Income Tax Deductions Research Articles

ANALISIS PERHITUNGAN DAN PEMOTONGAN PAJAK PENGHASILAN FINAL PASAL 4 AYAT (2) ATAS JASA SEWA TANAH DAN/BANGUNAN PADA PT. ANGKASA PURA I (Persero) MAKASSAR

This study aims to determine the calculation and withholding of final income tax article 4 paragraph 2 on land and/building rental services (space lease) carried out at PT. ANGKASA PURA I (Persero). The type of research used is a method with a qualitative approach. Qualitative data is data in the form of numbers used in this study such as evidence of income tax collection and tax deductions for specific airport services for land and/or building leases. After conducting the analysis and discussion, the authors conclude that the withholding of the final income tax article 4 paragraph 2 of land and / building rental services (space rental) at PT.Angkasa Pura I (Persero) is in accordance with the provisions of the KMK. No120/KMK.03/2002 using a rate of 10% with a tax base (DPP) of the gross amount of the rental value

The impact of SNAP work requirements on labor supply

This study explores the impact of work requirements for the Supplemental Nutrition Assistance Program (SNAP) on the labor supply of able-bodied adults without dependents, exploiting variation in the work exemption across areas over time as well as the age criteria for the work requirement. I find that suspending work requirements does not discourage employment; a decrease in employment of more than 1.4 percentage points among people who are potentially affected by the exemptions can be ruled out with a 95% confidence interval. I also find evidence of a reduction in hours of work among older prime-age workers due to the work exemption. Further analysis uncovers two reasons why the work exemption has little effect on employment. First, many new SNAP participants who enrolled due to the exemption are the long-term non-employed who have no labor supply to reduce. Second, the generous income deductions in benefit calculation act as a work incentive by significantly lowering the effective benefit reduction rate at very low income ($0–600). These findings indicate that the SNAP work requirement may not achieve the intended goal of promoting employment; instead it may increase the risk of disadvantaged individuals failing to receive the assistance they need.

투자형 크라우드펀딩의 투자자 등급별 투자결정요인 분석: 와디즈 플랫폼을 중심으로

The purpose of this research is to grasp the investment decision factors by investor grade and industry. For this reason, a linear regression analysis was conducted on 445 projects extracted from the Korean crowdfunding platform Wadiz. The analysis results show that the factors differ by investor grade as follows. Normal investors were found to be affected by the number of feedbacks, number of new event, number of likes, shareholding, income deduction, target amount, and duration. Qualified Investors were found to be affected by the number of feedbacks, the number of new news, the number of likes, the minimum investment available, income deductions, the target amount, and the duration of the investment. Professional investors are found to be affected by income deductions and target amounts. This research is significant in that it investigated the factors that affect investment decisions by investor grade and industry.

The Impact of Financial Inclusion on Poverty Reduction

Abstract Poverty is a global issue and a lot of attention and efforts of the international community have been made to deal with this problem. Especially in the context of the COVID-19 pandemic, when a part of the population could fall into poverty due to rising unemployment and income deduction, identifying the factors affecting poverty becomes particularly important. Financial inclusion has been recognized as one important factor affecting poverty reduction. This research is conducted to investigate the impact of financial inclusion and other control variables on poverty reduction. The study employs Principal Component Analysis (PCA) to build a financial inclusion index. Using 2SLS and the GMM regressions for a panel data of 29 European countries during the period from 2011 to 2017, the results show that financial inclusion has a negative impact on poverty at all three poverty lines of USD1.9, 3.2, and 5.5 per day. The proportion of the population aged 15–64 and the ratio of service employment to the total number of employment also have a negative effect on all three levels of POV1.9, POV3.2, and POV5.5. In contrast, GDP per capita, trade openness and the proportion of the population aged from 25 with at least secondary school education have a positive impact on poverty at three levels of poverty. The results confirm that financial inclusion plays an important role in reducing poverty. The study provides a number of recommendations to governments to promote financial inclusion and reduce poverty in the countries.

A study on income tax deduction and opinion in india

A study on income tax deduction and opinion in india

Is Charitable Giving Political? New Evidence from Wealth and Income Tax Returns

What are the determinants of philanthropic and political giving? Are donations to charities and parties driven by the same incentives? In this article, we use new administrative household panel data to quantify empirically the motivations for giving, depending on donors’ characteristics and tax incentives. Our dataset includes all the households filling their income tax and/or their wealth tax returns in France between 2006 and 2019. In France, both charitable and political donations benefit from income tax deductions, but only the charitable ones are eligible to the wealth tax credit. We exploit the 2018 wealth tax reform – a change in the taxable base that led to a drop by two third in the number of liable households – to estimate the cross-price elasticity of charitable and political giving at different levels of the income and wealth distributions. We provide new evidence of substituability between charitable and political donations: according to our estimates, a one-percent increase in the price of charitable giving leads to a 19 to 25% increase in political donations. The magnitude of this effect is particularly strong among the the top 20% of the wealth taxpayers.

