Effective Tax Research Articles

The Effect of Tax Incentives on Innovation and Enterprise Performance: A Literature Review

The Effect of Tax Incentives on Innovation and Enterprise Performance: A Literature Review

Short- and long-term effects of carbon taxation on the prices of products shipped by sea

This study analyzes econometrically the effect of fuel carbon taxation on the prices of internationally traded goods transported by the maritime sector. Around 80% of global trade by volume is transported by sea, contributing to a nontrivial level of carbon emissions. This study is the first to analyze the effect of carbon taxation on the prices of export products transported by sea, using detailed data for the heaviest 6-digit products from 21 industries that account for 75% of the total weight of goods transported by sea. The results reveal that the closer a product is to the core competence of the exporting firm (lowest marginal production costs), the weaker the effect of the carbon tax will be on prices. This effect on export prices will be even weaker for products of certain industries that have the highest unit sales value/weight ratios. To contribute to decarbonizing the maritime sector, a carbon tax should be maintained uninterruptedly to fully internalize the awareness that improving fuel consumption competitiveness by considering the distance traveled and weight of traded products to ultimately reduce carbon tax costs.

Corporate Tax Planning and Financial Performance of Listed Consumer Goods in Nigeria

The multiplicity of tax laws and heavy tax burden facing companies in developing countries such as Nigeria has resulted in the adoption of different strategies to reduce tax liabilities. The main objective of this study therefore was to examine the effect of tax planning on financial performance of listed consumer goods firms in Nigeria from 2013 to 2022. The measures of tax planning adopted in this study were effective tax rate, tax incentives, debt tax shield and capital intensity. Return on assets was the measure of financial performance. The research design adopted for this study was ex-post facto because secondary data was used. The population of this study consisted of 21 listed consumer goods companies in Nigeria and purposive sampling technique was employed to select 18 of these companies. The ordinary least square regression technique was used to analyze the data and the statistical package employed was E-views version 10. The findings of the study revealed that effective tax rate has a negative and insignificant effect on the return on assets (ROA); tax incentives has a significant positive effect on return on assets; debt tax shield has significant and positive effect on return on assets; capital intensity has a positive but insignificant effect on return on assets of listed consumer goods firms in Nigeria. Thus, it was concluded that tax planning activities impact on the financial performance of listed consumer goods firms in Nigeria. Based on the above it was recommended among others that the management of consumer goods companies should focus on long term tax planning rather than solely concentrating on reducing effective tax rate. The management of consumer goods companies should also explore and take full advantage of available tax incentives by capitalizing on applicable tax incentives provided by the regulatory environment.

Analysis of the Effect of Income Tax and Firm Size on Capital Structure Moderated by Sales Growth

This study aims to examine and analyze the effect of income tax and firm size on the capital structure of coal mining companies, whether moderated or not by sales growth. A quantitative approach was used in this study by taking samples from 13 coal mining companies listed on the Indonesia Stock Exchange in 2018–2023. Multiple linear regression analysis was used with the help of the application Jeffry’s Amazing Statistics Program (JASP). The research results show that the income tax has no significant effect on capital structure. In contrast, the firm size has a significant positive effect on the firm’s capital structure. Moreover, the sales growth is unable to moderate the correlation between these variables on the firm’s capital structure.

Does the environmental tax affect the within-firm pay gap? Evidence from China

The impact of the environmental tax on internal income distribution within firms is a crucial extension for evaluating the economic effects of environmental regulation policies. However, the existing literature focuses primarily on environmental effects and the Porter hypothesis, giving little attention to this topic. Using data from Chinese A-share listed companies from 2018 to 2021, we examine how the Chinese environmental protection tax affects intrafirm wage disparities. Our findings indicate that the environmental tax widens the pay gap between managerial and ordinary employees. Mechanism tests show that the environmental tax's governance effect raises managerial compensation levels, whereas cost effects decrease wages for ordinary employees. This effect is particularly pronounced in nonstate-owned firms, competitive industries, and regions with stricter environmental tax collection standards. This study makes an empirical contribution to our understanding of the effects of the environmental tax on income distribution in practice.

Insights from the N11 economies on drivers of the clean energy transition

The research literature on the driving mechanisms for the clean energy transition in the Next 11 (N11) economies to accomplish their carbon-free targets is scarce. We address this research gap with an empirical analysis of the effects of renewable fuels, resource allocation, corporate governance, energy trade, economic growth, carbon taxes, and digitalization on the shift to clean energy between 1990 and 2022. Using the method of Moments Quantile Regression, the results show that all regressors enhance the shift to clean energy. Based on the study outcomes, policymakers should intensify their attempts to coordinate policies to support sustainable development goal ambitions.

