Fair Tax System Research Articles

LANDSCAPE: THE IMPETUS NEEDED FOR A FAIRER TAX SYSTEM AND FAIRER USE OF TAXES

Innovation, new technologies and techniques have transformed the economy and especially the tax landscape. The rapid process of e–fiscalization in Albania has influenced the improvement of the performance of the tax administration and institutions, the business climate and trust. The paper aims to explore the impact of e–fiscalization toward a fairer tax system, illustrating with a case study from Albania. The study provides an insight into the multi–dimensional impact of innovation and e–fiscalization on the economy, with a focus on the financial ecosystem, organizations and key actors in society. The qualitative investigation used supports the influence of fiscal innovation and new practices for increasing transparency and restoring trust, creating a new institutional and governance potential for both fairer taxation and fairer use of taxes.

Transfer Pricing Audit Policy Design Toward A Fair Tax System In Indonesia

Transfer Pricing Audit Policy Design Toward A Fair Tax System In Indonesia

The Impact of Tax Legislative Disruptions on the Increase of Informal Economic Activities in Egypt

The study examines how legislative instability in tax laws affects the growth of informal economic activities in Egypt. It suggests that unclear or unsustainable tax regulations drive a shift towards the informal sector, fueled by benefits like tax evasion and reduced compliance costs. To encourage voluntary integration, the study proposes measures such as transparent tax laws, awareness campaigns on tax compliance benefits, and simplification of procedures. It advocates for policymakers to prioritize creating an environment conducive to integration over punitive measures. By fostering a fair tax system and addressing underlying factors driving informality, Egypt can boost tax revenue, ensure fairness, and promote sustainable growth. Employing a descriptive-analytical approach, the study analyzes secondary data from official reports, academic literature, and relevant publications. This method allows for a systematic examination of tax legislative disruptions' impact on informal economic activities. It facilitates understanding the dynamics of tax regulations and their effects on informality by analyzing diverse information sources. This approach ensures reliable insights into the relationship between tax laws and the informal economy in Egypt.

Mass land valuation serves as a prerequisite for optimizing the taxation system in Ukraine

The article highlights the issue of multiple tax base systems. It analyzes that according to existing international mass appraisal standards, the market value should serve as the tax base. In turn, determining the market value should be based on analyzing the most efficient use. The authors emphasize that the available information in state registers is insufficient to meet all the requirements for the integrity and quality of input data for mass appraisal systems. Thus, attention is drawn to the necessity of a comprehensive approach to implementing a cadastre system, including the use of the LADM standard. This standard would, on the one hand, systematize the exchange between existing state registers, and on the other hand, serve as a basis for developing a computerized mass appraisal system taking into account the requirements for CAMA. Overall, the authors believe that implementing a land mass appraisal system in Ukraine is an important step towards creating a transparent and fair tax system as a key element of economic recovery and a source of revenue for local budgets in the context of developing market land relations.

Continuity of legal traditions of Ukrainian legislation (Constitutional projects by George Andruzsky)

The legislative process of the first half and middle of the 19th century is considered. in Ukraine, in particular, the constitutional projects of Cyril and Methodius. A historical and legal analysis of the constitutional drafts of the youngest member of the Cyril and Methodius Brotherhood, George Andrusky, entitled «Outlines of the Constitution of the Republic» was made. The influence on the preparation and content of the documents of the ideas of the «Book of the Being of the Ukrainian People» and the revolutionary ideas of Taras Shevchenko is emphasized. Against the historical background of the era, the reaction of the tsarist guard to the creation of St. Volodymyr’s Kyiv University and its role in modern Ukrainian nation-building, the formation of ideas of political resistance and free-thinking are highlighted. The work of Ukrainian lawyers, historians, philosophers who studied this problem was analyzed. The historical and legal features of Ukrainian constitutionalism, the influence of the Cyril-Methodist heritage on the germs of civil society ideas in Ukrainian political and legal thought are highlighted. The evolution of the constitutional concept of H. Andruzhsky from the ideas of the constitutional monarchy to the republican form of government is revealed. The ideas of equality before the law of the rights of citizens, the need to abolish serfdom and estate privileges, land reform in the context of giving peasants land, the introduction of political freedoms, a fair tax system for the population, the creation of an accessible general education system, the establishment of central and local press, military reform, defense of Ukrainians’ right to their language, literature, and culture in general. Considerable attention is paid to the structure of state power of the future state, especially local self-government, the community, which in the project is almost the main, basic link of the state. A solution to the problems of health care and social security is proposed. Worthy of attention in the project are the provisions that set out the requirements for candidates for management positions, in which the age, educational and residency qualifications, the absence of a criminal record and other punishments during the last three years, and the voting procedure were established. The order of coexistence with neighboring countries, first of all with Slavic countries, was envisaged. The statement that the basis of the state’s well-being is the agricultural sector is considered relevant. The essence of a citizen’s freedom, religious education at school, maintenance of the church at the expense of the community has been determined. It is emphasized that the thoughts and considerations expressed by H. Andruzky in the draft constitution were developed in the future in the process of development of Ukrainian constitutionalism and law-making. Key words: Ukraine, Cyril and Methodius brotherhood, George Andrusky, Taras Shevchenko, «Outlines of the Constitution of the Republic», Mykola I, Kyiv University of St. Volodymyr, M. Kostomarov, Hetmanship, constitutional jurisdiction, state formation, Ukrainophiles, Slavophiles, autocracy, gendarmes.

