Excess Tax Research Articles

Income Tax: Genesis of Definition and Object of Accounting

Income tax in many countries is one of the main sources of filling the public budget and levers of influence on the development of economic processes at the macro level. The income tax ensures the balance of economic interests of the state, legal entities and individuals and the avoidance of excessive tax pressure. The impact of European integration processes on the Ukrainian accounting system increases the relevance of the development of the organization and methods of accounting for income tax. The purpose of the article is to establish the main phases of the evolution of the concept of “income tax”, clarify its economic content and identify the characteristics as an object of accounting.
 The article examines the historical phases of the income tax evolution, taking into account amendments in the tax law in Ukraine. A review of interpretations of the concept of “income tax” by foreign and domestic scholars was made, to establish the three main approaches to its interpretation: as a direct tax paid by a business entity from the received profit; as an item of the company financial statement, informing concerned parties on the amount of the assessed and paid tax; as a company’s payment to the state for utilization of economic infrastructure and resources. The author’s definition of the concept of “income tax” is proposed, which contributes to the clarification of the accounting terminology. It is argued that income tax should be considered through the prism of the tax law and accounting standards. A comparison of treatment to income tax as an accounting object in the National Accounting Standard 17 “Tax Income” and International Accounting Standards 12 “Income Taxes” is made. Based on a study of the legal framework for the accounting of income tax, its main components are identified as an object of accounting.

The Informal Sector and Economic Growth of South Africa and Nigeria: A Comparative Systematic Review

The informal sector is an integral part of several sub-Saharan African (SSA) countries and plays a key role in the economic growth of these countries. This article used a comparative systematic review to explore the factors that act as drivers to informality in South Africa (SA) and Nigeria, the challenges that impede the growth dynamics of the informal sector, the dominant subsectors, and policy initiatives targeting informal sector providers. A systematic search of Google Scholar, Scopus, ResearchGate was performed together with secondary data collated from grey literature. Using Boolean string search protocols facilitated the elucidation of research questions (RQs) raised in this study. An inclusion and exclusion criteria became necessary for rigour, comprehensiveness and limitation of publication bias. The data collated from thirty-one (31) primary studies (17 for SA and 14 for Nigeria) revealed that unemployment, income disparity among citizens, excessive tax burdens, excessive bureaucratic hurdles from government, inflationary tendencies, poor corruption control, GDP per capita, and lack of social protection survival tendencies all act as drivers to the informal sector in SA and Nigeria. Several challenges are given for both economies and policy incentives that might help sustain and improve the informal sector in these two countries.

The Rohingya Refugee Crisis of Myanmar: A History of Persecution and Human Rights Violations

The United Nations refers to Rohingya as one of the most persecuted ethnic minorities in the world, and this minority community from the Arakan state of Myanmar crossing by land into Bangladesh, while others take to the sea to reach Malaysia, Indonesia, India and Thailand to escape from persecution. They first arrived in the Arakan on 8th century and ruled this area from 1430 AD to 1784 AD. Rohingya Muslims, along with Burmese Muslims and Buddhists together participated in their Independence movement, participated in the national election and elected as parliament member. But all the achievements and collaboration became failed after a few years later of independence. This study aims to find out the origin and historical background of Rohingya Muslim and chronological state persecution against them. This paper concludes that Rohingya are not illegal settler and their presence in Rakhine state of before the arrival of Mongolian and Tibeti Burmans. After the independence, they are victims of numerous types of oppression, such as denied citizenship, excessive taxation, confiscation of property, mosque destruction, torture, extrajudicial killing, restrictions on freedom of movement and marriage, forced deportation, destruction of houses and villages.

Informality, regulation and productivity: do small firms escape EPL through shadow employment?

Compliance with labour laws has costs and benefits which depend on the institutional environment in which firms operate. Although several studies have shown a negative effect of informality on firms’ productivity and growth, it is a fact that firms may resort to undeclared employment to escape excessive tax or regulatory burden. Our analysis documents empirically that stricter labour market regulation drives small firms to informality to gain flexibility in hiring and firing decisions. By exploiting the geographical heterogeneity of labour informality across Italian provinces as well as a different firing cost regime for firms above the 15-employee threshold, we provide evidence that firms facing stricter employment protection regulation adjust less in the formal labour market when the cost of accessing informal employment is lower. As a result, we show that an easier access to the informal labour market (partially) offsets the negative effects of stricter labour market regulation on productivity.