Local Tax Optimization Strategy In Jambi City: A Literature Review

This scientific paper seeks to evaluate the ability of local taxation as a source of income, the level of tax participation and the efficiency of the tax collection mechanism in Jambi City budget 2018-2022. The analytical methodology used in this research includes descriptive and qualitative approaches. Descriptive analysis incorporates computational methods that are illustrated in the form of numerical data, tabulations, and graphical representations. In the meantime, the qualitative aspects include conducting intense interviews that are analyzed using SWOT. Based on the findings from the analysis of local tax effectiveness covering from 2011 to 2023, it reveals that the efficiency of local taxation shows variability in different years. Based on existing literature and comparisons between studies that have been conducted, tax optimization can be carried out in Jambi City in line with the principle of fiscal decentralization in regional autonomy by enforcing regulations to ensure the creation of sustainable development and economic growth. Some of the things that can be done are increasing tax compliance, digitalization and simplifying the tax structure. This discussion produces input to the Jambi City Government to explore the potential of local revenue, which influences the growth of Regional Own-Source Revenue (PAD). Therefore, optimal development can lead to positive outcomes for the community, such as the economic growth of people in Jambi City and the optimization of tax revenue.

Measuring climate transition risk at the regional level with an application to community banks

We develop a measure of climate transition risk for regional economies in the U.S., based on the mix of firms that produce emissions in each region. To quantify transition risks, we consider the introduction of an emissions tax levied on companies emitting greenhouse gases and estimate changes in the market values of industries due to a carbon tax using Merton's (1974) model. We find that transition risks are highly concentrated in a few sectors and counties with heavy exposures to transition-sensitive sectors. The size and geographic concentration of the tax effects depend significantly on assumptions about the elasticity of demand for inputs in the production chain. When applying county-level estimates for transition risks to banks’ deposit footprint, we find mild to moderate transition risks for community banks as a whole, although transition risks are high for a few banks.

Promoting Environmental Sustainability: The Role of Renewable Energy Systems and Environmental Taxes

This study examines the effects of renewable energy consumption and environmental taxes on CO2 emissions in OECD countries from 1990 to 2022, employing the cross-sectional autoregressive distributed lag (CS-ARDL) approach. The findings reveal that both renewable energy consumption and environmental taxes significantly reduce CO2 emissions in both the short and the long term, emphasizing their crucial roles in climate change mitigation and sustainability promotion. Furthermore, this study identifies that industrialization and urbanization contribute to increased emissions, whereas foreign direct investment aids in emission reduction through the facilitation of green technology transfer. Economic growth is initially associated with higher emissions, but this trend reverses as economies mature and adopt sustainable practices. These results highlight the importance of continuous investment in renewable energy infrastructure and the implementation of robust environmental tax policies to achieve long-term sustainability goals. The integration of environmental considerations into economic and urban planning, along with leveraging foreign direct investment for technological advancements, is imperative for balancing economic growth with the necessity to reduce carbon emissions and effectively address climate change. This research provides a better understanding of the diverse factors influencing CO2 emissions and offers critical insights for policymakers.

The Influence Of Hotel Tax, Restaurant Tax, Entertainment Tax And Advertising Tax On Local Revenue Of Sukabumi City Government In 2018-2022 (Case Study On The Sukabumi City Financial And Revenue Management Agency)

This study aims to determine the influence of hotel tax, restaurant tax, entertainment tax and advertising tax on local revenue. The variables used in this study are Hotel Tax (X1), Restaurant Tax (X2), Entertainment Tax (X3), Advertising Tax (X4) and Local Revenue (Y). Hotel Tax, Restaurant Tax, Entertainment Tax, and Advertising Tax are four important sources of income for local governments in increasing Local Revenue. The research method used is a quantitative method with an associative approach. The data used is secondary data obtained from the Sukabumi City Financial and Revenue Management Agency. The results of the study using SPSS 26, show that the effect of Hotel Tax on Local Original Income is tcount -0.036 <ttable 2.0067 with a sig value of 0.971> 0.05, which means that Hotel Tax partially has no effect and is not significant on Local Original Income. The effect of Restaurant Tax on Local Original Income is tcount -0.492 <ttable 2.0067 with a sig value of 0.624> 0.05, which means that Restaurant Tax partially has no effect and is not significant on Local Original Income. The effect of Entertainment Tax on Local Original Income is tcount 0.771 <ttable 2.0067 with a sig value of 0.444> 0.05, which means that Entertainment Tax has no effect and is not significant on Local Original Income. And the influence of Advertising Tax on Regional Original Income is tcount -0.343 <ttable 2.0067 with a sig value of 0.733> 0.05, which means that Advertising Tax has no effect and is not significant on Regional Original Income. The influence of Hotel Tax, Restaurant Tax, Entertainment Tax and Advertising Tax simultaneously is Fcount 0.214 <Ftable 2.55 with a sig value of 0.930> 0.05 and the coefficient of determination test shows that the contribution of Hotel Tax, Restaurant Tax, Entertainment Tax and Advertising Tax to Regional Original Income is 12.7% which means that Hotel Tax, Restaurant Tax, Entertainment Tax and Advertising Tax simultaneously have no effect and are not significant on Regional Original Income of Sukabumi City for the period 2018-2022.