Examining the Impact of Financial Distress, Tax Justice, Sustainable and Ethical Leadership on Tax Compliance

This research aims to investigate the interplay between financial distress, tax justice, sustainable and ethical leadership, and their impact on tax compliance. The study employs a theoretical framework integrating principles of financial management, justice theory, and leadership ethics. A purposive sampling technique will be utilized to select participants from diverse organizational backgrounds, including corporations and non-profit entities. Data will be collected through in-depth interviews and thematic analysis will be employed to analyze the qualitative data. Preliminary findings suggest that financial distress exacerbates tax compliance challenges, while ethical leadership and a fair tax system positively influence compliance behavior. The study contributes to understanding the complex dynamics shaping tax compliance and provides insights for policymakers and organizational leaders to enhance compliance practices.

WILLINGNESS TO PAY FOR TOURISTS TAX IN PREMIUM DESTINATIONS: LABUAN BAJO CASE STUDY

The government is trying to break away from dependence on the exploitation of natural resources, so in recent years, it has focused on tourism. The Covid-19 pandemic has greatly impacted the tourism sector, but in 2022 the level of foreign tourist visits to Indonesia is slowly starting to improve. Labuan Bajo is one of the areas targeted by the government to be developed in the tourism sector to make premium destination spots, in supporting the existence of tourism, various infrastructures are built so that they can become world-class destinations. In addition, Labuan Bajo also offers natural tourism products that require sustainability to maintain their natural habitat and certainly require considerable costs in conducting regular monitoring and maintenance. The existence of high development and operational costs, the government needs to find ways to obtain optimal state revenue, especially in terms of taxes charged to tourists. The revenue obtained from the tourism tax is a very important financial source for the government and tourism authorities to ensure the sustainability of the tourism sector and can improve the quality of destinations given to visitors to tourist attractions. In an effort by tourism policymakers to create an efficient and fair tax system in tourist destinations, it is very important to understand tourists' perceptions of willingness to pay (WTP), tax rates, and optimal allocation. This research is a qualitative study, and the purpose of this study is to evaluate the tourism tax charged to tourists as compensation to get optimal regional income and to measure the willingness to pay tourists. The ability to pay is necessary to know how much the government can attract taxes to get optimal local revenue but not be too burdensome for tourists. This research will also explore tourist perceptions regarding taxes and what things need to be developed so that absorption from state and regional budgets can be effective in developing destination areas, especially in a sustainable manner. The approach used in data collection using semi-structured in-depth interviews with international tourists visiting Labuan Bajo, East Nusa Tenggara. This research is expected to be used by policymakers to understand the optimal value of tourism taxes to be able to develop their regions.

Awareness and Impact of GST among Small Business Owners: A Study with Special Reference to Mysuru City, Karnataka

GST (Goods and Service tax) is a visionary step intended towards rationalizing the giant indirect tax system in India. The implementation of GST is reducing tax burden and enhancing the ease of doing business in the country. The impact of GST has two key segments weight; one is to the business and second is to the customers who are the actual bearer of tax costs. Indian unorganized sector and portion of industry those who are enjoying the exemption will also contribute significantly to the growth of countries GDP. The basic purpose of conducting the study is to know the awareness level of small businessman towards GST and to assess the actual impact as they are facing. As it is known that impact will be there either on manufacturing or selling but to know the extent of impact and level of satisfaction study is conducted. The study is survey based in which data was collected from 50 business man who are residing in Mysuru city of Karnataka. The tool used for collection of data was structured questionnaire. The results obtained after analysis revealed that businessman are aware about GST implementation and opined that it’s a fair tax system but it requires more clarity, simplification in procedure because they have to depend on CA’s during the online submission. The paper had tried to attempt the actual impact of GST and suggestive measures have also been provided at the end of study. Keywords: GST, GDP, VAT, State Tax, Central Tax, Purchase Tax, Entry Tax.

