Income Tax Research Articles

Strategic challenges in retail sales

The outbreak of a full-scale war has shaken up the domestic economy, including the retail sector, which performs important tasks for the state. This was a significant blow to the country, as the retail sector is one of the largest emp­loyers in many countries around the world. It also contributes to the overall growth of production and economic develop­ment in general, generates significant tax revenues, etc. However, despite the continuation of martial law, the retail sector is working to normalize processes and adapt to future challenges. For these reasons, the hypothesis is formulated that current trends should meet the challenges of retail, compensate for losses through new approaches and solutions. To achieve this hypo­thesis, general scientific and special research methods such as analysis and synthesis, system-structural analysis and generalization were used. The key strategic challenges for modern retailers, such as climate change, staff shortages, pressure on supply chains, and martial law in Ukraine, are investigated. It is found that the main trends in the market are aimed at digitalizing the work of companies, their optimization, to create a comfortable environ­ment that can meet the needs of the modern consumer. Modern retailers should work not only on the quality of products and services, but also on the brand and policy, which should intersect with the current values of consumers. Such trends can reduce the impact of negative phenomena on the work of trade enterprises, as they are able to reduce losses and the need to attract new employees. It was found that the nearest forecasts are related to the introduction of artificial intelligence and other digital technologies in retail operations, the expansion of the influence of companies in the virtual environment, and the personalization of products for certain categories of the population. The conducted research makes it possible to characterize the retail of the future, to determine what features a modern business should possess in order to remain competitive on the market.

Effect of Industrialization on Taxes from Income, Profit and Capital Gains Among Sub-Sahara African Countries

Tax revenue is a crucial financial resource for governments worldwide. Developed nations often secure ample tax revenue through robust industrial performance. In contrast, developing economies struggle with various challenges that hinder tax revenue from sources such as income, profit, and capital gains, largely due to high unemployment and inadequate industrialization. This study employed an ex-post facto research design and analyzed panel data from 38 countries over 21 years (2001–2021), sourced from the World Bank Group Database. The System Generalized Method of Moments (SGMM) analysis revealed that industrial performance significantly impacts tax revenue from income, profit, and capital gains in sub-Saharan African countries. The study concluded that advancing industrialization in sub-Saharan Africa is essential for maximizing tax revenue from these sources. It is recommended that governments in the region focus on accelerating industrial growth as a strategy to achieve sustainable tax revenue generation.

Better cigarette tax policies and higher tobacco excise tax revenues

BackgroundIn November 2021, the Tobacconomics team published the second edition of the Cigarette Tax Scorecard which evaluates cigarette taxation in each country based on four components—cigarette price, affordability change, tax...

An improved variant of quantitative randomized response techniques using forced responses

The randomized response technique has gained a wide popularity among survey researchers over the past few decades. Randomized response procedure is applicable in a variety of fields including sociology, psychology, business, and education, etc. It is a useful method which helps the researcher in dealing with the high non-response rates in sample surveys on sensitive issues such as monthly income, traffic rules violations, income tax amount, and expenditure on luxury items, etc. We introduce an optimal scrambling technique which uses forced responses. The algebraic properties of the estimator of population mean using the suggested technique have been derived. For the purpose of comparison with existing models, the different measures of model-evaluation have been obtained. Our analysis suggests that the new quantitative technique using forced responses is better than the available scrambling techniques not only in efficiency, but also in the combined metric of model’s efficiency and level of privacy, which make it more useful than the available models for practical problems. Using real-world example, we illustrate its practical implementation to sensitive sample surveys.

Singapore: Insights from Hong Kong Case Law on Locating the Source of Business Profits

This article reviews landmark cases from Hong Kong concerned with locating the source of business profits. It extracts guiding principles from these cases and evaluates their relevance in interpreting statutory provisions that define the scope of income taxation in Singapore, and for resolving issues relating to whether business profits are sourced in Singapore.

