Introduction Of Tax Research Articles

Taxation of Digital Companies: Experience of Russia and Other Countries

The article concerns the patterns of development of the tax legislation of the Russian Federation and other countries related to the taxation of companies providing digital services. Some scientific and practical issues affecting the problems of tax incentives for entrepreneurship in digital companies are analyzed. The article covers the issues of the staged transformation of Russian tax law, which occurred as a result of the so-called "tax maneuver" of the rules for taxation of IT companies, associated with the need to stimulate the production of national software. The main idea of the research is - the concept of legal regulation of taxation of digital companies should be based on the supranational agreements reached by states, in accordance with which the digital transformation of tax legislation of individual countries will be carried out. The prospects for the introduction of digital taxes in Russia were also estimated, taking into account the experience of other countries as a unilateral response actions to the failure to reach an international consensus on taxation of the digital economy. At the same time, both the possible risks and the positive aspects of establishing a digital tax, which have a beneficial impact on the Russian tax climate, are indicated. The author uses the historical and comparative legal methods of science, as well as the method of systems analysis.

The legal feasibility of adopting a sugar-sweetened beverage tax in seven sub-Saharan African countries

ABSTRACT Background: A number of countries have adopted sugar-sweetened beverage taxes to prevent non-communicable diseases but there is variance in the structures and rates of the taxes. As interventions, sugar-sweetened beverage taxes could be cost-effective but must be compliant with existing legal and taxation systems. Objectives: To assess the legal feasibility of introducing or strengthening taxation laws related to sugar-sweetened beverages, for prevention of non-communicable diseases in seven countries: Botswana, Kenya, Namibia, Rwanda, Tanzania, Uganda and Zambia. Methods: We assessed the legal feasibility of adopting four types of sugar-sweetened beverage tax formulations in each of the seven countries, using the novel FELIP framework. We conducted a desk-based review of the legal system related to sugar-sweetened beverage taxation and assessed the barriers to, and facilitators and legal feasibility of, introducing each of the selected formulations by considering the existing laws, laws related to impacted sectors, legal infrastructure, and processes involved in adopting laws. Results: Six countries had legal mandates to prevent non-communicable diseases and protect the health of citizens. As of 2019, all countries had excise tax legislation. Five countries levied excise taxes on all soft drinks, but most did not exclusively target sugar-sweetened beverages, and taxation rates were well below the World Health Organization’s recommended 20%. In Uganda and Kenya, agricultural or HIV-related levies offered alternative mechanisms to disincentivise consumption of sugar-sweetened beverages without the introduction of new taxes. Nutrition-labelling laws in all countries made it feasible to adopt taxes linked to the sugar content of beverages, but there were lacunas in existing infrastructure for more sophisticated taxation structures. Conclusion: Sugar-sweetened beverage taxes are legally feasible in all seven countries Existing laws provide a means to implement taxes as a public health intervention.

ТРАНСФОРМАЦІЯ ФІНАНСУВАННЯ МЕДИЧНОЇ ГАЛУЗІ В УКРАЇНІ У СУЧАСНИХ УМОВАХ

The article is devoted to the study of the development and analysis of urgent problems in financing the medical industry. The transformation of the financing of the medical industry is the key to building a mechanism of financial stable support for the population based on providing all citizens of Ukraine with equal and high-quality medical services. During 2014–2019, there was a decrease in the priority of health related to debt service, subsidies and pension costs, so the old financing model is no longer effective. Thus, for further transformation, it is necessary to increase funding or switch to a new model. The reform proposed by the Ministry of Health of Ukraine will not require the introduction of additional taxes and fees. Insurance premiums in Ukraine are provided by the general system of taxation. Experts believe that the introduction of an additional special fee on wages or payroll is inappropriate in an economic crisis. The National Health Service of Ukraine (NHSU) will act as an insurer. The money to cover medical expenses will come to this agency from the state budget. It is planned to introduce a clearly defined state guaranteed package of medical services, which will be based on the priorities of health care Consumers of medical services Budget of the National Health Insurance Fund Medical institutions and taking into account the economic situation of the state. The amount of funding for the state guaranteed package of medical services is a dynamic value, which is approved annually by the parliament. In 2018, the state will pay a doctor UAH 370 per patient per year without taking into account the relevant age coefficients, and from 2019 this amount is planned to increase to UAH 450. Calculations for secondary and tertiary care are still ongoing. Under this funding model, hospitals will not receive funds for biased overstatement of beds, economically unjustified living expenses and inflated staff. In other words, the reform envisages improving the efficiency of the use of budget funds in the health care system and stimulates the improvement of the availability and quality of medical services for patients.

