Tax Aspects Research Articles

Interest Deduction in the Netherlands: Tax Aspects of the Different Interest Deduction Limitation Rules

The difference in taxation of equity and debt capital encourages to finance with debt capital. In order to prevent the erosion of the Dutch corporate income tax base, the Netherlands has a number of interest deduction limitation rules. In this article the most important interest deduction limitation rules are discussed.

Italian Tax Authorities Action Against Fictitious Corporate Tax Residence

Fictitious corporate tax residence is a primary concern for States, in view of the fact that it impacts – directly and incisively – on States’ taxing rights, and also since it is known to trigger double taxation as well as double non-taxation phenomena. Based on the above, it is quite evident that to counter such phenomena, a coordinated approach at international level is altogether imperative, especially since regulation of tax aspects has been playing an increasingly central role in debates and discussions between and among Tax Authorities, and international institutions.

Draft Decree on Transfer Pricing and Direct Tax Administration of Related-Party Transactions

Vietnam’s Ministry of Finance released a Draft Decree on tax administration of enterprises with related-party transactions which covers transfer pricing rules and some other aspects of direct taxation. The authors analyse key aspects of the Draft Decree and discuss the appropriateness and possible impacts of the proposed changes on Vietnam-based business operations in light of the OECD BEPS Project, existing transfer pricing rules, practical enforcement and expected developments in Vietnam.

Legal and Economic Aspects of Property Taxation (selected issues)

The notion of property constitutes one of the most ambiguous categories, differently defined and interpreted depending on a given field of science. Analyzing legal provisions of the EU countries which regulate the issues of tax accounting and tax law, we may determine the general properties of elements of property

Tax Aspects of Financial Market Transactions

The authors provide an overview of the aspects of the taxation of transactions on the Brazilian financial market, presenting the main issues that can affect the attraction of foreign investment, as well as challenges that arise under the current Brazilian legal framework in light of relevant tax issues worldwide, such as exchange of information on tax matters and the classification of hybrid financial instruments.

Portuguese-Speaking African Countries: Same Background, Different Solutions

This article presents an overview of the international taxation aspects of the domestic tax legislations of Angola, Mozambique, Cape Verde, and São Tomé and Príncipe with regard to the direct taxation of companies.

A Perpétua Máquina de Produzir Frustrações

O objetivo do presente trabalho é atacar aspectos éticos da tributação, em especial quanto à frustrante contraprestação oferecida pela - ineficaz – gestão da máquina estatal. O tema posto a debate centra-se na governabilidade corrupta que compõe o sistema, bem como na crise existente entre o dever de pagar tributos frente aos postulados da boa-fé objetiva e os princípios da eficiência e da moralidade que regem a administração pública.

Examining Taxation of Fiat Money and Bitcoins vis-a-vis Regulated Cryptocurrencies

In this paper, we examine the Taxation aspects of Fiat money and Bitcoins vis-a-vis Regulated Cryptocurrencies. We start off by briefly explaining the concept of cryptocurrencies (also referred to as cryptocoins in this paper). We then discuss the concept of Regulated and Sovereign Backed Cryptocurrencies (RSBCs). Then we envisage a scenario where cryptocoins are the main medium of exchange. The taxation aspects of Paper money, Bitcoins and RSBCs are then deliberated with the pros and cons of taxation for each currency format. The currency that can support an Automated Tax Regime is also debated. Finally, the paper concludes by arranging in ascending order, the currencies which are easily amenable to and compliant with taxation policies and laws.

An Alert from the Left: The Endangered Connection Between Taxes and Solidarity at the Local and Global Levels

Neoliberal tax policies at the local and the global levels risk democracy consolidating economic inequality by allowing and fostering capital accumulation. As a consequence capital owners have increased their political power to influence and decide on local and global tax policies for their own benefit. The Chilean income tax system and the international tax law system (including tax competition among states and tax heavens) are analysed as examples of neoliberal tax policies at the local and the global level, respectively. At the same time, neoliberalism as a normative order of reason has replaced the political aspect of taxation with economic concepts that tend to dissolve the connection between taxes and solidarity. In this scenario, taxes make no economic or political sense as they are not understood as duties of citizenship. In this Article, recent alternatives proposed to diminish global no taxation and inequality, as the OECD BEPS project and Thomas Piketty's proposal for a global tax on capital are analyzed and criticized.

Skatteverket v. Hedqvist (C.J.E.U.)

On October 22, 2015, the Court of Justice of the European Union (CJEU) rendered its judgment in the case of Skatteverket v. Hedqvist. In this important decision the CJEU sheds light on the value added tax (VAT) aspects of the use of bitcoins. Supplying bitcoins (or better, paying with bitcoins) does not constitute a VAT taxable service, so paying with bitcoins is not a barter transaction. The mere exchange of bitcoins into traditional currency (or vice versa) also remains outside the scope of VAT. The exchange service is VAT exempt.

