Actual Tax Research Articles

Clerks and the cession of Taiwan: dismantling of the undertaking system for tax collection in the process of the establishment of colonial power

ABSTRACT In traditional Chinese society, the clerks and runners – not the department magistrates, country magistrates, or secretaries from other provinces – were responsible for local administration. In particular, tax collection had a multi-layered structure of undertaking, with the chief tax clerks and the tax clerks having a monopoly. After the cession of Taiwan to Japan, regular Taiwanese officials ranked below the provincial administration commissioners and above the country magistrates and their assistants, crossed over from Taiwan to mainland China, but many clerks and runners of the yamen of various ranks stayed back in Taiwan, and some were even sent back to work for the colonial government. Many of the clerks became deputy interpreters as they could speak Mandarin and write Classical Chinese. However, as young Taiwanese graduated from Japanese language institutes and public schools (elementary schools for the Taiwanese), they began to replace the clerks. Moreover, the chief tax clerks and the tax clerks, who had previously been involved with tax collection, provided tax collection books and helped the colonial government prepare the original books that would serve as the basis for tax collection; however, they were excluded from the actual tax collection work. The Governor-General’s office used the military police and the police force to force people to pay taxes, achieving a much higher collection of tax than before. Thus, the mechanism for undertaking tax collection as intermediary groups was dismantled, and other clerks left the government offices at the end of the 1900s.

Sociological Behaviour and Excise Duty Compliance Nexus: Do Dispute Resolution Mechanisms Matter? Evidence From Alcoholic Beverage Manufacturers in Kenya

Purpose: Despite implementation of several initiatives to improve tax revenue collections, actual tax revenues have fallen short of projected targets. The purpose of the study was to determine the moderating role of dispute resolution mechanisms on the relationship between sociological behaviour and excise duty compliance among alcoholic beverage manufacturers in Nairobi County, Kenya. The study was guided by the theory of planned behaviour and judicial organization and adjective law theory. Methodology: The study employed explanatory research design. The target population of the study was 231 respondents. Primary data was collected through structured questionnaires. Out of 231 issued questionnaires, 185 filled and returned the questionnaires. Results: The study found that sociological behavior had a positive and significant effect on excise duty compliance, β=0.270 and p-value=0.000124<0.05. The study also found that dispute resolution mechanisms moderate and enhance the positive effect of sociological behaviour on excise duty compliance, β=0.113 and p-value of 0.000000<0.05. Conclusion: It is recommended that policymakers should consider and incorporate the theory of planned behaviour into tax compliance frameworks since understanding how sociological behaviour influences tax compliance can inform the development of targeted interventions and policies. It is also recommended that effective and affordable dispute resolution mechanisms should be put in place as they provide clarity and ultimately result in resolution of conflicts arising on account of excise duty thus promoting excise duty compliance. Future studies should be conducted on the effect of tax incentives on excise duty compliance.

Fiscal Incidence of the Property Tax

We use data from Florida spanning a decade (2010–2019) to empirically revisit the topic of fiscal incidence, the difference between benefits received and taxes paid, as it applies to property taxation. We first estimate demand equations in order to calculate the Lindahl tax share, or price the median voter would be willing to pay for public goods. Our measure of fiscal incidence is the difference between the Lindahl tax share and the actual tax share. With the exception of police and fire expenditures, benefits tend to outweigh costs for those with higher incomes, a pattern we attribute to public goods being valued more by high-income residents who pay a modestly progressive property tax. Controlling for income, Hispanic and black residents have higher levels of fiscal incidence. We explore how policy reforms, including equitable property assessment, affects fiscal incidence.

