Taxation Research Group

News and Events

  • Research visit at Oxford University

Dr. Dave Goyvaerts will join the renowned Oxford University Centre for Business Taxation as a visiting researcher from September 2022. 

In Oxford, he will carry out research on the OECD’s “Pillar 2” agreement to reduce international tax avoidance by introducing a global minimum corporate tax rate of 15 percent for large multinational firms. More specifically, he will study the impact of the new agreement on firm value.

The members of the Centre for Business Taxation are considered to be among the world’s foremost experts on this topic, having published several articles and hosted multiple events regarding the Pillar 2 proposal.

We wish Dave good luck!

  • Vennootschapsbelasting toegepast 2022 (februari 2022)

Auteur(s): Prof. dr. Em. Paul Beghin, Prof. dr. Annelies Roggeman

Vennootschapsbelasting toegepast benadert de materie van de vennootschapsbelasting gestructureerd en op een originele manier. De auteurs combineren het juridische uitgangspunt met interessante bedrijfseconomische inzichten. De band tussen het boekhoudrecht en het fiscaal recht wordt geïllustreerd met talloze voorbeelden en verwijzingen naar de rechtspraak.

Dit boek geeft een duidelijke schets van het toepassingsgebied van de vennootschapsbelasting, het bepalen van het belastbaar inkomen, aftrekbare en niet-aftrekbare beroepskosten. Voorts wordt uitgelegd hoe de belastbare grondslag wordt bepaald en hoe men de verschuldigde vennootschapsbelasting berekent. Tot slot wordt aandacht besteed aan de verrekening van voorheffingen en belastingkrediet, aan de verschillende tarieven en aan de bijzondere aanslagstelsels. De combinatie van theorie en talrijke voorbeelden maakt dit handboek uitermate interessant als studieboek voor het hoger onderwijs en als referentiewerk voor praktijkmensen die geregeld in aanraking komen met de dagelijkse toepassing van vennootschapsbelasting.

Deze nieuwe editie omvat de maatregelen van de hervorming vennootschapsbelasting over de drie hervormingsfasen (2019-2021). Tevens wordt ingegaan op de meest relevante maatregelen n.a.v. de coronapandemie.

                                                                               Vennootschapsbelasting toegepast 2022
  • Wetboek Accountancy en Fiscaliteit 2021-2022: Deel 1 en 2

Auteur(s): Prof. dr. Bertel De Groote, Luc De Meyere, Els De Wielemaker, Stijn Plas, Prof. Stefan Ruysschaert, Prof. dr. Annelies Roggeman, Prof. Jan Verhoeye

https://biblio.ugent.be/publication/8734647

  • New publication: An ex-ante assessment of the AGI : firm-level evidence from Belgian tax return data

Using confidential tax return data, we provide a unique research setting in which the Belgian notional interest deduction (NID) is replaced by the Allowance for Growth and Investment (AGI) as it is proposed by the European Commission. Our results show that the AGI would be a more viable option from a budgetary view. From a company view, however, introducing an AGI system would increase the probability of a higher effective tax rate (ETR). Especially large companies would be harmed as they would face a 7.6 percentage point higher probability of an ETR increase compared with SMEs. Furthermore, we find that there is a positive relationship between the equity ratio and the increased ETR, which is stronger for large firms compared to SMEs. This is in line with previous studies stating that large firms adjusted more aggressively to the NID by increasing their equity ratio more heavily than SMEs. However, large firms still face an ETR that is on average 10.4 percentage points lower compared with SMEs, indicating that the AGI is insufficient to undo the unequal level playing field between large and small companies.

P. Buyl, A. Roggeman, and I. Verleyen. (2021). An ex-ante assessment of the AGI: firm-level evidence from Belgian tax return data. CESIFO Economic Studies, 68(1),(2022), 46–72. DOI: http://dx.doi.org/10.1093/cesifo/ifab007

  • New publication: Political connections and tax avoidance : evidence from Belgium

This paper investigates to what extent politicians influence tax avoidance in Belgium. In order to examine this relationship, a unique dataset is constructed of all political mandates over the period 2004-2015. We find that Belgian companies with (former) politicians on their board of directors have a 3.64% points lower effective tax rate compared to unconnected counterparts. Also, firms having a higher number of politically connected directors or directors who have been active in politics for a longer period of time, face lower tax rates. Overall, our results suggest that companies consider politicians as valuable in applying a tax minimizing strategy.