How swachh (clean) is urban India today?

Where public supply has failed and made unsatisfactory progress in supplying drinking water, the private sector has readily stepped in to supply citizens with drinking water – most often to make big money. Much of the water bottling industry (i) provides a highly inelastic good, (ii) is immensely profitable and (iii) has significant negative externalities on public utilities, the natural environment and the quality of life in urban settings. The wide-spread introduction of a tax on the commercial water extraction and/or bottled or sachet water is ripe. The new mantra must not be “3Rs”, but “4Rs” – reduce, reuse, remunerate, recycle.

The Influence of Carbon Tax on the Feasibility of Industrial Project: A Case Study of Heat Exchanger Replacement at PT Kaltim Methanol Industri, Indonesia

Petrochemical industries have faced growing pressure to decrease their carbon emission from direct and indirect sources. This work aims to demonstrate a carbon tax’s introduction to a feasibility study on the heat exchanger (HE) replacement project at PT Kaltim Methanol Industri, Indonesia. The project was aimed to avoid methanol release as much as 48.88 MT/year. The release of methanol can also be associated with CO2 emission with an emission factor of 0.6 ton CO2e/ton methanol. Here, we investigated the influence of inclusion and exclusion of carbon tax to monetize the CO2 release. From the project investment point of view, carbon tax inclusion is expected to increase the cost-saving. Introduction of the carbon tax as high as 10 USD/ton CO2e with 5% annual increase gives IRR value of 7.06% with Payout Time (PoT) of ca. 11 years. The IRR value without carbon tax scenario is 6.68 % with the same range of PoT. Hence, the inclusion of carbon tax may increase the feasibility of the project. This work has demonstrated the positive role of the carbon tax to increase the feasibility of a project which inlines with the national initiatives to curb the CO2 emission from chemical industries. It is also worth noting that introduction of carbon tax should be accompanied by a reorganization of government incentives, including several financial policies to create a conducive atmosphere for investors in Indonesia.

반려견 보유세 도입에 대한 탐색적 연구

사회·문화·경제적 변화에 따라 반려동물의 사육 수가 증가되고, 반려동물의 적절한 관리를 위해 필요한 재원부담도 늘고 있다. 농림축산식품부는 “동물복지 5개년 계획”을 통해 장기적으로 반려동물 보유세를 검토하겠다고 발표하였다. 이 연구는 반려동물 보유세에 대한 학술적 검토와 논의가 활성화되지 않은 상태에서 동 조세 도입의 사회적 합의가 있다는 가정하에 전략적 도입방안을 검토하는데 목적을 두었다. 조세의 신설은 부담자와 편익자 등 다수의 저항을 불러올 수 있으며 찬･반 양론이 대립 중임을 감안해 반려동물 보유세 도입 여부에 대한 판단은 연구에서 제외하였다. 이 연구에서는 반려동물 중 가장 큰 비중을 차지하는 반려견만을 대상으로 분석하였고, 이를 기반으로 반려견 보유세 도입의 전제와 방식을 제안하였다. 반려견 보유세를 도입한다고 가정할 경우 단기 대안과 장기 대안을 구분하여 제시하였다. 단기적으로는 “면허세” 방식으로 도입하되 장기적으로는 “책임･규제세” 형식으로 전환함이 타당함을 제시하였다. 구체적으로 원인자 부담과 수익자 부담 원칙을 따르되 목적세 형식으로 도입하고, 종량세 형식을 취하되 견종과 개체 수에 따라 차등 세율을 적용하며, 외부경제와 불경제가 발생되는 기초자치단체에 과세권을 부여하는 방식을 제시하였다. 이 연구는 아직 지방재정 분야에서 논의가 확산되지 않은 반려견 보유세 도입에 대한 탐색적 연구로서 향후의 논의 기초를 제공한다는 함의를 갖는다.