Cost misperception and voting for public goods

AbstractPublic good provision is often determined through referendums by voters, who weigh benefits against costs. However, perceptions of benefits and costs may be incorrect, which could in turn lead to voter error and misallocation of public goods. Using real‐world referendums, we evaluate voter perceptions of the private costs of providing public goods by conducting three exit polls of New England voters and an online survey of California voters. By comparing cost perceptions to actual tax incidence, we find pervasive evidence that voters misperceive costs. Fewer than 20% of voters in our samples reported perceived costs within 25% of estimated actual costs. These findings are unsurprising given the ubiquity of opaque language explaining the financial consequences of public good referendums. In addition, our analysis suggests that actual costs have no statistical bearing on voter choice, but at least in the New England sample, voter approval is affected by perceived costs. Thus, a substantial proportion of voters are making decisions based in part on inaccurate costs, which in some cases lead to people voting against their preferences and potential misallocation of public funds. Further, researchers who match voter approval with estimated actual cost are unlikely to obtain accurate cost responsiveness or valuation estimates.

Will the new definition of a building structure as a subjectof real estate tax put an end to interpretation disputes?

Cascading terminological connections with the provisions of construction law have led to a pathological mechanismof amending the real estate tax without changing the tax act, but through changes to a large group of normativeacts that, prima facie, have nothing to do with taxes. As a result of the Constitutional Tribunal’s judgmentin case SK 14/21, the Ministry of Finance prepared an amendment to the Act on local taxes and fees, which is intendedto cut off connections with the provisions of construction law.

Progressive Taxation and Social Welfare: Quantifying the Effects of the “German Tax-Reform 2000”

Abstract The German “Tax-Reform 2000” involved a strong reduction in the progressivity of labor income taxation. It led to a rise in overall labor income, but also increased income inequality. Utilizing data from the German Socio-Economic Panel (SOEP. 2016. Socio-Economic Panel (SOEP), Data for Years 1984–2016, Version 33) for the years 1998–2007, we employ a general equilibrium framework à la Antràs et al. (Antràs, P., A. De Gortari, and O. Itskhoki. 2017. “Globalization, Inequality and Welfare.” Journal of International Economics 108: 387–412) characterized by heterogeneous individuals. The model imposes a constant rate of tax progressivity and allows for a theory-consistent decomposition of social welfare that highlights the equity-efficiency trade-off, namely into (i) the fundamental social welfare level that would arise in a Kaldor-Hicks economy with lump-sum transfers, (ii) a correction term that accounts for the social cost of inequality à la Atkinson (Atkinson, A. B. 1970. “On the Measurement of Inequality.” Journal of Economic Theory 2 (3): 244–63) or Sen (Sen, A. 1970. Collective Choice and Social Welfare. Harvard University Press), and (iii) a correction term for the social cost of distortionary taxation. Our estimations show that the German tax system can be well approximated by the imposed tax schedule and that the reform implied a fall in the degree of tax progressivity. Under the baseline calibration, the numerical analysis yields the following results: First, the main driver of growth in social welfare from 1998 to 2007 was fundamental social welfare. Second, the counterfactual analysis shows that the reform resulted in an annual average income growth of 0.62 % and an increase in income inequality of 0.32 %, indicating an only modest increase in social welfare of 0.07 %. Third, the actual tax progression converged to its social welfare maximizing level.

The Gulf Cooperation Council Legal Order, Institutions and Taxation

Tax scholars worldwide are understandably unfamiliar with the GCC legal framework and the GCC’s role in taxation. This is because the GCC’s main agreements and the organization itself do not classify legal acts into primary and secondary acts, define the scope of supremacy of GCC legal acts over GCC domestic laws, or illuminate the direct application or direct effects of GCC acts. Consequently, the classification and nature of the GCC’s tax laws and sources are unclear. This work is the first scholarly attempt to fill this gap. It also describes the main institutions of the GCC and the role played by each institution when enacting a tax act. This work briefly refers to the European Union and the United States when analysing the GCC legal framework in order to complement the European and American readers’ understanding.