ОПТИМИЗАЦИЯ СИСТЕМЫ ТЕХНИЧЕСКОГО ОБСЛУЖИВАНИЯ И РЕМОНТА ПАССАЖИРСКИХ ВАГОНОВ НА ОСНОВЕ ЭКОНОМИЧЕСКОГО КРИТЕРИЯ

The paper is devoted to optimization of maintenance and repair system of passenger cars. The method is based on the use of profitability as a criterion of optimization. Revenue from car operation is supposed to be uniform during a service life. Costs include price of construction, expanses on utilization (with deduction of income from the writeoff), expanses on repairs of large volume, expanses of other railway services and variable expanses on current maintenance of a car in inter-repair periods that are assumed to change linearly and quadratically during each inter-repair period. The authors propose a method to consider dependence of current repairs cost on a car condition during its life cycle. They also have developed a method of optimization of costs on roundhouse servicing and major overhaul. The proposed methods are realised on C++ language in the form of software package that can be used to control the passenger car repair system and for development of new cars.

The Development, Implementation, and Evaluation of Innovative Strategies to Reduce Food Insecurity among Children in the United States

The Development, Implementation, and Evaluation of Innovative Strategies to Reduce Food Insecurity among Children in the United States

Kindergarten for Free?! Empirical Evidence on the Utilization of Income Tax Deductions for Child Care Expenses

AbstractIn most developed countries there exist ample possibilities for individuals to minimize their personal income tax burden by means of tax deductions. The associated revenue losses for the government have been estimated for a variety of tax deductions. However, relatively little is known about the share of eligible taxpayers who actually use these deductions, and, more specifically, about what determines utilization. The present paper tries to shed some light on this question in the context of the tax deductibility of expenses for child care in Germany. Using survey data on actual child care expenses and official tax-return data on deductions for child-care expenses, we derive utilization rates. We also analyze the determinants of utilization among those who filed a tax-return, using a subsample of the tax-return data. Our estimation results show that (potential) tax breaks from utilization are significantly positively correlated with the probability of utilization. Other kinds of deductions are also highly significant, suggesting that knowledge of tax statutes as well as opportunity costs matter. Moreover, we simulate the effects of a policy reform that enhances the generosity of deductions on the utilization rate. Such a reform would substantially increase utilization. Our results indicate that responses in utilization are more important than potential responses in labor supply. (JEL codes: D14, H24, H43).

Revisiting Federal Tax Treatment of States, Political Subdivisions, and Their Affiliates

Several provisions of the 2017 tax legislation, known as the Tax Cuts and Jobs Act (TCJA), focused attention on federal taxation of states, their political subdivisions, and their affiliates. Most prominently, the TCJA limited the federal income tax deduction for state and local taxes to $10,000. States have sued and attempted workarounds. Another pro­vision, which imposes an excise tax of 21% on “excessive compensa­tion” paid by certain entities not subject to income tax, inadvertently failed to subject to tax entities that are integral parts of states or polit­ical subdivisions or are themselves political subdivisions. Calls for a technical correction have so far gone unheeded.More than 20 years ago, I wrote two articles about federal tax­ation of state governments, political subdivisions, and their affiliates. The Teacher’s Manual to a leading casebook on nonprofit organiza­tions describes these two articles as “as much as anyone knows about this confusing patchwork and its ramifications.” The passage of time, changes in my own thinking, and new developments call for my return­ing to this topic. I do so here. Moreover, far more than in my earlier work, I examine the applicable rules regarding charitable contribution deductions to these entities as well as discuss the special rules applicable to governmental charities and the category of charities that lessen the burdens of government.In light of the 2017 tax legislation, I not only renew recommen­dations made long ago, but also extend them to the criteria for exempt­ing entities that lessen the burdens of government, a category that has received little scholarly attention. I also call for establishing a system by which states, political subdivisions, and their affiliates could receive determination letters, like those issued to section 501(c) organizations and thus familiar to potential donors. Such an approach would avoid the distortion of the rules applicable to section 501(c)(3) that arises from the current special treatment of governmental charities. Treating gov­ernmental entities as a distinct category under the Internal Revenue Code, with their own criteria and their own determination letter, would also acknowledge and honor their role in our federalist system.

Belgian Innovation Income Deduction – Recent Ruling Practice Experiences and Update on Documentation Requirements

This article sets out the main provisions of the innovation income deduction regime (which replaced the former patent income deduction regime as from July 2016) and provides further clarification on the application of the regime based on the FAQ published by the Belgian tax authorities. In addition, the article discusses recent experiences with the Belgian ruling practice. Finally, an update is given on the documentation requirements recently clarified by the Royal Decree of October 2019.

