Now showing 1 - 10 of 11
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Who donates and how? New evidence on the tax incentives in the canton of Geneva, Switzerland

2022 , Giedre Lideikyte Huber , Marta Pittavino

The present study is the first large-scale empirical legal analysis of tax incentives for charitable giving in Switzerland, and one of the few studies globally. Using unique longitudinal data including household income and wealth of the entire taxpayers' population of the Canton of Geneva, Switzerland, we study patterns of charitable deductions and characteristics of donors making such deductions. Our study period extends over a decade (2001-2011), this period also encompassing a legal reform that raised ceilings for charitable deductions. We observe that an overwhelming majority of donors make deductions that never reach the legal ceiling, especially after the reform. Nonetheless, we identify a subset of donors that are potentially tax-incentive sensitive, because their deductions constantly reach (or exceed) this ceiling. Deductions made by those donors amount to 30%-54% of all such deductions in the canton of Geneva. If compared to all donors, the donors in this particular subset are older (in their mid-late 60s), mostly single, wealthier and more regular givers (deducters). Analyzing the deduction patterns in the entire donors' population, we observe that deducting charitable donations have become increasingly popular during the study period. In addition, we find that donors' relative generosity tends to decrease when their income and wealth increase. Those results have important tax policy implications and relevance in modeling tax incentives for charitable giving, in both Switzerland and elsewhere.

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Tax Incentives for Charitable Giving as a Policy Instrument: Theoretical Discussion and Latest Economic Research

2020 , Giedre Lideikyte Huber

This article explores a long-standing research and policy question on whether tax incentives for charitable giving are desirable from legal and economic perspectives. The author discusses legal and empirical aspects that are important in designing tax incentives for charitable giving. Firstly, this article introduces the general theoretical criticism related to the use of tax expenditures as policy measures. Secondly, the author reviews the most recent economic literature that studies various aspects related to the efficiency of tax incentives for charitable giving. In conclusion, both theoretical and empirical research argues that incentivizing charitable giving via tax incentives (especially tax deductions) is not the most equitable and/or the most efficient policy option, at least concerning the current forms of tax incentives. Financial incentives structured as direct expenditures, such as matching grants for charitable donations, may be a more suitable policy option. Economic literature proposes ways to make tax incentives more efficient, for instance taking into account heterogeneous taxpayers' responses to tax incentives. Such policy options should however be carefully evaluated from a legal perspective, especially in light of the ability-to-pay principle.

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Philanthropy and Taxation: Swiss legal framework and reform perspectives

2018 , Giedre Lideikyte Huber

This article reviews several issues related to the Swiss tax framework in the field of philanthropy, primarily focusing on the direct taxes. It describes the philanthropy-related tax incentives in Switzerland, summarizes their main criticism and presents the ongoing proposals for legislative changes in this respect.

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Foundations in Europe from a tax perspective – observations and trends

2021-01-10 , Giedre Lideikyte Huber

This article describes the major trends in the legal framework related to tax aspects of charitable giving in Europe.

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Fiscalité et femmes: de la nécessité d'un passage à l'imposition individuelle

2021 , Giedre Lideikyte Huber

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Encouraging Sustainable Investment through Direct Tax Relief: Swiss and EU State Aid Legal Framework

2020 , Giedre Lideikyte Huber , Henry Peter

Direct tax incentives for individual investors are one of the policy measures that governments use to generate funds to develop the sustainable business sector. There are a number of arguments in favor of these measures. Existing research in behavioral science shows that the majority of investors perceive sustainable businesses as less profitable. It is also known, at least so far, that companies which follow sustainable commercial practices find it harder to attract investors. Several governments have identified this issue and enacted tax incentives specifically designed to encourage investors to turn to sustainable businesses. This type of economic policy approach is, however, still very rare, and the literature on the topic is sparse. This article seeks to provide input from a legal standpoint, highlighting the rationale and feasibility in the light of the fundamental principles of taxation, as well as of EU state aid rules, because this is an issue that inevitably arises. In particular, it analyzes whether encouraging sustainable investments via direct tax relief for investors is compatible with the legal framework for EU state aid and Swiss legislation. Depending on how such tax incentives are structured, we argue that they can be compatible with both.

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Taxation without Representation: The Case of Resident Non-Citizens

2015 , Giedre Lideikyte Huber

In this article, the author examines the issue of taxation without representation as it relates to non-citizen taxpayers in the context of political and voting rights. The article focuses on Swiss and the US tax and citizenship laws.

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The OECD Report on Taxation and Philanthropy: Main Findings and Policy Options for Switzerland

2021 , Giedre Lideikyte Huber , Henry Peter

This article discusses the recent OECD report in the field of taxation and philanthropy, presenting its main findings and policy options for Switzerland. The Swiss legislator could be inspired by certain suggestions, such as clearly defining the policy goals for incentivising philanthropy with taxes, reassessing the current restrictions on tax support for cross-border philanthropy, and improving data collection on tax incentives for charitable giving.

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Activité à but lucratif d'une entité d'utilité publique exonérée d'impôt : Notion et limites

2019 , Giedre Lideikyte Huber

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The Routledge Handbook of Taxation and Philanthropy

2021 , Maja Adena , Brigitte Alepin , James Andreoni , Rob Atkinson , Philip Balsiger , René Bekkers , Ursa Bernardic , Dana Brakman Reiser , Renate Buijze , Calum M. Carmichael , Romain Carnac , Emanuela Ceva , Malini Chakravarty , Jo Cutler , Steven Dean , Laurence de Nervaux , Nicolas J. Duquette , Philippe Durand , Nicolas Duvoux , Raphaël Gani , Sigrid Hemels , Caroline Honegger , Stephanie Koolen-Maas , Alexandre Lambelet , Maël Lebreton , Dominique Lemaistre , Giedre Lideikyte Huber , Johannes Lohse , Fiona Martin , Jennifer Mayo , Ian Murray , Xavier Oberson , Ann O’Connell , Henry Peter , Marta Pittavino , Kimberley Scharf , Charles Sellen , Natalie Silver , Priyadarshini Singh , Sarah Smith , Richard Steinberg , Emma Tieffenbach , Giuseppe Ugazio , Claire van Teunenbroek , Eric M. Zolt , Henry Peter , Giedre Lideikyte Huber

The Routledge Handbook of Taxation and Philanthropy ventures into a territory that is still widely unexplored. It contains 30 academic contributions that aim to provide a better understanding of whether, why, and how philanthropic initiatives, understood as voluntary contributions for the common good, can and should be fostered by states through tax incentives. The topic has been addressed from a multidisciplinary and multicultural perspective-covering neuroeconomics, sociology, political science, psychology, affective sciences, philosophy, behavioral economy, and law-because of its global and multifaceted nature. It also contains the OECD report on Taxation and Philanthropy released in November 2020, which was prepared in this context as a result of a collaboration with the Geneva Centre for Philanthropy of the University of Geneva. The book is divided into four sections, exploring, respectively, the justification of tax incentives for philanthropy, theoretical and empirical insights about taxes, efficiency and donor behavior in that context, and tax incentives for cross-border philanthropy and for hybrid entities and social entrepreneurship. It is believed that this volume will be a landmark yet only the beginning of a journey in which a lot remains to be studied, learned, and said.