Book Review

Book Review

Assessment of Factors Affecting the Amount of Immovable Property Tax in Latvia

The research aim is to analyse the peculiarities for application of immovable property tax in Latvia and to assess the main factors affecting the amount of immovable property tax and contradicting the basic principles for imposing taxes. It is essential to review the methods how the State Land Service determines cadastral values for real estate, since the cadastral value is the base for calculation of immovable property tax. The revision is required as the establishment of a fair tax system is impossible without adequate and comparable cadastral values. In the future, land shall be valued pursuant to lease and not to expropriation transactions in Latvia, while the cadastral valuation of buildings might be done consistent with the method of expenses by determining construction expenses of buildings. The issue on mass inspection of physical condition of buildings and data updating shall be solved in Latvia. In addition, an issue on possibilities to apply the most fair procedure for tax calculation shall be solved on the governmental level, i.e. to calculate taxes consistent with procedure for the use of immovable property registered in the Land Register as well as to cancel the limitation for increase of immovable property tax stated by the municipality and to regulate the tax burden through tax rates.

Does the gender composition of the board of directors have any effect on tax aggressiveness in western countries?

Women constitute more than half of the population, but they are still underrepresented in areas such as company boardrooms. This study analyses whether having an equal gender composition in a company’s board of directors would reduce tax aggressiveness. We use panel data from 2015 to 2019 taken from a sample of listed companies in the USA, the UK, Switzerland, Sweden, Spain, the Netherlands, Germany, and France. Women remain underrepresented in most of the countries in our sample, never exceeding one-third of board members. The results of the model are mixed. The gender composition of the board is not statistically significant in explaining tax aggressiveness except for in three countries: in the USA and the UK, an increase in women on the board produces an increase in tax aggressiveness, while in Switzerland, there is the opposite effect. We conclude that governments should promote policies for equality in the boardroom and a fairer tax system because, even if they are not clearly related, they are the basis for socio-economic development. Lastly, future research should include tests on non-listed companies and other variables on board diversity in the analysis.

Can progressive taxation contribute to human development?

This paper aims to understand and quantify the impact of taxation on the Human Development Index. The countries considered for this research are members of the European Union and the period overviewed is 2011-2019. According to the computation of the data relevant to this research, progressively taxed countries have a higher Human Development Index than the ones that practice a flat tax system. Subsequently, the income tax as a share of GDP is also at a much higher rate in progressively taxed countries than in flat-taxed countries. Additionally, countries in the European Union that have a progressive taxed system also collect more taxes as a share of GDP than the countries that have a flat tax system. Ultimately, this paper aims to reinforce the need for the European Union’s member states that do not have a progressive taxed system to transition to one in order to have a fairer tax system that leads to a higher value of the Human Development Index and higher governmental revenues.

Инновационная невосприимчивость экономики России

Introduction. The article examines the general immunity of the Russian economy to innovation, which is inherent in it at the present stage. It is caused by a number of macro and microeconomic, as well as institutional factors. This was an important reason that did not allow us to achieve a number of ambitious economic goals set by the country’s leaders. Theoretical analysis. The review of empirical and statistical material confirms the negative trends that exist in Russian economy, associated with a decrease in the innovative activity of enterprises and organizations. Among the macroeconomic factors of innovation immunity of the Russian economy, the following are distinguished: a one-sided developed economic structure with a hypertrophied predominance of raw materials and energy-producing industries with a low added value of the final product; insufficient aggregate demand for innovation on the part of the state, firms and households, as well as the lack of investment resources for enterprises and organizations to implement innovation activities. Microeconomic factors of the Russian economy’s immunity to innovation are: lack of internal sources of financing from enterprises; the high cost of credit resources; lack of tax incentives and the lack of effective state support for innovation, especially at the level of small and medium-sized businesses. support for innovation, especially at the level of small and medium-sized businesses. Results. It is concluded that the support of innovation activity requires the protection of property rights, a fair tax and judicial system, the absence of administrative barriers and excessive regulation, the presumption of innocence of the entrepreneur, and general political and economic stability. At the present stage, it is necessary to develop a unified state strategy for innovative development, focused on increasing labor productivity and achieving sustainable economic growth, support innovation, especially at the level of small and medium-sized enterprises.