The Gallerist’s Gambit: Financial Innovation, Tax Law, and the Making of the Contemporary Art Market

This essay focuses on the efforts of an enterprising art gallerist, Leo Castelli, to aggressively promote his stable of Pop artists through the development of several financial structures, including some designed to leverage the relatively generous income tax deductions and anemic enforcement regime of the time. In doing so, Castelli not only seeded the ground for the international ascendance of American visual art, but also engineered financial arrangements that fostered the development of a lucrative and resilient art market that endures to this day. With the aim to provide insights into both the legal-political and the art historical registers, this essay describes a tax law framework that provides a key piece missing from the art historical puzzle.

THE ROLE OF INTERNAL AUDIT UNITS IN OVERSEEING THE PERFORMANCE OF TREASURER DUTIES AT LEGAL ENTITY

This study measures how the internal audit units play a role in a Legal Entity University in fulfilling their tax obligations so that they fall into the category of compliant taxpayers. The Legal Entity University is a domestic tax subject because it does not meet the criteria of certain units of a government agency that are excluded as domestic subjects, as referred to in Article 2 paragraph (3) letter b of the Income Tax Law. In the case of a Legal Entity University having a business in the form of a separate legal entity, each separate legal entity has its own taxation obligations. With that status, the role of internal audit in LEU is very important, especially in overseeing the implementation of income tax deductions and collection.

БЕЗУМОВНИЙ БАЗОВИЙ ДОХІД ЯК ІНСТРУМЕНТ УДОСКОНАЛЕННЯ СИСТЕМИ СОЦІАЛЬНОГО ЗАБЕЗПЕЧЕННЯ

Introduction. In connection of the exacerbation of the global problem of poverty and property inequality, the crisis of existing social welfare systems, the attention of scholars and practitioners is focused on finding new tools for social protection of the population. As a consequence, scientific research and practical experiments on the introduction of unconditional basic income in the world are being updated. The purpose of the article is to substantiate and determine the prerequisites for improvement of the social security system of the population based on the concept of basic income in Ukraine. Results. The relevance of the study of the preconditions, advantages, potential results and problems of introduction of unconditional basic income in Ukraine are substantiated. The authors consider the theoretical grounds for the expediency of its application in our country to compensate citizens for lost access to natural resources in an oligarchic-clan economy. An ability and sources of financing of unconditional basic income in Ukraine are analyzed. It is proposed to improve the taxation system (introduce a progressive income tax rate scale) and fiscal instruments (in particular in the area of natural resource rentals) for this purpose. The prerequisites for the introduction of basic income are defined: a high level of civic awareness and economic consciousness of the population, a stable and effective tax system, the deduction of income and property. Based on the analysis of the social structure of the population of Ukraine, its citizens’ self-assessment of their incomes, the assumption is made about the inefficiency of basic income as a stimulator of human capital development in the direction of entrepreneurship and creativity in the short term after its introduction. It is suggested that basic income in Ukrainian realities can have a positive effect on solving problems such as labor emigration, demographic situation, decline of the Ukrainian village, which requires appropriate social experiments. Conclusions. As a result, it is concluded that the use of unconditional basic income in Ukraine in combination with other social transfers is feasible under the conditions of: reforming the system of taxation and payments for the use of natural resources; legalization of shadow income; raising social standards to an objective level of satisfaction of human physiological and spiritual needs; strengthening the control over the efficiency of use of budgetary funds; stimulating investment in human capital; infrastructure improvements; raising the standard of living of the poorest population groups. Key words: social security, social inequality, poverty, unconditional basic income, citizens’ incomes, social transfers.

Trying Times: Conservation Easements and Federal Tax Law (April 2019)

Since 2006, the Tax Court, District Courts, and Circuit Courts have collectively issued more than one-hundred opinions relating to the federal charitable income tax deduction for the donation of perpetual conservation easements. This outline discusses these court decisions and other developments in the conservation easement donation context.

The Gallerist’s Gambit: Financial Innovation, Tax Law, and the Making of the Contemporary Art Market

This essay presents an account of an important moment in the emergence of the market for Pop art that was facilitated in part by a distinctly accommodating legal environment. Although Abstract Expressionism is commonly credited with causing American art’s ascendance onto the world stage immediately after World War II, its international acclaim belied a precarious institutional and financial infrastructure for living American painters. It was only with the following generation of Pop and Minimalist artists that the United States developed a self-sustaining market for the work of contemporary American artists. A significant but largely overlooked factor in that continued success was the ability of art dealers to take advantage of the unique legal and regulatory environment of the 1960s. This essay focuses on the efforts of an enterprising art gallerist, Leo Castelli, to aggressively promote his stable of Pop artists through the development of several financial structures, including some designed to leverage the relatively generous income tax deductions and anemic enforcement regime of the time. In doing so, Castelli not only seeded the ground for the international ascendance of American visual art, but also engineered financial arrangements that fostered the development of a lucrative and resilient art market that endures to this day.

