Compliance Costs Research Articles

The Effects of Homegrown Rule on Efficiency of Sports Teams: Evidence from the English Premier League

In the sports industry, governing bodies often have regulations for political and societal purposes. Despite their well-meaning intentions, the regulations often tend to be detrimental to stakeholders, including players and sports clubs. This study investigates the impact of the Football Association’s homegrown regulation on the operational efficiency of football clubs in the English Premier League (EPL). Using data envelopment analysis, we calculate the efficiency scores of 10 EPL clubs and compare them before and after the implementation of the regulation. Our results show that the efficiency of EPL football clubs decreased after the regulation was implemented, supporting the adverse effects of the homegrown rule. Our results further reveal that clubs were affected by the regulation to varying degrees. The distinct patterns of efficiency score changes in some clubs are explained by their unique managerial circumstances, such as ownership changes. Compliance costs, which vary depending on the level of each club’s youth academy system, also moderate the impact of the regulation. The findings of this study imply that imposing homegrown regulation on clubs unanimously without considering clubs’ different conditions leads to operational inefficiencies, generating adverse effects. This study has rich implications with respect to the productivity management of team sports. It also provides deep insights for the governing bodies trying to develop better policies. Funding: This work was supported by an Incheon National University Research Grant in 2021.

Proportionality in the European Banking Law.Lessons from Silicon Valley Bank

Abstract 936European prudential regulation imposes significant compliance costs on banks, justifying extensive use of proportionality. However, the failure of Silicon Valley Bank raised numerous objections to this approach. According to many scholars and practitioners, the crisis of SBV originated from a substantial loosening of the regulatory standards and the corresponding supervisory enforcement. In this context, the article discusses the intricate relations between proportionality and financial stability, reaching an articulated conclusion. While concerning prudential capital requirements it seems reasonable to adopt a uniform discipline, as to supervision (e. g., SREP), a proportional approach seems more appropriate. At the same time, the failure of SVB advocates in favor of a partly different approach toward corporate governance.

Artificial Intelligence for Impact Assessment of Administrative Burdens

This study proposes the use of Artificial Intelligence (AI) to automatize part of the legislative impact assessment process. In particular, the focus of this study is the automatic identification of administrative burdens from legislative documents. The goal of impact assessment for administrative burdens is to apply an evidence-based approach toward compliance costs generated by regulation. Employing advanced Natural Language Processing (NLP) techniques based on a transformer architecture, a system was specifically developed and tested using Portuguese legislation. The experimental phase involved the system's ability to accurately and comprehensively identify administrative burdens. Experimental results demonstrated the system's effectiveness, showing its suitability for supporting the legislative impact assessment process by automating a time-consuming task. To the best of our knowledge, this is the first attempt concerning the use of AI for automatizing the identification of administrative burdens. The proposed system may provide governments and policymakers with a tool to speed up the legislative impact assessment process, thereby streamlining decision-making processes. Moreover, the use of AI can make the legislative impact assessment process less subjective, thus increasing its transparency and making citizens more confident about the impartiality of the process that leads to new legislation. Doi: 10.28991/ESJ-2024-08-01-019 Full Text: PDF

Digital Transformation of Tax Administration and Compliance: A Systematic Literature Review on E-Invoicing and Prefilled Returns

This paper systematically reviews the impact of electronic invoicing and prefilling tax returns on tax administration and compliance, adhering to the PRISMA guidelines. Our comprehensive literature search and analysis reveal that these technologies are crucial in reducing tax compliance and administration costs. The results indicate significant benefits, including reduced financial stress for firms, especially during development phases, and enhanced efficiency in tax administration processes. The study highlights how e-invoicing and prefilling systems simplify and improve the tracking of taxation, leading to increased efficiency in tax practices globally. This research contributes to understanding the transformative effects of digital technologies in taxation, demonstrating their potential in streamlining tax compliance and administrative procedures.

