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In My Opinion

John Cullinane Tax Partner Deloitte gives us his personal thoughts on some recent academic views on who really pays corporation tax
During a recent Breakfast Briefing held by the Oxford Centre for Business Taxation (see Steve McGrady's report in The Tax Journal Issue 941 7 July 2008) some economists came to the conclusion that the burden of corporation tax is borne by labour. Capital is mobile and so can insist on a given post-tax return. If it is taxed the pre-tax return it insists on is higher so labour which is assumed to be immobile and therefore trapped pays the price.
Dubious theory
In fact they argue labour...

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