Efficiency Of Tax System Research Articles

Budgetary and tax policy at the present stage and its role in forming budgets of different levels

Budgetary and tax policy is designed to ensure sustainable development of the Russian economy on the basis of modernization, to improve the living standards of the population by reducing social inequality, and to adapt the budget system to modern realities. The sanctions imposed by the European Union and the United States of America against Russia affect not only the production sphere, but also economy as a whole. The decline in oil prices, ruble devaluation, and outflow of foreign capital eventually lead to budget deficit. In these conditions, budgetary and tax policy remains one of the most important instruments of the economic policy pursued by the state. Increasing tax system efficiency becomes a priority. The objectives of the study include establishing budgetary and tax system effectiveness in forming budget revenues of different levels, including administrative centers (capitals of republics, regional centers). The article uses analysis and synthesis, generalization, grouping, dynamics, comparison, tabular method, and data of the Federal State Statistics Service, the Ministry of Finance of the Russian Federation, and the Federal Tax Service of the Russian Federation. It has been established that the existing budget and tax policy does not provide regional and local budgets with necessary financial resources as they are dominated by inter-budget transfers that cover only their deficit and do not ensure economic growth. All this predetermines the need to redistribute tax revenues in favor of regional and local budgets that will weaken the share of inter-budget transfers in these budgets.

IMPLEMENTATION OF INTERNATIONAL FINANCIAL POLICY PRINCIPLES IN THE TRANSFORMATION OF UKRAINIAN TAX LEGISLATION

The article analyzes the peculiarities of implementation of international principles of financial policy in the context of transformation of Ukrainian tax legislation. Some priorities of financial policy of some countries of the world in the context of modernization of tax policy have been defined. The basic principles of financial policy in the context of implementation of foreign experience are support of business activity, all-round assistance of production development, provision of employment of the population, mobilization of appropriate volumes of financial resources and their use for providing social guarantees, introduction of financial mechanism, which would provide rational use of natural resources. The main determinant of the formation of modern tax policy is the process of economic diversification, attraction of unconsidered sources of taxation, provision of proper level of tax administration, reduction of tax burden for business in order to increase the level of economic development, etc. The main innovations and prospects of the tax legislation of Ukraine for 2023 are analyzed. It is justified that international cooperation in the tax sphere, in particular access to the information platform IBFD (International Bureau of Fiscal Documentation), and participation of Ukraine in the EU Fiscalis program, is a positive step in the preparation of changes to the tax legislation of Ukraine in the context of implementation of international financial policy principles to ensure its harmonization with EU recommendations/standards. In the context of transformational changes, it is important to develop financial policy measures with appropriate level of adaptability and taking into account the tasks that need to be solved at a certain stage of development (increase of tax system efficiency, creation of appropriate conditions for economic development, improvement of business climate, increase of investment attractiveness, etc.). Ukraine’s financial policy should be directed to macroeconomic development, development of financial inclusion and ensuring financial stability, development of financial market, digital transformation and innovation development taking into account modern requirements in the context of European integration and world processes.

The Digital Transformation of Tax Systems Progress, Pitfalls, and Protection in a Danish Context

Abstract: The authors examine possibilities and challenges in using digital tools to obtain tax simplification and to improve tax assessment, collection, and transparency. Hence, the main objectives of the article are, from a legal perspective, to shed additional light on the relations between tax administrations and taxpayers in an increasingly digitalized world and to discuss how this development may influence taxpayers' rights and the overall efficiency of tax systems. In doing so, practical experiences—incurred in Denmark during its journey from a paper-based and manual tax administration process toward a more digitalized one—are analyzed. Against this background, it is concluded that many states around the world, including Denmark, have come a long way in making tax processes smoother and more efficient through the use of digital tools for the benefit of both taxpayers and tax administrations. However, at the same time, global as well as Danish experiences clearly show that states, in their pursuit to digitalize tax administrations further, need to take appropriate measures into consideration in order to ensure the legality and transparency of the digital tax administration processes.

Напрями удосконалення акцизної політики у сфері тютюнових виробів в Україні

The article analyses the ways to improve tobacco excise taxation in Ukraine considering a respective EU Member States experience, consequences of national reforms held in previous years, as well as challenges and potential threats caused by the pandemic. A worsening economic situation and the recent decline in income compounded the existing problems related to tobacco taxation in Ukraine. The increase of excise tax rate on cigarettes by 20% annually till 2025 and an inconsistent decision on more than four times increase of excise tax rates on electronically heated tobacco products (EHTP) pose a risk of boosting illicit trade. The advance payment of excise tax on imported tobacco products, in turn, negatively affects finances of importers due to the working capital diversion. Following that, the priority steps with regard to the excise policy of Ukraine should be aimed at: 1) revision of the existing plan of increasing tax rates on cigarettes by slowing down the growth of tax burden and simultaneous expansion of the plan till 2028; 2) correcting the burdensome reform on excise taxation of EHTP to establish more liberalized tax regime 3) switching to payment of excise tax on imported tobacco products during customs clearance. The mentioned initiatives taking into account a strong need to improve a fiscal situation in Ukraine due to the spread of COVID-19 will reduce a negative impact of increasing excise tax rates and administration procedures on tobacco industry. They will also prevent the growth of illicit trade in tobacco products and thus will contribute to improving the efficiency of tax system and strengthening the confidence of business entities.

