Effective Tax Administration Research Articles

Non-Traditional Offers in Compromise

This article reviews: 1) the goals of the IRS and its offer in compromise program; 2) the factors considered by the IRS in making determinations with respect to offers based on doubt as to collectibility and effective tax administration; 3) how to submit offers during examinations; and 4) the fundamentals of submitting offers based on collectibility while in litigation before the Tax Court.

Global Trends in Tax Administration

This paper starts with the proposition that the descriptor, ‘tax reform’ can apply to different elements of a tax system. It argues that reforms affecting one aspect of the tax system often, but not always, provide the incentive or opportunity for reform of other components of the tax system. Within this broader context, sustainable tax reform requires good policy, an empowered, effective and efficient tax administration of high integrity, and community trust in the tax system. Trends in tax policy and the international tax environment impact on the strategies used by tax administrations to protect their revenue. At the same time, leading tax agencies seek to promote an investment climate by providing high levels of certainty and service to taxpayers. How well the tax agency is able to achieve these two, often disparate, objectives is of critical importance to the economy. This article outlines modern trends in tax administration that help leading tax administration reconcile these twin objectives.

BUSINESS CHARACTERISTICS, TAX ADMINISTRATION AND TAX COMPLIANCE BY SMES IN NIGERIA

This study evaluates the relative impacts of tax administration and business characteristics on the tax compliance behaviour of small scale businesses in Nigeria. The role of tax education as an effective tax administration strategy is also considered. Results show that tax education stimulates small businesses tax compliance behaviour, a result that is robust for both business taxes and personal taxes. It is also found that overall tax administration system in Nigeria does not have significant impact on tax compliance among small businesses in Nigeria due to inefficiencies and corruption in the system. Business ownership structure, registration status, and management qualification/experience are all found to promote tax compliance by small businesses in Nigeria.

Tax Administration Act: Fulfilling human rights through efficient and effective tax administration

Tax Administration Act: Fulfilling human rights through efficient and effective tax administration

Tax Administration Good Governance

Tax law provisions only have the desired effect if these are properly administered. In each country, tax administration is governed by different sets of rules which together form the so-called ‘tax administration governance framework’. This framework includes rules which vest the powers of administration in the tax authority, determine the rights and obligations of taxpayers and define ‘checks and balances’. At the same time, the functioning of a tax authority is greatly influenced by its environment, including social, economic and technological developments. As a result, building an effective and efficient tax administration is a challenging, but important task in practice. It is not only important for a country’s tax revenue, but also for economic prosperity as issues in tax administration may negatively impact trade and investment. All these different aspects make that tax administration is a complex phenomenon whereby good governance is key to its effective and efficient functioning. Accordingly, several international initiatives have been taken to establish good practices and set international benchmarks in assessing tax administration.

Tax Reforms and Nigeria’s Economic Stability

Tax reforms represent a fundamental strategy of a country’s fiscal consolidation and governance. In this study, we examine the effect of tax reforms on economic stability of Nigeria over a 16-year period, 2000-2015. The study used a transformed econometric linear model to assess how and to what extent tax reforms support economic stability, proxied by gross domestic product (GDP). We identify company income tax and petroleum profit tax as key levers to Nigeria’s fiscal stability. However, while VAT reforms have positive relationship with economic stability, the effect is negligible. Although every tax reform has a positive effect on revenue accretion, greater attention should be paid to those components of fiscal reform that have prospective significant positive consequences on economic growth and stability as against a blanket reform proposal that includes aspects with a potential negative outcome. A decision-analytic prognosis about the governance architecture of Nigeria’s tax ecosystem suggests (a) that effective and efficient tax administration, as a component of fiscal policy, is central to a country’s fiscal management, macroeconomic growth and stability, and (b) an urgent improvement to validate the certainty and administrative integrity and transparency of the tax regime. In general, macroeconomic reforms, more so in SSA countries, must develop targeted and industry-focused fiscal initiatives and programmes that will stimulate productivity, competitiveness, efficiency, employment growth.

