Tax Costs Research Articles

Cost Of Capital, Corporate Tax Plannings, And Corporate Social Responsibility Disclosure

This study aims to determine the effect of tax management activities on the cost of capital and the role of social responsibility disclosure in moderating its impact. This study employs secondary data from financial statement data, stock price information, and 10-year government bond yields. The data was obtained from the websites www.idx.co.id, www.idnfinancials.com, www.finance.yahoo.com, and www.bloomberg.com. Using purposive sampling, the research sample is from manufacturing companies listed on the Indonesia Stock Exchange from 2016 to 2020, obtaining 325 observations. Data were analyzed employing multiple linear regression for panel data. This study indicates that tax avoidance and tax aggressiveness are not associated with the cost of capital, while tax risk is negatively related to the cost of capital. Corporate social responsibility disclosure does not succeed in moderating the effect of tax avoidance and tax aggressiveness. Still, it succeeds in moderating the association between tax risk and cost of capital.

Optimizing Fresh Logistics Distribution Route Based on Improved Ant Colony燗lgorithm

With the rapid development of the fresh cold chain logistics distribution and the prevalence of low carbon concept, this paper proposed an optimization model of low carbon fresh cold chain logistics distribution route considering customer satisfaction, and combined with time, space, weight, distribution rules and other constraints to optimize the distribution model. At the same time, transportation cost, penalty cost, overloading cost, carbon tax cost and customer satisfaction were considered as the components of the objective function, and the thought of cost efficiency was taken into account, so as to establish a distribution model based on the ratio of minimum total cost to maximum satisfaction as the objective function. Then, the improved A* algorithm and ant colony algorithm were used to construct the model solution. Through the simulation analysis results of different calculation examples, the effectiveness, efficiency and correctness of the design of the single target low-carbon fresh agricultural products cold chain model by using the improved ant colony algorithm were verified.

Optimization of land value-added tax management in real estate enterprises

As one of the important sources of national tax revenue, real estate enterprises have always been the key points of tax workers. The real estate industry has the characteristics of large project time span, high tax cost and high trial and error cost, which leads to a high tax spot check rate of land value-added tax liquidation for real estate enterprises. Based on this, this paper analyzes the difficulties in the liquidation process of enterprise land placement from the perspective of industry and financial integration, so as to improve the efficiency of third-party enterprise liquidation projects, reduce project risks, and then puts forward optimization suggestions for enterprises.

A Literature Review of Taxes in Cross-Border Supply Chain Modeling: Themes, Tax Types and New Trade-Offs

The e-commerce platforms have facilitated the information flow of cross-border supply chain (CBSC) and attracted a wide range of companies and individuals to participate in cross-border businesses. The tax costs associated with cross-border commodity flow have received unprecedented attention. However, there is a lack of common platforms between international tax planners and CBSC optimizers, and the impact of various tax policies on CBSC operations is still unclear. To fill this gap, this study presents a literature review to elaborate on the interface between taxes and CBSC operations. First, a literature collection approach is constructed, and 71 pertinent publications are identified. Then, a four-dimensional categorization consisting of supply chain themes, research methodologies, tax types, and illustration types was designed to classify and summarize the research content of the selected articles. The results show that (1) there are six main supply chain-related themes, i.e., the supply chain network, the distribution channel structure, product quantity and quality, production outsourcing, the procurement mode, and supply chain emissions, that are significantly affected by taxes. (2) Four types of taxes, including the corporate income tax (CIT), tariffs, environmental taxes and the value-added tax (VAT), have obvious impacts on CBSC operations. (3) Four mainstream methodologies, i.e., mathematical models, empirical models, conceptual models and simulation models, have been applied to explore the tax effects in CBSC modeling. (4) The tax-saving opportunities in CBSC operations mainly come from the following five areas: CIT rate gaps in different regions, special tax regulations such as the tax cross-credit principle and arm’s length principle, regional trade agreements (RTAs), preferential tax policies and export VAT rebate policy. Finally, this research provides a framework to analyze the trade-offs between taxes and traditional CBSC modeling factors. The results can support enterprises in CBSC in dealing with the complex international tax policies.

