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Asymmetric Taxes
(redirected from Asymmetric Tax)

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Asymmetric taxes
When participants in a transaction have different net tax rates.

Asymmetric Taxes
A situation in which two parties to a transaction pay different tax rates. This may affect what one party or the other desires about the timing, price, or other factors regarding the transaction.


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A well-known result from the literature on asymmetric tax competition for a single tax base is that small countries will undercut their larger neighbors, and may even be better off under tax competition as compared to a situation where countries can fully coordinate their tax rates (Bucovetsky, 1991; Wilson, 1991; Kanbur and Keen, 1993).
Estimating corporate marginal tax rates with asymmetric tax treatment of gains and losses.
This result may be jeopardized, however, if the shares are "tainted" either because they were acquired from abroad, held by a nonresident or by the Treuhandanstalt (Reunification Privatization Agency) at any time within the last 10 years, or acquired from German resident individuals if the capital gain has not been subject to tax (because of the asymmetric tax treatment that could result from a combination of capital gains not being taxed in Germany and a tax-free step-up) .
 
 
 
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