Impacts of tobacco tax increases on tax revenues and public health in Serbia – a simulation model

Impacts of tobacco tax increases on tax revenues and public health in Serbia – a simulation model

The Impact of Digitalization on Broadening Income Tax Foundations

The Impact of Digitalization on Broadening Income Tax Foundations

Effect of Royalty Payments on Tax Revenue Collection on Multinational Enterprises in Kenya

Purpose: The study sought to investigate the effect of royalty payments on tax revenue collection on MNEs in Kenya. The study was further explained by the accounting, economic and transaction theories. Methodology: The study adopted an explanatory research design and longitudinal research design while a secondary data collection method was used to collect data through content analysis of audited financial statements of a target population of 62 firms listed on the Nairobi Securities Exchange (NSE) in Kenya. The sample of the study was identified using inclusion-exclusion criteria to identify the 28 MNEs that met the sampling criteria for this study over an observation period of 11 years. Results: The study found that royalty payments negatively affect tax revenue collection (????=− 0.0000113, p = 0.025). Conclusion: The study concluded that there is a significant negative relationship between royalty payments and tax revenue collection. This study therefore recommends the government should introduce guidelines on royalty payments, specifically outlining the procedures through which an MNE should claim for deduction of royalty payments, from their incomes.

Effect of Perceived Usefulness of Digitized System on Rental Income Tax Compliance Among Landlords in Makadara Constituency, Nairobi County, Kenya

Purpose: Despite the tremendous growth in real estate, the corresponding tax collection from the sector has remained low. The contribution by rental income earners has been low despite all the efforts to enforce rental income tax policies. The study examined the perceived usefulness of digitized system on rental income tax compliance among landlords in Makadara Constituency, Nairobi County, Kenya. Methodology: It was guided by a unified theory of acceptance and use of technology the study adopted an explanatory research design. The target population was 4,927 landlords in Makadara Nairobi County. The sample size of the study was 369, and the study questionnaires that were correctly filled and returned were 230. The study used primary data which was collected using structured questionnaires with close-ended questions and a pilot test was conducted to test reliability and validity. Results: The study found that Perceived usefulness of digitized system and rental income tax compliance, β=0.261 p-value =0.000<0.05. Conclusion: Based on the findings the study recommends that the KRA should launch widespread campaigns to educate landlords about the usefulness of digitized systems. Future studies could be conducted to determine the impact of tax reforms on rental income tax compliance.

Interlinkages between public expenditures, non-tax government revenues and corruption in the transition economies

PurposeThis article examines potential impacts of increase in non-tax government revenues and public expenses on corruption for 11 transition economies in the Central and Eastern Europe.Design/methodology/approachThe empirical analysis uses yearly panel datasets and employs second-generation panel data models which take cross-sectional dependency and slope heterogeneity into account.FindingsThe empirical results reveal the fact that there is a strong linkage between public expenses and corruption and a weak linkage between non-tax revenue collection and corruption in the transition economies. We perform the same analysis by using data sets from G-7 countries but do not notice any linkages between those variables.Research limitations/implicationsThe research topic requires further discussion on constitutional political economy to digest the empirical findings. Thus, an extended version combined with political economic approach might be useful.Practical implicationsThrough economic transitions, there might be a linkage between public expenditures and corruption index. Thus, public spending might be controlled by using constitutional economics policies.Originality/valueThis paper is the first empirical work in the literature, which examines if there is a linkage between corruption and public expenditures and government tax income structure by using panel data sets. Moreover, it compares the results from transition countries with those of G-7 countries and provides certain policy suggestions in the context of constitutional economics.

