.
Cf. Sects. 3.2.3, 4.2.23, 4.2.33, 4.2.43 and 4.2.53; MacNeil 2005: 210; Brealey et al. 2008: 367 et seq., 372; Franke and Hax 2009: 51 et seq.; Benshalom 2010: 1253 et seq.; Schön 2010: 80. See further Lang 1991: 123; Haun 1996: 33; Baums 2007: 959. Nevertheless, the contractual related investor can indirectly have (limited) rights to make decisions, as, for instance, the corporation has to comply with covenants which may limit the business policy. Cf. MacNeil 2005: 210, 222 et seq.; Franke and Hax 2009: 50 et seq. See also Rudolph 2006: 5; Brealey et al. 2008: 367 et seq.; Bazzana and Palmieri 2010: 1 et seq., with further references. Furthermore, the corporate investor’s voting power can be bounded by contract to the decision made by, for instance, contractual investors. Cf. Priester 1984: 657 et seq.
- 261.
- 262.
- 263.
- 264.
- 265.
The exercise of the right leads to an extinction of the rights and obligations (prior to maturity) and, thus, a repayment of the committed capital. Cf. Sauer 1993: 64 et seq.; Ross et al. 2008: 412;Franke and Hax 2009: 47 et seq. See further also Rudolph 2006: 5 et seq.; Baums 2007: 958. However, specific rights and/or obligations can persist. Cf. Thiele 1998: 29.
- 266.
The exercise of the right can lead to a change of the legal nature of any right or obligation (but not their termination). In practice, the conversion of a single right or obligation is not of great importance, but the conversion of the array of rights and obligations, i.e. the entire financial instruments. Cf. Thiele 1998: 30; Lamon 2002: 61 et seq.; Franke and Hax 2009: 48 et seq. See further Carlisle 2000: 106 et seq.; Lamon 2005b: 118; Rudolph 2006: 5 et seq. However, the conversion may also relate, for instance, to the payment currency. Cf. Briesemeister 2006: 75; Franke and Hax 2009: 49.
- 267.
The disposal of the bundle of rights and obligations, i.e. of the financial instrument, does not lead to a termination of all rights and obligations, but to their cession from the transferor to the transferee. Cf. Thiele 1998: 29 et seq.; Franke and Hax 2009: 45 et seq. See further also Rudolph 2006: 5 et seq.
- 268.
De facto changes can be achieved, for instance, by the acquisition of a further bundle of (the same or different) rights and obligations. Cf. e.g. Flora 2006a: 79. However, separately transferable option rights and/or obligations will not be considered in the further analysis.
- 269.
Furthermore, the (fixed or contingent) distinctive characteristics can differ from the situation in which the entitlement to modifications arose. In fact, for instance, the investor can be obliged for a conversion with a fixed ratio and to a date being contingent on the corporation’s economic situation. For comparable designed parts of contingent convertible bonds see e.g. Böhringer et al. 2011: 49 et seq.
- 270.
Cf. also Franke and Hax 2009: 55.
- 271.
Cf. Schneider 1987: 186; Herzig 1994: 593; Haun 1996: 19 et seq.; Thiele 1998: 32 et seq. See further Emmerich 1985: 133 et seq. Regarding a distinction by means of the degree of risk to which an investor is exposed see Swoboda 1985a: 356 et seq.; Swoboda 1985b: 55 et seq.; Polito 2000: 299 et seq. Regarding this approach see critically Haun 1996: 26 et seq.; Drukarczyk 2008: 303.
- 272.
The allocated functions of equity are the continuity function, the liability function, the loss compensation function and the profit sharing function. Cf. inter alia Thiele 1998: 49 et seq., with further references.
- 273.
Cf. Schneider 1987: 185 et seq.; Elschen 1993: 591; Süchting 1995: 27 et seq.; Haun 1996: 30 et seq.; Thiele 1998: 36 et seq.; Weisbach 1999: 1659 et seq.; Küting and Dürr 2005: 1529; Baums 2007: 957 et seq.; Drukarczyk 2008: 303, 376. See further Calì 2000: 410; Krause 2006: 193; Küting et al. 2008: 941. For another exemplary ideal-typical distinction cf. Verdoner 2005: 282 et seq., in terms of global trading.
- 274.
- 275.
Cf. Swoboda 1985b: 44 et seq.; Elschen 1993: 591 et seq.; Küting and Kessler 1994: 2105 et seq.; Süchting 1995: 27 et seq.; Haun 1996: 31 et seq.; Thiele 1998: 37 et seq.; Fabozzi 2002: 2; O’Neill 2003: 161; Küting and Dürr 2005: 1529; MacNeil 2005: 96 et seq., 209 et seq.; Rudolph 2006: 5; Baums 2007: 957 et seq.; Drukarczyk 2008: 303 et seq.; Perridon et al. 2009: 357 et seq., 383; Schön 2010: 85; Putnoki et al. 2011: 79.
- 276.
- 277.
References
Allers M (1994) Administrative and compliance costs of taxation and public transfers in the Netherlands. Groningen
Andersson K (2007) An optional common consolidated corporate tax base in the European union. In: Andersson K, Eberhartinger E, Oxelheim L (eds) National tax policy in Europe. Berlin/Heidelberg, pp 85–119
Arndt H-W, Fischer K (2008) Europarecht, 9th edn. Heidelberg
Arnold BJ (2003) Threshold requirements for taxing business profits under tax treaties. In: Arnold BJ, Sasseville J, Zolt EM (eds) The taxation of business profits under tax treaties. Toronto, pp 55–108
Auerbach AJ, Devereux MP, Simpson H (2010) Taxing corporate income. In: Mirrless J et al (eds) Dimensions of tax design. The Mirrless review. Oxford/New York, pp 837–893
Ault HJ, Arnold BJ (eds) (2010) Comparative income taxation, 3rd edn. The Hague
Ault HJ, Bradford DF (1990) Taxing international income: an analysis of the U.S. system and its economic premises. In: Razin A, Slemrod J (eds) Taxation in the global economy. Chicago, pp 11–52
Avi-Yonah R (1997) International taxation of electronic commerce. Tax Law Rev 507–555
Avi-Yonah R (2000a) Globalization, tax competition and the Fiscal crisis of the welfare state. Harv Law Rev 1573–1675
Avi-Yonah R (2000b) Commentary on Tillinghast lecture. Tax Law Rev 167–175
Avi-Yonah R (2006) The three goals of taxation. Tax Law Rev 1–28
Avi-Yonah R (2007) International tax as international law. An analysis of the international tax regime. New York
Avi-Yonah R (2011), Taxation as regulation: carbon tax, health care tax, bank tax and other regulatory taxes. Account Econ Law, 1–10
Baums T (2007) Die Fremdkapitalfinanzierung der Aktiengesellschaft durch das Publikum. In: Bayer W, Habersack M (eds) Aktienrecht im Wandel, Band II: Grundsatzfragen des Aktienrechts, Tübingen, pp 955–994
Bazzana F, Palmieri M (2010) How to increase the efficiency of bond covenants: a proposal for the Italian corporate market. Eur J Law Econ 1–20
Becker J, Fuest C (2011) The taxation of foreign profits – the old view, the new view and a pragmatic view. Interecon Rev Eur Econ Policy 92–97
Beiser R (2000) Das Leistungsfähigkeitsprinzip – Irrweg oder Richtschnur?. Österreichische Steuerzeitung 413–423
Beiser R (2009) Kohärenz und Steuersymmetrie im Gemeinschaftsrecht. Internationales Steuerrecht 236–238