L. Egghe, A. Roggeman, and I. Verleyen. Political connections and tax avoidance : evidence from Belgium. Accountancy & Bedrijfskunde, 2021(2), 20–31. DOI:http://hdl.handle.net/1854/LU-8722382

  • Doctoral Defence: The impact of thin capitalization rules

On 24/02/2021, Dave Goyvaerts was awarded the degree of doctorate after defending his PhD Thesis titled 'The impact of thin capitalization rules'. His promoters were Prof dr. Annelies Roggeman, Prof dr. Bertel De Groote, and Prof Jan Verhoeye. 

Executive Summary & PhD Thesis

Doctoraat Dave

  • Doctoral Defence: The impact of corporate tax incentives for business: an analysis based on corporate tax returns

Verdediging Pieter Buyl

On 25/09/2020, Pieter Buyl was awarded the degree of doctorate after defending his PhD Thesis titled 'The impact of corporate tax incentives for business: an analysis based on corporate tax returns'. His promoters were Prof dr. Annelies Roggeman, Prof dr. Bertel De Groote en Antoine Doolaege.

Executive Summary & PhD Thesis

  • New publication: The impact of thin capitalization rules on subsidiary financing : evidence from Belgium

In order to prevent excessive profit shifting using internal debt by multinational firms, several countries have introduced thin capitalization rules limiting the deductibility of interests on internal loans. While prior research has consistently found that firms affected by thin capitalization rules reduce their internal debt-to-equity ratio, the means through which this reduction is achieved are understudied. This paper employs a Comparative Interrupted Time Series methodology to identify the short-term effects of newly introduced thin capitalization rules on subsidiaries' financing preferences, using a new dataset of detailed firm-level accounting data. The results indicate a reduction in internal debt and an increase in equity for affected firms, both by an increase in paid-up capital and by an increase in retained earnings. These findings about the way firms react may help lawmakers to estimate impact of future tax regulations.

D. Goyvaerts and A. Roggeman. The impact of thin capitalization rules on subsidiary financing : evidence from Belgium. Economist - Netherlands. (2020). 168(1). p.23-51. DOI:http://dx.doi.org/10.1007/s10645-019-09353-x

  • New publication: What do politicians think of the common consolidated corporate tax base? A Belgian case study

This paper investigates to what extent politicians influence tax avoidance in Belgium. In order to examine this relationship, a unique dataset is constructed of all political mandates over the period 2004-2015. We find that Belgian companies with (former) politicians on their board of directors have a 3.64% points lower effective tax rate compared to unconnected counterparts. Also, firms having a higher number of politically connected directors or directors who have been active in politics for a longer period of time, face lower tax rates. Overall, our results suggest that companies consider politicians as valuable in applying a tax minimizing strategy.

A. Roggeman, P. Van Cauwenberge, I. Verleyen, and C. Carine. (2019). What do politicians think of the common consolidated corporate tax base? A Belgian case study. Accountancy & Bedrijfskunde, (1), 2–20.L. DOI:http://hdl.handle.net/1854/LU-8624428

  • New publication: Do SMEs face a higher tax burden? Evidence from Belgian tax return data

The public debate on taxation of domestic small and medium enterprises (SMEs) versus large and multinational enterprises (MNEs) is highly relevant nowadays. Using confidential tax return data instead of financial statement data, the results indicate that domestic SMEs face on average a 1.6 and 4.8 percentage-point higher effective tax burden compared to large domestic and large MNEs respectively. This suggests that tax incentives for SMEs are inadequate to compensate for the tax advantages of large and internationally operating companies. Furthermore, we show that the use of information built exclusively upon accounting data could bias the results.

P. Buyl and A. Roggeman, “Do SMEs face a higher tax burden? Evidence from Belgian tax return data,” Prague Economic Papers, vol. 28, no. 6, pp. 729–747, 2019. DOI:http://dx.doi.org/10.18267/j.pep.719

Research

Our research group mainly focuses on topics in corporate taxation at the national and international level, which can be related to other disciplines like accounting, finance, management or economics. We deal with the following broad areas:

•    Tax incentives for business
•    Measures against tax avoidance of multinationals
•    Shareholder perceptions of tax avoidance
•    Tax avoidance and corporate social responsibility
•    Green taxation of companies

Marketing Groupwork
A common characteristic of our research is that the research topics have a grounding in real-world practice. Our research strategy is based on sound theoretical frameworks and advanced research methods.

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