System of local budget revenues and its development on example of the appropriate budget

The analysis of the role of local budgets in the conditions of market economy as one of the most effective tools for creating a favorable financial climate and ensuring economic equilibrium at the micro level has been carried out. The problem of forming, executing and searching for ways to improve the system of income part of local budgets is investigated in order to increase the level of social and economic development of a particular region. The analysis of the dependence of economic and social stability, the proper standard of living of the population on the correct and consistent implementation of the budget process (system) at the local level is analyzed. The analysis of achievement of real autonomy of local budgets, full financing of both own powers and powers transferred to the local level in the process of decentralization, improvement of intergovernmental relations, increase of efficiency and efficiency of using budget funds are carried out. Changes in fiscal and tax legislation and new approaches to the formation of the revenue part of local budgets have been analyzed. A new mechanism of budget regulation and equalization has been explored as a tool for aligning local budgets' fiscal capacity instead of a balancing system. The present state of the income base of local budgets in Ukraine is analyzed on the example of the budget of the city of Kharkiv; the role of local taxes and fees in the process of forming the revenue part of local budgets is explored. A comparative analysis of the indicators and structure of the revenue part of the Kharkiv city budget for 2015-2018 is made. Generalized results of the process of improving the system of inter-budgetary relations. The shortcomings of the current formula for distributing intergovernmental transfers (equalization grants and funds transferred from local budgets to the state budget) are analyzed. The proposed directions for improving the system of local taxation to increase the volume of local budget revenues from their own sources, the most important of them being the deduction of personal income tax in local taxes. The principles of development of the system of local taxation in Ukraine, the implementation of which in the future will lead to strengthening the revenue base of the budgets of local self-government bodies.

신용카드 등 소득공제의 결제수단별 공제율 차등이 결제수단 배분에 미치는 영향

신용카드 등 소득공제의 결제수단별 공제율 차등이 결제수단 배분에 미치는 영향

The Impact of Snap Work Requirements on Labor Supply

This study explores the impact of work requirements for the Supplemental Nutrition Assistance Program (SNAP) on the labor supply of able-bodied adults without dependents, exploiting unique features of SNAP work requirements. First, states can exempt individuals living in certain areas from work requirements. Second, the work requirements apply only to adults aged below 50. Using a triple difference model that compares the time-series changes in labor supply for age groups on either side of the age threshold in areas before and after the exemption, I find that suspending work requirements does not discourage employment; a decrease in employment of more than 1.4 percentage points among people who are potentially affected by the exemption can be ruled out with a 95% confidence interval. I also find evidence of a reduction in hours of work among older prime-age workers due to the work exemption. Further analysis uncovers two reasons why the work exemption has little effect on employment. First, many new SNAP participants who enrolled due to the exemption are the long-term non-employed who have no labor supply to reduce. Second, the generous income deductions in benefit calculation act as work incentives by significantly lowering the effective benefit reduction rate at very low income ($0–600). These findings indicate that the SNAP work requirement is unlikely to achieve the intended goal of promoting employment; instead it may increase the risk of disadvantaged individuals failing to receive the assistance they need.

TAX PREFERENCES AND THEIR INFLUENCE ON THE INVESTMENT IN UKRAINE

The article characterizes the relationship between capital investments and corporate income tax preferences. It determines the low potential of the benefits from the corporate tax preferences in the financial investments of economic entities. The article proves that tax deduction of the personal income tax significantly affects the financial investments of individuals and investment in the development of human capital. Based on the calculation of correlation indicators, the article determines that it is worth paying attention to the mechanism of tax incentives for individuals' investment activity as to the only real incentive to invest for the population. The article emphasizes that the question of the effectiveness of preferential taxation has always been in the focus of theoretical research and practical measures, as it causes the non-receipt of certain sums to budgets of different levels and, at first glance, seems ineffective. The study expresses the view that it is unreasonable to cancel tax privileges. In particular, tax exemptions for VAT, in addition to mitigating its regressive impact on less affluent and socially vulnerable segments of the population, stimulate investment.The article mathematically grounds and systematizes the indicators of regression dependence between the size of tax privileges and capital and financial investment, and investment in the development of human capital. The article determines that in general the size of tax privileges does not affect the volume of tax revenues and does not lead to the significant losses of the state budget. Taking this into account, VAT and land tax deductions for agricultural producers, aircraft, shipbuilding and other strategically important industries need to be preserved and optimized in order to eliminate tax evasion practices. The potential of corporate income tax benefits is not utilized and it does not stimulate the capital investment of legal entities. The article suggests the list of measures for its optimization.