Benshalom I (2010) How to live with a tax code with which you disagree? Doctrine, optimal tax, common sense and the debt and equity distinction. N C Law Rev 1217–1274
Bird RM, Wilkie JS (2000) Source- vs residence-based taxation in the European union: the wrong question?. In: Cnossen S (ed) Taxing capital income in the European union: issues and options for reform. Oxford, pp 78–109
Bogaerts R (2005) Luxembourg adapts 1929 holding companies regime to comply with EU code of conduct. Eur Tax 356–359
Bogenschütz N (2008b) Neuausrichtung des Eigenkapitalbegriffs: dogmatische Überlegungen im Lichte hybrider Finanzierungen. Frankfurt am Main
Böhringer M, Mihm A, Schaffelhuber KA, Seiler O (2011) Contingent Convertible Bonds als regulatorisches Kernkapital. Recht der Finanzinstrumente 48–58
Bourtourault P-Y, Bénard M (2011) French tax aspects of cross-border restructuring. Bull Int Tax 179–187
Bradford DF (1986) Untangling the income tax. Cambridge
Brauner Y (2003) An international tax regime in crystallization. Tax Law Rev 259–328
Brealey RA, Myers SC, Allen F (2008) Principles of corporate finance, 9th edn. Boston
Briesemeister S (2006) Hybride Finanzinstrumente im Ertragsteuerrecht, Düsseldorf
Brown KB (2002) Missing Africa: should U.S. International Tax Rules Accommodate Investment in Developing Countries?. Univ Pa J Int Econ Law 46–83
Buehler AG (1946) Ability to pay. Tax Law Rev 243 et seq
Bundgaard J (2010a) Classification and treatment of hybrid financial instruments and income derived therefrom under EU corporate tax directives – part 1. Eur Tax 442–456
Burns L and O’Donnell P (2000) National report of Australia. In: IFA (ed) Tax treatment of hybrid financial instruments in cross-border transactions, vol 85a. The Hague, pp 109–134
Calì GB (2000) National report of Italy. In: IFA (ed) Tax treatment of hybrid financial instruments in cross-border transactions, vol 85a. The Hague, pp 401–427
Carlisle LE (2000) Hybrid instruments: a tax planning synopsis. In: Nelken I (ed) Handbook of hybrid instruments. Chichester, pp 105–113
Carlos Santos A (2000) Point J of the code of conduct or the primacy of politics over administration. Eur Tax 417–421
Cerioni L (2011) The commission’s proposal for a CCCTB directive: analysis and comment. Bull Int Tax 515–530
Chessman S et al (2010) Governments and information gathering: impact on MNE planning. Tax Manage Int J 719–759
Chirinko RS (1993) Business fixed investment spending: modelling strategies, empirical results and policy implications. J Econ Lit 1875–1911
Cockfield AJ (2005) NAFTA tax law and policy: resolving the clash between economic and sovereignty interests. Toronto/Buffalo/London
Code of Conduct Group (2008b) Code of conduct (business taxation), 26.11.2008, Council document 16410/08 FISC 174. http://register.consilium.europa.eu/pdf/en/08/st16/st16410.en08.pdf. Accessed 3 Jan 2012
Code of Conduct Group (2010) Code of conduct (business taxation), 25.5.2010, Council document 10033/10 FISC 74. http://register.consilium.europa.eu/pdf/en/10/st10/st10033.en10.pdf. Accessed 3 Jan 2012
Collado A, Rey F (1993) Spain: new thin capitalization regulations in a comparative framework. Eur Tax 110–119
Comolet-Tirman C (2011) French treaty policy. Bull Int Tax 199–204
Cooper GS (1993) Themes and issues in tax simplification. Aust Tax Forum 417–460
Cordewener A (2004a) Deutsche Unternehmensbesteuerung und europäische Grundfreiheiten – Grundzüge des materiellen und formellen Rechtschutzsystems der EG. Deutsches Steuerrecht 6–15
Cordewener A (2004b) Chapter I: the prohibitions of discrimination and restriction within the framework of the fully integrated internal market. In: Vanistendael F (ed) EU freedoms and taxation. Amsterdam, pp 1–45
ECOFIN Council (1998) Conclusions of the ECOFIN council meeting, 1.12.1997. In: OJ of 6.1.1998, C2: 1
Couzin R (2002) Corporate residence and international taxation. Amsterdam
HM Revenue & Customs (2010a) Corporate tax reform: delivering a more competitive system. http://www.hm-treasury.gov.uk/d/corporate_tax_reform_complete_document.pdf. Accessed 21 April 2011
HM Revenue & Customs (2010b) Tax policy making: a new approach. http://www.hm-treasury.gov.uk/d/junebudget_tax_policy_making.pdf. Accessed 21 April 2011
Dautzenberg N (2000) Die Kapitalverkehrsfreiheit des EG-Vertrags und die direkten Steuern – Auswirkungen aus dem Grundsatzurteil des EuGH vom 6. 6. 2000 in der Rechtssache Verkooijen. Steuern und Bilanzen 720–726
De Mooij RA, Devereux MP (2011) An applied analysis of ACE and CBIT reforms in the EU. Int Tax Public Financ 93–120
De Wilde MF (2010) Some thoughts on a fair allocation of corporate tax in globalizing economy. Intertax 281–305
Desai MA, Hines JR Jr (2004), Old rules and new realities: corporate tax policy in a global setting. Natl Tax J 937–960
Devereux MP, Pearson M (1995) European tax harmonization and production efficiency. Eur Econ Rev 1657–1681
Di Pietro A (1999) Italy. In: Meussen GTK (ed) The principle of equality in European taxation. London 115–124
Diamond P, Mirrless J (1971) Optimal taxation and public production I: production efficiency. Am Econ Rev 8–27
Dilworth RH (2010) Federal income tax reform: international recommendations. Tax Notes 1113–1121
Drukarczyk J (2008) Finanzierung, 10th edn. Stuttgart
Dutch Ministry of Finance (2011) Notitie Fiscaal Verdragsbeleid 2011. http://www.rijksoverheid.nl/bestanden/documenten-en-publicaties/notas/2011/02/11/notitie-fiscaal-verdragsbeleid-2011/notitie-fiscaal-verdragsbeleid-2011-met-omslag.pdf. Accessed 13 April 2011
Eberhartinger E, Six M (2007) National tax policy, the directives and hybrid finance. In: Andersson K, Eberhartinger E, Oxelheim L (eds) National tax policy in Europe. Berlin/Heidelberg, pp 213–236
Eberhartinger E, Six M (2009) Taxation of cross-border hybrid finance: a legal analysis. Intertax 4–18
Eden S (2010) The obstacles faced by the european court of justice in removing the “obstacles” faced by the taxpayer: the difficult case of double taxation. Br Tax Rev 610–628
Edgar T (2000) Income tax treatment of financial instruments: theory and practice. Toronto
Edwards C, de Rugy V (2002), International tax competition – a 21st century restraint on government. Tax Notes Int 63–109
Elschen R (1991), Entscheidungsneutralität, Allokationseffizienz und Besteuerung nach der Leistungsfähigkeit. Gibt es ein gemeinsames Fundament der Steuerwissenschaften?. Steuer und Wirtschaft 99–115
Elschen R (1993) Eigen- und Fremdfinanzierung – Steuerliche Vorteilhaftigkeit und betriebliche Risikopolitik. In: Gebhardt G, Gerke W, Steiner M (eds) Handbuch des Finanzmanagements. München, pp 585–617
Elschen R, Hüchtebrock M (1983) Steuerneutralität in Finanzwissenschaft und Betriebswirtschaftslehre – Diskrepanzen und Konsequenzen. Finanzarchiv 253–280
Emmerich AO (1985) Hybrid instruments and the debt-equity distinction in corporate taxation. Univ Chicago Law Rev 118–148
Engle HS, Raineri WT (1996) National report of the United States. In: IFA (ed) International aspects of thin capitalization, vol 81b. The Hague, pp 773–799
Erasmus-Koen M (2011) Common consolidated corporate tax base: a “fair share” of the tax base?. Int Transf Pricing J 237–247
Essers P et al (1994), Some fiscal aspects of Financing structures within a group of companies and thin capitalization approaches in Europe, report of the winter course 1994. EC Tax Rev 167–176
European Commission (2001) Company taxation in the internal market. Communication from the Commission to the Council, the European Parliament and the European Economic and Social Committee, COM(2001), 582 final, Brussels
European Commission (2004a) European tax survey. Directorate-General Taxation & Customs Union, Working paper no. 3/2004, Brussels
European Commission (2004b) Fostering an appropriate regime for shareholders’ rights, consultation document of the services of the Internal Market Directorate General, 16.9.2004. http://ec.europa.eu/internal_market/company/docs/shareholders/consultation_en.pdf. Accessed 31 Mar 2011
European Commission (2006) Co-ordinating member states’ direct tax systems in the Internal Market, Communication from the Commission to the Council, the European Parliament and the European Economic and Social Committee, COM(2006), 823 final, Brussels
European Commission (2010) Removing cross-border tax obstacles for EU citizens, Communication from the Commission to the Council, the European Parliament and the European Economic and Social Committee. http://ec.europa.eu/taxation_customs/resources/documents/taxation/gen_info/tax_policy/com%282010%29769_en.pdf. Accessed 3 Jan 2012
European Commission (2011a) Double taxation in the single market, Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee, COM(2011), 712 final, Brussels
European Commission (2011b) Growth-friendly tax policies in member states and better tax coordination in the EU, Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of Regions, Annex IV, COM(2011), 815 final, Brussels
Evans C (2003) Studying the studies: an overview of recent research into taxation operating costs. e-J Tax Res 64–92
Evans C (2008) Taxation compliance and administrative costs: an overview. In: Lang M et al (eds) Tax compliance costs for companies in an enlarged european community. Vienna, pp 447–468
Evans C (2010) Commentary on Adam, S./Browne, J./Heady, C., Taxation in the UK. In: Mirrless J et al (eds) Dimensions of tax design. The Mirrless review. Oxford/New York, pp 78–89
Fabozzi FJ (2002), The handbook of financial instruments. Hoboken
Feuerer C, Hörtnagl R (2011) Doing business in Germany: an outline of German insolvency law. Tax Notes Int 373–376
Fleming JC, Peroni RJ (2005) Exploring the contours of a proposed U.S. exemption (territorial tax system). Tax Notes Int 217–240
Fleming JC, Peroni RJ, Shay SE (2001) Fairness in international taxation: the ability-to-pay case for taxing worldwide income. Fla Tax Rev 299–354
Fleming JC, Peroni RJ, Shay SE (2008), Some perspectives from the United States on the worldwide taxation vs. territorial taxation debate. J Aust Tax Teach Assoc 35–86
Fleming JC, Peroni RJ, Shay SE (2009) Perspectives on the worldwide vs. territorial taxation debate. Tax Notes 1079–1106
Flick H (1961) Recht und Gerechtigkeit im internationalen Steuerrecht. Finanz-Rundschau 171–174
Flora P (2006a) Participating financial instruments: opportunities and risks. Deriv Financ Instrum 77–82
Fohr I (2001) Besteuerungskonzept für Holdinggesellschaften. Frankfurt
Fontana R (2006) The uncertain future of CFC regimes in the member states of the European union – part 2. Eur Tax 317–334
Förster C (2011) Aktionärsrecht in der Hauptversammlung – quo vaditis?. Die Aktiengesellschaft 362–373
Franke G, Hax H (2009) Finanzwirtschaft des Unternehmens und Kapitalmarkt, 6th edn. Heidelberg
Frebel M (2006) Erfolgsaufteilung- und -besteuerung im internationalen Konzern. Lohmar
Furuseth E (2008) National report Norway. In: Lang M et al (eds) Tax compliance costs for companies in an enlarged European community. Vienna, pp 285–307
Gale WG (2002) Notes on corporate inversions, export subsidies, and the taxation of foreign source income. Tax Notes Int 1495–1509
Gammie M (1994) The taxation of inward direct investment in North America following the free trade agreement. Tax Law Rev 615–674
Gammie M (1999) The source taxation of derivative financial instruments, synthetic securities, financial hedging transactions and similar innovative financial transactions. Deriv Financ Instrum 231–236
Gammie M et al (2005) Achieving a common consolidated corpoarte tax base in the EU, Report of a CEPS Task Force, Brussels
García Novoa C (2010) Tax neutrality in the exercise of the right of establishment within the EU and the funding of companies. Intertax 568–576
German Council of Economic Experts (2010) Chancen für einen stabilen Aufschwung, Jahresgutachten 2010/11, Wiesbaden
Giovannini A (1990) International capital mobility and capital-income taxation. European Econ Rev 480–488
Gordon RH (1992) Can capital income taxes survive in open economies?. J Financ 1159–1180
Gordon RH, Hines JR Jr (2002) International taxation. In: Auerbach A, Feldstein M (eds) Handbook of public economics, vol 4. Amsterdam, pp 1935–1995
Göydeniz S (2011) Seminar C: Anrechnungs- vs. Freistellungsmethode – Steuerpolitische Grundsatzüberlegungen. Internationales Steuerrecht 665–668
Goyeneche JJ, Moreno F (2000) National report of Mexico. In: IFA (ed) Tax treatment of hybrid financial instruments in cross-border transactions, vol 85a. The Hague, pp 485–501
Graetz MJ (2001) The David Tillinghast lecture taxing international income: inadequate principles, outdated concepts and unsatisfactory policies. Tax Law Rev 261–336
Graetz MJ, O’Hear MM (1997) The “original intent” of U.S. international taxation. Duke Law J 1022–1109
Graetz MJ, Warren AC Jr (2006) Income tax discrimination and the political and economic integration of Europe. Yale Law J 1186–1255
Green RA (1993) The future of source-based taxation of the income of multinational entreprises. Cornell Law Rev 18–86
Gribnau H (1999) General introduction. In: Meussen GTK (ed) The principle of equality in European taxation. London, pp 1–33
Griffith R, Hines JR Jr, Sørensen PB (2010) International Capital Taxation. In: Mirrless J et al (eds) Dimensions of tax design. The Mirrless review. Oxford/New York, pp 914–996