Impact of Tax Administration Towards Government Revenue in Tanzania- Case of Dar-es Salaam Region

Purpose of this study was to assess the impacts of tax administration on government revenue in Tanzania- case of Dar es Salaam region. This study is more scientific and effective, whereby questionnaires have been used to access the required information. Researcher has been able to collect information from 85 respondents out of 100 targeted respondents from the area of the study. Findings of this study have been analyzed and reveal that, Good tax design, Effective tax policy and laws, Tax administrative structure, Tax collection methods, Proper use of computerized system of maintaining taxpayer Register, Outsourcing revenue collections to private tax collectors, Internal and external capacity building, Intensive coordination with other entities and Proper maintenance of taxpayer’s records are the main factors that enhance effective tax administration in Tanzania. It is concluded that Corruption practices on taxation issues, lack of awareness of Local Tax payers, political pressure to relax tax collections, ineffective tax laws and policies, Insufficient budget or funds, High rate of Tax evasion and avoidance, Outsourced revenue retained by Revenue collectors, lack of tax compliance, are the challenges facing tax administration in Tanzania. Also concluded that eradication of the mentioned challenges above effects/results to, Adequate tax collections, Efficient tax system, High tax compliance by tax payers, Attainment of revenue targets, Increase in tax bases and declined cost of revenue collection, Minimum Tax evasion and avoidance, and High service delivery capability are the impacts that result from Tax administration. Researcher has recommended for the following to be done on the way forward:-Emphasis has to be put on the tax laws and policies mechanism to be reviewed time to time in order to save the purpose due to the prevailing situation, international tax environments, and the changes on the technology on tax administration. Efforts should be put on improving the tax payer’s convenience in the assessment and payment process whilst at the same time entrenching effective and modern human resource management practices in the tax authorities in respect to vetting, recruitment and selection of employees. Tax collection Authorities should ensure that all revenue receivables are paid promptly into designated bank accounts and failure to do so within the stipulated period of time should attract to the severe penalties to the officers concerned.

A INDUÇÃO TRIBUTÁRIA COMO MEIO DE CONSTRUÇÃO DE UMA ADMINISTRAÇÃO TRIBUTÁRIA EFICIENTE

O presente trabalho trata da indução tributária como concretização de uma Administração Tributária eficiente. Através de um estudo bibliográfico e da aplicação da dedução lógica, percebeu-se que a Administração Tributária eficiente deve focar na diminuição dos custos administrativos e na maior certeza do cumprimento dos fins da legislação tributária. O lançamento por homologação cumpre estes requisitos. Percebeu-se que a transferência dos custos administrativos majora as obrigações do contribuinte, podendo induzi-lo ao descumprimento da legislação. Também se notou que uma Administração Tributária eficiente é focada não apenas na diminuição de custos administrativos em aspecto quantitativo, mas também é um aspecto probabilístico de certeza. Para tanto, a construção de um ideal de Administração Tributária pautada na confiança dos contribuintes se impõe para o cumprimento dos fins de arrecadação.

A Fair and Effective Tax and Superannuation Administration

2008 is set to be a challenging year in tax and superannuation administration, but we hope to minimise the impacts on you.

Issues and Challenges Inherent in the Nigerian Tax System

The study examined the issues and challenges inherent in the Nigerian tax system. The theoretical framework approach was adopted in this study. The Nigerian tax system is designed as a means of income generation. The three tiers of government have the responsibility of tax administration in Nigeria. Nigeria tax system is confronted with many issues and challenges such as multiplicity of taxes, bad administration, non-availability of database, tax touting, complex nature of the Nigerian tax laws, minimum tax, commencement, change of accounting date and cessation, and non-payment of tax refunds. The way forward includes streamlining collection mechanism, ensuring good, effective and efficient tax administration, introduction of tax technology, tax awareness and communication, simplifying the tax laws and abolishing some, refund of taxes overpaid, independent of tax authorities (boards of internal revenue), addressing the issue of corruption among tax officials, strengthening of tax audit, establishing special courts to handle tax issues, and stiffer penalty for tax evasion and other tax offences.