MACROECONOMIC STABILITY AND TRANSPORT COMPANIES’ SUSTAINABLE DEVELOPMENT IN THE EASTERN EUROPEAN UNION

The paper’s primary aim is to evaluate the influence of macroeconomic stability on transport companies’ sustainable development in the eastern EU from 2008 to 2019. The first part discusses the theoretical problems. The empirical part includes the methodology, results of the research and conclusions. To determine the relationship between variables, we use Pearson’s R and the Ordinary Least Square Method. The contribution to knowledge is using the pentagon of macroeconomic stability to evaluate macroeconomic stabilisation’s influence on transport companies’ sustainable development. The results indicate that macroeconomic stability is one of the essential determinants of the transport companies’ sustainable development. According to Pearson’s R, the highest level of dependence is in Slovenia (0.96), Bulgaria (0.9), and Slovenia (0.83). The lowest is in Latvia (0.69). The OLS regression results indicate that the highest significance is in Slovakia (α1 = 1.994), the lowest is in Lithuania (α1 = 0.691). The states’ economic policies should favour the freedom to conduct business, create appropriate legal regulations, and support ecological investments. It is necessary to act for a stable and fair tax system, ensure access to finance. The issue is contemporary and requires further analysis.

Ödeme Gücüne Ulaşarak Adil Vergi Sistemi Oluşturma: Seçilmiş AB Ülkeleri İncelemesi

Kamu hizmetlerinin sunumunun en önemli finansman kaynağı vergilerdir. Vergi hasılatını sağlamanın en iyi yolu da vergiye karşı direnci minimum seviyede tutmaktır. Vergiye karşı direnci minimum seviyede tutmanın en iyi yolu da adil bir vergi sistemini inşa etmektir. Adil bir vergi sistemi aracılığıyla mükelleflerin vergi uyumunun artırılması beklenmektedir. Vergi sistemi oluşturulurken iki yaklaşıma göre vergilendirme yapılmaktadır. Fayda yaklaşımı ve ödeme gücü yaklaşımıdır. Ödeme gücünün en önemli göstergesi gelirdir. Diğer ödeme güçleri de gelir üzerinden ifade edilmektedir. Gelirin tüketime ayrılan kısmına harcama denilirken, tasarrufa ayrılan kısmına da servet denilmektedir. Dolayısıyla ödeme gücünün göstergeleri; gelir, servet ve harcamadan oluşmaktadır. Ödeme gücüne ulaşmada da çeşitli yöntemler kullanılmaktadır. Artan oranlı vergileme, ayırma prensibi ve en az geçim indirimi ödeme gücüne ulaşmada kullanılan yöntemlerdir. Bu çalışmada ödeme gücüne ulaşmada kullanılan yöntemlerin seçilmiş AB ülkelerinde nasıl uygulandığı, bunun vergi hasılatına etkisi ve adil vergileme ile ilişkisi üzerinde durulacaktır. Çalışma kapsamında sistemlerin adil olup olmaması tartışmasından ziyade ödeme gücüne ulaşmada kullanılan yöntemlere ilişkin veriler kullanılarak ödeme gücünün vergi adaleti ile ilişkisi ortaya konulacaktır. Çalışmada AB üye ülkelerin verilerinden yararlanılarak literatür taraması ile verilerin analizi yöntemi uygulanmıştır. Çalışma aracılığıyla; ödeme gücüne ulaşmada uygulanan yöntemler kullanılarak vergide adalet ve adalet algısı ilişkisini ortaya koyup literatüre katkı sunulması amaçlanmaktadır. Çalışma sonucunda AB üye ülkelerinde vergi sistemlerinin farklı olduğu, ödeme gücüne ulaşmada kullanılan yöntemleri farklı şekilde uyguladıkları ve bunun da genelleme yapılması önünde engel oluşturduğu bulgusuna ulaşılmıştır. Anahtar Kelimeler: Ödeme Gücü, Artan Oranlılık, Ayrıma Prensibi JEL Sınıflandırması: H2, H21, H10