TAX BUOYANCY IN MAJOR STATES IN INDIA

In the world of fiscal policy, tax elasticity and buoyancy are crucial factors shaping a country's financial health. Tax elasticity measures how much tax revenue changes when national income shifts, showing how flexible the tax system is naturally, without deliberate policy changes. This flexibility helps stabilize revenue, reducing the need for constant tweaking of tax policies. On the other hand, tax buoyancy reflects how tax revenue responds to economic shifts and intentional changes in tax policies. It acts like a gauge, indicating how effectively taxes adjust to economic ups and downs and how well policy decisions influence revenue. Low buoyancy suggests that there might be flaws in the tax system, prompting policymakers to rethink and improve tax strategies to better fit economic realities. For a country like India, where tax revenues are essential for financing public spending, understanding these metrics is critical. The buoyancy coefficient compares the growth of actual tax revenue to national income growth, providing insights into how successful fiscal policies are in boosting tax revenues. Meanwhile, the elasticity coefficient shows how responsive the tax system is to changes in national income, revealing its potential to generate more revenue as the economy grows. Analyzing these metrics gives policymakers a detailed view of fiscal sustainability and economic stability. It helps them make informed decisions when designing tax policies, ensuring that the government can maximize revenue while allowing the tax system to adapt smoothly to economic changes. A balanced approach that considers both elasticity and buoyancy is key for India's fiscal strategy, ensuring a well-coordinated financial performance that aligns with national economic goals. KEYWORDS :- Tax Buoyancy, Tax Elasticity, Fiscal Policy, Tax Revenue, NITI Aayog, RBI (Reserve Bank of India), VAT (Value Added Tax), GST (Goods and Services Tax).

Unpacking conservation easements' assessed land use designations and their implications for realizing biodiversity protection

AbstractNative ecosystem and biodiversity loss from land use conversion into human‐modified landscapes are evident in the United States and globally. In addition to public land conservation, there is an increase in private land conservation through conservation easements (CEs) across exurban landscapes. Not every CE was established strictly for biodiversity protection and permitted land uses can increase human modification. No research of which we are aware has examined the actual tax assessor's land use designations (LUDs) through time. We constructed granular CE datasets (GCED) of CEs and their parcels' tax assessment LUDs for 1997–2008/2009, based on original data from 12 counties in six US states. Using the GCED, we examined patterns in the LUDs, with implications for land uses that could impact CE biological outcomes. We show that LUDs on exurban private conservation lands were predominately residential and agricultural, with increased residential over time. Critically, the LUDs lack a biological conservation exempt designation/category. There is no consistent trend in association between the primary CE reason and its parcel's LUD, suggesting that they coincide in some circumstances but in others, the CE may be a response to contravene the LUD. The majority of the first CE reasons are focused on open space preservation, except in some counties where agricultural land uses and agricultural CEs are associated. The economically and human‐focused LUD is one of many social factors that should be considered in a classification system for private land conservation and CEs more specifically. These results prompt the land conservation, conservation biology, and environmental planning communities to explore assessed land uses' impact on biodiversity conservation objectives.

On the issue of determining the actual tax liabilities in transactions with "high tech" companies

The article is devoted to the issues of improving the methodology for determining valid tax liabilities (BOTTOM) in transactions with "high tech" companies. It is noted that due to the increase in the number of "high tech" companies, the question arises not only of the control of their chain of exchange of goods/works/services, but also of determining the rules for calculating the taxes. In this regard, the aim of the article is to develop a methodology for determining the tax liabilities when identifying transactions carried out with "high tech" companies based on an analysis of existing judicial practice. The object of scientific work is a set of socio-economic relations that arise in the process of determining the BOTTOM. The subject of the study is the methodology for determining the actual tax liabilities (BOTTOM) in transactions with "high tech" companies. The research methodology is based on the use of tools and methods for the analysis and synthesis of judicial practice, tabular and graphical methods of data visualization. The scientific novelty of this study lies in the adaptation of the general conceptual methodology for determining the actual tax obligations of Tikhonova A.V. in relation to such a type of tax schemes as a transaction with high tech companies. In the end of the article, transactions with "high tech" companies were classified, the basic method of calculating the BOTTOM for each of the types of transactions considered was determined, the main risk markers of tax evasion schemes in transactions with "high tech" companies were identified, and measures of the tax authority to prove the fact of participation of a "high tech" organization in the transaction were formulated. Thus, the article has meaningful practical significance and will be useful to a wide range of specialists from both tax authorities and consulting organizations.

