Tax authority attention and financial reporting

Burden of proof in tax proceedings from a constitutional perspective

The action of a taxpayer when trusting in information concerning the content and interpretation of tax law obtained from tax authorities – between the constitutional principle of legalism and the principle of the protection of legitimate expectations

This study aims to investigates the effect of the tax authorities' attitude, and the effectiveness of the taxation system on tax compliance. This study also wants to investigates the moderating role of the tax authorities' moral obligations on the effect of the tax authorities' attitudes and the effectiveness of the taxation system on taxpayer compliance. The population in this study are non-employee individual taxpayers who are registered at the Primary Tax Service Office in Pekanbaru. The sampling technique in this study used purposive sampling. To test the direct effect of the tax authorities' attitude and the effectiveness of the taxation system, multiple regression analysis was used, while to test the moderating role of the tax authorities' morale obligation, moderated regression analysis was used. The results show that the attitude of the tax authorities and the effectiveness of the taxation system affect taxpayer compliance. This study also found that the tax authorities' morale obligations moderated the effect of the tax authorities' attitude and the effectiveness of the taxation system on taxpayer compliance.

The authors have formulated and consistently proved the hypothesis that well-functioning interaction of tax and customs authorities is required to increase the effciency of the state revenues administration. The mechanism of this interaction should be formed when implementing the standards of the World Customs Organization and the World Trade Organization into the Russian legislation. The research is particularly relevant since Federal Law No. 289 of 03.08.2018 “On Customs Regulation” has entered into force. This law includes article 222 “Interaction and cooperation of customs and tax authorities”. As scientifc and practical results, promising areas for development have been worked out: improving unifed mechanism of customs, tax administration and currency control based on integrated innovative technologies; implementing international standards developed under the auspices of the World Customs Organization; creating prerequisites for the transition to the payment of import customs duties and taxes after the release of goods for law-abiding business; redistributing functions of customs and tax authorities. The authors propose to leave the control of import duties payments for the customs authorities, and to delegate the control of VAT and excise taxes on imported goods payments to the tax authorities. The article includes the results of a comparative legal analysis of the acts of the World Customs Organization, the Financial Action Task Force on Money Laundering (FATF), the Organization for Economic Cooperation and Development (OECD) and the Agreement on Cooperation of the Federal Customs Service and the Federal Tax Service of Russia. It justifes the conclusion that the studied cooperation is the most important tool for the customs payments administration. This is confrmed by the statistics on additional and pre-leased revenues to the state budget based on the results of joint and coordinated verifcation activities. The result of the study is the formulation of promising areas for improving the interaction of customs and tax authorities in the Eurasian Economic union (EAEu) and Russia.

A recent WTO case held the U.S.' export tax subsidies illegal. Despite strong political resistance, which fed a long and costly legislative process, the U.S. recently repealed these subsidies. This case and the U.S. reaction revealed that although the U.S. is the single super economic power, it is not as dominant a player as some portray it. The case also shed light on the tension between the present international trade and tax regimes and the difficulty of applying WTO law to income tax measures. This tension did not escalate earlier mainly because countries tended not to use their income tax systems for protectionism. This article suggests that the use of tax systems to protect domestic interests may increase as a consequence of economic globalization. As a result, the current disconnect between the international trade and tax regimes shall cause both regimes to be challenged, as they may both apply in some cases with different and conflicting results. The article observes that the international trade and tax regimes cannot be simply reconciled or somehow meshed together, yet, it argues that their policies could (and should) be coordinated, with some adjustments made to the present legal constructs. It suggests that such coordination would benefit from the establishment of an international tax organization, which shall be responsible to making the evolving international tax regime more compatible with the international trade regime (but not part of the WTO). The article analyzes and rejects other solutions, primarily the one I call the tax expenditure solution, which is based on the contention, rejected in this article, that the international tax and trade regimes do not conflict, which proponents are willing to subject some aspects of income tax laws to WTO scrutiny as they are, without any adjustments. Finally, the article argues that coordinating international tax and international trade policies may be beneficial to both regimes even apart from the solution of the aforementioned incongruity.