Korzyści podatkowe jako element wspierający podmioty ekonomiczne w okresie walki z COVID-19: aspekt porównawczy i prawny

Niniejszy artykuł stanowi analizę porównawczą ukraińskiego systemu podatkowego oraz jego odpowiedników w innych krajach. Ma ona na celu ustalenie konkurencyjności Ukrainy na światowych rynkach towarowych i inwestycyjnych oraz wskazanie głównych kierunków reform systemu podatkowego w dobie kryzysu ekonomicznego wywołanego zastosowaniem środków związanych z kwarantanną. Rozważaniom oraz analizie poddano wpływ liberalizacji systemu podatkowego na rozwój społeczno-ekonomiczny Ukrainy oraz innych krajów. Dokonano porównań w następujących obszarach: poziom ogólnego ciężaru podatkowego, rozłożenie go pomiędzy główne rodzaje podatków i grup płatników oraz skuteczność fiskalna systemów podatkowych. Po przeanalizowaniu danych pochodzących z krajów europejskich autorki porównały je z kilkoma parametrami opisującymi duże gospodarki świata, takie jak Stany Zjednoczone, Chiny czy Singapur. Wykazano, iż UE nieco gorzej radzi sobie niż USA pod względem preferencyjnego administrowania wymiarem podatku oraz z procesami płatni czymi, a także w zakresie wypełniania zeznań podatkowych przez podatników. Jednakże w krajach UE są stosunkowo niskie stawki podatku od osób prawnych (w porównaniu do Chin i USA). Mimo iż Chiny oraz Singapur znacznie zmniejszyły stawki tego podatku, ich poziom nadal pozostał powyżej średniej w UE. Aby usprawnić funkcjonowanie systemu podatkowego na Ukrainie, autorki zalecają skoncentrować wysiłki na dynamicznej transformacji, którą można zaobserwować w nowych państwach członkowskich UE – stanowiących jednocześnie głównych konkurentów Ukrainy na światowych rynkach towarowych i kapitałowych – by opierając się na ich doświadczeniach, pracować nad poprawą warunków podatkowych, co przyczyni się do lepszego wypełniania obowiązków podatkowych w sensie regulacyjnym i fiskalnym. Autorki dochodzą do wniosku, że zmiany ustawodawstwa podatkowego na Ukrainie w obliczu konieczności ochrony podmiotów ekonomicznych w dobie pandemii COVID-19 są skuteczne, wystarczające i spójne ze światową praktyką prawną. Zatem liberalizacja systemu podatkowego jest jednym z decydujących czynników światowego rozwoju społeczno-ekonomicznego.

Efficient treatment of banking services under VAT

The efficiency of tax systems is an important topic for policy makers and academics. We focus on the efficiency of applying VAT to traditional banking services, a significant issue where a consensus has yet to be reached since the first debates more than two decades ago. This paper discusses one of the most relevant models of tax efficiency on banking services under VAT, the model developed by Jack (2000). This author shows that explicit fees and commissions should be taxable under VAT, while implicit fees covered by banking spreads should be zero-rated. An alternative theoretical approach is developed in this paper, proposing the taxation of both explicit and implicit fees of financial services under VAT at the same tax rate, which should also be the same rate applied to all other goods and services.

ESTIMATION OF THE OVERALL TAX BURDEN ON THE ECONOMY IN UKRAINE

The estimation of the tax burden is important, since, on the one hand, its results reflect the tax system efficiency, and, on the other hands, the level of income redistribution in the national economy. The estimation of the general tax burden level on the national economy of Ukraine should be realized through the development of forecast scenarios, based on economic and mathematical modelling. The economists have not yet sufficiently worked out the problems of the predictive assessment of the tax system efficiency through the introduction of a scenario approach, economic-mathematical modelling and extrapolation of dynamics series. It is necessary to evaluate and to develop scenarios for forecasting the level of the overall tax burden on the national economy of Ukraine. The modelling of the influence of GDP dynamics on the volume of tax revenues and a unified social tax is implemented. The method of calculating the level of the overall tax burden on the national economy is proposed. The scenarios for forecasting the total tax burden on the Ukrainian economy have been developed. It is proved that in Ukraine, by the end of 2017, one third of the revenues in the national economy is redistributed through the fiscal system, while in 2004 the tax burden made only a quarter of GDP. Thus, it is established, that over the next 5 years, the overall tax burden on the national economy will increase (growth may range from +0.9 to +4 %).