The Inflation Theory in the Perspective of Al-Maqrīzī's Thought and it’s Implications in the Modern Economic World

This study aims to determine the theory of inflation according to al-Maqrīzī and ways to overcome it and determine the differences in inflation theory according to al-Maqrīzī with modern economics. Data collection techniques are used by collecting his works both personally and jointly and are traced by other people's work on figures as secondary data. Analysis of the data used is content analysis. This research shows that inflation is a natural phenomenon that afflicts the lives of people throughout the world from the past until now. Inflation will occur when prices generally increase and continue. The way to deal with inflation is to overcome it by eliminating the causes of inflation such as corruption, excessive taxation, and the creation of excessive currency. He emphasized the use of dinars and dirhams in dealing with inflation. Al-Maqrīzī thought is not inferior to those of Western economists from the 19th Century and 20th Century.

Budget uncertainty in a monetary union

Governments in a monetary union fear spending disturbances. We distinguish them according to their ability to hedge against these disturbances and assume that they derive their optimal fiscal decisions by using a robust control approach. Results show that governments being highly vulnerable to spending disturbances set excessive tax rates, thereby exacerbating the fiscal pressure detrimental to output and obliging the central bank to conduct an expansionary monetary policy. Countries whose governments have higher ability to hedge against spending disturbances then suffer from the inflationary consequences of this monetary policy.

OPTIMIZATION OF THE TAX BURDEN OF THE ENTERPRISES: DOMESTIC AND FOREIGN EXPERIENCE

Introduction. Excessive tax burden on enterprises is a negative factor that prevents them from functioning properly and hinders their business activity. The high level of the tax burden is the emergence of the economy into the shadows, the shortfall of taxes to the budget and, as a consequence, the failure of the state to perform its functions. Thus, an important aspect of successful management is the application of tax optimization methods, taking into account certain aspects of each enterprise. Methods.The study uses generally accepted scientific methods: dialectical - to determine general approaches to research; monographic - for in-depth study of individual social phenomena; scientific knowledge - to determine a certain "perspective" of research as an assumption about the most important for the study of the selected problem characteristics of the object; abstract and logical - in order to return from the formulated scientific abstractions again to the study of the concrete and the formulation of the necessary conditions for its further existence and development in a logical sequence; scientific generalization - to summarize scientific facts and results based on the study, as well as methods of statistical processing of information, using methods of obtaining such values and qualitative characteristics, which are not directly in the economic information of the enterprise under study. Results. The article considers the level of tax burden on domestic and foreign enterprises in view of statistical information. The main ways to reduce tax liabilities, features and consequences of their application are indicated. It is necessary to apply a set of existing methods of taxation to effectively optimize taxes, constantly adapting them to the specifics of the enterprise. Discussion. Existing ways to reduce the tax burden need to be reviewed and improved, taking into account frequent changes in domestic tax legislation. The main areas of improvement of the current taxation system in the future should be: moderate reduction and uniform distribution of the tax burden between taxpayers depending on the type of activity; strengthening the effectiveness of tax control over the level of production costs; creating conditions for intensification of investment and innovation processes in priority sectors of the economy; ensuring control over the formation and use of financial resources mobilized as a result of the application of tax benefits; minimization of tax administration costs; as well as optimizing the rates of various taxes and their harmonization with European standards.

Удосконалення митного оподаткування: сучасний стан

This article explores the current status of customs payments and the development of proposals on the prospects for their collection. It is determined what payments we attribute to customs: duty, excise tax on imported goods (products) in the customs territory of Ukraine, value added tax on goods (products) imported into the customs territory of Ukraine. The main types of customs duties used in Ukraine are indicated, namely: import duties; export duty; seasonal duty; special types of duties (special duty; anti-dumping duty; countervailing duty); additional import duty. It is noted that the organization of the levying of duties consists in three positions: determination of the heading and the country of origin of the goods; control of timely and correct payment of duties and other taxes; ensuring that the owner of the goods returns excess tax payments. The analysis of customs payments to the State Budget for 2009 (after Ukraine’s accession to the World Trade Organization) – 2018 (it has been investigated that customs revenue has been increasing since 2009). The main ways of improving the system of administration of customs payments are outlined, namely: improvement of information and educational support of the customs authorities; strengthening the control of customs authorities on the correct classification and determination of the country of origin of goods; simplification of the customs clearance system; use of electronic declaration only; development of the state program of development of foreign trade activity; promoting the implementation of European Union experience into national practice; intensifying the fight against corruption, especially in customs posts; application of the simplified procedure for customs clearance of goods; providing tax benefits and discounts; formation of effective management, creation of a system for controlling the entry into circulation of goods.