The Government of India has announced new tax slab in Union Budget 2020-21. This new tax slab is also called as Optional tax regime because Government has not abolished old tax regime. The tax payer has option to choose the tax regime i.e. either Old or New which is better for them. The new tax regime has lower tax slab as compared to old tax structure. The taxpayer has given an option to either choose new tax structure with lower tax slab or the old tax one with tax benefit but higher tax slabs. The old tax regime enable taxpayer to avail existing tax exemption such as Leave Travelling Allowance, House Rent Allowance & deductions available under Income Tax Act, 1961. While those who are opting new tax regime will not have to avail advantages of existing exemptions & deductions that are available under old tax regime. The old tax regime has higher tax rate and three tax slab, whereas new tax regime has lower tax rate & six tax slabs. There is similarity in tax rate in case of individual below 60 years of age in both tax regime as it is exempted up to 2.5 lakh. In addition to this as per Section 87A (Introduced in Finance Act, 2003) Individual who is resident of India for Income Tax purpose, is entitled to claim tax rebate up to Rs.12,500 against tax liability if his/her Income does not exceed Rs.5,00,000 for old as well as new tax regime. Keywords: Income Tax, Tax Slab, Exemptions, Deductions, Old Vs New Tax Regime.

Since the inception of a new regime for filing taxes, there has been a discourse among taxpayers. The old tax regime provides opportunities to save taxes while, building a portfolio for fulfilling their financial goals. After the introduction of the new tax regime with less exemptions and deductions, one is free to choose between any of the two regimes. This would depend on many factors but purely on the quantum of exemptions and deduction one hopes to avail. For individuals, with awareness about their financial condition for the year, choices are clear. Otherwise, it may end in a deadlock. A commentary on the tax regimes could be an added factor in the selection. However, due to unavailability of the acceptance rate for new tax regime, taxpayers are unable to gauge whether the new tax regime is favourable. Amidst this, the finance minister has made some vivid introductions to the new tax regime in the union budget of 2023 by increasing the tax rebate limit. This introduction is a valuable step for the tax system of India which has the potential to be advantageous for taxpayers. Hence, this research is conducted to understand the new tax regime and the role it can play for the welfare of taxpayers. This study also sheds some light on the factors which might influence the selection of the tax regime. The findings show that the new tax regime simplifies the decision structure available to the taxpayers by reducing complexity and increasing the ease of compliance. The acceptance of the new tax regime has also increased since the reforms introduced in the Union budget of 2023. Age Groups, Yearly Income and Number of investments are factors that influence the selection of the tax regime. It is also observed that the younger age groups are inclining towards the new tax regime. The collected data has been analysed using the Year over Year growth, Chi-Square test and One-way ANOVA test along with post hoc tests.

The subject of the study is the improvement of tax administration in the context of new economic forms of investment and settlements. The purpose of the work is to form a stable structure of interaction between taxpayers and tax authorities, based on ensuring compliance with the principles of accessibility, clarity and simplicity in order to increase the receipt of taxes and fees into the country's budget system and simplify the process of taxpayers fulfilling their obligations. The need to improve the tax administration of cryptocurrencies by modifying the processes of interaction between taxpayers, tax and other authorities has been established. A model of interaction and regulation of transactions with cryptocurrency is proposed, which minimizes the financial and resource participation of the state apparatus and ensures minimal participation of investors in the calculation and payment of taxes and fees, shifting responsibility for tax offenses to operators in the form of credit institutions, exchanges, and other accredited organizations in Russia that carry out these operations by integrating part of them functions, which will lead to a reduction in negative factors, due to the lack of elaboration of legislative norms, it will reduce the burden on tax administration authorities and simplify the payment of taxes for taxpayers. Conclusions are drawn about the need to regulate transactions with such a financial instrument as cryptocurrency at the legislative level and improve tax administration at the level of tax and other authorities to ensure budget filling.

Reducing the internal income gap of enterprises is one of the important measures to promote the fairness of income distribution, and this paper focuses on the impact of the policy of "social security into tax authorities" on the internal income gap of enterprises and its underlying mechanism. Using the data of Chinese listed companies from 2014 to 2022, the PSM-DID model is constructed, and it is found that the implementation of the policy of "social security into tax authorities" can significantly reduce the enterprises' internal income gap enterprises, and the conclusion still holds after a series of robustness tests. This effect of "social security into tax authorities" reduces the intra-enterprise income gap by improving the information asymmetry problem and reducing the shareable rent of enterprises. Further, the heterogeneity analysis shows that the convergence effect of this policy on the intra-firm income gap is more pronounced in SOEs and large-scale firms. The conclusion of this paper not only provides new evidence for recognizing the income distribution effect of "social security into tax authorities", but also provides useful reference for how to promote the realization of common wealth in the process of tax reform.

