Accounting policy choice: the relationship between corporate tax burdens and company size

Data compiled by the UK's non-financial firms that estimates corporate tax burdens or Effective Tax Rates (ETR) from 1968-1993 are analyzed to find out if firm size affects corporate tax burden. Results show that from the period 1968-1979, size effect is evident, particularly in mineral extractive firms. In the proceeding periods, however, size effect diminished leading to a negative association between ETR and effective tax rates in the 1970s and 1980s.