The administrative cost of implicit taxes on financial assets - seigniorage, reserve requirements, lending targets, and interest ceilings - is low. But the excess burden that stems from the misallocation of resources is probably a much higher fraction of revenues than that of other taxes.

Taxes affect the degree and efficiency of financial intermediation in many different ways. This paper summarizes the main tax provisions in OECD countries that affect the overall “tax wedge” between pre-tax returns on investments, and the post-tax yield on the savings that finance them. This tax wedge is shown to vary widely, in individual countries, according to the different ways in which savings are channeled through financial markets. The paper then discusses alternative criteria for assessing tax regimes for financial assets, and summarizes recent trends in OECD countries.

This book examines the options for, and obstacles to, successful financial sector tax reform, both in terms of theoretical and practical aspects. Issues discussed include: the design of optimal tax schemes, the role of imperfect information and the links between taxation and saving, inflation, the income tax treatment of intermediary loan-loss reserves, deposit insurance, VAT and financial transactions taxes; as well as current practice in the industrial world and case studies of distorted national systems. This is a co-publication of the World Bank and Oxford University Press.

Selection of studies relating to taxation in developing countries. The papers are organized under the following subjects: approaches to development taxation, lessons from experience, taxation and incentives, problems in direct taxation, the reform of indirect taxation, the role of local taxes, tax administration and tax policy. Contributors: Carl S. Shoup, Vito Tanzi, Richard Goode, Charles E. McLure, Richard Bird, Oliver Oldman, Sijbren Cnossen and many others.

This publication identifies the main areas of weakness and potential areas for action to combat money-laundering, tax evasion, foreign bribery, and to identify, freeze and return stolen assets.

Discusses important tax policy issues facing developing countries today, provides a review of the role of tax incentives, and identifies some policy challenges posed by the globalization of the world economy. Draws on country cases.