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Cash-Flow Tax
Author:
Christian Schutte null

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Mr. Parthasarathi Shome
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Series:
IMF Working Papers
Volume/Issue:
Volume 1993: Issue 002
Language:
English
Publication Date:
01 Jan 1993
DOI:
https://doi.org/10.5089/9781451841688.001
ISBN:
9781451841688
ISSN:
1018-5941
Pages:
30
Keywords:
WP; tax; corporate cash-flow tax; firm; revenue; cash flow; rate of return; host-country tax competition; foreign tax credit; shareholder--base CCFT; CCFT country; repatriation tax; tax competition; tax deductibility; tax authorities; tax profile; CCFT host country; Income tax systems; Income and capital gains taxes; Corporate income tax; Tax allowances; Cash-flow tax; Global
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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The cash-flow tax has been proposed as an alternative to corporate income tax on grounds of clarity and simplicity in defining the tax base in the face of widespread departures from the comprehensive income tax in actual practice. Variants of the tax, with their advantages and disadvantages, demonstrate that it would require careful design. Simplicity is not an obvious property because of expectable administration problems related to tax avoidance and evasion through transfer pricing; to inflation adjustments; and to incompatibility with existing international tax regimes. Thus, the tax remains theoretically attractive but difficult to implement by a single--especially developing--country.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund