The Pricing of Financial Instruments in Tax Disputes

Forskningsoutput: TidskriftsbidragÖversiktsartikel

Abstract

The pricing of uncertainties, when establishing the market value of financial instruments, is problematic in tax
litigation since the outcome of the litigation is binary. Different values can be equally correct, depending on the
choice of models, assumptions regarding model parameters and forecasting techniques. The purpose of this
article is to illustrate the challenges for tax administrations and courts in terms of the need and ability to price
uncertainties in the market valuation of financial instruments. The authors illustrate the complexities with a case
based on a publicly traded instrument, which gives a lower limit of the uncertainty associated with valuation.
The authors then problematize the valuation of over-the-counter traded and non-publicly traded instruments,
which, due to uncertainty, tends to create leeway for tax arbitrage. This illustration shows the necessity to further
understand the manner in which courts reason, the dependency on experts and the use of models.

Detaljer

Författare
Enheter & grupper
Forskningsområden

Ämnesklassifikation (UKÄ) – OBLIGATORISK

  • Juridik (exklusive juridik och samhälle)

Nyckelord

  • Taxation, Valuation, Tax litigation
Originalspråkengelska
Antal sidor11
TidskriftDerivatives & Financial Instruments
Volym21
Utgåva nummer2
StatusPublished - 2019 apr 9
PublikationskategoriForskning
Peer review utfördNej

Related projects

Axel Hilling, Niklas Sandell & Anders Vilhelmsson

2018/01/012018/01/31

Projekt: ForskningInternt samarbete (LU)

Visa alla (2)