Shifting taxes away from labour enhances equity and fiscal efficiency

This paper analyzes the effects of a hypothetical tax reform in Italy, which makes current tax credits more generous and refundable, shifting the tax burden from labour to property. Our methodology contains novel features of great relevance for policy analysis: first, a structural model of labour supply of both employees and self-employed; second, a labour market equilibrium model that encompasses demand side constraints; last, detailed tax system simulation under fiscal neutrality. The empirical findings provide guidance for policy makers’ actions to enhance equity and efficiency of tax system and confirm the relevance of the methodological approach.

AN ESTIMATION OF THE TAXABLE CAPACITY, TAX EFFORT AND TAX BURDEN OF AN EMERGING ECONOMY: EVIDENCE FROM GHANA

This paper estimates taxable capacity, tax effort and tax burden with a view to examining the tax fairness perceptions and tax system efficiency. The study employed ordinary least squares regression and vector autoregressive model for historical time series data sourced from the World Development Indicators and Bank of Ghana. We found that Ghana's overall tax burden and average post-tax reform efforts are low suggesting tax fairness and tax system inefficiency respectively. We conclude that post-tax reform dispensation has not generated the much-needed tax revenues because of low tax efforts. Thus, tax revenue could be significantly maximized to aid the achievement of the sustainable development goals to move Ghana Beyond Aid. This paper extends literature by relying on estimates of taxable capacity, tax effort and tax burden to assess the tax fairness perceptions and tax administrative efficiency of an emerging economy. We posit that these triad terminologies move pari passu in assessing the efficiency and fairness of a country's tax system. We recommend that embarking on jurisdictional tax reforms should not only be about appropriate and a plethora of tax laws and multiplicity of taxes but also on the efficiency and integrity of tax administration. The judicious use and prompt accountability of tax revenues could help address tax unfairness perceptions in emerging economies.

ANALYSIS OF TAX BURDEN PARAMETERS OF UKRAINE'S ECONOMY

The need to solve the problems of macro-economic stabilization of the country's economy on the basis of determining the tax system efficiency led to the actuality and importance of developing methodological issues of macro-economic tax regulation. In terms of macro-financial stability for the purpose of strategic analysis, the macroeconomic category of tax burden and its fiscal efficiency in terms of direct and indirect taxation is considered. Tax burden indicators at a macro-level quantitatively measure the total level of tax payment and pumping up the budget. Based on the analysis of tax burden it is found that in Ukraine the major fiscal function is performed by consumption taxes (indirect taxes). The methodological principles of the diagnostics of tax burden influence on macro-indices of economic stabilization are as follows: selecting parameters of monitoring tax burden state and fiscal burden efficiency; the assessment of an impact on fiscal efficiency on macro-indices. To prognosticate the efficiency of fiscal burden performance in terms of indirect taxes linear and exponential trend equations are calculated. In terms of the analysis of macro-financial stability the usage of tax rates of indirect taxes as indicators of fiscal efficiency provides sufficient reasons for the conclusions regarding long-term trends of pumping the budget.

THE IMPACT OF FISCAL POLICY IMPACT ON INCOME INEQUALITY AND ECONOMIC GROWTH: A CASE STUDY OF DISTRICT/CITY IN JAVA

Indonesian government has planned a policy in both accelerating the economic growth and reducing the income inequality. The improvement of income equality in Indonesia is conducted specifically through tax and transfer system. The progressive tax system is conducted to redistribute income and to reduce income inequality (measured by Gini index). The efficiency of a low tax system gave rise to suspicion that the system is not effective for reducing income inequality. This study examines the effect of fiscal policy on income ineaquality and economy growth in Java. To achieve the objective of study, the changes of macroeconomic indicators, tax system efficiency, and the changes of the income distribution is analysed using a panel data regression model. The results showed that the redistribution value of district/city is negative, indicating that the redistribution through taxes is not effective. In practice, the applicable tax system tends to widen the income inequality. The relation between equity income and economic growth show greater influence in the region with high income, whereas in regions with low income, incidence of such influence is very small indeed.

Efficiency of the Tax System: A Marginal Excess Burden Analysis

This paper analyses the efficiency of the Australian tax system using CGETAX, a large-scale, long-run CGE model designed for tax policy analysis. This follows an analysis with CGETAX of an Australian Government proposal to reduce the corporate tax rate from 30 to 25 per cent in Murphy (2016a) and Murphy(2016b) and an Australian Treasury Working Paper on the efficiency of certain taxes (Cao et al., 2015). This paper begins by uses a highly stylised version of CGETAX to provide a theoretical analysis of the efficiency of major taxes, applicable to advanced, open economies in general. The Stylised model, like CGETAX, allows for imperfect competition and models the disincentive effects of taxes on labour supply, the capital-to-labour ratio, and the choice between present and future consumption. Of the major taxes, company income tax is found to be least efficient, with a marginal excess burden of 139 cents per additional dollar of tax revenue. For open economies the literature finds that company tax is among the most inefficient of taxes because it suppresses labour supply and the capital to labour ratio and leads to profit shifting to lower taxed jurisdictions. For Australia, company tax is even more inefficient because of its above-normal company tax rate and the erosion of the final revenue yield through the system of franking credits.

