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Corporate Financial Policy Biases and the Ralph Reforms
Author(s) -
Benge Matt
Publication year - 2001
Publication title -
australian economic papers
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 15
eISSN - 1467-8454
pISSN - 0004-900X
DOI - 10.1111/1467-8454.00129
Subject(s) - shareholder , neutrality , government (linguistics) , distribution (mathematics) , finance , economics , business , accounting , public economics , corporate governance , political science , law , mathematical analysis , linguistics , philosophy , mathematics
Australia's recent Review of Business Taxation chaired by Mr John Ralph listed the neutrality of taxes on an entity's financing and distribution decisions as a goal when redesigning entity taxation. In response to the Review the government has agreed to a number of reforms to the taxation of companies and their shareholders. This paper quantifies the financial biases that are created by the Australian company tax system for widely‐held companies owned by Australian residents. It also examines how these have been affected by the recent reforms.