Factors of Tax Evasion in Greece: Taxpayers’ Perspective

The aim of this study is to analyze the causes (criteria and sub-criteria) of tax evasion in contemporary Greece. Within the framework of the analytic hierarchy process (AHP) methodology, the research questions this study seeks to address are as follows: what drives people to avoid or evade taxes? What is the significance of each criterion and sub-criterion and how can they be ranked? The questionnaire survey covered 2,789 respondents (business owners, accountants and tax officers) from 26 Greek prefectures. The main objective of the AHP analysis is to classify the alternatives by making pairwise comparisons of qualitative and/or quantitative criteria (and sub-criteria) based on experts’ judgements. The results showed that excessive taxation and impunity for tax evasion are considered to be the main reasons for tax evasion in Greece. Among other significant factors are complexity of the legislation and opacity in public financial management. At the same time respondents did not consider deficient education as a significant factor. We also found differences in respondents’ evaluations of the sub-criteria: for instance, businessmen and tax officers disagreed about the significance of such factors as the unfair tax scale and corruption among tax collectors. The results reveal the mutual lack of trust between taxpayers and tax authorities in Greece. The Greek government is required to ensure justice and stability of the tax system; lower the tax rates; and introduce heavier penalties for tax evaders. Moreover, the system of public financial management should become more transparent to foster taxpayers’ trust and thus encourage tax compliance. For citation Diakomihalis M. Factors of Tax Evasion in Greece: Taxpayers’ Perspective. Journal of Tax Reform. 2020;6(2):180–195. DOI: 10.15826/jtr.2020.6.2.081. Article info Received May 14, 2020; Revised May 22, 2020; Accepted June 14, 2020

Избыточный НДФЛ как показатель дифференциации регионов и несовершенства налогового и бюджетного законодательства России

Статья затрагивает вопросы уплаты налога на Ð´Ð¾Ñ Ð¾Ð´Ñ‹ Ñ„Ð¸Ð·Ð¸Ñ‡ÐµÑÐºÐ¸Ñ Ð»Ð¸Ñ† в России, его межбюджетное распределение и способы совершенствования налогового и бюджетного законодательства. Авторы предлагают возможные варианты реформирования налоговой системы в части, связанной с зачислением НДФЛ, удержанного с Ð´Ð¾Ñ Ð¾Ð´Ð¾Ð² физического лица в бюджет субъекта и муниципального образования по месту жительства плательщика налога.

Efficiency without Apology: Consideration of the Marginal Excess Tax Burden and Distributional Impacts in Benefit–Cost Analysis

AbstractSome issues in the application of benefit–cost analysis (BCA) remain contentious. Although a strong conceptual case can be made for taking account of the marginal excess tax burden (METB) in conducting BCAs, it is usually excluded. Although a strong conceptual case can be made that BCA should not include distributional values, some analysts continue to advocate doing so. We discuss the cases for inclusion of the METB and the exclusion of distributional weights from what we refer to as “core” BCA, which we argue should be preserved as a protocol for assessing allocative efficiency. These issues are topical because a recent article in this journal recommends ignoring the METB on the grounds that desirable distributional effects offset its cost. We challenge the logic of this article and explain why it may encourage inefficient policies.

A Partial Review of Seven Official Guidelines for Cost-Benefit Analysis

AbstractThis paper reviews seven contemporary official guidelines to cost-benefit analysis (CBA) with respect to eight major cost-benefit issues drawing on the latest edition of the major CBA textbook for guidance, although not complete authority. The guidelines are those by UK Treasury, European Commission, U.S. Environmental Protection Agency, New Zealand Treasury, Infrastructure Australia, NSW State Treasury, and Victorian State Department of Treasury and Finance. The eight major issues discussed are the issue of standing, core valuation principles, the scope of CBA with reference to potential additional economic benefits, changes in real values over time, the marginal excess tax burden, the social discount rate, use of benefit-cost ratios, and treatment of risk. While all the guidelines are quality guides to CBA, the paper finds that there is room for improved discussion and practice at various points in each of these guidelines.

Simple Audits for Simple Tax Partnerships

New audit rules targeting sophisticated tax partnerships unnecessarily burden small, unsophisticated taxpayers. This is a familiar narrative in partnership tax. This time, the story takes place in the rules that prescribe the process by which the IRS audits and collects tax from partnerships and partners. Designed to limit abuse, the rules are highly complex and needlessly saddle small, simple businesses with increased compliance costs and potentially excessive tax liability. Ironically, at the same time the rules leave loopholes for sophisticated organizations able to exploit them. This article explains these disparate consequences and suggests solutions to both limit the loopholes for large taxpayers and simplify the rules for small businesses.

