Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82599
Authors: 
Södersten, Jan
Lindhe, Tobias
Year of Publication: 
2011
Series/Report no.: 
Working Paper, Department of Economics, Uppsala University 2011:6
Abstract: 
In an article in International Tax and Public Finance, Peter Birch Sørensen (2005) gives an in-depth account of the new Norwegian Shareholder Tax, which allows the shareholders a deduction for an imputed risk-free rate of return. Sørensen's positive evaluation appears as reasonable for a closed economy where the deduction for the imputed return is capitalized into the market prices of corporate shares. We show that in a small open economy where no capitalization occurs, the Norwegian shareholder tax is likely to leave the distortions caused by the corporate income tax unaffected, and to add new distortions to shareholders' portfolio decisions.
Subjects: 
tax neutrality
open economy
shareholder taxation
corporate-personal tax integration
small firms
JEL: 
H24
H25
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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