Haig R (1935) The cost to business concerns of compliance with tax laws. Manage Rev 323–333
Haller H (1981) Die Steuern – Grundlinien eines rationalen Systems öffentlicher Ausgaben. Tübingen
Hamaekers H (2000) Tackling harmful tax competition – a round table on the code of conduct. Eur Tax 398–400
Hammer V (2011) More IRS actions and court decisions affecting the financial services sector. Deriv Financ Instrum 18–31
Hariton DP (1994) Distinguishing between equity and debt in the new financial environment. Tax Law Rev 499–524
Harris PA (1996) Corporate/shareholder income taxation and allocating taxing rights between countries. A comparison of imputation systems. Amsterdam
Harris PA (2010) Cross-border dividend taxation in the 21st century: the [Ir]relevance of tax treaties. Br Tax Rev 573–588
Haun J (1996) Hybride Finanzierungsinstrumente im deutschen und US-amerikanischen Steuerrecht. Frankfurt am Main
Heinhold M (1999) Zur Entscheidungsneutralität konsumorientierter Steuersysteme. In: Altenburger O (ed) Fortschritte im Rechnungswesen: Vorschläge für Weiterentwicklungen im Dienste der Unternehmens- und Konzernsteuerung durch Unternehmensorgane und Eigentümer; Gerhard Seicht zum 60. Geburtstag. Wiesbaden, pp 73–99
Hellwig MF (2003) Public-good provision with many participants. Rev Econ Stud 589–614
Helminen M (2009) EU tax law – direct taxation. Amsterdam
Helminen M (2010) The international tax law concept of dividend. Alphen aan den Rijn
Hemmelgarn T, Nicodème GJA (2010) The 2008 financial crisis and taxation policy, CESifo working paper no. 2932, Munich
Hendricks B (2000) A view on tax harmonization and the code of conduct. Eur Tax 413–414
Henn G (2002) Handbuch des Aktienrechts, 7th edn. Heidelberg
Herzig N (1994) Spannungsverhältnis zwischen Finanzierungsfreiheit und fehlender Finanzierungsneutralität der Besteuerung. Finanz-Rundschau 589–602
Herzig N, Dautzenberg N (1997) Die Einwirkung des EG-Rechts auf das deutsche Unternehmenssteuerrecht. Der Betrieb 8–17
Hey J (1996b) Harmonisierung der Unternehmensbesteuerung in Europa. Cologne
Heyvaert W, Deschrijver D (2005) Belgium stimulates equity financing. Intertax 458–465
Hines JR (2007) Corporate taxation and international competition. In: Auerbach A, Hines JR, Slemrod J (eds) Taxing corporate income in the 21st century 2007. pp 268–295
Hines JR (2009) Reconsidering the taxation of foreign income. Tax Law Rev 269–298
Hinnekens L (2004) Chapter III: basis and scope of public interest justification of national tax measures infringing fundamental treaty freedoms. In: Vanistendael F (ed) EU Freedoms and Taxation. Amsterdam, pp 73–104
Holmes K, Roeleveld J, West C (2011) Tax treaties and double non-taxation: the case of New Zealanders investing in immovable property in South Africa. Bull Int Tax 227–236
Holtzman Y (2007) Challenges in achieving transparency, simplicity and administering of the United States tax code. J Manage Dev 418–427
Homburg S (2010) Allgemeine Steuerlehre, 6th edn. Munich
Honiball M (2000) National report of South Africa. In: IFA (ed) Tax treatment of hybrid financial instruments in cross-border transactions, vol 85a. The Hague, pp 573–579
Hoor OR, Kreemer P (2011) Luxembourg: a prime location for structuring Sharia-compliant real estate investments. Int Tax Notes 653–665
Hüffer U (2010) Aktiengesetz, 9th edn. Munich
IBFD (2005) Survey on the implementation of the EC interest and royalty directive. http://ec.europa.eu/taxation_customs/resources/documents/common/publications/studies/survey_IR_dir.pdf, http://ec.europa.eu/taxation_customs/resources/documents/common/publications/studies/ir_dir_de_en.pdf, http://ec.europa.eu/taxation_customs/resources/documents/common/publications/studies/ir_dir_it_en.pdf, http://ec.europa.eu/taxation_customs/resources/documents/common/publications/studies/ir_dir_nl_en.pdf. Accessed 27 Jan 2011
IBFD (2011a) Country analyses – corporate taxation. http://www.ibfd.org
Jachmann M (2000) Steuergesetzgebung zwischen Gleichheit und wirtschaftlicher Freiheit – Verfassungsrechtliche Grundlagen und Perspektiven der Unternehmensbesteuerung. Stuttgart
Jacobs OH, Spengel C, Schäfer A (2003) ICT and international corporate taxation: tax attributes and scope of taxation. Intertax 214–231
Jacobs OH, Endres D, Spengel C (eds) (2011) Internationale Unternehmensbesteuerung, Deutsche Investitionen im Ausland – Ausländische Investitionen im Inland, 7th edn. Munich
Jaeger C (2001) Die Körperschaftsteuersysteme in Europa: eine europarechtliche und betriebswirtschaftliche Analyse. Cologne
James S (1999) The future international tax environment and European tax harmonisation: a personal view. Eur Account Rev 731–747
Jankowiak I (2009) Doppelte Nichtbesteuerung im Internationalen Steuerrecht. Baden-Baden
Jorgenson D (1971) Econometric studies of investment behaviour: a survey. J Econ Lit 1111–1147
Kaldor N (1965) An expenditure tax, 4th edn. London
Kalloe V (2011) Corporate tax treatment of interest: EU state aid and the EU code of conduct as a means of combating harmful tax competition. Eur Tax 504–514
Kane MA (2006) Ownership neutrality, ownership distortions, and international tax welfare benchmarks. Va Tax Rev 53–79
Kaplow L (1989) Horizontal equity: measures in search of a principle. Natl Tax J 139–154
Kaplow L (1992) A note on horizontal equity. Fla Tax Rev 191–196
Kaplow L (2008) The theory of taxation and public economics. Princeton
Kaufmann NH (1998) Fairness and the taxation of international income. Law Policy Int Bus 145–203
Kemmeren ECCM (2001) Principle of origin in tax conventions. Dongen
Kiesewetter D (1997) Theoretische Leitbilder einer Reform der Unternehmensbesteuerung. Eine vergleichende Analyse der Reformmodelle Kroatiens, Österreichs und Skandinaviens. Steuer und Wirtschaft 25–34
Kirchhof P (2002) Der Karlsruher Entwurf und seine Fortentwicklung zu einer Vereinheitlichten Ertragsteuer. Steuer und Wirtschaft 3–22
Kischel D (2000) Beschränkung eines Dividendenfreibetrages auf inländische Dividenden. Anmerkung zum EuGH-Urteil v. 06/06/2000 – Rs. C-35/98 (Verkooijen). Internationale Wirtschafts-Briefe 445–454
Klapdor R (2000) Effiziente Steuerordnung durch ein europäisches Musterabkommen?. Bielefeld
Kleinbard ED (2007) Throw territorial taxation from the train. Tax Notes Int 63–83
Knoll MS (1993) Taxing prometheus: how the corporate interest deduction discourages innovation and risk-taking. Villanova Law Rev 1461–1516
Konrad UA (2009) The common consolidated corporate tax base in the European union. Bull Int Tax 252–256
Koop JM (1993) Zur Gewinnbesteuerung von Körperschaften in der Europäischen Gemeinschaft. Tübingen
KPMG (2006) Administration burdens: HMRC measurement project. http://www.hmrc.gov.uk/better-regulation/kpmg.htm. Accessed 12 Dec 2010
