{"id":57513,"date":"2023-12-01T20:10:35","date_gmt":"2023-12-01T19:10:35","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/the-elasticity-of-corporate-taxable-income-new-evidence-from-uk-tax-records-2\/"},"modified":"2024-04-20T07:47:41","modified_gmt":"2024-04-20T05:47:41","slug":"the-elasticity-of-corporate-taxable-income-new-evidence-from-uk-tax-records-2","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/57513\/","title":{"rendered":"The Elasticity of Corporate Taxable Income: New Evidence from UK Tax Records"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-57513","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"We use the population of UK corporation tax returns between 2001 and 2008 to estimate the elasticity of corporate taxable income with respect to the statutory corporation tax rate. We do so by analysing bunching in the distribution of taxable income at two kinks in the marginal rate schedule. We find a relatively small elasticity of between 0.14 and 0.18 for companies with profits around the 300,000 \u00a3 kink and a small marginal deadweight cost of 8 percent of the revenue that would have been generated by a marginal increase in tax, ignoring behavioural responses. We find a much higher elasticity of between 0.54 and 0.57 for companies around the 10,000 \u00a3 kink. By matching the corporate tax return data with accounting records and analysing joint bunching in the corporate and personal tax system, we decompose the overall elasticity of corporate taxable income into two parts: an elasticity of total income with respect to the net of tax rate of between 0.2 and 0.3, and an elasticity of the share of income taken as profit with respect to the difference between the personal and corporate tax rates of between 0.04 and 0.07. With these estimated elasticities, we find that the marginal deadweight cost of the tax around 10,000 \u00a3 is around 25 percent of the increase in tax revenue, absent any behavioural responses.","onlinedate":"2012-01-01 00:00:00","lang":"English","publication_series":"Oxford University, Centre for  Business Taxation, Working Papers","publication_date":"20120101","publication_date_year":"2012","publication_date_full":false,"publication_num_pages":"","keywords":"[\"Corporate Taxation\",\"Elasticity\"]","jelcodes":"[\"G32\",\"H24\",\"H25\",\"L25\"]","related_publications":"[]","pdf":null,"zip":null,"link":"https:\/\/www.sbs.ox.ac.uk\/faculty-research\/tax\/publications\/working-papers\/elasticity-corporate-taxable-income","monthly_report":false,"monthly_report_main":false,"monthly_report_volume":"","monthly_report_pages":"","monthly_report_pages_sort":"0","issue":"","journal":"","publisher":"","invisible":false,"external":true,"embargo_date":null,"types":[208554],"research_groups":[],"collaboration":"","persons":[11967,11971,3859],"persons_data":"[{\"personId\":11967,\"personName\":\"Michael P. Devereux\",\"organisationNames\":[]},{\"personId\":11971,\"personName\":\"Li Liu\",\"organisationNames\":[]},{\"personId\":3859,\"personName\":\"Simon Loretz\",\"organisationNames\":[]}]","clients":[],"subclients":[],"partners":[],"topics":[],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","scientific_assistance":"[]","scientific_review":"[]","version":"","release_date":null,"expiration_date":null,"surveyor":"","research_assistance":"","edv":"","additional_info_de":"","additional_info_en":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The Elasticity of Corporate Taxable Income: New Evidence from UK Tax Records - WIFO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.wifo.ac.at\/en\/publication\/57513\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Elasticity of Corporate Taxable Income: New Evidence from UK Tax Records\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.wifo.ac.at\/en\/publication\/57513\/\" \/>\n<meta property=\"og:site_name\" content=\"WIFO\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/WIFOat\/\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-20T05:47:41+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.wifo.ac.at\/wp-content\/uploads\/2024\/05\/WIFO-Gebaeude-FotoAlexanderMueller-www.alexandermueller.at-IMG_6326-Bearbeitet-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1280\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@WIFOat\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/publication\\\/57513\\\/\",\"url\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/publication\\\/57513\\\/\",\"name\":\"The Elasticity of Corporate Taxable Income: New Evidence from UK Tax Records - 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