Teach to comply? Evidence from a taxpayer education program in Rwanda

AbstractThere is virtually no evidence on the role of taxpayer education to improve tax compliance. We address this gap by providing the first evaluation of a taxpayer education program on compliance behavior, as well as taxpayer knowledge and perceptions. Using a unique dataset of administrative and survey data, we show that training new taxpayers leads to a large and significant improvement on three compliance outcomes: the probability to file declarations, to report a zero-tax amount, and tax due. These results are robust to three estimation strategies: a simple regression exploiting baseline balance across a wide set of observable variables, propensity score matching, and an IV strategy using random assignment to take part in our survey. We identify reduced compliance costs as the key mechanism at play in explaining the relationship between tax education and compliance—particularly increased knowledge and better perceptions on complexity. The effects we document persist over time, beyond the year of implementation.

The Feasibility of Implementing Drawback on Services in Brazil

This article analyzes the possibility and problems involved in the implementation of the drawback regime for the taxation of services in Brazil. The drawback is a customs regime with wide application in Brazil, with a great impact on exports. However, currently the drawback is restricted to the taxation of goods, although the economic weight of services in the aggregation of values in the Brazilian product is increasing. This paper discusses one of the biggest obstacles to the extension of the services drawback in Brazil, whose current structure of the Brazilian indirect taxation on services, which is unsystematic, generates high compliance costs for taxpayers and is highly cumulative.

Differential Interaction: Development of Cross-border Data Flow Governance Mechanisms In Asean

Cross-border data flows, which are fueled by the digital economy, increase the productivity and efficiency of the global economy. The cross-border movement of data has a direct influence on both national security and the growth of the digital economy.Therefore, in order to deal with the security and development issues brought on by the digital geopolitical game, on the one hand, ASEAN focuses on the overall growth of the digital economy and data security,on the other hand, it continues to encourage the spread of the innovative "ASEAN+" governance model and actively participates in the creation of regulations for the digital world. The digital geostrategic competition between large nations is skillfully employed, on the other hand, to aim for a more advantageous position in order to mitigate the negative impacts brought on by mechanism fragmentation. A governance mechanism for cross-border data flow is built using the relational governance concept of “self” and “other” interaction.The negotiating cost and compliance cost will be decreased through the adaptable interplay between mechanism spillover and mechanism internalization, expanding the digital economy in the ASEAN region and enhancing competitive advantages on a worldwide scale.

A Brief Analysis of The Differences Between Accounting Standards and Tax Laws

In the process of management and operation, the tax laws and accounting standards have unique regulations of the same economic activities in different areas. However, there are certain differences between accounting standards and tax laws, which constantly increases the compliance costs. Due to the differences in accounting standards and tax laws, distinctions and contradictions also exists in activities of enterprises. How to view these differences and accomplish the coordination between them has caused heated debate.

Regulatory costs of being public: Evidence from bunching estimation

We quantify the costs of major disclosure and governance regulations by exploiting a regulatory quirk: many rules trigger when a firm's public float exceeds a threshold. Consistent with firms avoiding costly regulation, we document significant bunching around three major regulatory thresholds. Estimations reveal that the three examined rules' compliance costs range from 1.2% to 1.8% of market capitalization for firms near thresholds. For a median U.S. public company, total costs amount to 4.3% of market capitalization, and at least 2.3% absent regulatory avoidance frictions. These cost estimates are robust across various extrapolation assumptions, ranging from 2.1% to 6.3% of market capitalization. Regulatory costs have a greater impact on private firms' IPO decisions than on public firms' going private decisions, but such costs only explain a small part of the decline in the number of public firms.