Kraft C (1991) Steuergerechtigkeit und Gewinnermittlung, Eine vergleichende Analyse des deutschen und US-amerikanischen Steuerrechts. Wiesbaden
Krause H (2006) Die Besteuerung hybrider Finanzinstrumente. Frankfurt am ain
Krever R (2000) Simplicity and complexity in Australian income tax. In: Petersen H, Gallagher P (eds) Tax and transfer reform in Australia and Germany. Berlin, pp 63–90
Küting K, Dürr UL (2005) Mezzanine-Kapital – Finanzierungsentscheidung im Sog der Rechnungslegung. Der Betrieb 1529–1534
Küting K, Kessler H (1994) Eigenkapitalähnliche Mittel in der Handelsbilanz und im Überschuldungsstatus. Betriebs-Berater 2103–2114
Küting K, Erdmann M-K, Dürr UL (2008) Ausprägungsformen von Mezzanine-Kapital in der Rechnungslegung nach IFRS (Teil I). Der Betrieb 941–948
Laffer AB, Winegarden WH, Childs J (2011) The economic burden caused by tax code complexity. http://www.laffercenter.com/wp-content/uploads/2011/04/2011-04-Laffer01-ComplexityofTaxCode.pdf. Accessed 20 April 2011
Lamon H (2002) Mezzanine instruments and control provisions. Dynamic allocation of control, risks, return. Application in Belgian law. Deriv Financ Instrum 42–77
Lamon H (2005a) Financial buy-outs: structuring the deal and sweet equity. Deriv Financ Instrum 48–77
Lamon H (2005b) Financial buy-outs: structuring the managers’ participations. Deriv Financ Instrum 118–127
Lampreave P (2011) Fiscal competitiveness versus harmful tax competition in the European union. Bull Int Tax, 17 et seq. http://www.ibfd.org. Accessed 28 Aug 2011
Lang M (1991) Hybride Finanzierungen im Internationalen Steuerrecht. Vienna
Lang M (1997) Later commentaries of the OECD committee on fiscal affairs, not to affect the interpretation of previously concluded tax treaties. Intertax 7–9
Lang M (2004) General report. In: IFA (ed) Double non-taxation, vol 89a. Amersfoort, pp 73–119
Lang M (2007a) Die Rechtsprechung des EuGH zu den direkten Steuern. Welcher Spielraum bleibt den Mitgliedstaaten?. Frankfurt am Main
Lang M (2007b) Tax treaty policy. In: Andersson K, Eberhartinger E, Oxelheim L (eds) National tax policy in Europe. Berlin/Heidelberg, pp 191–212
Lang J, Englisch J (2006) A European legal tax order based on ability to pay. In: Amatucci A (ed) International tax law. The Hague, pp 251–335
Lang M, Herdin-Winter J, Hofbauer-Steffel I (eds) (2005) WTO and direct taxation. Vienna
Lang M et al (eds) (2008) Tax compliance costs for companies in an enlarged European community. Vienna
Lawrence B (1990) Government restrictions on international corporate finance (thin capitalisation). Bull Int Fiscal Doc 118–129
Lindahl E (1958) Some controversial questions in the theory of taxation In: Musgrave RA, Peacock AT (eds) Classics in the theory of public finance. New York, pp 214–232
Lipin IA (2011) Uncertain tax positions and the new tax policy of disclosure through the schedule UTP. Va Tax Rev 663–713
Lodin S-O (2000) What ought to be taxed and what can be taxed: a new international dilemma. Bull Int Fiscal Doc 210–217
MacNeil I (2005) An introduction to the law on financial investment. Oxford/Portland
Maiterth R, Sureth C (2006) Unternehmensfinanzierung, Unternehmensrechtsform und Besteuerung. Betriebswirtschaftliche Forschung und Praxis 225–245
Marchessou P (1999) France. In: Meussen GTK (ed) The principle of equality in European taxation. London, pp 75–88
Martínez Bárbara G (2011) The role of good governance in the tax systems of the European union. Bull Int Tax 270–280
Mason R (2010) Tax discrimination and capital neutrality. World Tax J 126–138
Matre HP (2002) Deductibility of interest paid on profit-participating loans in stock companies. Bulletin for International Fiscal Documentation 456–462
Maxeiner JR (2007) Legal certainty and legal methods: a European alternative to American legal indeterminacy?. Tulane J Int Comp Law 541–607
Maxeiner JR (2008) Some realism about legal certainty in the globalization of the rule of law. Houst J Int Law 27–46
McDaniel PR (2003) Tax treatment of foreign source income earned in developing countries: a policy analysis. George Wash Int Law Rev 265–295
McDaniel PR, Repetti JR (1993) Horizontal and vertical equity: the Musgrave/Kaplow exchange. Fla Tax Rev 607–622
McLure CE (1975) Integration of the personal and corporate income taxes: the missing element in recent tax reform proposals. Harv Law Rev 532–582
McLure CE (1992) Co-ordinating business taxation in the single European market: the ruding committee report. EC Tax Rev 13–21
McLure CE (2005) Will the OECD initiative on harmful tax competition help developing and transition countries?. Bull Int Tax 90–98
Meussen GTK (1999) Conclusion. In: Meussen GTK (ed) The principle of equality in European taxation. London, pp 169–174
Meussen GTK (2002) The EU-fight against harmful tax competition; future developments. EC Tax Rev 157–159
Meussen GTK (2011) A new tax strategy for the European union: FTT and FAT, realistic or a bridge too far?. Eur Tax 101–104
Mintz J (1996) Corporation tax: a survey. Fiscal Stud 23–68
Mirrless J (1971) An exploration in the theory of optimum taxation. Rev Econ Stud 175–208
Monti M (2010) A new strategy for the single market. Report to the president of the European commission José Manuel Barroso, Bruxelles
Müller K (2001) Verwirklichung von Gerechtigkeit und Entscheidungsneutralität in den Einkommen- und Körperschaftsteuersystemen der EU-Mitgliedstaaten. Lohmar
Musgrave PB (1969) United States taxation of foreign investment income. Cambridge
Musgrave PB (1984) Principles for dividing the state corporate tax base. In: McLure CE (ed) The state corporation income tax: issues in worldwide unitary combination. Stanford, pp 228–252
Musgrave PB (1987) International coordination problems of substituting consumption for income taxation. In: Musgrave PB (ed) Tax policy in the global economy. Cheltenham, pp 414–444
Musgrave RA (1990) Horizontal equity, once more. Natl Tax J 113–122
Musgrave PB (1992) “Substituting consumption-based direct taxation for income taxes as the international norm”: a comment. Natl Tax J 179–184
Musgrave PB (2001) Sovereignty, entitlement, and cooperation in international taxation. Brooklyn J Int Law 1335–1448
Musgrave PB (2002) Interjurisdictional equity in company taxation: principles and applications to the european union. In: Cnossen S (ed) Taxing capital income in the european union: issues and options for reform. Oxford, pp 46–77
Musgrave RA, Musgrave PB (1972) Inter-nation equity. In: Bird RM, Head JG (eds) Modern fiscal issues. Toronto, pp 63–85
Musgrave RA, Musgrave PB (1989) Public finance in theory and practice, 5th edn. New York