Improving the tax system of Uzbekistan

Subject. The article spotlights directions of the tax system and fiscal policy, which induce the economic growth in Uzbekistan, sustainability of its tax system, and address key goals of the socio-economic development. Objectives. We evaluate the current reforms intended to improve the tax system of Uzbekistan during the globalization of the world economy, and formulate relevant recommendations. Methods. The study uses analytical methods to process publicly available data. Results. The tax practice of Uzbekistan is found to demonstrate a disparity in tax burden in case of the general and simplified tax treatment, i.e. a comparatively big gap between taxes paid by taxpayers. To reduce the disparity, it is necessary to dramatically alleviate the tax burden and facilitate general taxation rules. Furthermore, to create the equitable and fair tax system, tax benefits should be gradually abolished, since they seriously reduce the income of people. A reduction in the VAT rate may help change the simplified tax treatment into the general one. Conclusions and Relevance. If the proposed actions are implemented, Uzbekistan will be able to establish a modern taxation model, eliminate the systemic disparity and inequality, and, ultimately, create effective social institutions driving the sustainable economic growth. There should be the fiscal mechanism for net profit or income, value added, with the concurrent abolishment of the turnover tax, which contradicts international tax practices.

Extent of Rental Income Tax Compliance by Taxpayers’ in Zambia: Case of Residential Properties in Kitwe City

Government mainly raises domestic revenue through taxation such as income tax, value added tax and customs and excise duty. Residential rental income tax is a component of income tax. There is low rental income tax collections in Zambia caused by among other things low taxpayers’ compliance. In order to obtain insights about the actual realities on the ground and using Kitwe city as a case study area, the research evaluated the extent of residential rental income tax compliance among taxpayers in Zambia. Both primary data was obtained through use of semi-structured interviews and questionnaires while secondary data was collected from both published and grey literature. The research findings showed that there is low rental income tax compliance among taxpayers. Low taxpayers’ compliance is caused by limited taxpayers’ awareness on some aspects of rental income tax issues such as deadlines and modes of payments, tax officials not having the right attitude, the Zambia Revenue Authority website not being easy to navigate and use, high tax rate, erratic deregistration of taxpayers, and lack of a fair tax system. In view of the foregoing, the study recommends that in order to improve rental income tax compliance by taxpayers, there is need to: provide information to taxpayers on rental income tax, conduct training for tax officials, simplify Zambia Revenue Authority website, lower the rate for rental income tax, revert to landlords paying tax, and encourage fairness of the tax system

Disparate Racial Impact: Tax Expenditure Reform Needed

Although U.S. federal tax laws don't have explicit difference in rules by race, the outcomes of those facially race-neutral rules can have differential effects across racial groups. The article analyses government subsidy and incentive programs run through the tax system: tax expenditures, and how income and wealth inequalities combined with the peculiar design of certain tax expenditures provide disproportionate benefits to white households compared to Black and Hispanic households. Tax expenditures can be designed to not favor high-income and wealthy families. The article suggests eight steps to reform tax expenditures for reducing racial and income disparities. Reforming tax expenditure with the goal of reducing racial, income and wealth inequalities can be an important first step toward a more inclusive and fairer tax system.

Türkiye’de Emlak Vergi Değerinin Toplu Değerleme Sistemi ile Belirlenmesi

In this study, considering the problems encountered in real estate tax, it is aimed to show that it is possible to use mass appraisal systems in order to ensure a fair tax system and to prevent tax losses caused by the inability to determine the tax value, and therefore the tax base, in accordance with the truth. In this context, the results of a field study carried out on the “land” qualified real estate owned by the Treasury, which was subject to sale in Ankara province, Gölbaşı district in 2017, were examined. According to the results and findings of the field study, it was observed that there is a significant difference between the tax values of real estate and the realized purchase and sale values, the same fair value is applied to the real estates with different characteristics, and this situation causes an unfair taxation for the owners According to the result of Multiple Regression Analysis and Artificial Neural Networks models, which are the mass appraisal methods, the sale price or value of a real estate varies depending on its characteristics. It’s also understood from the data set that the property tax value varies according to the property’s location. With the implementation of the mass appraisal system, the results show that tax values may be determined close to market values, in accordance with international standards, in a short time, with less cost, and without subjective judgments, and thus, problems related to tax value and collection can be solved.

Responses to Senator Cassidy's Questions for the Record to Professor David Gamage "Creating Opportunity Through a Fairer Tax System" Senate Finance Fiscal Responsibility and Economic Growth Subcommittee

This white paper responds to questions asked by Senator Cassidy in regard to testimony that Professor Gamage presented to the Senate Finance Fiscal Responsibility and Economic Growth Subcommittee on April 27, 2021. The questions are on estate and wealth taxes and liquidity concerns, on concerns related to “double taxation”, and on endowments and the tax benefits provided to tax exempt institutions such as universities and churches.