Design and development of an herbal anti-arthritic gel incorporating Alstonia scholaris latex

Rheumatoid arthritis (RA) is a chronic autoimmune inflammatory disease leading to bone and joint damage. The current study reports the development of an herbal anti-arthritic gel formulation incorporating the latex of Alstonia scholaris (AS). Six batches of topical herbal gels (G1-G6) were formulated by dispersion method using different concentrations of AS latex (0.5 % to 3.0 % w/w) in Carbopol 934 (1.5% w/w) gel base. The gels were evaluated for various physicochemical properties using standard methods and G4 was selected as an optimized formulation based on the desirable properties of a topical gel. The in vivo anti-arthritic potential of G4 was evaluated using a complete Freund’s adjuvant (CFA)-induced arthritic rat (Sprague Dawley) model for 28 days. Assessment of various arthritic parameters including hematological and biochemical parameters and radiography of hind legs in arthritic rats was carried out. The developed herbal gels were found to be uniform and stable. The G4 gel formulation showed a maximum drug release of 95.22% following Higuchi kinetic model. The topical application of G4 gel exhibited significant (p<0.05) anti-arthritic activity compared to diseased rats. The herbal gel G4 effectively restored the arthritic, hematological and biochemical parameters in arthritic rats. Radiographic analysis demonstrated its ability to reduce soft tissue swelling and thus prevented bone degeneration and the narrowing of joint spaces. These results supported that the developed herbal gel may offer a novel therapeutic approach in the treatment of RA with fewer side effects, good patient compliance, high efficacy, and low cost.

Effect of Tax Compliance Costs on Tax Evasion by Small and Medium Enterprises

This study examined the effect of tax compliance costs on tax evasion by small and medium scale enterprises (SMEs) in Akwa Ibom State. Survey research design was adopted in realising the objectives of the study. The population (1,887) of the study consists of all SMEs in Akwa Ibom, from where a sample size of 330 was drawn using Taro Yamane model. 330 copies of questionnaire were administered to Accountants and owner/managers of the selected SMEs across the three senatorial districts of Akwa Ibom State. The questionnaire was constructed on a 5-point Likert scale and was analysed using non-parametric tests such as mean, standard deviation and percentages. The questions in the questionnaire centred around tax evasion as dependent variable while independent variables were proxied as cost of registration for tax purposes; cost incurred in engaging tax professionals; complexity in the tax system; cost incurred in keeping books and accounting records for tax purposes; cost incurred in obtaining tax education information and changes in tax policy; time spent for tax purposes and cost implication of such time element. The findings of the study shows that 90% of the respondents agreed that the cost incurred by SMEs in registration for tax purposes is high and that this high costs leads to tax evasion. Also, 91% are in agreed that the complexity in the tax system is the reason why SMEs engage the services of external tax professionals to assist in tax matters and this leads to high compliance cost and the attendant tax evasion. 88% of the respondents agreed that high costs of keeping books and accounting records for tax purpose while those on obtaining information on tax policy is 94%. Also, 93% of the respondents agreed that the time spent by SMEs exclusively for tax purposes encourages tax evasion Finally, 89% of the respondents agree that the combined effect of all costs, other than tax liability, and the time spent in tax processes contributed to tax evasion by SMEs. Based on these findings it was concluded that there is a strong indication that compliance costs greatly affect tax evasion. It was recommended that Government should simplify tax policies in order to reduce compliance costs incurred by SMEs and tax professionals should reduce their charges for SMEs as a way of reducing their compliance costs.

Do Reforms in Automation Reduce Tax Compliance Costs in Africa? A Staggered Double-Difference Approach

This study evaluates the effect of e-taxation on the costs of tax compliance using a large sample of 53 African countries over the period 2004-2020. The econometric approach based on the staggered difference in difference estimator has allowed highlighting the causal effect. By controlling for heterogeneity and taking into account the dynamics of the effect of e-taxation, the results of the study show that e-taxation reduces the costs of tax compliance. Specifically, the e-taxation reform reduces the average number of tax payments per year in the long term. However, its effectiveness in reducing the time required to prepare and pay taxes is effective in the short and medium run. These results suggest the need to establish a rigorous system for monitoring e-taxation reforms in Africa. Innovations should accompany the reform in order to limit corrupt behaviour and bad governance.

The Puzzle: China’s Covered Tax Agreements Seem Unchanged after the MLI from Taxpayers’ Perspective?