The Effect of Tax, Audit Quality and Multinationality on Transfer Pricing

This study was made with the aim of analyzing the effect of Tax, Audit Quality, and Multinationality on Transfer Pricing. This research was conducted by analyzing the financial statements of multinational companies listed on the Indonesia Stock Exchange (IDX) during the period 2018 to 2022. The samples used in this study were 19 multinational companies listed on the Indonesia Stock Exchange during the period 2018 to 2022 using purposive sampling technique. The data used in this study are secondary data in the form of financial reports from each company that has been sampled. The variables used in this study consist of the first independent variable, Tax (X1), the second independent variable, Audit Quality (X2), and the third variable, Multinationality (X3), and Transfer Pricing (Y) as the dependent variable. Panel data regression method is used as the research methodology in this study. Analysis of research results using Eviews 10 Student Version Lite software. The result shows that the best model is Fixed Effect Model (FEM). The results show that Tax and Audit Quality partially affect Transfer Pricing, but Multinationality does not partially affect Transfer Pricing, and simultaneously Tax, Audit Quality, and Multinationality affect Transfer Pricing.

The Tax State: An Outdated Concept

Taxes are compulsory levies for no consideration. Because there is no earmarking, the budget funds are often not spent effectively by the state authorities. In economic terms, the incentive effects of taxes and deadweight losses are counterproductive. The alternative would be state financing that is primarily based on performance and consideration (equivalence). A key component of this would be marginal cost-oriented charges. A second element would be the financing of provisioning costs of public infrastructure from land rents. This would largely avoid the problems of tax financing. States and public companies can be observed that are already successfully moving in this direction.

DEVELOPMENT OF APPROACHES TO THE TAXATION OF CRYPTOASSETS IN THE MODERN WORLD

In the article the dual economic nature of cryptocurrencies was analyzed same as investment assets and means of payment in foreign countries and Ukraine. It has been established that the asset and means of payment in foreign countries and Ukraine. It has been established that the classification of crypto-assets and their functions are of key importance for the introduction of their effective taxation. Approaches to the taxation of crypto-assets in various European countries, also in the USA, Malaysia, Singapore, Australia, India and other countries of the world have been studied. Taxation of such asset doesn’t have a unified nature and depends on the type of operation with them. According to research by Western scientists, it has been established that in modern word, cryptocurrencies are more often used for shadow operation than for tax evasion. The main principle that should be followed in the taxation of virtual assets is the principle of neutrality: taxation of cryptocurrencies should be carried out in the same way as similar traditional financial assets. In Ukraine, the legal framework for taxation of income operation with virtual assets (further – VA) is the stage of formation. In the work both draft laws “On the Legalization of Virtual Assets in Ukraine”, which were adopted at the end of 2023, are examined. Ones are proposing changes to the Tax Code of Ukraine regarding the procedure for taxation of VA and providing an opportunity to launch legislative regulation of the procedure for taxation of VA market. The differences between draft law on taxation of virtual assets have been highlighted in the work. Thus, it is proposed to tax VA according to the rules for securities or investment assets, which corresponds to the specifics of the domestic tax field

Hard Truths: The Unintended Consequences of Carbon Tax on Firm Behavior

Hard Truths: The Unintended Consequences of Carbon Tax on Firm Behavior

Policy Effectiveness and Optimal Strategies of Environmental Tax: Evidence from China

Policy Effectiveness and Optimal Strategies of Environmental Tax: Evidence from China

The Effectiveness of Local Taxes on Local Revenue of Bojonegoro Regency

The Effectiveness of Local Taxes on Local Revenue of Bojonegoro Regency

Вопросы применения медианного значения рыночного интервала в регулировании трансфертных цен

