NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Wolf Wagner

Rotterdam School of Management
The Netherlands

E-Mail: wagner@rsm.nl
Institutional Affiliation: Erasmus University

NBER Working Papers and Publications

October 2012International Taxation and Cross-Border Banking
with Harry Huizinga, Johannes Voget: w18483
This paper examines empirically how international taxation affects the volume and pricing of cross-border banking activities for a sample of banks in 38 countries over the 1998-2008 period. International double taxation of foreign-source bank income is found to reduce banking-sector FDI. Furthermore, such taxation is almost fully passed on into higher interest margins charged abroad. These results imply that international double taxation distorts the activities of international banks, and that the incidence of international double taxation of banks is on bank customers in the foreign subsidiary country. Our analysis informs the debate about additional taxation of the financial sector that has emerged in the wake of the recent financial crisis.

Published: Harry Huizinga & Johannes Voget & Wolf Wagner, 2014. "International Taxation and Cross-Border Banking," American Economic Journal: Economic Policy, American Economic Association, vol. 6(2), pages 94-125, May. citation courtesy of

June 2012International Taxation and Cross-Border Banking
with Harry Huizinga, Johannes Voget
in Business Taxation (Trans-Atlantic Public Economics Seminar), Michael Devereux and Roger Gordon, organizers
 
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