Value in the eye of the beholder: a survey of valuation practices of Estonian financial professionals

This is the first empirical study related to the linkage between distributed profit taxation and company valuation. In this paper we present the results of a survey of Estonian valuation practitioners. The main purpose of this study is to clarify the valuation practices of Estonian analysts with emphasis on fundamental analysis-based valuation methods. We elucidate whether and how practitioners treat certain aspects of corporate income taxation when valuing Estonian companies, and how they adjust conventional models taking into account the peculiarities of the Estonian distributed profit taxation system. As distributed profit taxation allows Estonian companies to postpone their income tax liability, it should lead to a positive impact on the value of Estonian companies compared to non-Estonian ones. The survey also included hypothetical valuation cases seeking to determine the difference in analysts’ views on equity value in a simplified framework. Results show that free cash flow to the firm and EV/EBITDA multiples are the most popular valuation models among analysts, with the majority of analysts using these models together. Analysts adjust models primarily when calculating the cost of capital and forecasting corporate income tax liability. However, many respondents did not make any adjustments when valuing Estonian companies, but proceeded from the same grounds when valuing Estonian and non-Estonian businesses. The equity valuation of hypothetical companies revealed highly diverse estimates and an unawareness of the positive aspects of distributed profit taxation vis-à-vis traditional profit taxation on a company’s value

The Dutch foundation as fiduciary entity: Dutch tax aspects

The Dutch foundation is a flexible legal entity that is used in tax planning, estate planning, and asset protection by high net worth individuals worldwide. In this article, the authors discuss the fiduciary foundation (STAK) in detail, and focus on its Dutch tax aspects, as well as the implementation of the ultimate beneficial owner (UBO) register in the Netherlands.

Free Zones, Foreign Ownership and Tax Incentives for Foreign Direct Investment in Qatar

Qatar offers specific Free Zones in order to encourage Foreign Direct Investment, as Free Zones Enterprises can be fully owned by non-Qataris, which is not the case of companies located in Non-Free Zones areas in Qatar. In fact, Free Zones offer huge tax incentives and do not provide any regulatory or legal restrictions to repatriate profits and investments. As Non-Free Zones are governed by a different law than the one applicable in Free Zones areas, taxation is slightly less favorable (corporate income taxes of 10% apply for ordinary companies) even if lots of activities are still tax exempted. The most significant difference lies in the ownership restrictions of Qataris companies. The present contribution is aiming at presenting the main tax and legal aspects of these two different options in Qatar, notably given the growing importance of Free Zones in this region.

Socioeconomic Predictors of Family Forest Owner Awareness and Use of U.S. Federal Income Tax Provisions

Family forest owners (FFOs) control a majority of private forestland in the United States and have widely diverse ownership and management objectives. Many FFOs manage their holdings for timber production and, thus, are concerned with issues such as reforestation incentives and tax treatment of timber revenues. Their actual knowledge of the tax aspects of timber management varies, with some owners even unaware of the federal income tax provisions that apply to timber. This research used econometric techniques to establish socioeconomic predictors of FFO awareness and use of federal income tax provisions. Socioeconomic factors (such as size of forest holding, ownership objective, education, age, and income) were evaluated in terms of association with awareness and use of income tax provisions. Data were obtained from a survey of 1350 South Carolina FFOs (472 useable responses). A two-step sample selection methodology revealed that membership in a landowner organization and size of forest holding positively influence landowner awareness of the seven tax provisions, while ownership objective and level of education exhibited varying degrees of influence. Overall, the findings suggest that size of forest holding is the key determinant that influences landowner use of the provisions. These tax incentives are one of the foundations of federal policies encouraging active forest management by FFOs and the effectiveness of the various incentives has crucial implications for forest policy analysis.

El impuesto predial en Ciudad Juárez desde una perspectiva de equidad

El aspecto de equidad en el impuesto predial es un tema relevante que se aborda en este artículo. Ésta se diferencia entre vertical y horizontal; la primera se refiere a un enfoque progresivo en donde aquellas propiedades que valen más pagan una tasa superior a las de menor valor; la equidad horizontal apunta a un tema de valuación y, en ella, las propiedades comparables pagan la misma tasa. El artículo tiene como objetivo poner a prueba la hipótesis de regresividad del impuesto predial; se argumenta que ésta es inequitativa dado que en términos proporcionales las propiedades de menor valor pagan una tasa superior a las de mayor valor. Los resultados en esta investigación soportan la hipótesis de que existe un efecto de regresividad en el impuesto predial en Ciudad Juárez; consecuentemente es importante reflexionar sobre la estructura actual del sistema catastral

Management Aspect of Transfer Pricing for Operating Companies within Iron and Steel Holding Corporations

Background /Objectives: The rapid progress of science and technology in the iron and steel industry stimulated the development of the integration mechanisms resulting in the appearance of multinational and holding corporations. Vertical integration is the most common mechanism strengthening the ties between the successive links of the processing and distribution chains of iron and steel enterprises. Transfer pricing is an important aspect of interaction between all responsibility centers within holding corporations. A distinction should be drawn between the tax and management aspects of transfer pricing. Despite the single accounting item, there is a significant difference between the tax and management aspects of transfer pricing. This article looks into the transfer pricing mechanisms for management accounting purposes. Methods/Statistical Analysis: Graphic and analytical methods of multi-product break-even analysis (break-even analysis for multi-product production with a flexible product mix). Findings: Market-based pricing is an optimum transfer pricing method. However, sometimes it appears impossible to use this method for iron and steel companies. In case there are no market-based prices, transfer prices are supposed to be set using a full costing system. It requires allocation of fixed costs by types of products. Application/Improvements: The full cost pricing method suggested by the authors sets the transfer prices ensuring equal conditions for all responsibility centers in measuring their cost management performance.