Tax Performance in Albania, 1994-2011

This book aims at presenting statistical data and performance of tax administration in a transparent way.It helps all to have a much clearer perception on the efficiency of tax system in general and allows other interested parties to provide their study analysis and propose concrete interventions to improve tax system...through its records, you will find the information that has been missing all these years...

Graphic Model Regulating the Application of Land Site Taxation Deductions

Existing conditionally sizeable possibility of interpretation of tax legislation and covering regulations of the Republic of Lithuania, abundance of practical employment subtleties and concretization makes extremely important the knowledge of taxpayer regarding which specific deductions, when and how can be applied while calculating the payable sum for one or another tax. Employment of provided taxation deductions not only provides proper environment for tax system existentialism, but also creates added value for the taxpayer. Deficiency of economic and accounting knowledge of the latter enables a legitimate overpay of the taxes payable for the state, though, not registering this fact with any economic operation.Reform of taxation for persons engaged in agricultural activities and real property trade, recently performed in Lithuania, conditions new scientific research in this area of tax system. Land site taxation, seems such a narrow profiled field of tax system, becomes more and more important tax within Lithuanian tax system. As the carried out statistical analysis of national budget administration data reveals, collection scope of taxes, where taxable object is real property, during the last decade is only increasing both in Lithuania and all EU countries. One of the most significant reasons determining such changes is micro economic condition of the country, however, state fiscal policy also plays quite a considerable role in this field.Lately, when budget becomes the basis for the stable state finance, debates, regarding both land site and other real property taxations are more frequent. Though, before initiating an exhaustive analysis of taxes, where a taxable object is the latter, it is important to emphasize that extremely wide range of application of taxation deductions exists in this field. Every municipality, in turn and on the budget account, may reduce the tax or even relief from the tax payable. As a performed empirical research shows, the latter taxation deductions, frequently applied in practice, do also increase demand for allocation while conditioning the lesser municipality budget income. Hereby, from the first sight, even pretty simple and insignificant taxes become more and more important, especially when national budget deficit and its control become the most important task both in the state and global financial market.Application of econometric models is being propagated for few decades now, however, in the field of the usage of taxing laws and regulations such models are not applied in worldwide practice. Adaptability of a graphic model is considered to be a real revolution in the field of tax system efficiency evaluation.A formed graphic model, in which taxable object is a land site, proves that even such a small taxable sector exhibits a lot of confusion, which can be exploited by the taxpayer to receive his fiscal benefit. Whereas the main purpose of laws, regulating the taxes, is calculation of the amounts payable and regulation of payment itself, construction of a graphic model allows us to evaluate not only budget and target funds fiscal income, but also influence of the latter on macro economic indicators of the country.

How Taxpayers Perceive the Efficiency of Jordanian Tax Systems According to the Keynesian Perspective of Tax Efficiency?

This study investigates taxpayers’ perception to the Jordanian tax system efficiency according to the perspective of Keynes. Its main purpose is to determine whether taxpayers perceive the Jordanian tax system as efficient, enough to influence taxpayers’ patterns of behavior, or inefficient and just used to collect revenue by the government. A self‐administered questionnaire is used to collect the primary data of the study, in order to measure the economical and socio‐cultural efficiency of the system. A convenience sample consisting of 175 respondents was selected to survey how taxpayers perceive the Jordanian tax system efficiency. The t‐test is used as a decision criterion for the acceptance or rejection of the hypotheses. Correlation analysis is also used to support the findings of the study. The study finds that taxpayers perceive the Jordanian tax system as efficient, and they perceive that the tax system is intentionally used to influence their behavior.

Currency substitution, seigniorage, and currency crises in interdependent economies

This paper applies a two-country framework that allows for currency substitution in an environment in which policymakers optimally vary interest rates in light of utility-based objectives, one country pegs the value of its currency to the other nation’s currency, and government revenue is generated via explicit taxes and seigniorage. The analysis illustrates the roles that currency substitution, currency preferences, and efficiency of tax systems play in contributing to the likelihood of a “run” on one nation’s currency. We explore how these factors interact to influence the probability of a currency crisis in the country that fixes its exchange rate.

Efficiency of tax systems financing public goods in general equilibrium analysis

Efficiency of tax systems financing public goods in general equilibrium analysis