USED CAR PRICE PREDICTION

Cars have become a necessity in this modern world. Every middle class family needs a vehicle or a mode of transport in order to move from one place to another. Not everyone is able to afford a new vehicle as they are costly and there’s an added cost of taxes and various other expenses by both the provider/company of the car as well as the government. Moreover, not every customer is sure of spending a sum of their wealth on a certain car. The product might not meet their needs. The solution to this problem of having a car despite not being able to afford one is met by buying and selling second hand cars. It has become its own market now. There are already numerous companies and websites and app based services that serve as a mediator or a platform for the dealing of second hand or used cars and other vehicles. Establishment of such places is easy but there is another problem that still remains- How to price the used car appropriately at a price comfortable for both the seller and the buyer? Luckily, the Used Car Price Prediction systems exist and can be developed. Users might think that it’s easy to determine the price of a used car, and whether there is even a need to have such a system. In truth, there are a lot of factors that are important in determining the price of a second hand vehicle. The quality of a vehicle deteriorates with age1 of course but that is not all. Every single vehicle is different even when it is manufactured and sold as a new product and even more so when the same vehicle is used over time. Different people may use their vehicles more or less depending on their everyday activity, making kilometers driven as one of the important factors for the price prediction. It is obvious that a vehicle which is driven for 2000 kilometers in 1 year would be priced less than a vehicle which has been driven for only 500 kilometers in 2 years. This is just one of the factors that determine the price of a used car. In our Car Price Prediction System, we have used the Year of Manufacturing (used to determine the age of the vehicle by subtracting this from the date of selling), the original maximum retail price of the vehicle (the price at which the vehicle was sold at from the manufacturing company/garage), the fuel type of the vehicle (Petrol, Diesel, CNG, Electric ; This affects the pricing severely as different fuel type engines have different prime performance periods and different rates of deterioration), Seller Type (Individual or Dealership), Transmission (Manual or Automatic), Number of past owners of the vehicle. Using all these factors2, we are going to determine which model is best to determine a price for the used vehicle. For the Car Price Prediction System, Regression models3are used since these models give the results as a continuous curve instead of a categorized value as a result. Due to this, we can use the continuous curve to determine an accurate price for each and every scenario which won’t be possible if the results obtained were in the form of a range. The final model of the system will implement the best suited algorithm and have a UI (User Interface) which make it possible for a user to be able to enter the values of these deciding factors and the system will predict the price for them. Keywords: Car price prediction, machine learning, regression analysis, linear regression, correlation analysis

INFORMATION SYSTEM MODEL OF WEBSITE-BASED TAX PAYMENT AND VILLAGE BUILDING

Property tax is one of the instruments in obtaining funding for village development. Property tax proceeds are used to finance development in the area. Good management is needed to maximize property tax revenue. This study aims to help the model to design and develop an e-village property tax information system. the method used is the description method and is used to model the system while the prototype method is used to build the e-village system. The testing stage uses the black box technique and the usability test to test the quality, usability, and reliability of the system functions that have been made. This research succeeded in building an e-village model that is efficient and can be used easily to carry out property tax transactions. the results of this study also help villagers easily obtain information and assist in the processing of village data that is structured, organized and to help calculate the amount of property tax costs to be paid. The conclusion of this study is that the system has been made to facilitate the community and village officials in calculating the property tax, managing and obtaining village information more effectively and efficiently.