Laffer points, area of fiscal contradictions and taxpayers’ acceptance power

The Laffer curve is the eternal problem of mathematical economics. Attempts to find the Laffer curve functions lead to new results that do not give the function in coordinates “tax burden - tax revenues” but give results in larger dimensions. Purpose of the article is developing tools to access the excessive tax burden on organizations. The general methods used in the article are analysis, generalization, synthesis. Special methods are mathematical induction, mathematical methods. In the study previously proposed mathematical models of Laffer curves by V.G. Papava (Ananiashvili, Papava, 2010) and E.V. Balatskii (Balatskii, 2000) are generalized and clarified. Taxation limit concept is expanded and necessity of determining the lower taxation limit is shown. The new approach to determining the values of Laffer points based on the use of tax burden and current assets turnover ratio is proposed. The determination of taxpayers’ acceptance power (in meaning “exponent”) is introduced and the property linking it with area of fiscal contradictions is shown. The constancy of the location of the first and second kind Laffer points is proved. Conditions limiting the sets of values of Laffer points are given. As a result the concept of the area of fiscal contradictions is divided with concepts of Laffer curves and Laffer points.

International sanctions and Domestic Threats in the Assessments of the Russian Entrepreneurs

In this article, the author considers the main trends of the main problems of Russian business in contemporary Russian conditions and presents a comparative analysis of threat assessments on this issue . The empirical basis of the study was an expert survey of entrepreneurs from 21 regions of the country . Surveys of entrepreneurs have shown that for the business community, negative trends related to domestic economic regulation are more priority than sanctions pressure . According to experts, the most significant threats are the long-term decline in the level of income of citizens and purchasing power and excessive tax burden on entrepreneurs . The business community is also concerned about the instability of the legal framework, corruption, economic risks, lack of guarantees of return on investment . Threats caused by sanctions took the last line of the rating in the survey of experts . The results of the study demonstrate on the one hand some nihilism regarding economic policy, on the other hand the need for more interaction between government and business . The business community highly approve support from the government for business . Representatives of companies believe that today the role of the state should be reoriented from the functions of the crisis regulator and coordinator to the functions of the main stimulator, developing effective mechanisms for socio-economic activation of business activity.

The Last Strike: Evaluating the Distortionary Effect of Career Incentives on Taxation in China

This paper analyzes the distortionary effect of political career incentives on fiscal extraction. We argue that competitive promotion tournaments distort public officials’ career incentives, leading to excessive tax extraction efforts. We empirically estimate the magnitude of distortion by exploiting two institutional designs for political selection in China: the age threshold for promotion and regulated term limits. We find that a promotion tournament becomes more intense when prefectural party leaders enter their last promotion-eligible term (at 50-55 years old). Given fierce competition for career advancement, prefectural party leaders extract excessive fiscal revenue to demonstrate their competence, but they do not enhance economic performance or redistribution efforts.

TIGTA: IRS Needs to Complete Compliance Strategy for Excess Compensation Tax

The Treasury Inspector General for Tax Administration examined the IRS's Tax Exempt and Government Entities Division to determine if the agency is effectively implementing planning efforts in connection with the excise tax on tax‐exempt organizations that are paying excess compensation to certain employees (IRC § 4960). In a report dated June 5, TIGTA concluded that Division management “has not completed a compliance strategy to identify and address noncompliance with the excise tax after the organizations file their returns” (Report No. 2019‐14‐032).

On the issue of excess tax that arose due to the Constitutional Tribunal’s decisions

On the issue of excess tax that arose due to the Constitutional Tribunal’s decisions

It's not austerity. Or is it? Assessing the effect of austerity on growth in the European Union, 2010-15

We present a new econometric study of the effects of fiscal austerity on growth from 2010 to 2015 in a panel of the EU countries and the US as a proxy for the rest of the world, controlling for other conditioning factors put forward in the ”it's not austerity” view of the prolonged EU depression (low growth trend, loss of competitiveness, high sovereign debt and spread, excess taxation). Austerity remains significant with a negative effect in a range between 0.65 and 1.57 in the short run, and with spending cuts less harmful in the long run.

Service and pricing strategies in online retailing under carbon emission regulation

Responsiveness has emerged as a new dimension of differentiation as e-commerce continues to evolve. However, the pursuit of rapid service is not without limits. An obvious consequence is higher costs, and a second but less considered one is higher carbon emissions. Against this backdrop, our research investigates service time and price decisions for an e-tailer. A holistic social welfare perspective that accounts for the e-tailer's profit, consumer surplus as well as the environmental impact of carbon emissions is adopted. Equilibrium service time and price are derived for certain operational settings. In view of the complex interplay between service strategies and carbon emissions, we propose the carbon compensation index that measures the degree of recovery from the environmental impact through carbon tax in monetary terms. The optimal service strategies under different regulatory and market environments are illustrated. Further, our results reveal that excessive taxation could be detrimental to overall social welfare.