Group Taxation, Asymmetric Taxation and Cross-Border Investment Incentives in Austria

In 2005, Austria modified its group taxation regime and now provides an option for cross-border loss-offset. We analyse the combined impact of Austria's new group taxation and loss-offset limitations on cross-border investment decisions of domestic corporations. Monte Carlo simulations in an inter-temporal setting reveal that the impact on foreign real investment induced by the new group taxation is ambiguous. Whereas marginal investment projects with decreasing cash flows tend to benefit from group taxation, innovative projects with initial losses and increasing cash flows may be discriminated against. Investors should consider domestic income and repatriation policy simultaneously before opting for group taxation.group taxation, investment decisions, Monte Carlo simulations, international taxation, loss-offset rules

Eine Frage der Perspektive? Die Wahrnehmung von Steuern bei Anlageentscheidungen zur privaten Altersvorsorge

This study empirically analyses the influence of tax concessions on decisions regarding retirement savings in Austria. We analyse real decisions on retirement savings by using qualitative data. This allows us to examine how different, perceived decision-making criteria have led to actual investment decisions by taking into account the context in which such decisions are made. Our main results are as follows. We find evidence that taxes do not matter much. Financial planning for retirement consists of saving discretionary income instead of the required savings premium and choosing a secure type of investment which yields more than a savings book. Savers do not base their decisions on calculating and comparing rates of return or tax benefits. Instead, we find strong influences of relatively unqualified relatives, bank clerks and the desire for security. Thus, the financial outcome is strongly linked with the decision-making context and decision-making processes. --Financial Advice,Retirement Saving,Tax Incentives,Private Pension Plans,Peer Effects

Grenzüberschreitende Investitionen nach der Steuerreform 2005: stärkt die Gruppenbesteuerung den Holdingstandort Österreich?

Mit der österreichischen Steuerreform 2005 wurde die Möglichkeit der grenzüberschreitenden Verlustverrechnung im Rahmen der Gruppenbesteuerung eröþnet. Die vorliegende Arbeit untersucht den simultanen Einfluss von Gruppenbesteuerung und Verlustverrechnungsbeschränkungen auf das Investitionsverhalten inländischer Kapitalgesellschaften. Hierzu werden im Rahmen einer dynamischen Investitionsrechnung Monte-Carlo-Simulationen durchgeführt. Es kann gezeigt werden, dass der Einfluss der Gruppenbesteuerung auf die Vorteilhaftigkeit von Auslandsinvestitionen nicht eindeutig ist. Marginalinvestitionen mit sinkenden Zahlungsüberschüssen werden tendenziell begünstigt, innovative Projekte mit Anlaufverlusten und steigenden Zahlungsüberschüssen können durch die Gruppenbesteuerung jedoch auch benachteiligt werden. Investoren sollten die Ausübung des Optionsrechts zur Gruppenbesteuerung deshalb nur simultan mit den steuerpflichtigen Inlandserträgen und der Repatriierungspolitik planen. --Gruppenbesteuerung,Investitionsentscheidung,Monte-Carlo-Simulation,internationale Besteuerung,Verlustverrechnung

Employees' evaluative repertoires of tourism and hospitality jobs

Purpose: This paper aims to examine employees evaluative repertoires of tourism and hospitality jobs and segments them based on a set of job attribute preferences. Understanding the socialcultural underpinnings of employees job preferences is vital if employers are to overcome the challenging task of finding and retaining talented employees in the tourism and hospitality industry. Design/methodology/approach: A discrete-choice experiment with waiters, barkeepers, cooks and front-desk employees working in the Tyrolean tourism industry was conducted. Employees were categorized into distinct segments using a hierarchical Bayesian analysis and a cluster analysis. Findings: Results show that flexible working hours and the ability to balance professional and private aspirations are the most important job attributes for employees. Overall, the evaluative repertoires of the “green” and “domestic (family)” conventions are most prevalent. Research limitations/implications: This study contributes to literature on talent management by providing insights into employees evaluations of jobs and their evaluative repertoires embedded in the broader socialcultural context. Practical implications: Industry representatives and employers can adapt their recruiting and retention strategies based on employees job preferences. Social implications: Adapting job attributes according to employees evaluative repertoires helps to ensure the long-term sustainability of the industry workforce. Originality/value: Applying the Economics of Convention (EC) perspective, combining organizational job attributes and socially embedded evaluative repertoires provides a new approach to analysing and understanding employees job preferences.(VLID)4385862Version of recor

The perception of tax concessions in retirement savings decisions

Purpose – Research to date has reported ambiguous results on the influence of tax concessions on retirement savings decisions. The purpose of this paper is to investigate the influence of tax concessions on private retirement investment decisions by analyzing actual retirement decision processes and the rationales behind these decisions in-depth. Design/methodology/approach – Qualitative semi-structured interviews on actual retirement savings decisions were conducted with private investors (17) and their respective bank advisors (5). Decision-making rationales are analysed by means of semantic and causal coding of verbal data as well as by highlighting the complexities of decision processes represented in individual investment narratives. Findings – Results indicate that taxes do not matter much, neither during the decision to join a private retirement plan, nor when choosing a specific investment product. Financial planning for retirement consists of saving disposable income instead of the required savings premium and choosing a secure type of investment which yields more than a savings account. Savers do not base their decisions on calculating and comparing rates of return or tax benefits. Instead, comparatively unqualified relatives as well as bank advisors and the desire for trust and security are of major relevance. Research limitations/implications – The generalization of results is limited in so far as they refer to a relatively small interview sample. The study shall thus prompt further research that takes the decision-making context and the interrelation between several context factors systematically into account. Originality/value – The study is of value in that it highlights the difficulties private investors' experience when making actual – rather than hypothetical – retirement savings decisions and the rationales behind seemingly “imperfect” decisions. It shows that retirement savings decisions are heavily linked with the social decision-making context. These results are closely linked to the recent debate on “responsibilization”, critical perspectives on the tendency of states to hold individuals increasingly accountable for aspects of market governance and social security.Decision making, Pensions, Retirement, Savings, Taxation