IMPACT OF TAXES ON THE EXPORT-IMPORT TENDENCIES IN THE COUNTRIES OF THE EU IN UNSTABLE PRESENT-DAY

The problem of rationales for taxes and transfers is given a lot of attention by both researchers and politicians. Taxes are one of the main sources of government revenue and are considered a strong resource for welfare state. Taxes have an impact on the development of international trade and business, as the latter chooses a more attractive location with less tax burden and costs. Nevertheless, the country’s status, competitiveness of industries, development of the infrastructure, safety and transparency are also important factors for the domestic and foreign business and investors. That is why it is necessary to study the impact of taxes on the export and import policy. In this article we study the development of export-import tendencies in the EU countries over the period from 2002 to 2018. Statistical calculations are done for EU-28 countries. The results show that values of tax revenues as percentage of GDP change slowly and diverge little from set levels. A corresponding pattern is evident in the main tax categories, however the fiscal lag for direct taxes, indirect taxes and social contributions differs. Research indicates that different export-import strategies prevail across the EU countries, as do systems of taxation. A system of two equations is basis for the model, which uses the econometric approach to assess the impact of taxes on the development of export-import tendencies in the EU. The analysis proves that if tax rates on exports are reduced in the short term, there is a positive effect on the intensity of export activities, but this may increase the dependence of the national economy on foreign markets both in the short and in the long term. Thus, reductions in import tax rates, on the one hand, help to strengthen the competitiveness of domestic producers in foreign markets, and on the other, intensify competition in the domestic market.

Does Tax Incentives Affect Future Firm Value for Corporate Sustainability?

This paper investigates how tax benefits for companies affect future firm value and current corporate performance. In addition, this paper also examines the relationship between tax benefits and future firm value for each major industry. The findings of this paper are as follows. First, tax benefits granted to companies improve current corporate performance. The effect of tax benefits that reduce corporate tax costs increases net income, which directly increases current corporate performance, such as ROA (returns on assets) and ROE (returns on equity). Second, tax benefits granted to firms reduce future firm value. Industries that receive tax benefits may have inherent taxation, which can lead to fiercer competition and ultimately lower pre-tax profit margins due to the entry of new companies or the increase in production facilities. In addition, tax benefits that cause temporary differences among the types of tax benefits for a company through deferred tax payments may be factors that hinder future improvements in corporate value. These causes result in the fact that tax benefits for a company can negatively affect its value in the long term. This paper has the following contributions. First, the findings of this paper imply that there is a limit to the positive impact of tax benefits on firms on improving corporate value in the long run. Second, through empirical analysis, this study provides objective information that the impact of tax incentives on corporate value may differ by industry.

Experimental and numerical study of PCM storage integrated with HVAC system for energy flexibility

This paper presents both experimental and numerical studies of PCM storage integrated with an HVAC system. The experiments focus on PCM storage in 3 different sizes, and study the temperature change in the PCM storage during the charge and discharge period, the impact of the PCM quantity on the charge and discharge rates of the PCM storage and the impact of the discharge air temperature and airflow rate on the discharge rate. The main conclusions are that the temperature effectiveness of the PCM storage depends more on the PCM quantity than the discharge inlet air temperature and airflow rate. The air path in the PCM storage should not be too long to achieve the longer PCM activation in time. The storage with 36 pieces of PCM plates and latent storage capacity of 5.23 MJ can be charged/discharged fast, with high and stable outlet air temperature (above 28 °C for 3 h), especially during the discharge period. The most promising configuration of the experimental study was chosen for a numerical study the energy flexibility of the HVAC system without PCM and with PCM. A model of the PCM storage integrated with an HVAC system is built with EnergyPlus and validated by experimental data. The study concluded that the HVAC heating setpoint control based on the electricity price without PCM storage has limited cost-saving potential due to the high electricity transmission and tax cost. The PCM storage integrated with an HVAC system can reduce the energy cost by 7 % while obtaining a similar indoor thermal comfort level compared to the HVAC heating setpoint control without PCM storage. The payback time of HVAC with PCM is seven years compared to HVAC system without PCM. The cost reduction of energy flexibility of the system is relatively limited because the electricity transmission cost and electricity tax account for 80% of the total electricity cost in Denmark.

