TY  - JOUR
AU  - Huizinga, Harry
AU  - Voget, Johannes
AU  - Wagner, Wolf
TI  - International Taxation and Cross-Border Banking
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 18483
PY  - 2012
Y2  - October 2012
DO  - 10.3386/w18483
UR  - http://www.nber.org/papers/w18483
L1  - http://www.nber.org/papers/w18483.pdf
N1  - Author contact info:
Harry Huizinga
Tilburg University
5000 LE Tilburg
The Netherlands
E-Mail: H.P.Huizinga@uvt.nl

Johannes Voget
University of Mannheim
68131 Mannheim
Germany
E-Mail: voget@uni-mannheim.de

Wolf Wagner
Rotterdam School of Management
The Netherlands
E-Mail: wagner@rsm.nl
M1  - published as Harry Huizinga, Johannes Voget, Wolf Wagner. "International Taxation and Cross-Border Banking," in Michael Devereux and Roger Gordon, organizers, "Business Taxation (Trans-Atlantic Public Economics Seminar)" American Economic Journal: Economic Policy, Volume 6, no. 2 (2014)

M3  - presented at "Trans-Atlantic Public Economics Seminar", June 20-22, 2012
AB  - 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.
ER  -