주행거리 기반 세제 도입에 따른 운전자 행태 모형 개발 : 부산광역시를 중심으로

친환경 · 고효율 차량의 보급이 확대됨에 따라 내연기관 차량의 석유연료 수요가 감소하고 그에 따른 교통관련 세수 확보 여건이 악화되었다. 아울러 차량 연료 효율이 개선되면서 저효율-고효율 차량 간 비용 불공평 문제가 발생하고 있으며, 이를 완화하기 위해 교통선진국들을 중심으로 주행거리세의 도입이 시도되고 있다. 본 연구는 향후 주행거리세의 국내 도입에 따라 예상되는 통행행태 변화를 분석하고자 전국 1인당 교통혼잡비용이 가장 높은 부산광역시의 운전자들을 대상으로 진술선호 방식 설문조사를 실시하였으며, 다항 로지스틱 회귀분석을 통해 주행거리세의 시행에 따른 운전자들의 통행행태 변화와 그 영향 요인을 살펴보았다. 주행거리세의 징수 방식은 첨두시간과 혼잡구간을 주행하는 차량에 더 높은 요금을 부과하도록 정의하였고, 이에 따라 운전자들이 선택 가능한 대안을 기존 통행유지, 출발시간 변경, 경로변경, 대중교통으로 수단 전환이라는 네 가지 대안으로 구분하여 분석하였다. 그 결과, 주행거리세 시행에 따라 출발시간 변경에 영향을 미치는 요인은 통행목적, 첨두시간 출발여부, 자차여부, 주행거리세 지불의사액이고, 경로 변경에 영향을 미치는 요인은 연령, 소득, 통행목적이며, 마지막으로 대중교통으로 수단 전환에 영향을 미치는 요인은 소득, 통행목적, 자차여부, 차량종류, 차량연료인 것으로 나타났다. 분석결과를 토대로 향후 주행거리세를 통한 세수 확보와 교통정체 및 대기오염 감소 등 교통시스템 개선을 위한 다양한 정책적 고려사항을 제시하였다.

'You cannot touch taxes easily': making the case for tobacco taxation in India.

India represents over 1.3 billion people with >100 million adult smokers. The catastrophic health costs of smoking are staggering; and estimates show that even modest increases in taxes on cigarettes and bidis would both raise substantial revenues for the government and save ∼69 million years of healthy life over the next four decades. Karnataka represents a good example of tobacco control efforts and their impact. This case study examines the factors that have contributed to tobacco control policy in Karnataka based on 23 semi-structured interviews with key informants engaged in tobacco policymaking and decision-making, tobacco control/taxation research and advocacy. Their narratives indicate that: (i) Domestic taxation policy is complicated by the complex tax structure and centralized control over taxation with the introduction of Goods and Services Tax; (ii) Implementation of legal frameworks is a challenge, due to conflicts with powerful industry and farmer lobbies. A vigorous civil society backed by the Courts is necessary to garner political support; (iii) Action on taxation is hampered by weak leadership and mixed messaging; and (iv) There is a need for innovative policy solutions to promote both demand- and supply-side measures for tobacco control. Tobacco control advocates need to recognize the political economy of tobacco control and generate strong, reliable and scientifically sound evidence to support their arguments. Working for incremental 'wins' in terms of more stringent application of existing legal frameworks can make a substantial difference even in contexts where enhancing tobacco taxes is a challenge. Promoting multisectoral action is critical, at both policy and the ground levels, by expanding ownership and responsibility for tobacco control to sectors beyond health. Finally, the health sector needs to recommit to its role as a champion for tobacco control. Failure to do so would amount to a failure on multiple fronts-public health, economic, fiscal and ethical.

Carbon tax to lower emissions: the likely impact of carbon emissions tax on households in South Africa

The South African government, along with other countries, has signed the Paris Agreement to commit to lowering carbon dioxide emissions. This has led to the introduction of carbon tax in different countries to combat global warming. The Mexican government was the first to introduce carbon tax amongst the emerging economies back in 2014, while the Argentine government implemented carbon tax in January 2018. The South African government followed suite and introduced carbon tax effective 5 June 2019. Households are expected, however, to be weighed down by the levy as the carbon fuel levy will be implemented at 9 and 10 cents per litre on petrol and diesel respectively. The impact on strained households’ income is expected to emanate from the already high fuel prices, which have been on a rising trajectory since the beginning of 2019.