The detection of earnings management through a decrease of corporate income tax

This paper explores the manner in which Dutch and German listed companies were able to manage earnings by the decline in corporate income tax toward the end of the 2000s. In addition, a recent article examines the existing state of earnings management at a European level in the Netherlands and Germany. This empirical study sampled 1350 firm-years for the Netherlands and 1850 firm-years for Germany between 2000 and 2018. The study indicated that those firms with larger prospect tax savings appeared to exercise earnings management to hasten discretionary accruals. In view of the income-reducing impact these discretionary deductions have on financial statements, the findings show corporate income taxes are a significant incentive. Since companies can reduce tax costs by deferring income tax to a subsequent year and lower the tax tariff cycle, theoretically, this tax reform incentivizes management to manage their earnings with the purpose of minimize tax payments. More research is needed into the impact of tax compliance on declining earnings management in this area.

Labor supply responses to income tax free and bracket expansions

PurposeAn important concern of economic policy analysis is how income taxes affect labor supply since this is crucial in assessing the efficiency costs of taxation and designing labor income taxation. The focus in the literature has been mostly to study the responses of high earners and women. The authors contribute to this literature by focusing more on how middle earners respond to financial incentives and whether the responses are different between men and women.Design/methodology/approachThe authors exploit substantial expansions in the level of individual income exempt from taxation and taxed at a lower marginal tax rate while the schedule of marginal tax rates remained the same. The authors adopt an empirical framework that is similar to Bosch and van der Klaauw (2012) and condition on the effects of other factors, such as inflows of foreign workers that may have affected the wages, participation and working hours of native males and females. The authors also conduct various sensitivity analyses to examine the robustness of the estimates.FindingsThe authors find robust evidence that the tax reforms increased the wages of medium and high educated married males and females significantly. They also had a positive impact on work participation that was more substantial for married women, especially the medium educated. The authors estimate significant positive own wage labor supply elasticities that are small and about the same for men and women when the authors condition on the labor outcome effects of inflows of EU and non-EU foreign workers, which changed the skill distribution of the economy and had a more significant impact on female labor outcomes. Smaller wage labor supply elasticities indicate lower disincentive effects and deadweight losses from the imposition of taxes and have implications on the design of optimal taxation of men and women.Originality/valuePrevious investigations of the labor supply responses of both men and women to a given policy change have been identified mostly by exploiting changes in joint income taxation and marginal tax rates. The authors exploit substantial expansions in the level of individual income exempt from taxation and taxed at a lower marginal tax rate while the schedule of marginal tax rates remained the same. The income effects of these reforms could be limited since the reduced marginal tax rates apply to only part of the income.

Certain effects of random taxes

This paper explores the implications of tax rate randomness, identifying circumstances in which revenue-neutral rate variability increases profitability, economic activity, and the efficiency of resource allocation. Furthermore, with heterogeneous taxpayers, tax rate variability is shown to perform an efficiency-enhancing screening function, imposing heavier expected tax burdens on less responsive taxpayers. And while efficient tax randomness enables governments to reduce average costs of taxation, it necessarily increases the marginal cost of taxation over some ranges of expected revenue, so may reduce efficient levels of government spending.

Обґрунтування доцільності використання в преференційній політиці концепції податкових витрат

The article theoretically substantiates the feasibility of implementing the concept of tax expenditures in Ukraine. It is proved that one of the problems of the economy is an unreasonable approach to the application of tax benefits, which leads to a significant budget deficit in Ukraine. The losses of EU budgets by the method of lost budget revenues are analyzed. The historical experience of realization of the concept of tax expenses is generalized. The requirements are highlighted and the main approaches to the basic structure of taxes are described. The foreign experience of determining the basic structure of taxes, the method of estimating tax expenditures and the method of accounting for tax expenditures are generalized. Based on the study of foreign experience, it is proposed to implement the concept of tax expenditures in Ukraine at the following stages: improvement of tax legislation; providing a legislative definition of the concept of "tax costs"; systematization of all expenses that will be included in tax expenses; choice of methods of collecting and analyzing information on tax expenditures; substantiation of the method of assessment and accounting of tax expenses; determining the order of reporting on tax expenditures; assessment of the effectiveness of tax expenditure management; application of evaluation results in the budget process. Signs of classification of tax expenses are singled out. It is proved that the main method of estimating tax expenditures is the method of lost budget revenues. The advantages and disadvantages of methods of accounting for tax expenditures are summarized. The models of reporting on tax expenditures are described. Groups of criteria for the effectiveness of tax expenditures are identified. The positive and negative sides of the concept of tax expenditures are substantiated.