Musgrave RA, Musgrave PB (2000) Inter-nation equity. In: Musgrave RA (ed) Public finance in a democratic society, vol III – the foundations of taxation and expenditure. Cheltenham, pp 307–329
Neumark F (1970) Grundsätze gerechter und ökonomisch rationaler Steuerpolitik. Tübingen
Nijkamp H (2001) Landmark agreement on EU tax package: new guidelines stretch scope of EU code of conduct. EC Tax Rev 147–154
Nobes C (2004) A conceptual framework for the taxable income of business and how to apply it under IFRS. Association of Chartered Certified Accountants, London
O’Neill S (2003) Criticisms of the debt-equity rules and their application to modern financial instruments. Tax Spec 160–167
Obermair C, Weninger P (2008) General report. In: Lang M et al (eds) Tax compliance costs for companies in an enlarged European community. Vienna, pp 17–54
OECD (1990) Taxation and international capital flows. Paris
OECD (1998) Harmful tax competition. Paris
OECD (2011) OECD’s current tax Agenda. Paris
OECD (2012) Hybrid mismatch arrangements. Paris
Oestreicher A (2000) Konzern-Gewinnabgrenzung: Gewinnabgrenzung – Gewinnermittlung – Gewinnaufteilung. Munich
Osterweil E (1999) OECD report on harmful tax competition and European union code of conduct compared. Eur Tax 198–202
Owens J (2002) Tax administration in the new millenium. Intertax 125–130
Palma RC (2010) The paradox of gross taxation at source. Intertax 624–642
Panayi CHJI (2007) Double taxation, tax treaties, treaty-shopping and the European community. Alphen aan den Rijn
Panayi CHJI (2008a) The fundamental freedoms and third countries: recent perspectives. Alphen aan den Rijn
Panayi CHJI (2008b) The common consolidated corporate tax base – issues for member states opting out and third countries. Eur Tax 114–123
Panayi CHJI (2009) The proposed amendments to the savings directive. Eur Tax 179–184
Parly F (2000) The code of conduct and the fight against harmful tax competition. Eur Tax 406–409
Passarella LM (1999) Taxation of derivatives: risk as the criterion for determining the source of income. Deriv Financ Instrum 43–74
Penny M (2000) National report of the United Kingdom. In: IFA (ed) Tax treatment of hybrid financial instruments in cross-border transactions, vol 85a. The Hague, pp 645–664
Perridon L, Steiner M, Rathgeber AW (2009) Finanzwirtschaft der Unternehmung, 15th edn. Munich
Peters C, Snellaars M (2001) Non-discrimination and tax law: structure and comparison of the various non-discrimination clauses. EC Tax Rev 13–18
Phelps ES (1965) Fiscal neutrality toward economic growth: analysis of a taxation principle. New York
Pinder G (2005) The coherent principles approach to tax law design. Treas Econ Round-ups 75–90
Pinto C (1998) EU and OECD to fight harmful tax competition: has the right path been undertaken?. Intertax 386–410
Pohmer D (1988) Einige Bemerkungen zu Inhalt und Bedeutung des Leistungsfähigkeitsprinzips. Finanzarchiv N.F 135–153
Polito AP (2000) A modest proposal regarding debt-like preferred stock. Va Tax Rev 291–345
Pratt K (2000) The debt-equity distinction in a second-best world. Vanderbilt Law Rev 1055–1158
Prebble J (1993) 100 years of income tax. Bull Int Fiscal Doc 59–65
Prebble J (1994) Why is the tax law incomprehensible?. Br Tax Rev 380–393
President’s Economic Recovery Advisory Board (2010) The report on tax reform options: simplification, compliance, and corporate taxation. Washington DC
Priester H-J (1984) Drittbindung des Stimmrechts und Satzungsautonomie. In: Hadding W (ed) Festschrift für Winfried Werner zum 65. Geburtstag am 17. Oktober 1984: Handelsrecht und Wirtschaftsrecht in der Bankpraxis. Berlin, pp 657–680
Pronk P (2009) In search of simplicity: tax reform in the Netherlands. Intertax 545–552
Putnoki H, Schwadorf H, Then Bergh F (2011) Investition und Finanzierung. Munich
Raitio J (2003) The principle of legal certainty in EC law. Dordrecht
Raitio J (2006) What is meant by legal certainty and uncertainty?. Rechtstheorie 393–405
Rasembuj T (1999) Spain. In: Meussen GTK (ed) The principle of equality in European taxation. London, pp 157–163
Reimer E (2000) Die Auswirkungen der Grundfreiheiten auf das Ertragsteuerrecht der Bundesrepublik Deutschland – eine Bestandsaufnahme. In: Lehner M (ed) Grundfrei-heiten im Steuerrecht der EU-Staaten. Munich, pp 39–101
Ring D (2002) One nation among many: policy implications of cross-border tax arbitrage. Boston Coll Law Rev 79–175
Rödder T (2004) Deutsche Unternehmensbesteuerung im Visier des EuGH. Deutsches Steuerrecht 1629–1634
Roin J (2001) Competition and evasion: another perspective on international tax competition. Georget Law J 543–604
Roin J (2002) Taxation without coordination. J Leg Stud 61–94
Rosembuj T (2011) International tax arbitrage. Intertax 158–168
Rosen HS, Gayer T (2010) Public finance, 9th edn. New York
Rosenbloom HD (2000) The David R. Tillinghast lecture international tax arbitrage and the “international tax system”. Tax Law Rev 137–166
Rosenzweig AH (2007) Harnessing the costs of international tax arbitrage. Va Tax Rev 555–630
Roos SA et al (2008) Modern financial management, 8th edn. Boston
Rotondaro C (2000) The right to redemption as a key characterization factor in the OECD model convention passive income taxation system – the case of reverse convertibles. Deriv Financ Instrum 258–271
Rudolph B (2006) Unternehmensfinanzierung und Kapitalmarkt. Tübingen
Sandford C (1989) General report. In: IFA (ed) administrative and compliance costs of taxation, vol 74b. Deventer, pp 19–40
Sanger C (2011) Corporate tax road map. Br Tax Rev 2–10
Santangelo RA (1997) Towards reshaping the debt-equity distinction. J Corp Tax 312–341
Sauer R (1993) Möglichkeiten und Grenzen externer Eigenkapitalbeschaffung mittelständischer Unternehmungen. Bergisch Gladbach/Cologne
Schäfer A (2006) International company taxation in the era of information and communication technologies: issues and options for reform. Wiesbaden
Schaumburg H (1995) Das Leistungsfähigkeitsprinzip im internationalen Steuerrecht. In: Lang J (ed) Steuerrechtsordnung in der Diskussion – Festschrift für Klaus Tipke zum 70. Geburtstag. Cologne, pp 125–151
Schaumburg H (1998) Internationales Steuerrecht: Außensteuerrecht, Doppelbesteuerungsrecht, 2nd edn. Cologne
Schindel A, Atchabahian A (2005) General report. In: IFA (ed) Source and residence: new configuration and principles, vol 90a. The Hague, pp 21–99
Schizer DM (2000) Sticks and snakes: derivatives and curtailing aggressive tax planning. Southern Calif Law Rev 1339–1406
Schmidt F (1998) Allowance for corporate equity: zinskorrigierte Besteuerung zur Harmonisierng der Steuersysteme in Europa. Berlin
Schneider D (1987) Messung des Eigenkapitals als Risikokapital. Der Betrieb 185–191