Factors of Growth of tax Revenues: A Macroeconomic Approach

Understanding the nature of key macroeconomic indicators and their behavior depending on the overall geo-economic background is decisive in the analysis and forecasting of tax revenues. This makes it necessary to conduct a detailed analysis of the factors determinig budget-forming tax revenues. The analysis of the tax revenues includes socio-economic, legal and tax administration factors. These factors have a differential impact on each budget-forming tax — profit tax, value added tax (VAT), mineral extraction tax (MET), personal income tax, excise taxes. The overall negative dynamics of revenues to the consolidated budget of the Russian Federation developed as a result of a serious reduction of MET, which confirms the strong resource dependence of the Russian economy. An ambiguous effect on the profit tax had the overall growth of the price level, the dynamics of industrial production and foreign trade and the ruble exchange rate. The increase in VAT revenues was achieved as a result of cumulative effects of inflation growth and increasing trade turnover in real terms. The decisive economic factor in the dynamics of such type of tax revenues as the excises is the consumer activity, but a major effect on its dynamics had a change in tax rates on excisable goods. Stable growth of tax revenues contributes to the Federal Tax Service of Russia measures aimed at combating the use of unfair methods of competition through the use of legislative gaps for tax evasion. FTS radically changed the approaches to the control procedures to reduce the interaction conflicts with taxpayers. In order to implement and improve the conciliation procedure FTS continues the development of the new mechanisms for pre-trial settlement of tax disputes, including tax monitoring. Changes of the price situation on the world markets, the weakening of external demand in key energy sources, the national currency devaluation is perceived by the tax authorities as the scenario conditions of the development of the economy, but the effective tax administration demonstrates the ability of budget to withstand financial and economic shocks

The Tax Lives of Uber Drivers: Evidence from Internet Discussion Forums

In this Article, we investigate the tax issues and challenges facing Uber and Lyft drivers by studying their online interactions in three internet discussion forums. Using descriptive statistics and content analysis, we examine (1) the substantive tax concerns facing forum participants, (2) how taxes affect their driving and profitability decisions, and (3) the degree of user sophistication, accuracy of legal advising, and other cultural features of the forums. We find that while forum participants displayed generally accurate understandings of tax filing and income inclusion obligations, their approaches to expenses and deductions were less accurate and more varied in sophistication and willingness to comply with tax law. Forum participants also frequently discussed whether driving was profitable and exhibited a range of awareness concerning how taxes affected profitability. Finally, while the forums contained a surprising degree of sophisticated and accurate tax and legal advice, they also contained many examples of inaccurate or confusing information. It is thus uncertain whether readers can successfully distinguish between accurate and inaccurate advice dispensed in the forums. Based on our findings, we make tentative recommendations for effective tax administration in the ridesharing and related sectors, including use of industry-specific guidance, clarification of how existing tax rules apply to ridesharing, and guidance on Form 1099-K interpretation. We analyze the implications of our findings regarding taxes and profitability for Uber’s business model and its potential regulation. Finally, we discuss the possible impacts of targeted tax compliance initiatives on internet communities.

The Tax Lives of Uber Drivers: Evidence from Internet Discussion Forums

In this Article, we investigate the tax issues and challenges facing Uber and Lyft drivers by studying their online interactions in three internet discussion forums: Reddit.com, Uberpeople.net, and Intuit TurboTax AnswerXchange. Using descriptive statistics and content analysis, we examine (1) the substantive tax concerns facing forum participants, (2) how taxes affect their driving and profitability decisions, and (3) the degree of user sophistication, accuracy of legal advising, and other cultural features of the forums. We find that while forum participants displayed generally accurate understandings of tax filing and income inclusion obligations, their approaches to expenses and deductions were less accurate and more varied in sophistication and willingness to comply with tax law. Forum participants also frequently discussed whether driving was profitable and exhibited a range of awareness concerning how taxes affected profitability. Finally, while the forums contained a surprising degree of sophisticated and accurate tax and legal advice, they also contained many examples of inaccurate or confusing information. It is thus uncertain whether forum readers were able to successfully distinguish between accurate and inaccurate advice dispensed in the forums. Based on our findings, we make tentative recommendations for effective tax administration in the ridesharing and related sectors, including use of industry-specific guidance, clarification of how existing tax rules apply to ridesharing, and guidance on Form 1099-K interpretation. We analyze the implications of our findings regarding taxes and profitability for Uber’s business model and its potential regulation. Finally, we discuss the possible impacts of targeted tax compliance initiatives on internet communities.

Reflections on the Realities and Challenges of Income Tax Administration in Nigeria

Taxation, particularly income tax, is an indispensable source of government revenue. This paper examines the factors that affect tax administration in Nigeria. It explores statutory provisions and administrative challenges that affect the cost layout and actual returns of income tax revenue. While relying mainly on data generated through documentary sources, the data generated are analyzed descriptively. The study underlines the need for cost effective income tax administration in Nigeria.