ABSTRACTWe experimentally investigate how tax authority responsibility for preventing identity theft and tax authority responsiveness following identity theft influence taxpayers' trust in the tax authority and subsequent tax compliance intentions. We find evidence that trust mediates the positive relation between tax authority responsiveness and compliance, but that this mediation effect is conditional upon levels of tax authority responsibility for the identity theft. Specifically, when taxpayers perceive that the tax authority is to blame for the identity theft, higher responsiveness by the tax authority does not significantly influence compliance through trust. However, when the tax authority is not to blame for identity theft, higher responsiveness by the tax authority significantly influences compliance through trust. These findings suggest that when the tax authority is to blame for identity theft, there may be little it can do to increase taxpayers' trust and subsequent compliance.

The article is devoted to the problem of social and legal consequences for the harm caused by the tax authorities. The purpose of this paper is a comprehensive and systematic analysis of the institution of legal responsibility (liability) for the harm caused by the tax authorities and their officials, as well as the development of proposals to improve the existing legislation. The article reveals the content of the concept of the tax authority and an official of the tax authority , and the legal nature of the concept of civil liability for the damage caused by the tax authorities and their officials, foundations and conditions of the State's responsibility for the damage caused by the tax authorities, especially the occurrence of civil liability for the harm caused by the tax authorities and their officials, particularly compensation for the damage caused by the tax authorities and their officials. This direction is also complemented with consideration of the legal nature of the problems and the state's responsibility for the harm caused by the tax authorities and their officials.

The relevance of the article is determined by the need to study the essential characteristics, formation and development of tax compliance as part of the process of improving the organization of interaction between tax authorities and taxpayers in order to determine its subordination and role function. The subject of the study is tax compliance as an element of the organization of interaction between tax authorities and taxpayers. The purpose of the work is to improve the organizational foundations of interaction between tax authorities and taxpayers. The article identifies factors that have a negative impact on the organization of interaction between tax authorities and taxpayers; examines the evolution of models for the organization of interaction between tax authorities and taxpayers; identifies key tools inherent in each model of interaction between tax authorities and taxpayers; examines and critically evaluates approaches to the concept and term «tax compliance» in Russian and foreign practice; identifies essential characteristics of tax compliance as an element of the organization of interaction between tax authorities and taxpayers. Conclusions are drawn about the need to get rid of a narrow, formal approach to taxcompliance as a function of tax risk management and substantiate its role as a systemic element accumulating external and internal impulses of socio-economic development of society and inducing appropriate reactions from taxpayers.

The ASEAN country’s tax regime can be distinguished into the classical tax regime (Indonesia, Thailand, and Philippines) and integrated tax regime (Singapore, Malaysia, and Vietnam). This paper aims to understand the effect of the different tax regimes to firm debt financing policy. We analyze the effects of different tax regimes using the cross section regression method. The dependent variable is Debt to Equity Ratio, the independent variable is proxied by a dummy variable with the classical tax regime are defined as 1 and the integrated tax regime are defined as 0, and firms’ characteristics, as a control variable: Net Property Plan and Equipment to Total Asset Ratio, One Year Sales Growth, Price to Book Value Ratio, and Earnings before Interest, Taxes, Depreciation and Amortization to Total Asset Ratio. Since the classical tax regime has higher tax rates relative to the integrated tax regime, firm operating in the classical tax regime able to experience the same debt tax saving using lower debt financing relative to firm operating in the integrated tax regime. Keywords: ClassicalTtax Regime; Integrated Tax Regime; Debt Tax Saving; Debt Financing; ASEAN Country

