Journal of Banking & Finance Vol. 35 No. 12 2011
The impact of taxation on bank profits: Evidence from EU banks
Abstract
Using bank-level data for the period 1990–2005, we investigate to what extent European banks are able to shift their tax-burden forward. We examine the effects of corporate income tax (CIT) and value added tax (VAT) on pre-tax profits and their components, and find that both are shifted forward. The pass-through mainly involves total operating income, but as far as CIT is concerned it also affects loss provisions, with negative implications on stability of the banking systems.
- DOI
- 10.1016/j.jbankfin.2011.05.002
- Volume
- 35
- Issue
- 12
- Pages
- 3202-3212
- Language
- en
- Sources
- bibtex:phds-export.bib crossref openalex