TAXATION OF AGRICULTURAL ACTIVITY IN POLAND: THE CURRENT STATE AND FUTURE PROSPECTS

This study is a response to an ongoing debate on changes in the taxation of agricultural income. The current taxes applicable to farms in Poland do not concern income per se – they are property taxes which include: agricultural tax on land, forestry tax and property tax. Although these taxes do not refer to agricultural income, they are paid by it. It is important, therefore, to know how much this income is reduced by these taxes. Studies show that it is about 10%. Therefore, when a new income tax structure is introduced, its rate should not exceed 10%. The calculation of farm income in Poland will encounter many problems, such as establishing a catalogue of costs, which will include depreciation. In order to include it when calculating income, the present value of a farm’s fixed assets should first be established, which may encounter major substantive and organizational difficulties. More problems will surely follow, such as: dividing costs between household and agricultural holding, determining what a fixed asset is in the case of a farm, etc. It seems that calculating farm income is unavoidable. On the one hand, it is necessary for the potential introduction of income tax. On the other hand, having recognized the income situation of farms, one could resign from estimating losses caused by drought or other unfortunate events. Compensation could be granted due to income losses. This would be a clearer, more obvious and objective criterion. According to current practices, losses caused by unfortunate events (e.g. drought) do not always translate into losses in agricultural income, given that these losses are not always objectively estimated by the committees appointed by provincial governors. In the case of income losses, agricultural accounting data guarantee their objective appraisal. The aim of the paper is to evaluate the current situation regarding the taxation of agricultural activity and to present proposals for potential changes in the taxation of agricultural activity. Two research hypotheses were put forward: 1. the current level of taxation of income and revenue from agricultural activity with agricultural tax and property tax is symbolic, 2. in order to maintain the current tax treatment, the rate of the new tax on farm income cannot be higher than 10%. The article is based on descriptive, tabular and financial analysis methods. The sources of information were literature and FADN agricultural accounting data collected by the Institute of Agricultural and Food Economics – National Research Institute in Warsaw.

The role of CEOs in the sustainability of defined benefit pension plans

ABSTRACTThe future of defined benefit (DB) pensions is a hotly debated topic in reward management. Drawing on agency and managerial power theories, the conditions under which CEOs can affect their sustainability have been examined. We show that when the CEO is a member of the same DB plan as their employees or when the CEO is both a member and a trustee of the plan, this affects the agency and power dynamics increasing the likelihood of these plans being retained. To address endogeneity concerns, we mimic randomisation using propensity score matching and the results continue to hold. Using the introduction of pension tax penalties as an exogenous shock on CEO self‐interest, we find that it affects the propensity of DB plan closures. The study highlights the key role that CEO incentives play on pension–provision decisions and indicates how HR practitioners/regulators can harness CEO self‐interest to safeguard the sustainability of DB pension plans.

Налог на искусственный интеллект: перспективы введения в Российской Федерации

The presented article analyzes the legality of the potential introduction of a tax on artificial intelligence in the Russian Federation from the point of view of its economic feasibility, which will not only achieve the proper economic effect from the introduction of the new tax, but also smooth out the social resonance. The author explores various approaches to the interpretation of the concept of the principle of economic feasibility of a tax, projecting its content on the fact of the appearance of a tax on artificial intelligence. The study concludes that there is insufficient justification for the introduction of a tax on artificial intelligence by the need for public law education to financially provide training in new professions for people who have lost their jobs as a result of the use of artificial intelligence by their employer. An analysis is made of the place of the tax on artificial intelligence in the system of taxes and fees of the Russian Federation.

The EU VAT and the Expansion of Turnover Taxation: Interfering Tax Systems?

In this article, the author provides a critical analysis of the ECJ’s approach and attempts to explore how the scope of the concept “turnover taxes”, for the purposes of article 401 of the VAT Directive, could be defined in a way that ensures that the provision is applied in accordance with its objective, which is to safeguard the goals of the common VAT system from interference by other domestic taxes. The author argues that in light of the narrow interpretation of turnover taxes in the ECJ’s case law, it is unlikely that the introduction of recent turnover-based business taxes would be prohibited by the VAT Directive.