Effectiveness of West Lombok Regency Hotel and Restaurant Tax Revenue

A developed region is the goal of development. Progress is meant here to be advanced economically, socially and the advancement of human resources owned by the region. Meanwhile, development is meant to build society as a whole, namely development that covers all aspects of society's life that can function. harmony and balance in all fields in order to create a just and prosperous society that is equally material and spiritual.This research uses descriptive analysis methods. The calculation of the numbers uses the formula for contribution, effectiveness, and measuring the efficiency ratio. Contribution Analysis is an analysis used to find out how much contribution can be made from Hotel and Restaurant tax revenues to the Original Regional Income of West Lombok Regency. Overall, for the hotel sector, tax levies in West Lombok Regency are in the ineffective category, because the actual tax that can be achieved is almost always below the predetermined target, with the exception of restaurant tax, the tax levy collected exceeds 100% or exceeds the predetermined target in the year 2022 and 2022 tax collection is in the very effective category.

Determinants of the Quality of Tax Audits for Content Creation Tax and Tax Compliance: Evidence From Egypt

This study aims to examine the effect of determinants of the quality of tax audits for content creation tax on formal tax compliance and actual tax compliance. We used the questionnaire tool to collect data for a sample of 179 tax auditors, also we used partial least squares (PLS) to test the hypotheses. The result showed each of the regulations and laws, the quality of communication between the tax authority and taxpayers and the determinants associated with organizations have a positive effect on formal tax compliance. Meanwhile, the regulations and laws have a positive effect on actual tax. Also, there is no effect for both the quality of communication between the tax authority and taxpayers and the determinants associated with organizations on actual tax compliance. This study focused on the income tax on the profits of content creators and did not address the value-added tax on content creation. This study was also limited to the opinions of tax auditors and did not address the opinions of content creators.

ПОДАТКОВИЙ БОРГ ЯК ОДИН З ЕЛЕМЕНТІВ ТІНЬОВОЇ ЕКОНОМІКИ

The work analyzes the role of tax debt in the formation of the shadow economy and its impact on the national economy. The amount of tax debt and its impact on the economic development of the country is considered. The relationship between the shadow economy, in which tax debt is one of the key elements, and the general state of the economy is investigated. The work highlights strategies and tools that can be used to reduce tax debt and its negative impact on the national economy. Proposed proposals for improving the tax policy and improving the control system aimed at reducing the scale of the shadow economy and improving the country's financial stability. The study reveals the key factors that contribute to tax losses from the shadow economy, and based on this, an analytical table for 2015–2021 was created, and the specific weight of tax debt and the shadow economy in the national economy of Ukraine was additionally calculated. The article schematically plots the growth of tax losses over the analyzed period, both from the shadow economy separately, and from tax debt and the shadow economy in general. The analysis shows that these losses exceed almost half of the actual tax revenues received by the Consolidated Budget of Ukraine. The existence of a shadow economy and tax debt leads to significant losses for the state, which should be a source of additional income for the economy, necessary for the effective financing of various budget expenditures. Tax debt and the shadow economy are becoming tools used by taxpayers for illegal tax evasion. The study also highlights the consequences of tax debt and the shadow economy for the national economy, including the limitation of financial resources for social and infrastructure projects. Recommendations are offered to improve the effectiveness of tax policy and reduce the risks of the shadow economy and the amount of tax debt. The obtained results can be used to develop recommendations for improving tax policy, aimed at reducing tax debt and activating economic activity in legal channels. The research is relevant and useful for authorities, tax services, and scientists who are interested in improving the efficiency of tax administration and reducing the shadow economy. Also, the research is important for understanding the problem of tax debt as a component of the shadow economy and can serve as a basis for developing strategies to overcome this phenomenon in order to increase the financial stability of the state budget.