The protection of the Cyrillic alphabet in telecommunications: Taxation aspects

The use of Cyrillic and other specific alphabets is discouraged in some telecommunication services. In this paper; the author focuses on unequal treatment of the Cyrillic alphabet in telecommunications (in SMS messages), which is incompatible with the interests of a multilingual society to cherish its linguistic heritage and diversity. Referring to the Convention on the Protection and Promotion of the Diversity of Cultural Expression (2005), the author suggests introducing measures which would lead to removing the discriminatory pricing of Cyrillic SMS messages; and introducing tax measures which would support mobile network operators and prevent possible market inequalities stemming from introducing these measures. The suggested solution is applicable to any multicultural society facing the same problem; regardless of languages in question.

Уклонение от уплаты налогов: библиометрический анализ точек зрения власти, бизнеса и науки

This article analyzes the publications relating to the problem of tax evasion. This topic is attractive not only for the academic community, but also for public at whole. The article explores to what extent the scientific publications on tax evasion correspond to practical issues discussed among the stakeholders. We used the electronic database of e-Library as a source of scientific publications on the subject. The principal stakeholders directly dependent on the taxation are the taxpayers and public authorities. We used the electronic database of publications «Kommersant» publishing house and the «Rossiyskaya Gazeta» to reflect issues discussed among the stakeholders. We selected for analyze 301 publications for the period of 2013-2015. The study was conducted by comparing the publication activity by types and period of publications. In the first stage of the study we have done the qualitative content analysis by identification the common themes discussed in hole sample of publications. Then, a quantitative analysis was conducted by comparing the distribution of publications on a particular topic from each source. We used bibliometric analysis method for the quantitative and bibliographic mapping method to visualize the results of research. Calculations were performed using the software QDA Miner v.5.0 module WordStat v.7.1.7. As a result, studies have concluded that the most popular topics of interest for which no changes are: changes in legislation, legislation and increased enforcement. Using the results of the conducted study, we can identify the main similarities and differences between the monitored sources. We can see the special attention to the: Legislation changes, Law enforcement, Entrepreneurship. Marked reduction of interest can be noted regarding to the following topics: International aspects of taxation, Shadow economy, Ownership, property, investment. The growth of interest can be noted in relation to the following topics: Directorship, Article of the Tax Code, Short-lived companies, Arrears and fines. The study revealed a certain disparity between the topics discussed among academic community and stakeholders. The topics discussed in the majority of scientific texts (shadow economy, corruption, the firm one-day, social security contributions), a much rarer can be found in the publication of «Kommersant» and «Rossiyskaya Gazeta» which focuses mainly on matters of legislation. Analysis of the relationships in the texts according to the source and year of publication showed that research topics converge with issues considered by the public authorities. The business community more involved in discussion the legal issues, because the government notion works upon the impression about tax evasion of the business community and academia. Thus, bibliometric text analysis techniques can be used for research, preparation of literature reviews and thematic information retrieval.

The expenses of the employ-ers connected with the pay-ment for their employees’ leaves: accounting and tax aspects

The article deals with the problem of employers’ payment for the employees’ leaves. The tax consequences of decisions made in this area are also examined by the article.

<br>(The Integration of Regulation and Taxation in the Clean Air Law)

תקציר בעברית: חוק אוויר נקי, התשסח–2008, קובע שני אמצעי שליטה להתמודדות עם התנהגות היוצרת זיהום אוויר: רגולציה, שבאה לידי ביטוי בהיתרי פליטה המונפקים למזהמים, ומיסוי, הבא לידי ביטוי ב היטלי פליטה שבהם מחויבים מזהמים. המאמר מסביר מדוע עלויות המידע הן השיקול המרכזי בבחירה בין מנגנוני שליטה, ומנתח את האופן שבו ראוי לפרש את החוק כדי להביא לשילוב מיטבי ככל הניתן בין שני המנגנונים הקבועים בו.English Abstract: Clean Air Law, 2008 controls polluting behavior through regulation as well as taxation. The regulation aspect is reflected in the emission permits that are issued for the polluters, and the taxation aspect appears in the emission levies that are imposed on the polluters. The paper explains why information costs are the primary consideration in choosing between the two mechanisms. It analyzes the way by which we should interpret the law in order to harmonize the two mechanisms as optimally as possible.