Schneider D (1992) Investitionen, Finanzierung und Besteuerung, 7th edn. Wiesbaden
Schneider D (2002) Steuerlast und Steuerwirkung. Munich
Schneider D (2009) “Finanzierungsneutralität der Besteuerung” als politischer Wunsch und als Widersprüchlichkeit in der erklärenden Theorie, oder: Quo vadis, Arqus?. Schmalenbachs Zeitschrift für betriebswirtschaftliche Forschung 126–137
Schnitger A (2011) National report of Germany. In: IFA (ed) Key practical issues to eliminate double taxation of business income, vol 96b. The Hague, pp 351–371
Schön W (2000) Tax competition in Europe – the legal perspective. EC Tax Rev 90–105
Schön W (ed) (2003) Tax competition in Europe. Amsterdam
Schön W (2004a) World trade organization law and tax law. Bull Int Fiscal Doc 283–296
Schön W (2004b) Unternehmensbesteuerung und Europäisches Gemeinschaftsrecht, Steuerberater-Jahrbuch 2003/04, pp 27–67
Schön W (2004c) Besteuerung im Binnenmarkt – die Rechtsprechung der EuGH zu den direkten Steuern. Internationales Steuerrecht 289–300
Schön W (2005a) The odd couple: a common future for financial and tax accounting?. Tax Law Rev 111–148
Schön W (2005b) Der Kapitalverkehr mit Drittstaaten und das internationale Steuerrecht. In: Gocke R, Gosch D., Lang M (eds) Körperschaftsteuer – Internationales Steuerrecht – Doppelbesteuerung, Festschrift für Franz Wassermeyer zum 65. Geburtstag. Munich, pp 489–521
Schön W (2007) Group taxation and the CCCTB. Tax Notes Int 1063–1080
Schön W (2009) International tax coordination for a second-best world (part I). World Tax J 67–114
Schön W (2010) International tax coordination for a second-best world (Part II). World Tax J 65–94
Schön W, Schindler CP (2004) Seminar D: Zur Besteuerung der grenzüberschreitenden Sitzverlegung einer Europäischen Aktiengesellschaft. Internationales Steuerrecht 571–576
Schreiber U (1994) Unternehmensbesteuerung im Europäischen Binnenmarkt. Steuer und Wirtschaft 238–254
Schreiber U (2004) Unternehmensbesteuerung im Binnenmarkt. Angleichung der Gewinnermittlung und des Satzes der Körperschaftsteuer?. Steuer und Wirtschaft 212–226
Schreiber U (2005) Zusammenfassung der Diskussionsrunde. In: Endres D et al (eds) Die internationale Unternehmensbesteuerung im Wandel. Munich, pp 44–49
Schuch J (2004) Hybride Finanzierungen im Recht der Doppelbesteuerungsabkommen. In: Bertl R et al (eds) Eigenkapital – Finanzierung, Basel II, Bilanzierung, Besteuerung, Reporting. Vienna, pp 217–237
Schwinger R (1992) Einkommens- und konsumorientierte Steuersysteme. Heidelberg
Schwinger R (1994) Konsum oder Einkommen als Bemessungsgrundlagen direkter Steuern?. Steuer und Wirtschaft 39–50
Scientific Advisory Committee of the German Federal Ministry of Finance (2007) Einheitliche Bemessungsgrundlage der Körperschaftsteuer in der Europäischen Union. Berlin
Seer R (1996) Die Besteuerung der Alterseinkünfte und das Gleichheitsgebot (Art. 3 Abs. 1 GG). Steuer und Wirtschaft 323–336
Seligman ERA (1970) The income tax: a study of history, theory and practice of income taxation at home and abroad, 2nd edn. New York
Serbini S, Flora P (2005) Equity and debt instruments: the new definition in the tax reform and the tax consequences. Eur Tax 19–24
Shackelford DA, Shaviro DN, Slemrod J (2010) Taxation and the financial sector. Natl Tax J 781–806
Shaviro DN (1995) Risk-based rules and the taxation of capital income. Tax Law Rev 643–724
Shaviro DN (2009) Decoding the U.S. corporate tax, Washington DC
Shaviro DN (2010) The rising tax-electivity of U.S. corporate residence, New York University School of Law, Law & Economics Research paper series working paper no. 10-45, pp 1–71
Shaw J, Slemrod J, Whiting J (2010) Administration and compliance. In: Mirrless J et al (eds) Dimensions of tax design. The Mirrless review. Oxford/New York, pp 1100–1171
Shay SE, Fleming JC, Peroni RJ (2002) “What’s source got to do with it?”: source rules and U.S. international taxation. Tax Law Rev 81–155
Six M (2008) Hybride Finanzierung im Internationalen Steuerrecht am Beispiel von Genussrechten. Vienna
Slemrod J (1990) Optimal taxation and optimal tax systems. J Econ Perpect 157–178
Slemrod J (1996) Which is the simplest tax system of them all?. In: Aaron H, Gale W. (eds) The economic effects of fundamental tax reform. Washington DC, pp 355–391
Slemrod JB, Blumenthal M (1996) The income tax compliance cost of big business. Public Financ Q 411–438
Slemrod J, Sorum N (1984) The compliance cost of the U.S. individual income tax system. Natl Tax J 461–474
Slemrod J, Yitzhaki S (1996) The cost of taxation and the marginal efficiency cost of funds. IMF Staff Pap 172–198
Smith G (2007) Australia’s aggregate tax burden: measurement, interpretation and prospects. Australian Tax Research Foundation, Sydney
Spengel C (1998) Wettbewerbswirkungen der Körperschaftsteuer in Europa – Analyse und Reformvorschläge. Die Betriebswirtschaft S. 348–368
Spengel C (2003) Internationale Unternehmensbesteuerung in der Europäischen Union. Steuerwirkungsanalysen – Empirische Befunde – Reformüberlegungen. Düsseldorf
Spengel C (2006) Besteuerung von Einkommen – Aufgaben, Wirkungen und europäische Herausforderungen. Gutachten G, Verhandlungen des 66. Deutschen Juristentages. Munich, pp 1–75
Spengel C (2008a) Tax science fiction: Entwicklung der nominalen Steuersätze, internationaler Steuerwettbewerb und Steuerbelastung des Portfolio-Aktionärs. In: Rädler AJ (ed) Tax science fiction – Wie sieht unser Steuerrecht in 25 Jahren aus?. Munich, pp 41–57
Spengel C (2008b) Seminar I: Gemeinsame konsolidierte Körperschaftsteuer-Bemessungsgrundlage (GKKB) und Drittstaatenfragen. Internationales Steuerrecht 556–561
Spengel C, Malke C (2008) Comprehensive tax base or residual reference to GAAP or domestic tax law?. In: Lang M et al (eds) Common consolidated corporate tax base. Vienna, pp 63–92
Strnad J (1994) Taxing new financial products: a conceptual framework. Stanf Law Rev 569–605
Süchting J (1995) Finanzmanagement. Theorie und Politik der Unternehmensfinanzierung, 6th edn. Wiesbaden
Sullivan MA (2006) A new era in corporate taxation. Tax Notes 440–442
Sullivan MA (2008) Deleveraging the tax code. Tax Notes 1241–1244
Suringa DJJ (2010) The new § 904 limitation category for income re-sourced by treaty. Tax Manage Int J 781–783
Surrey S (1969) Complexity and the internal revenue code: the problem of management of tax detail. Law Contemp Probl 673–710
Surrey S, Brannon G (1968) Simplification and equity as goals of tax policy. William Mary Law Rev 915–921
Swoboda P (1985a) Der Risikograd als Abgrenzungskriterium von Eigen- versus Fremdkapital. In: Stöppler S (ed) Information und Produktion – Beiträge zur Unternehmenstheorie, Festschrift zum 60. Geburtstag von Waldemar Wittmann. Stuttgart, pp 343–361