Structural Innovation and Theoretical Optimization of Modern Cultural Industry Tax Administration Based on Lasso Regression Algorithm

Abstract China’s modern cultural industry faces difficulties in tax collection and high pressure on expenditure; in order to solve such problems, this paper constructs a modern cultural industry tax model based on Lasso regression algorithm to promote the development of modern cultural industry. In order to further study the relationship between economic factors and the tax revenue of the modern culture industry, the relevant data on China’s tax revenue between 2000 and 2021 are selected, and 12 economic factors affecting the tax revenue of the modern culture industry are screened by combining the least squares method, Lasso regression algorithm and linear regression model. After the screening of indicator variables, according to the linear regression theory, the relationship between the key economic factors screened out by Lasso regression algorithm and the fiscal revenues is estimated by fitting and tested for normality, and the modern culture industry tax revenue model based on Lasso regression algorithm is constructed. Based on the tax revenue of the modern cultural industry between 2000 and 2021, the Lasso regression algorithm is used to analyze the modern cultural industry tax revenue. Examples are used to analyze the results. The results show that the tax revenue of the culture industry in 2020 is obtained as 208, 988, 838.42 billion yuan, and the tax revenue of the culture industry in a province in 2021 is 221, 794, 675 billion yuan, and its growth rate is 6.13%, which indicates that the Lasso regression algorithm is able to extract the information contained in the tax revenue of the modern culture industry well, and the coefficients of the parameter part are also in line with the actual tax situation coincides with the actual tax situation. Through the innovation of tax management structures and theoretical optimization, this study aims to promote the healthy and rapid development of modern cultural industries.

Linearne odrednice efektivnog poreznog opterećenja ICT poduzeća Republike Hrvatske

The actual tax burden of a company often differs from that prescribed by law, but there are also differences among the companies themselves. The question arises whether there are systematic explanations for these differences and whether they can be related to the type of business activity, asset structure, debt and other determinants. Therefore, the main objective of the research is to identify the determinants of the effective tax burden of ICT companies in the Republic of Croatia. The time horizon includes companies from the section J information and communication (NACE Rev. 2), in the period from 2008 to 2016. Using an unbalanced sample and dynamic panel regression with the Arellano-Bover/Blundell-Bond estimator, the determinants of the effective tax burden identified were as follows: effective tax burden from the previous period, company size, debt, capital and labor intensity, inventory intensity, profitability, and business cycles. However, the determinants differ according to the size classes of the company and the divisions. Compared to previous research, the subject is focused on companies of all sizes, not only large companies including not only listed companies but all companies in an industry that contributes to the homogeneity of the sample and the reliability of the results.

Triboelectric nanogenerator as next generation traffic monitoring system: Concept and modelling

Rapid development of intelligent transportation demands accurate methods for monitoring vehicle overload information. This paper reports a detail analysis on the viability of triboelectric nanogenerator (TENG) as a smart traffic monitoring system. PVDF and silk film were exploited for TENG fabrication for their strong penchant of gaining and loosing electrons. The objective of this paper is two fold. Initially the electrical performance of the fabricated prototype was measured and reported. The prototype exhibited a maximum open circuit voltage of 648 V and an instantaneous power density of 24 mW/mm2. It was also capable to light up 75 commercial green LEDs. Furthermore, a TENG based traffic monitoring system was introduced for monitoring the traffic overload information and for counting the number of vehicles rolled on it. The TENG was used to convert the mechanical energy from the rolling of vehicles into electric pulses. The pulses that were generated by the TENG was incorporated into an interfacing circuit to anticipate the number of vehicles passed by it. The amplitude of those pulses also give a valuable information regarding the weight of vehicles as the generated voltage is proportional to the input force. Different output voltages of 207 V, 367 V and 558 V were produced for different types of vehicles like bicycle, motorbike and four wheeler passenger vehicle respectively depending on their mass. Output voltage was also varied depending on the load carried by vehicles and showed an increasing trend with load. In consequence, the proposed system can substantially be implemented at various automotive toll plazas to corroborate the paid tax and the actual tax that is supposed to be paid on the basis of laden weight of the vehicle.