This article uses the rule-standard spectrum theory to analyse the puzzle of why taxpayers may have the impression that China’s covered tax agreements (CTAs) seem unchanged after theMultilateral Instrument (MLI) despite the country having devoted enormous efforts to implementing it. This study finds that most of the changes in China’s CTAs through the MLI are standard-based provisions while it is willing to unilaterally and bilaterally embrace certain rule-based MLI provisions. The characteristics of China’s model in adopting the MLI, the possible reasons behind the model, and the implications for taxpayers are further explored. MLI, China’s CTAs, standard-based changes, rule-based changes, administrative-led legislative model, multi-dimensional tax policies, compliance cost, certainty and uncertainty, cooperation

BASEL III ADOPTION IN EMERGING ECONOMIES: AZERBAIJAN’S PERSPECTIVE

The main purpose of the research is to assess the current state of the transition to Basel III standards in Azerbaijan, to assess the level of readiness of the banking sector for the transition process, and to assess the potential costs and benefits. Conducting a multifaceted methodology, the research incorporates both qualitative and quantitative methods such as comparative analysis of legislation, the Herfindahl-Hirschman Index (HHI) method, calculation of compliance costs, expert interviews, a decade-spanning analysis of the sector's development, and a thorough deployment of descriptive statistics. The unique challenges and approaches are also addressed in developing countries like Azerbaijan where the leading global trends differ significantly. The emphasis here is on the knowledge of how Basel III criteria influence the banking industry in Azerbaijan with regard to both technical demands and regulatory realities. The research indicated that though the requirements implemented under Basel III suggested enhancement of bank capital quality and risk management, there were also challenges associated with this approach including higher costs for regulatory compliance and capability restrictions on performing operations. As the main result of the research, it should be noted that important reforms were carried out in Azerbaijan in the direction of the transition to Basel III standards, the capital adequacy indicators of the Azerbaijani banking sector are lower than Basel III standards in terms of quality of assets and capital, however, quantitatively is higher than the requirements of Basel III. However, research show that there are serious differences in the banking sector terms of capital, while some banks have a high level of capitalization, some have very low capital adequacy indicators. Based on our calculations based on Cook ratio, banks need additional capital in the amount of 44 million manat (25,8 million USD, 1% of the total capital of the banking sector, 0.03% of GDP) to meet the Basel III standards on total capital adequacy ratio alone.

A single-injection vaccine providing protection against two HPV types.

Prophylactic human papillomavirus (HPV) vaccines against cervical cancer were successfully developed; however, challenges such as high cost and low compliance still remain to be overcome. In addition, because many HPV types can cause cervical cancer, antigens of multiple HPV types are needed to achieve broad protection. In this study, a bivalent single-injection HPV vaccine was designed in which virus-like particles (VLPs) of HPV 16 L1 and HPV 18 L1 were used as antigens. A recently developed drug carrier that uses tannic acid/polyethylene glycol films as the erodible layer was employed to accomplish multiple pulsatile releases of the antigens. Monovalent single-injection vaccines for HPV 16 and HPV 18 were first designed. A bivalent single-injection vaccine was then obtained by simply mixing the two monovalent vaccines. The bivalent vaccine provided protection against both HPV types. More importantly, it elicited both humoral and cellular immune responses as potent as those elicited by the corresponding multiple dose vaccine because of their similar release profile of antigens. Cross-reactivity was observed between HPV 16 and 18 in terms of cellular immune responses, while no cross-reactivity was found in terms of humoral immune responses. Note that other multivalent single-injection vaccines could be designed in the same way. These vaccines are expected to help prevent cervical cancer because of their broad protection, enhanced compliance and lowered vaccination cost.