Intelligent Supervision and Earnings Management Choice：A Natural Experiment Based on Golden Tax-III

This paper studies the impact of intelligent tax supervision on the decision of corporate earnings management. Companies determine earnings management strategies by weighing the marginal benefits and costs of accrual-based earnings management and real earnings management. Existing literature finds that managers prefer real earnings management than accrual-based earnings management because of regulatory pressure. This paper takes tax costs into consideration and adopts that tax will affect the substitution relationship between different earnings management methods.Accrual-based earnings management is realized by accounting methods. But real earnings management has a direct cash flow effect. Compared with accrual-based earnings management, real earnings management is subject to a higher level of book-tax conformity. Real activity manipulation is more costly due to tax incentives. Intelligent tax supervision represented by Golden Tax-III can effectively realize information integration and reduce information asymmetry between taxpayers and tax authorities. It can help to identify companies whose tax burdens deviate from the industry average. So Golden Tax-III can strengthen tax supervision and significantly increase the tax costs of real earnings management. Then, it can affect earnings management strategies. The higher the degree of tax non-compliance, the greater the impact of the implementation of Golden Tax-III.We use the implementation of Golden Tax-III as an exogenous event to construct a DID test. The results show that: Tax-noncompliant companies have a higher level of accrual-based earnings management after Golden Tax-III; tax-noncompliant companies have a lower level of real earnings management after Golden Tax-III; the substitution relationship between the two earnings management strategies in tax-noncompliant companies is mainly reflected after Golden Tax-III.The main contributions of this paper are as follows: (1) It directly examines the impact of tax costs on earnings management strategies, and finds that companies prefer accrual-based earnings management to real earnings management under strong tax supervision. It also expands the previous earnings management model. The research enriches and supplements the literature on earnings management. (2) It constructs a DID test to examine the impact of tax regulation on earnings management based on the implementation of Golden Tax-III. It can help to solve the problem of self-selection and endogeneity and supplement the relevant literature on tax and earnings management. (3) It finds that the intelligent supervision represented by Golden Tax-III can effectively distinguish tax-noncompliant companies and achieve precise supervision. The results help to understand and evaluate the economic consequences of Golden Tax-III, and also provide enlightenment for the development of intelligent tax supervision and taxation regulatory policy.

Mozambique Solar Thermal Energy Technologies: Current Status and Future Trends

Mozambique’s economy and population is growing fast and so its power needs. The country is amply endowed with abundant, high quality natural energy resource, but access to electricity is still a challenge to numerous people not to mention regularly blackout-related problems. Projected growth of urban and rural areas will represent a significant energy and climate challenge. The lack of access to energy is a major factor in the slow progress in attainment of the SDGs. Solar energy is seen as one of the most promising sources of energy, both for electricity supply and for thermal purpose. The country consistently presents a high level of solar radiation throughout the territory and throughout the year. The global horizontal irradiation varies between 1785 and 2206 kWh/m 2 /year, but the contribution to the overall supply is still marginal. Understanding the proper technologies for harnessing solar thermal energy is fundamental for economic growth and social development. In this study, solar thermal technologies are comprehensively reviewed and barriers and opportunities are discussed. Although the country has enormous solar potential for the use of thermal energy, there are few systems installed (3MWP) with emphasis only on domestic multi-family force circulation systems, flat solar collectors and vacuum tubes in operation in single-family homes. Also, innovation of domestic thermal systems could help to mitigate the effects of climate change and reduce the costs of electricity tax in residences. Keywords: climate change, electricity, thermal energy, solar collector, radiation DOI: 10.7176/JETP/11-5-02 Publication date: October 31 st 2021