The Factors Affecting to Government’s Expenditure of Lao PDR

This paper aims to analyze the factors affecting the government’s expenditure of Lao PDR. Using the time series data from 2000-2022 which retried from the bank of Lao PDR and implied with the ARDL model. The empirical results found that there is a long-term relationship and ARDL (2, 2, 1, 2, 2) model were used. The empirical results found that in the long run, the tax revenue and economic growth have a positive relationship with the government’s expenditure with a statistical significance level of 0.01 and 0.1 respectively. While inflation and money supply are not statistically significant. In the short term, tax revenue, economic growth rate and money supply affect the government’s expenditure with statistically significant effect, while the inflation rate does not have a statistically significant. Tax revenue and economic growth rate affect the government’s expenditure in the opposite direction with a significance level of 0.05 and contrary to the hypothesis. The money supply affects the government’s expenditure in the same direction with a statistically significant level of 0.05 and according to the hypothesis. Which the coefficient of the spread adjustment to the long run equilibrium is equal to 90.97%.

The Current State Of Personal Property Taxation

A significant portion of local budget revenues is generated from tax revenues derived from individuals' property tax payments. Thus, the property tax levied on individuals is an important factor influencing the development level of the regions in our country. This article highlights the factors affecting property tax volumes and the tax incentives related to its payment. The theoretical and methodological foundations of taxing individuals on property are examined. The components of the property tax are analysed: the tax on real estate, excluding land plots, transport tax, and land use fees. The mechanism for collecting property tax from individuals is discussed under the Tax Code of Ukraine. The fiscal effectiveness of the existing system of property taxation for individuals in Ukraine is analysed, along with the peculiarities caused by the imposition of martial law. In the context of armed aggression against Ukraine, government budget expenditures have significantly increased. Therefore, studying the fiscal function of the property tax on individuals is a pressing issue. The article presents data on the payment of real estate tax by individuals, excluding land plots, transport tax, and land fees, before and after the onset of military actions in Ukraine. The research has established that the volumes of tax revenues from individuals' property taxes are increasing yearly. The research results confirm that the property tax on individuals, under martial law, is a substantial source of funding for local budgets in Ukraine. This underscores the importance and necessity of further enhancing the fiscal function of this tax. It has also been established that the fiscal potential of the property tax on individuals is not fully utilized due to the deficiencies in the existing taxation system. Brief examples of property taxation for individuals, based on the assessed value of such property in foreign countries, are provided. The prospects for reforming the property taxation system for individuals in Ukraine are discussed. Recommendations for reforming the property tax for individuals are formulated to increase its fiscal function.

Revenue Streams and Capital Outlay: An Empirical Study of Municipal Corporations in India

This paper empirically tests the relationship between municipal revenue streams and capital outlay focused on building new infrastructure and amenities for sustainable urban development. The study follows a cross-sectional research design without a time dimension using secondary data from municipal corporations across 26 Indian states and Union Territories obtained from the Reserve Bank of India’s Report on Municipal Finances. An Ordinary Least Squares model was used to estimate the coefficients of own tax revenue, own non-tax revenue and revenue from government transfers. The study's main results show that while coefficients of own non-tax revenue sources, i.e., Rental Income, Fees & User Charges, and Interest earned are 8.52, 3.56, and 40.43 respectively with associated p-values of 0.000, suggesting greater influence in determining capital outlay, the coefficients of own tax revenue sources such as Property Tax, Water Tax, and Advertisement Tax are -0.21, -2.96 and 15.78 respectively with p-values exceeding 0.05 suggesting an insignificant relationship. Transfers from the central government are significant factors influencing capital outlay of the municipal corporations given by a coefficient of 2.45 with an associated p-value of 0.01, while state government transfers have a negative relationship given by a coefficient of -1.15 with a p-value of 0.023. The study also employs several diagnostic tests to ensure validity of the results and robustness of the model employed. The Adjusted R-squared value of 0.98 shows the model is a good fit and coefficients are relevant. Model diagnostics reveal that the results are efficient and model is a good fit to the data. The paper then concludes with discussion on the results obtained and policy suggestions along with indicating scope for further research in the field.