State regulation of inclusive development in agricultural sphere

Introduction. The role of state regulation of the agro-food sector should be to create a legal framework and ensure equal fair access to state resources, ensure budget inclusion and reasonable use of mechanisms to encourage agricultural enti-ties to pursue social inclusion through co-financing and participation. The purpose of the article is to study and generalize the theoretical and methodological foundations of state regula-tion of inclusive development in the agro-food sector. Results. The strategic goal of creating a system of inclusive development of the agro-food sector, which is to achieve comprehensive accelerated development of agriculture on the involvement basis, barrier-free and effective cooperation of all agro-food entities to improve the welfare of citizens and local communities, human capital, poverty and inequalities. The concepts of "paternalistic system of inclusive development" and "market model of inclusive development" are proposed, as well as the differences between them, which consist of different role models for the state and citizens in creating public goods and their distribution. The necessity of the market model introduction for inclusive development taking into account the institutional weakness of the state, the essential principles of the inclusive paradigm and the peculiarities of the agro-food sphere of Ukraine is substantiated. It is shown that in the agro-industrial complex the implementation of inclusive and sus-tainable development approaches requires improvement of interaction between the subjects in this sphere on the basis of ‘win-win’ principles and increase of mutual trust, the absence of which causes a number of structural imbalances. Conclusions. It is theoretically substantiated that strengthening the distribution function of the state through the in-troduction of new taxes will reduce the financial stability and investment attractiveness of agro-food holdings, which are important taxpayers and drivers of socially responsible strategies that do not meet the strategic interests of the state and agro-food complex. The main functions of the state in regulating the inclusive development of the agro-food sector are de-termined. Prospects for further research are to develop applied tools for inclusive development and outstanding role models for various agro-food actors in the implementation of this system. Key words: social inclusion, inclusive development, system of inclusive development of agro-food sphere, state regu-lation of inclusive development.

A Socio-Economic Model of Sales Tax Compliance

Tax compliance is an issue that can be traced back to the introduction of taxes, which is the reason such compliance remains a significant topic in the current literature of academia and practice. Prior studies on the topic of tax compliance or non-compliance can be categorized into two, namely economic and social/psychological theories. In a more serious note, tax evasion has remained a key issue among governments all over the globe, with Jordan being no exception. Jordan has undertaken different fiscal measures to increase compliance in the domestic front in the past decades, but based on annual reports, the country is still experiencing a considerable increase in net public debt and fiscal deficit that can be traced back to the increased tax non-compliance rate. This is specifically true in the case of sales tax in Jordan. To compound the matter further, literature concerning the determinants of sales tax compliance as well as other determinants that drive non-compliance is still scarce, with a universal tax compliance model able to explain the issue with clarity still being elusive. Hence, this work proposed the determinants of sales tax compliance in the context of small and medium-sized enterprises (SMEs) in Jordan, extending Fischer’s model of tax compliance, and adding the moderating role of tax knowledge and direct effect of tax service quality. This study proposed a model encapsulating the social, psychological and economic factors to provide insight into the sales tax compliance of Jordanian SMEs.

Coalitions Towards the Carbon Tax in the Swedish Heating Sector

The carbon tax is a cornerstone of the climate policy in Sweden. Historically, it has played a central role in the replacement of fossil fuels in the heating sector. The purpose of this paper was to analyze the policy-making process that led to the formulation and adoption of the carbon tax in the Swedish heating sector, from 1980 to 1991. We used the Advocacy Coalition Framework (ACF), according to which policy actors form coalitions based on shared beliefs. Drawing from both literature and empirical experiences gathered through in-depth interviews, we identified supporting and opposing coalitions that diverged in their views concerning bioenergy development and the potential impact of the carbon tax. This study illustrates the complex conditions for introduction of environmental taxes and expansion of new industries, particularly when established businesses perceive the new activities as a threat. The Swedish experience shows that countries can progress by exploring internal synergies and innovative policy designs, despite potential resistance of established constituencies. The successful adoption of the carbon tax in the Swedish heating sector serves as inspiration for policymakers in other sectors and countries, as they contemplate policies to promote the decarbonization of the energy system.