Material changes in the tax regulation of transfer pricing have occurred in the early 2024, such changes include the introduction of the median value of the market price interval (financial parameters). This is a new instrument in the regulation of transfer pricing, its introduction was not justified in the bill discussion period, but its effect is significant for tax obligations of Russian companies. The new instrument in the transfer pricing system creates additional risks for taxpayers, as well as for the state in terms of economic relations with regard to timely and full calculation and payment of taxes, as well as for parties to international economic activities and internal relations. This predetermines the research subject: the conditions of and procedure for applying the median value for the purposes of tax control of intracompany transaction prices. The research methodology is based on an analysis of transfer pricing recommendations of the ОECD in АННОТАЦИИ Налоги № 2-2024 47 АННОТАЦИИ terms of applying statistical tools to determine the price of the transaction under analysis, provisions of foreign regulations that determine the pricing procedure in transactions between related entities. Special attention is paid to an analysis of foreign court judgments on determination of the market price of intracompany transactions. An analysis of the ОECD recommendations has given an opportunity to single out obligatory conditions for the application of the median value. The author has identified a tendency towards harmonization of approaches to using the median value in foreign countries and the general trend to clarifying regulations in 2022-2024. The judicial practice shows that irrespective of the activity type or type of transactions performed by group subdivisions, courts award uniform judgments in terms of applying the median value and take into account the ОECD recommendations when passing a judgment. The paper concludes that Russian taxpayers face an additional tax risk rooted in the differences in the approach towards the application of the median value in the Tax Code of the Russian Federation and the OECD Transfer Pricing Guidelines for transnational corporations and tax administrations used to regulate taxation of transactions between related entities in explanations of tax authorities and the judicial practice. The scientific novelty of the study lies in the determination of tendencies towards applying the median value for transfer pricing purposes, evaluation of tax consequences of the novelty for Russian taxpayers.

The Effect of E-Commerce, Tax, Supervision, and Tax Audit on Value-Added Tax Revenue (Case Study on Kudus Regency Taxpayers)

Internet technology has a huge influence on the world economy. More economic activities are carried out using internet media. Seeing the potential for the development of e-commerce has made business people dive into the digital world. The explosion of e-commerce is about the attraction of the business world and the state represented by the tax authorities, in this case, the Directorate General of Taxes, Central Java Regional Office in Kudus Regency. In line with the government's proposal to tax e-commerce as a source of state revenue and expenditure, awareness of the important role of e-commerce in the current digital-based business environment requires collaboration between relevant stakeholders to strive for a climate and mechanisms that encourage the development and growth of e-commerce, trade and protect the activities that take place therein. This research used a questionnaire on 185 Kudus district taxpayers registered on the marketplace using 25 SPSS data analysis. E-commerce is proven to have an influence on value-added tax revenue. Tax supervision has been proven to have an influence on Value Added Tax Revenue. The audit proved that taxes have a positive effect on value-added tax revenues. The research results show that all variables used have a positive effect on value-added tax revenues.

Optimization of Regional Tax Revenues in West Nusa Tenggara Province in 2018-2022

This research aims to analyze the Optimization of Regional Tax Revenues in West Nusa Tenggara Province for 2018-2022. The research method used is quantitative descriptive analysis. The data processed is the West Nusa Tenggara Province Budget Realization Report for 2018 to 2022. The data analysis technique used in the research is to calculate the optimization, effectiveness and efficiency of NTB Province regional tax revenues for 2018-2022. The results of this research show that regional tax revenues from 2018-2022 are not yet optimal because the effectiveness of regional taxes is below 100% and above 100%, the realization of tax revenues from 2018-2022 has not exceeded the tax revenue target. Meanwhile, regional tax efficiency is <10%, namely 5% from 2018-2022. Regional tax revenues in West Nusa Tenggara Province from 2018-2022 are not yet optimal where the level of optimization. The implications of this research provide information that the optimization of regional tax revenues in NTB should be optimal, one of which is by looking at the effectiveness and efficiency of regional tax revenues as seen from the targets and realization of regional tax revenues.

Distributional consequences shape public support for the EU carbon border adjustment mechanism: evidence from four European countries

Abstract A carbon border adjustment mechanism (CBAM) is a policy that increases the cost of carbon-intensive imports from countries with no or weak national carbon regulation. Proponents advocate that it helps avoid industrial relocation and protects jobs in the importing country; its critics say that it impedes free trade and drives up prices. Despite European Union legislation to introduce a CBAM policy, we find that citizens in our samples across four European countries---Germany (n=3,500), Hungary (n=2,512), Switzerland (n=2,500), and the United Kingdom (n=2,500)---have not formed clear opinions about the policy yet. Results from survey experiments, conducted over the course of 1.5~years, show a strong dislike for price increases associated with a carbon border tax, while the prospect of job protection does little to increase CBAM support---not even among subgroups most affected by import competition. However, employment effects become relevant when we prompt survey respondents to assess the effects of the carbon border tax for their country as a whole instead of for themselves as individuals. Consistent with exploratory findings that right-leaning voters express a much stronger opposition to the CBAM policy, our results speak to growing evidence of the politically polarizing nature of costly, green policies when citizens have not formed clear opinions about a policy yet.