FINANCIAL MANAGEMENT OF MONETARY FLOWS IN UKRAINE

The essence and specific features of cash flows of the Consolidated Budget of Ukraine, income and spending, the banking sector are studied. Theoretical trends explaining the origin and formation of the cash flows are analyzed. The classification of cash flows according to six basic features type, direction, nature of the impact, hierarchical levels, levels of control, elements of the financial system has been developed. The comparison of some countries of the world with Ukraine on the indicators of territory, population, unemployment, the average monthly wage, GDP and exchange rates is presented. The structure of GDP by income in 2012 was analyzed. Therefore in the result of the stated analysis it has been discovered that the wages (51%), gross profit and mixed income (34.8%) constitute the greater proportion. The reasons hindering the effective administration of the tax to the state budget are studied. To ensure effective tax administration and the formation of optimal flows of the Consolidated budget of Ukraine relevant principles are offered. The financial flows of the population, in particular the income and expenditure structure in 2012, are analyzed in details. The analysis revealed that the greater part of the income structure belongs to wages (42.2%), and the cost structure includes the purchase of goods and services (83.8%). 2009-2012 The available supply of money in circulation and deposits of households for the period of 2009-2012 was analyzed. The appropriateness of management of these funds for advanced manufacturing and innovation has been studied. The appropriate methods of forecasting of cash flows of mathematics are offered. Reasonable suggestions for effective management of financial flows in Ukraine in the fields of corruption reducing, tax legislation improving, and the formation of effective control mechanisms are grounded.

Revenue Administration: Administering Revenues from Natural Resources - A Short Primer

Many developing countries have significant natural resource endowments, presenting a remarkable opportunity to boost long-term growth. However, this opportunity comes with enormous challenges. To maximize social and economic benefits, strong governance and institutional capacity are essential. Effective and transparent tax administration is crucial for properly managing revenues from natural resources so the country may benefit economically and socially from its natural resources. Revenue Administration describes the challenges that developing countries face and presents good practices to help build countries’ long-term institutional capacity.

Fiscal Sustainability and Natural Resource Endowment in Uganda: Is an Effective Tax Administration the Answer?

This article reviews the petroleum tax administration framework that Uganda could adopt to avoid the “resource curse” and its consequences, achieve fiscal sustainability and intergenerational equity. The article concludes that the resource curse can be mitigated, with the involvement of donors, by strengthening the petroleum tax administration.

Corporate Tax Administration in Malaysia: Managing and Improving Compliance

These tax administration and compliance incur significant costs respectively to the authority and taxpayers. Administrative costs are more complicated to be theorised due to their discontinuity and parallel directions with tax rates. Compliance costs, on the other hand, have been hypothesised to be positively associated with complexities, reliance on tax agents, SAS and pace of change in tax system. This explains the rise of tax compliance cost as a consequence of complicated tax systems or policy. By analysing the data hand-collected from IRBM’s (Inland Revenue Board of Malaysia) annual reports, this study draws inferences about the parallel relationship between administration costs and tax revenue. This study also finds little evidence on tax collection incremental effects of IRBM’s visit events. These findings motivate future studies to investigate the institutional determinants of the effectiveness of tax administration. From the authority context, in addition to the existing risk measurements, the IRBM should further assess the potential noncompliance of firms based on firm-specific characteristics and firm corporate governance conduct.

Automation and customs tax administration: Empirical evidence from Uganda

Automation is a topic that has soared in importance particularly on the efficiency of custom tax administration. This paper investigates the adoption of automation by Uganda Revenue Authority (URA), a semi-autonomous agency mandated with tax administration in Uganda. The adoption of automation in URA was aimed at achieving efficiency and increase revenue. The paper reports findings based on cross sectional approach to investigating URA’s experiences with automation, efficiency and effective tax administration. The evidence suggests a positive correlation of automation and the cost of tax administration, automation and effectiveness of revenue collection while automation was negatively and significantly related with tax clearance time. The paper makes significant empirical contribution to analysing tax automation and administration cost, time efficiency and effectiveness of revenue collection. Some of the results are inconsistent with the notion that automation leads to efficiency in tax administration. Key words: Automation, efficiency, tax administration, Uganda revenue authority.

Trade-offs in Trade Liberalization: Evidence from the Philippine 2005 Tariff Changes

This paper provides a quantitative assessment of the tariff changes implemented by the Philippines in 2005. It evaluates the impacts of these changes on the macroeconomy and on major industries and regions of the country. It also examines the impact of alternative tariff policies that the government could have considered over the period. Using TARFCOM, a computable general equilibrium model developed for the Philippines, we demonstrate the trade–off between output growth and tariff revenues in trade liberalization. Changes in tariff rates could have a significant effect on the financial position of the government. In light of government dependence on tariff revenues, the success of tariff reform is contingent upon development of alternative revenue sources and the institutional mechanisms for effective tax administration.