Part 1 - AL-Tax

ContentsAbout the editorsAbout the contributorsxiiixvPart 1 International Taxation Theory 11 The Evolution of International Taxation 3Colin Read1.1 Introduction 52 Summary, Description, and Extensions of the Capital IncomeEffective Tax Rate Literature 11Fernando M.M. Ruiz and Marcel Gérard2.1 Introduction 132.2 Forward-looking ETRs 142.2.1 The cost of capital 142.2.2 Marginal ETR 172.2.3 A simple extension to the marginal effective tax 202.2.4 Average ETR 222.2.5 An extension to the EATR with uncertainty and theentrance of rival firms 242.3 Backward-looking ETRs 282.3.1 Average ETR 282.3.2 Marginal ETR 302.4 The cost of production approach 312.4.1 Marginal ETRC 312.4.2 Average ETRC 342.5 Conclusion: Advantages and disadvantages of using various ETRs 35Acknowledgments 36Notes 36References 38Appendix A 39Appendix B 40v