Existing literature stresses the importance of socio-economic factors when aiming to increase the willingness of taxpayers to pay their tax obligations. There have been insufficient studies on socio-psychological factors in tax morale research. This study focuses on trust in tax authorities and tax fairness factors that may explain the reasons why people pay taxes. The purpose of this conceptual review is to analyze and synthesize the theoretical and conceptual frameworks of trust in tax authorities and tax fairness in the tax morale context. Trust in tax authorities refers to the level of confidence taxpayers put in tax authorities based on how well they perform their duties. Tax fairness refers to taxpayers who perceive paying taxes as a fair process in terms of the treatments and benefits they receive for the taxes paid. Tax morale is defined as the intrinsic motivation of taxpayers to pay their fair share of taxes. Using the Social Psychology of Taxation (SPT) and Ibnu Khaldun's Theory of Taxation (IKTK), the interrelationships between trust in tax authorities, tax fairness, and tax morale are critically evaluated and analyzed. The review of relevant tax morale literature is conducted to identify any research gaps, inconsistencies, or ambiguities. It is interesting to note that there were mixed findings in terms of the effect of tax fairness on tax morale. Some studies have demonstrated positive relationships, while others have found negative ones. It has been discovered that taxpayers’ trust in tax administrations would increase if tax authorities treated taxpayers with consideration and respect, applied clear and fair procedures to all taxpayers, and assisted them in meeting their tax obligations. A psychological contract aptly captures the interaction between tax authorities and taxpayers, which will manifest in a willingness to pay taxes. Further investigation needs to be carried out in order to statistically validate the direct and indirect relationships between trust in tax authorities, tax fairness, and tax morale.

1. Introduction According to the work of Peeters Bruno (2009,2010,2011), Schwarz Peter (2007), Smith Eric and Webb J. Tracy (2001), Munin Nellie, (2011), and Edouard-Jean Navez (2012), the tax system applied in a country has a serious impact on cross-country competiveness, something that, in turn, impinges strongly on the actual economy of common markets such as the European Union (EU) and the differences among tax regimes diversifies homogeneity (4). From the other hand the mobility of productive factors is directly related with country tax-regime differences, government budget funding from tax revenues and rates are the main fiscal policy tools. We argue that there are significant differences among the tax regimes of EU countries and that no policy has been implemented to ensure tax homogeneity across the EU, nor is there any likelihood of such. The anarchy in fiscal policy is an obstacle for the European Integration. Budget deficits have an impact on taxation and countries, invariably, manage the recent debt crisis by selecting different taxes as fiscal policy tools. Our article shows that the type and the level of economic growth affects the structure of taxes at work and alters the performance of different types of taxes; is also wishes to explain the factors that differentiate tax regimes by using multi dimensional criteria and thus contribute to the debate for a common tax regime between EU countries. It presents, also, the groups of EU counties with similar tax regimes and analyze the characteristics of structure among applied tax regimes and thus contribute to debate which type of tax regime is more suitable as a common tax regime. According to Stuckler et al. (2010), taxing the rich is a policy based to increase taxes against the recent financial crisis and carries a considerable populist appeal (as many hold those involved with the bank system responsible for the crisis and believe they should pay its price, though this happened only in the case of Ireland and not in other PIIGS countries). A key problem with the current debt crisis is public spending is increased less than decreased tax revenue. However, some commentators Wilkes, (2009) argue that taxing bonuses and high incomes may stifle incentives for entrepreneurship and innovation. Enforcing a more progressive tax system is politically challenging in light of the lobbying strength of the wealthy, but may most directly address the current debt crisis. While more progressive taxation is a less viable option in countries with already highly progressive systems, like Sweden, there is scope for raising revenues in the UK, Greece and other EU countries. In fact, the current governments of EU countries have adopted a quite different approach, increasing VAT--a regressive indirect tax whose burden falls disproportionately on the poor. There are also some simple, albeit politically difficult, changes that would bring the corporate taxation in line with other countries, to yield very large sums for continued government spending. In many countries, like Ireland, the economic development policy is based on a low corporate tax and, thus, it is difficult for this tax to be in line for all EU countries. Increasing taxes on alcohol, tobacco and sugary drinks further could represent viable revenue-generating options, benefiting both health and the economy. In the short run, these options may disproportionately hurt the poor (although there are disputes about the net effect on their overall welfare), and Keynesian economists worry that such taxes will diminish aggregate demand and slow down recovery. Thus, in Roosevelt's New Deal, prohibition on alcohol was lifted not only because drinking was popular, but mainly because it would reinvigorate consumer spending and increase tax revenues. The health costs of this aspect of New Deal policy (and, in turn, subsequent downstream costs) were never assessed. Further limitations include the scope for tax evasion due to imports from other EU countries, as well as smuggling of goods such as cigarettes, an activity in which the tobacco industry has been complicit. …