Belgium moves to ACE
(2005)
Files
No attached file found for this publication.
Details
- Authors
- Abstract
- (en) Belgium is a true tax laboratory and therefore deserves a particular interest. In June 2005, that country decided for the deductibility of dividends and retained earnings, in a way similar to what happens for paid out interests. That reform had a twofold objective: reducing, eliminating or even reversing the discrimination against equity financing, and providing the country with a defence against a dismantling of Belgian Coordination Centres. In this paper we propose an analysis of the reform with respect to those two objectives. We show that the actual reform fails to realise neutrality between sources of funds but succeeds in reaching the second objective. Then we suggest how to complete the actual reform and we picture an alternative one; that latter succeeds in reaching neutrality but fails to meet the second objective.
- Affiliations
Louvain School of Management Accounting & Finance
Citations
Gérard, M. (2005). Belgium moves to ACE. https://hdl.handle.net/2078.5/85087