Sugar tax cost effective in reducing healthcare burden and costs

Sugar tax cost effective in reducing healthcare burden and costs

The economic arguments for and against a wealth tax

AbstractThis paper asks when a wealth tax would, in principle, be a desirable part of the tax system, setting aside the practicalities and politics that would be crucial in reality. The case for a one‐off wealth tax is simple. If it were unexpected and credibly one‐off – a major challenge in practice – this would be an efficient way to raise revenue and could be used to address existing wealth inequality. Whether such a tax is desirable hinges on whether it is considered fair, about which reasonable people will differ. Making the case for an annual wealth tax, which would affect future wealth accumulation as well as existing wealth, is less straightforward. It requires explaining why it is better to tax the same wealth every year – penalising those who save – rather than raising the same revenue by taxing all sources of wealth once when they are received (and/or when they are spent). Such a case can be made based on subtle arguments for why taxing wealth might help to ease the trade‐off between redistribution and work incentives; and a wealth tax might also be justified if holding on to wealth, rather than spending it, benefits the holder or harms others. These theoretical arguments probably justify some taxation of wealth in principle, though we have little basis for judging the appropriate level, so only part of the theoretical benefit could be attained. It is questionable whether the achievable benefits outweigh the costs of an imperfect wealth tax in practice.There are strong reasons to radically reform how we currently tax the sources/uses of wealth; this includes reforming capital income taxes in order to properly tax high returns. An annual wealth tax would be a poor substitute for doing that. But to the extent that taxes remain imperfect and that responses to a wealth tax would not affect revenue from other taxes (such as on income, expenditure and bequests), there may be a benefit to adding a wealth tax in order to diversify sources of revenue and prevent any one tax getting too high – though that must be weighed against the extra administrative burdens of having another tax.

Summaries of Papers in This Issue

Summaries of Papers in This Issue

The PPAT'S Responsibilities on Calculation of Tax Payment Value

In the implementation of the transfer of rights through the buying and selling process, at the stage of calculating the value of tax payments several times, people found that they deliberately and openly asked to reduce the transaction value from the price it should have been, so that tax costs would not be large. This writing aims to determine and analyze the calculation of the value of the sale and purchase of land and/or buildings in Pekalongan Regency, the role and responsibility of PPAT in calculating the value of tax payments based on Perda No. 6 of 2012 Pekalongan Regency. This research approach uses a sociological juridical, namely research through a legal approach and examines laws that have problems in practice. Then analyzed using role theory, responsibility theory, justice theory, and legal certainty theory. The results of the study indicate that the calculation of the value of the sale and purchase of land and/or buildings in Pekalongan Regency is based on calculations that have been determined by the laws and regulations. The role and responsibility of PPAT in calculating the value of tax payments on land and/or building sale and purchase transactions based on Perda Number 6 of 2012 Pekalongan Regency, namely PPAT's obligation in making a deed is first to ensure that the Land and Building Rights Acquisition Fee (BPHTB) has been paid. PPAT's responsibility is to help clients make online submissions on the website provided by the Pekalongan Regency Government.

The PPAT'S Responsibilities on Calculation of Tax Payment Value

In the implementation of the transfer of rights through the buying and selling process, at the stage of calculating the value of tax payments several times, people found that they deliberately and openly asked to reduce the transaction value from the price it should have been, so that tax costs would not be large. This writing aims to determine and analyze the calculation of the value of the sale and purchase of land and/or buildings in Pekalongan Regency, the role and responsibility of PPAT in calculating the value of tax payments based on Perda No. 6 of 2012 Pekalongan Regency. This research approach uses a sociological juridical, namely research through a legal approach and examines laws that have problems in practice. Then analyzed using role theory, responsibility theory, justice theory, and legal certainty theory. The results of the study indicate that the calculation of the value of the sale and purchase of land and/or buildings in Pekalongan Regency is based on calculations that have been determined by the laws and regulations. The role and responsibility of PPAT in calculating the value of tax payments on land and/or building sale and purchase transactions based on Perda Number 6 of 2012 Pekalongan Regency, namely PPAT's obligation in making a deed is first to ensure that the Land and Building Rights Acquisition Fee (BPHTB) has been paid. PPAT's responsibility is to help clients make online submissions on the website provided by the Pekalongan Regency Government.