Effects of the bank levy introduction on the interbank market

AbstractOne of the proposals that have been brought forward regarding ways of discouraging banks from taking unnecessary risk, widely debated these days, is the introduction of taxes in the financial sector. Although recent empirical investigations document a positive effect of the bank levies (BL), it may also reduce banks' activity. In this paper, we aim to analyse the Polish BL on assets. Poland's interbank market might be affected by a new BL introduced in 2016, as interbank positions of the balance sheet have been also taxed. The analysis covers the panel structure of data of Polish banks with unconsolidated financial statements. To evaluate the impact of the BL on the above interbank market features, we use the OLS regression with fixed effects in relation to the bank. Data has been sourced from OrbisFocus and Central Banks' websites and covers the period 2011–2017. The result demonstrates that the BL on assets applied in Poland has a negative impact on the interbank market. Estimation results shows that the BL on assets significantly decrease the value of 1y and increases the value of 3 months interbank loans. In addition, the BL on assets in the banking sector positively affects the value of government securities and negatively affects the interest income on interbank loans. Moreover, the dispersion of 1 and 3 months quotations was reduced as a result of the BL introduction. In case of short‐term transactions, dispersion amplifies. Additionally, the volatility of quotation decreases due to reduced trading after the BL implementation.

Stability Test and Regression Analysis of EU Carbon Tax on Coastal Trade

Wang, L., 2020. Stability test and regression analysis of EU carbon tax on coastal trade. In: Al-Tarawneh, O. and Megahed, A. (eds.), Recent Developments of Port, Marine, and Ocean Engineering. Journal of Coastal Research, Special Issue No. 110, pp. 227–230. Coconut Creek (Florida), ISSN 0749-0208.Things are happening in the context of the implementation of the carbon tax in the European Union. This paper focus on the current situation of Sino-European trade, and is expected to discuss the impact of EU carbon on Sino-Europea trade by qualitative and quantitative analysis. The empirical analysis shows that since the recent introduction of carbon tax in EU countries, carbon tax has been increasing, and carbon tax has been added to commodity prices, which directly leads to an increase in export trade. This conclusion is slightly in conflict with traditional trade theory. Due to the imperfect collection mechanism in the implementation of the carbon tax in the EU, the reduction in trade volume caused by the decrease in export trade volume may be less than the increase in trade volume caused by the increase in prices, thus increasing the volume of export trade.

Aspects of the formation of market relations in Uzbekistan

Market economy is the basis of commodity-money relations, the nature of which is determined by objective economic laws. Market relations began to take shape at the dawn of civilization and went through more than a thousand-year path of development. Historically, two types of market relations. The first was spontaneously composed of scattered and uncoordinated actions of the producer and the consumer. The second is the complete opposite of the first: the state, through the introduction of prices, taxes, interest rates, profits, rents, subsidies and other instruments, has made market relations focused. The world experience and experience of Uzbekistan indicate that the market economy is developing according to objective laws that do not depend on anyone's will, and their ignoring is fraught with serious negative consequences. At present, market relations are the main form of existence of the world economy.

Brown sugar, how come you taste so good? The impact of a soda tax on prices and consumption.

Increasing obesity-related problems and rising healthcare expenditures have led governments in developed countries to consider the introduction of soda taxes. We study a recent such tax, implemented in Portugal in February 2017 -one of the first soda taxes worldwide that increases with sugar content (0.08 euros per liter for drinks with less than 80g of sugar per liter, and 0.16 euros per liter for drinks with 80g or more sugar per liter, plus VAT). We use extremely detailed panel data from one of the two largest retailers in the country, covering the period between February 2015 and January 2018. We take advantage of the tax breakdown by sugar levels to examine how soda prices and quantities purchased reacted. For identification, we rely on difference-in-differences models with various vectors of fixed effects, comparing each group of products to water. For drinks with more than 80g of sugar per liter, results indicate almost full price pass-through to the consumer. For drinks with less than 80g of sugar per liter, price pass-through surpassed 100%. Regarding consumption, our findings suggest stockpiling behavior in the quarter when the tax was approved and before it was actually implemented. In the implementation period, there are no significant changes in quantities purchased for most beverages vis-à-vis water, with the exception of soda drinks with comparatively low levels of sugar. This suggests that benefits of the soda tax in terms of reducing sugar intake are mainly due to reformulation, as producers reduced the sugar content of some drinks to fall below the 80g per liter threshold.