Swoboda P (1985b) Die Abgrenzung von Eigenkapital und Fremdkapital in betriebswirtschaftlicher Sicht. In: Ruppe HG, Swoboda P, Nitsche G (eds) Die Abgrenzung von Eigenkapital und Fremdkapital. Vienna, pp 42–63
Szudoczky R, van de Streek JL (2010) Revisiting the Dutch interest box under the EU state aid rules and the code of conduct: when a ‘disparity’ is selective and harmful. Intertax 260–280
Tanzi V (1995) Taxation in an integrating world. Waschington DC
Terra BJM, Wattel PJ (2008) European tax law, 5th edn. Alphen aan den Rijn
Thiele S (1998) Das Eigenkapital im handelsrechtlichen Jahresabschluß. Düsseldorf
Thompson SC Jr (2010) Assessing the following systems for taxing foreign-source active business income: deferral, exemption, and imputation. Howard Law J 337–366
Thuronyi V (1998) Drafting tax legislation. In: Thuronyi V (ed) Tax law design and drafting. Washington, DC, pp 71–94
Tipke K (1981) Steuergerechtigkeit in Theorie und Praxis – Vom politischen Schlagwort zum Rechtsbegriff und zur praktischen Anwendung. Cologne
Tipke K (2003) Die Steuerrechtsordnung, vol II, 2nd edn. Cologne
Tipke K, Lang J (eds) (2008) Steuerrecht, 19th edn. Cologne
Tirole J (2006) The theory of corporate finance. Princeton
HM Treasury (2010) Part 1: the corporate tax road map. http://www.hm-treasury.gov.uk/d/corporate_tax_reform_part1a_roadmap.pdf. Accessed 21 April 2011
Treisch C (2004) Europataugliche Ausgestaltung der Unternehmensbesteuerung. Anforderungen, Probleme und Lösungsmöglichkeiten. Wiesbaden
Turnbull I (1997) Legislative drafting in plain language and statements of principle. Statut Law Rev 21–31
Vanhaute PAA (2008) Belgium in international tax planning, 2nd edn. Amsterdam
Vanistendael F (2005) A comparative and economic approach to equality in European taxation. In: Gocke R, Gosch D, Lang M (eds) Körperschaftsteuer – Internationales Steuerrecht – Doppelbesteuerung, Festschrift für Franz Wassermeyer zum 65. Geburtstag. Munich, pp 523–541
Vanistendael F (2008) Taxation and non-discrimination, a reconsideration of withholding taxes in the OECD. World Tax J 175–191
Vann RJ (2010b) Taxing international business income: hard-boiled wonderland and the end of the world. World Tax J 291–346
Vascega M, van Thiel S (2011) The CCCTB proposal: the next step towards corporate tax harmonization in the European union?. Eur Tax 374–382
Verdoner L (2005) Global trading: an adventure in financial markets and instruments. Int Transf Pricing J 282–287
Vogel K (1988a) Worldwide vs. source taxation of income – a review and evaluation of arguments (part II). Intertax 310–320
Vogel K (1988b) Worldwide vs. source taxation of income – a review and evaluation of arguments (part III). Intertax 393–402
Vogel K (2002) Which method should the European community adopt for the avoidance of double taxation?. Bull Int Fiscal Doc 4–10
Vogel K (2005) Der EuGH und die direkten Steuern. Steuern und Wirtschaft 373–377
Vogel K, Lehner M (eds) (2008) Doppelbesteuerungsabkommen, 5th edn. Munich
Vogel K, Waldhoff C (1999) Germany. In: Meussen GTK (ed) The principle of equality in European taxation. London, pp 89–114
Voget J (2010) Headquarter relocations and international taxation, Oxford University Centre for Business Taxation, working paper 10/08, Oxford
Wagner FW (1989) Die zeitliche Erfassung steuerlicher Leistungsfähigkeit In: Hax H, Kern W, Schröder H-H (eds) Zeitaspekte in betriebswirtschaftlicher Theorie und Praxis. Stuttgart, pp 262–277
Wagner FW (1992) Neutralität und Gleichmäßigkeit als ökonomische und rechtliche Kriterien steuerlicher Normkritik. Steuer und Wirtschaft 2–13
Wagner FW (1995) Leitlinien steuerlicher Rechtskritik als Spiegel betriebswirtschaftlicher Theoriengeschichte. In: Elschen R, Siegel T, Wagner FW (eds) Unternehmenstheorie und Besteuerung, Festschrift zum 60. Geburtstag von Dieter Schneider. Wiesbaden, pp 724–746
Wagner FW (2005a) Steuervereinfachung und Entscheidungsneutralität – konkurrierende oder komplementäre Leitbilder für Steuerreformen?. Steuern und Wirtschaft 93–108
Wagner FW (2005b) Kann die Besteuerung vereinfacht werden, wenn die Rechnungslegung komplexer wird?. Betriebswirtschaftliche Forschung und Praxis 528–545
Warren AC Jr (1993) Financial contract innovation and income tax policy. Harv Law Rev 460–492
Wassermeyer F (1996) Die Vermeidung der Doppelbesteuerung im Europäischen Binnenmarkt. Deutsche Steuerjuristische Gesellschaft e.V. 151–165
Weber D (2005) Most-favoured-nation treatment und tax treaties rejected in the European community: background and analysis of the D case. Intertax 429–444
Weisbach DA (1999) Line drawing, doctrine, and efficiency in the tax law. Cornell Law Rev 1627–1681
Weisbach DA (2000) An efficiency analysis of line drawing in the tax law. J Leg Stud 71–97
Wendt C (2009) A common tax base for multinational enterprises in the European union. Wiesbaden
Wenger E (1983) Gleichmäßigkeit der Besteuerung von Arbeits- und Vermögenseinkünften. Finanzarchiv 207–252
Whittington G (1995) Tax policy and accounting standards. Br Tax Rev 452–456
Wilson JD, Wildasin DE (2004) Capital tax competition: bane or boon. J Public Econ 1065–1091
Woellner R et al (2009) Australian taxation law, 19th edn. Sydney
Wöhe G et al (2009) Grundzüge der Unternehmensfinanzierung. Munich
Wood R (1999) The taxation of debt, equity, and hybrid arrangements. Can Tax J 49–80
World Bank/International Finance Corporation/PricewaterhouseCoopers (2010) Paying taxes 2011: the global picture. Washington, DC
Wouters J (1999) The principle of non-discrimination in European community law. EC Tax Rev 98–106
Zanotti E (2004) Taxation of inter-company dividends in the presence of a PE: the impact of the EC fundamental freedoms (part one). Eur Tax 493–505
Zuber B (1991) Anknüpfungsmerkmale und Reichweite der internationalen Besteuerung. Hamburg
Keen M, Wildasin D (2004) Pareto-efficient international taxation. Am Econ Rev 94(1):259–275
Bell S (2005) Cross-border repatriation of dividends: tax neutral in the European Union? Deriv Financ Instrum 18–25
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2012 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Bärsch, SE. (2012). Guidelines for Corporate Income Taxation of Hybrid Financial Instruments. In: Taxation of Hybrid Financial Instruments and the Remuneration Derived Therefrom in an International and Cross-border Context. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-32457-4_3
Download citation
DOI: https://doi.org/10.1007/978-3-642-32457-4_3
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-32456-7
Online ISBN: 978-3-642-32457-4
eBook Packages: Business and EconomicsBusiness and Management (R0)