ФОРМУЛЬНОЕ РАСПРЕДЕЛЕНИЕ: ВОПРОСЫ ТЕОРИИ

The current international tax system, which is based on separate accounting for corporate affiliates trading at arm’s length prices, is increasingly viewed as prone to abuse. Multinational enterprises have become adept at manipulating the rules of the current system to shift profits from high-tax to low-tax (or no-tax) jurisdictions. At the same time, each country’s law sets corporate income tax rates as well as bases, which may be eroded by tax incentives provided via legislation or ministerial discretion. These laws are further overlaid by a network of bilateral tax treaties, which alter the tax treatment of investment depending on the particular source and residence countries involved. This makes administration and enforcement of the corporate income tax costly, especially for developing country governments. Corporate compliance costs also increase with complexity. One fundamental reform proposal is to replace the current system of separate accounting by formulary apportionment.

Tax compliance costs and small business growth: A study of Indian microenterprises

Tax compliance costs and small business growth: A study of Indian microenterprises

Unleashing Ghana’s Banking Sector Might: A Comprehensive Analysis of Contributions, Competitiveness, Challenges and Policy Recommendations

This study examines the contributions, competitiveness, and difficulties of Ghana’s banking industry through a thorough analysis of the literature. The sector, which contributes to Ghana’s GDP and supports SMEs and government projects, is beset by challenges such as high non-performing loan rates and expensive borrowing. However, secondary data from sources like the Bank of Ghana and scholarly journals show that the sector has a significant impact on GDP growth, employment creation, and financial inclusion. Through fintech and digital banking, it contributes to financial inclusion as well, despite ongoing obstacles like the digital divide and expensive service fees. The analysis points out important patterns and weaknesses and makes recommendations for strengthening financial inclusion, regulatory frameworks, and credit risk management. It recommends boosting technological innovation, cutting compliance costs, and improving risk management in order to increase competitiveness. Subsequent investigations ought to tackle the dynamically changing banking industry in order to bolster Ghana’s economic expansion and stability.

Impact of GST on MSMEs: A Critical Assessment of Rajasthan State

Goods and Services Tax (GST) 2017 implement in India with the vision of simple indirect tax structure and enhance economic growth. However, its impact on micro, small and medium enterprises (MSMEs) has been a topic of concern. This critical assessment study focuses on the impact of GST on MSMEs in Rajasthan State (Pareek &amp; Sharma, 2019). The study adopts a mixed-method approach, including a survey of 200 MSMEs and in-depth interviews with 20 industry experts and government officials. The study found that the implementation of GST has resulted in several benefits for MSMEs, such as simplification of tax procedures, increased efficiency in logistics and reduced corruption. However, MSMEs have also faced several challenges such as increased compliance costs, a lack of awareness about GST and issues related to the availability of input tax credit. Indian government must take proactive measures to educate MSMEs about the GST and simplify compliance procedures (Antonyraj &amp; Kumar, 2023). It also recommends that policymakers should revisit the GST structure to make it more MSME-friendly. Overall, this study provides insights into the impact of GST on MSMEs and highlights the need for ongoing assessment and policy reform to ensure the long-term sustainability of these enterprises (Choudhary, 2019).

EFFECT OF ENVIRONMENTAL ACCOUNTING ON FINANCIAL PERFORMANCE OF QUOTED DEPOSIT MONEY BANKS IN NIGERIA

This study investigates the impact of environmental accounting on the financial performance of quoted deposit money banks in Nigeria. The sample consisted of 14 banks, which were selected using census sampling techniques. A random effect regression model was used to test the hypotheses after conducting diagnostic tests. The results indicate that environmental conservative cost disclosure has a significant positive effect on return on assets, while environmental compliance cost disclosure has an insignificant positive effect on return on assets. Additionally, community development cost disclosure has an insignificant negative effect on return on assets. The study suggests that deposit money banks in Nigeria should prioritize environmental conservative cost disclosure in their financial reporting and continue to comply with environmental regulations by disclosing their environmental compliance costs to improve their financial performance. In summary, the lack of clarity on environmental accounting practices can lead to information gaps for responsible financiers and investors. The study recommends specific actions for Nigerian banks to enhance their sustainability reporting and ultimately improve their financial performance.