Instrument of the Legal Mechanism of Tax Revenues to the State Budget

The article presents the economic essence of the state budget of the country as an instrument of the legal mechanism of tax revenues, which allows the state to influence consumption, investment and export, as well as redistribute budget funds in favor of the neediest sectors of the economy. The authors define the instruments of public administration as an integral part of economic regulation of the socio-economic development of the Kyrgyz Republic, as well as the main areas of use of public financial resources, financing methods and the main sources of replenishment of the treasury. The source of the study was the works of scientists considering issues of the state budget. A set of research methods with an emphasis on theoretical and practical methods was used.

Unlocking the power of tobacco taxation to mitigate the social costs of smoking in Mexico: a microsimulation model.

Despite being the most cost-effective tobacco control policy, tobacco taxation is the least implemented component of the World Health Organization MPOWER package to reduce smoking worldwide. In Mexico, both smoking prevalence and taxation have remained stable for more than a decade. This study aims to provide evidence about the potential effects of taxation to reduce the burden of tobacco-related diseases and the main attributable social costs in Mexico, including informal (unpaid) care costs, which are frequently ignored. We employ a first-order Monte Carlo microsimulation model that follows hypothetical population cohorts considering the risks of an adverse health event and death. First, we estimate tobacco-attributable morbidity and mortality, direct medical costs and indirect costs, such as labour productivity losses and informal care costs. Then, we assess the potential effects of a 50% cigarette price increase through taxation and two alternative scenarios of 25% and 75%. The inputs come from several sources, including national surveys and vital statistics. Each year, 63 000 premature deaths and 427 000 disease events are attributable to tobacco in Mexico, while social costs amount to MX$194.6 billion (US$8.5)-MX$116.2 (US$5.1) direct medical costs and MX$78.5 (US$3.4) indirect costs-representing 0.8% of gross domestic product. Current tobacco tax revenue barely covers 23.3% of these costs. Increasing cigarette prices through taxation by 50% could reduce premature deaths by 49 000 over the next decade, while direct and indirect costs averted would amount to MX$87.9 billion (US$3.8) and MX$67.6 billion (US$2.9), respectively. The benefits would far outweigh any potential loss even in a pessimistic scenario of increased illicit trade. Tobacco use imposes high social costs on the Mexican population, but tobacco taxation is a win-win policy for both gaining population health and reducing tobacco societal costs.

EFFECTS OF DISAGGREGATED TAX REVENUES ON ECONOMIC GROWTH IN NIGERIA (1995-2023): ARDL BOUND TEST APPROACH

<p>Tax revenue has been a great tool of fiscal policy harnessed toward the economic development of a nation. Its different components have collective effects on the economic growth of a nation. This study examined the effects of disaggregated tax revenue on Nigeria's economic growth from 1995 to 2023. The data was sourced from the Central Bank of Nigeria and the Federal Inland Revenue Service databases. This study examined the effects of disaggregated tax revenue on Nigeria's economic growth from 1995 to 2023. The data was sourced from the Central Bank of Nigeria and the Federal Inland Revenue Service databases. Employing multiple regression analysis within an Autoregressive Distributed Lag (ARDL) model, the study assessed the impact of Value Added Tax (VAT), Companies Income Tax (CIT), Petroleum Profit Tax (PPT) and Personal Income Tax (PIT) on economic growth. The diagnostic tests confirmed the model's validity, with unit root tests showing that all variables, except PIT, achieved stationarity after differencing. The findings revealed that each tax revenue component positively influences economic growth. Based on these results, the study recommends enhancing the legal and regulatory frameworks for businesses, including regular evaluations and updates of tax laws and stronger enforcement mechanisms. It also underscores the need to strengthen anti-corruption efforts, promote property rights, uphold the rule of law, and prioritise good governance to foster public confidence and ensure the effective use of tax revenues for economic development.</p><p><strong>JEL: </strong>C32, H20, H24, H25</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0785/a.php" alt="Hit counter" /></p>

ANALISIS PPN DAN PPH BADAN PADA PERUSAHAAN KONSTRUKSI PT. ACG

This research was conducted with the aim of knowing the imposition of income tax rates and corrections contained in the Tax Return period of Value Added Tax on companies. This research was conducted with an interview process to get data on the company's financial statements during 2020 and other information related to what is needed from the company. The results of this study show that the company has applied the final income tax rate in accordance with the applicable provisions and the company also experiences more payment every month so that it can make restitution or compensation.