Input VAT Recovery On Share Sales And Other Fundraising Costs: Is The Direct And Immediate Link Test Modified?

It is trite law that Value Added Tax (VAT) paid on purchased goods or services is only recoverable as input tax if there is a direct and immediate link to a taxable activity. VAT paid on advisory services relating to a VAT-exempt share sale would therefore prima facie not be deductible. The United Kingdom (UK) courts and tribunals however now claim to have found an exception to that principle in the case-law of the Court of Justice of the European Union (CJEU) insofar as fundraising is concerned: Rather than the nature of the exempt fundraising transaction itself, it is allegedly the purpose to which the raised funds are applied which determines input tax deduction – exceptionally, even direct use for an exempt transaction has then no chain breaking effect, i.e., the effect that an exempt transaction breaks the chain between a supply and the taxable person’s taxable economic activities (See UKUT Commissioners for His Majesty’s Revenue and Customs v. Hotel La Tour Ltd [2023] UKUT 178 (TCC), para. 64.). The present contribution seeks to investigate the merits of this view, and whether it is one that the CJEU should also endorse. VAT, Input Tax, Deduction, Deal Costs, Fundraising, Direct and Immediate Link, SKF

Die Ertragsteuerbelastung von Kapitalgesellschaften in Deutschland

Abstract In an international comparison, Germany is a high-tax country. At around 30 %, the nominal tax burden for German corporations is almost ten percentage points above the EU average. Some assume that corporations‘ actual tax burdens are significantly reduced due to tax planning and profit shifting. However, this article shows, based on information from corporation and trade tax statistics, the real tax burden can be five to twelve percentage points higher than the nominal burden due to incomplete loss offsetting, the limited deduction of financing expenses and the (partial) taxation of corporate dividends.

Public Disclosure of Tax Strategies and Firm’s Actual Tax Policy

We use a sample of 248 tax strategies published by U.K. companies listed on the Financial Times Stock Exchange (FTSE) 100 and FTSE 250 to examine (a) how companies present themselves—more as “responsible taxpayers” who view taxes as a meaningful contribution to society, or more as “tax planners” who view taxes primarily as a cost, and (b) whether these presentations correspond to actual tax avoidance behavior. Our results show that, on average, firms tend to portray themselves as “responsible taxpayers,” but that this portrayal is consistent with firms’ tax avoidance behavior only when firms are subject to above-average external monitoring by financial analysts. The results suggest that firms manage the content of qualitative tax disclosures to sway public opinion as long as the probability of detecting misstatements is sufficiently low. This raises doubts as to whether mandatory qualitative information provides added value for stakeholders if it is not under external review. JEL Classification: H25; H20; M40; M48

The Actual Tax Evasion Offences Under Article 9 of the Law No 241/2005 on Preventing and Combating Tax Evasion -Theoretical and Practical Skills-

Law no. 241/2005 for preventing and combating tax evasion is currently in force, the latter being in force also today, as amended by O.U.G. no. 54/2010 on some measures to combat tax evasion, by Law no. 50/2013 amending Law no. 241/2005 for preventing and combating tax evasion, by the sole article of Law no. 55/31 March 2021 and OUG 130/2021 on some fiscal-budgetary measures, extension of some deadlines, as well as for amending and supplementing some normative acts.
 Law no. 241/2005 introduces four new elements from the first article itself, establishing measures to prevent tax evasion, establishing new offences called offences in connection with the offence of tax evasion, incriminating several facts as offences of danger and defining several terms used by the law for greater precision, in contrast to the previous regulation.
 We will present the actual offences of tax evasion provided for by Article 9 of Law no. 241/2005 by inserting practical aspects and comments.