ACE Tax vs ASE Tax: The Croatian and Nordic Experience for Higher Neutrality

We may freely state that taxes bear two-sided nature. The first one and that is the good side of their essence is all about their role in contemporary public finance, sustaining the financial health of the modern-day state if properly managed. The second more menacing nature that occupies the interest of this article attributes to economic efficiency and the relatively high potential of taxes to disrupt the activities of economic participants, and the possibility to create a deadweight loss in the economy. Tax distortions are common for all the different groups of taxes, but for the corporate taxes are exceptionally evident. For example, one of the most typical is the distortion of corporate finance, when the choice for the financial alternative of the investment project is made. Induced by the traditional