Publication:
Taxing Issues with Privatization : A Checklist

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dc.contributor.authorMintz, Jack M.
dc.contributor.authorChen, Duanjie
dc.contributor.authorZorotheos, Evangelia
dc.date.accessioned2014-06-30T19:11:00Z
dc.date.available2014-06-30T19:11:00Z
dc.date.issued2000-05
dc.description.abstractPrivatization has been a popular strategy for improving efficiency in both market and transition economies. The literature on privatization includes broad discussions of pricing techniques but overlooks tax issues. In reality, a state-owned company loses its privilege of paying no taxes once it is privatized. This change in tax status would certainly complicate the financial transaction of a newly privatized company, affect industry-wide economic efficiency, and change the revenue pattern of governments. Using Ontario Hydro and the Canadian tax regime as examples, the authors provide policymakers with a checklist on tax issues under privatization. Their main observations: 1) The tax status of the company to be privatized must be considered in analyzing the firm's financial transition. 2) The economic efficiency targeted by privatization may depend partly on the tax regime for a particular industry. 3) Privatization affects government revenue through the revenue-sharing structure determined by intergovernmental fiscal relationships and cross-border tax arrangements. Time is a factor in tax and transition issues. At the time of privatization, for example, how are assets to be valued for calculating capital gains and cost deductions, for tax purposes? Are the assets transferred to the new owners at fair market value, book value, or at cost, for tax purposes? How should heavy debt loads be treated? Ontario Hydro will not be privatized but it will become taxable. How the taxes will be paid will depend on how the transition is treated. Tax policy will be a key determinant of the industry's future development.en
dc.identifierhttp://documents.worldbank.org/curated/en/2000/05/437633/taxing-issues-privatization-checklist
dc.identifier.doi10.1596/1813-9450-2348
dc.identifier.urihttps://hdl.handle.net/10986/18850
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 2348
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCUMULATED INCOME
dc.subjectBAD DEBT
dc.subjectBANK OF CANADA
dc.subjectBANKS
dc.subjectBONDS
dc.subjectBOOK VALUE
dc.subjectBORROWING
dc.subjectCAPITAL COSTS
dc.subjectCAPITAL GAIN
dc.subjectCAPITAL GAINS
dc.subjectCAPITAL TAXES
dc.subjectCOMPETITIVE ADVANTAGE
dc.subjectCONSUMERS
dc.subjectCORPORATE INCOME TAX
dc.subjectCORPORATE INCOME TAXES
dc.subjectCORPORATE TAXES
dc.subjectCOST OF CAPITAL
dc.subjectDEBT
dc.subjectDEBT FINANCING
dc.subjectDEBT INSTRUMENTS
dc.subjectDEPRECIABLE ASSETS
dc.subjectDEPRECIATION
dc.subjectDEPRECIATION OF ASSETS
dc.subjectDISCOUNT RATE
dc.subjectDIVIDENDS
dc.subjectECONOMIC EFFICIENCY
dc.subjectECONOMIC PERFORMANCE
dc.subjectELECTRICITY
dc.subjectELECTRICITY GENERATION
dc.subjectEXPENDITURES
dc.subjectGROSS REVENUES
dc.subjectINEFFICIENCY
dc.subjectINSURANCE
dc.subjectINSURANCE PREMIUMS
dc.subjectINTANGIBLE ASSETS
dc.subjectINTEREST EXPENSE
dc.subjectINTEREST RATES
dc.subjectINVENTORY
dc.subjectLAWS
dc.subjectLEVIES
dc.subjectMARKET COMPETITION
dc.subjectMARKET VALUE
dc.subjectMUNICIPAL FINANCE
dc.subjectMUNICIPAL GOVERNMENTS
dc.subjectMUNICIPALITIES
dc.subjectOPERATING LOSSES
dc.subjectPAYROLL TAXES
dc.subjectPENSIONS
dc.subjectPOLICY MAKERS
dc.subjectPOWER PLANTS
dc.subjectPRESENT VALUE
dc.subjectPRIVATE SECTOR
dc.subjectPRIVATIZATION
dc.subjectPRODUCERS
dc.subjectPROFITABILITY
dc.subjectPROPERTY TAXES
dc.subjectPROVINCIAL GOVERNMENTS
dc.subjectPROVISIONS
dc.subjectPUBLIC DEBT
dc.subjectPUBLIC POLICY
dc.subjectRETIREMENT
dc.subjectSAVINGS
dc.subjectSUBSIDIARIES
dc.subjectTAX
dc.subjectTAX CREDITS
dc.subjectTAX INCENTIVES
dc.subjectTAX LAW
dc.subjectTAX RATES
dc.subjectTAX REVENUE
dc.subjectTAXATION
dc.subjectTRANSITION ECONOMIES
dc.subjectUTILITIES
dc.subjectVALUATION
dc.subjectWAGES
dc.subjectWRITEOFFS
dc.titleTaxing Issues with Privatization : A Checklisten
dspace.entity.typePublication
okr.crossref.titleTaxing Issues with Privatization: A Checklist
okr.date.disclosure2000-05-31
okr.date.doiregistration2025-04-10T09:41:15.758385Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2000/05/437633/taxing-issues-privatization-checklist
okr.globalpracticeSocial, Urban, Rural and Resilience
okr.globalpracticeGovernance
okr.globalpracticeFinance and Markets
okr.guid951361468739564021
okr.identifier.doi10.1596/1813-9450-2348
okr.identifier.externaldocumentum000094946_00060605301922
okr.identifier.internaldocumentum437633
okr.identifier.reportWPS2348
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2000/06/17/000094946_00060605301922/Rendered/PDF/multi_page.pdfen
okr.themeRule of law :: Legal institutions for a market economy
okr.themeFinancial and private sector development :: Regulation and competition policy
okr.themeFinancial and private sector development :: Other financial and private sector development
okr.topicEconomic Theory and Research
okr.topicBanks and Banking Reform
okr.topicInternational Terrorism and Counterterrorism
okr.topicEnvironmental Economics and Policies
okr.topicUrban Development::Municipal Financial Management
okr.topicPublic Sector Economics and Finance
okr.topicFinance and Financial Sector Development
okr.unitGovernance, Regulation, and Finance Division, World Bank Institute
okr.volume1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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