State Social Expenditures and Preterm Birth and Low Birth Weight in the US

Adverse birth outcomes in the US, including preterm birth and low birth weight, are strongly tied to socioeconomic disadvantage and disproportionately impact infants of Black mothers. Increasing investments in social programs represents a potential policy approach to addressing disparities in birth outcomes. To examine state-level associations of government expenditures on social programs with rates of preterm birth and low birth weight both overall and by race. This cross-sectional, ecological study was conducted among liveborn infants in the 50 US states between January 1, 2011, and December 31, 2019. Data analysis was performed from May 2022 to May 2024. Yearly state and local government expenditures per low-income person on social programs in the following categories: state refundable Earned Income Tax Credit; cash assistance; childcare assistance; housing and community development; and public health. Yearly state-level rates of preterm birth (gestational age <37 weeks) and low birth weight (<2500 g). From January 1, 2011, to December 31, 2019, there were 35.1 million live births in the US, of which 3.4 million (9.8%) were preterm and 2.8 million (8.1%) were low birth weight. Median (IQR) state social expenditures per low-income person were $1546 ($1074-$2323). Greater total state social expenditures were associated with lower overall rates of preterm birth (adjusted prevalence ratio [aPR] for every increase of $1000 per low-income person, 0.99; 95% CI, 0.97-0.999) but not with overall rates of low birth weight. In secondary analyses, greater state social expenditures were associated with lower preterm birth rates for infants of Black mothers (aPR, 0.96; 95% CI, 0.92-0.999). Greater state expenditures specifically on cash assistance (aPR, 0.64; 95% CI, 0.43-0.94) and housing and community development (aPR, 0.91; 95% CI, 0.84-0.98) were associated with lower preterm birth rates for infants of Black mothers. In this cross-sectional, ecological study, greater state-level expenditures on social programs were associated with reduced rates of preterm birth, particularly for infants of Black mothers. State and local governments may consider bolstering investments in cash assistance and housing and community development to address maternal and infant health disparities.

ANALISIS PERHITUNGAN, PENYETORAN, DAN PELAPORAN PPH PASAL 21, PPH PASAL 22, PPH PASAL 23 DAN PPH PASAL 25 PADA PT. UND TAHUN 2021

UND is one of the non-open companies that deals in chemicals. This company's been operating for 30 years Using technological systems in keeping with the development of The Times and the good organizational structure, pt. Und has been able to compete and survive with competitors until now. The study aims to find out the analysis and income tax calculations of 2021 through data obtained by direct writers from the company, so all available data is complete with evidence. Besides knowing the tax analyses and calculations, the study is also aimed at knowing whether companies follow government regulations or not when it comes to accounting, deposits, and reporting PPH chapters 21, chapter 22, chapter 23, and chapter 25 2021. The types and data sources used by the author are the primary data with data techniques that interview methods and data obtained from descriptive analysis.

Willingness to Pay for Nature Protection: Crowdfunding as a Payment Mechanism

AbstractIn this study, we use a discrete choice experiment to elicit the willingness-to-pay (WTP) for preventing and mitigating the effects of oil spills on marine and coastal ecosystem services, along a particularly vulnerable coastal region of mainland Portugal. We used a split-sample design to analyze the differences between two payment vehicles (PV): a mandatory extra income tax and a voluntary contribution collected by a crowdfunding campaign with a provision point mechanism and a money-back guarantee. The difference between the two PVs is examined in a setting where the local population has a negative perception of the quality of institutions. We find that respondents are more willing to contribute when presented with the crowdfunding version. Also, regardless of the payment vehicle, respondents who express a mistrust in institutions are more likely to choose the status quo. These results suggest the potential of using crowdfunding to support ecosystem services’ conservation initiatives.