National Revenue Research Articles

TRANSFORMATION OF THE BUDGET SYSTEM OF UKRAINE IN THE FACE OF EXTRAORDINARY CHALLENGES AND THREATS

Full-scale hostilities have had a significant impact on the budget system due to increased spending on defense, reconstruction, and humanitarian assistance to vulnerable groups, which has affected the accumulation of budgetary resources. The article examines the impact of extraordinary challenges and threats on the national budget system, in particular, on the structure and volume of budget revenues and expenditures, the growth of the budget deficit and public debt, changes in regulation in the field of public finance, and the potential of financial capabilities of the regions. The purpose of the article is to make a scientific and practical assessment of the problematic aspects related to the transformation of the budget system, to outline the ways of attracting financial resources that can be used for the purpose of distribution and redistribution to perform the functions of the State, to identify the main areas of influence of emergency challenges and threats on the budget system of Ukraine and the priority areas and measures of budget policy in wartime.The authors conclude that the strategic and main directions of Ukraine's development need to be improved in the strategy of public finance management and financial and economic security as part of the implementation of the Memorandum of Economic and Financial Policies by the IMF. At the same time, the relevant legislative changes to the state budget for 2023 that meet the needs of Ukraine are studied, and the implementation of the first preparatory stage for the development of the National Revenue Strategy is analyzed. The authors emphasize the positive impact of decentralization on local self-government and the financial sustainability of local budgets. It is proposed to empower communities through monitoring the implementation of local budgets. In the context of defense needs, the possibility of including defense expenditures during martial law in local budgets is considered.

Potentials of palynotaxa for apicultural entrepreneurships: Implication for conservation and policy

The contemporary global economic meltdown has devastating effect on the economy of most rural people in Africa in general and Nigeria in particular. The frantic search for alternative source of national revenue aside from oil and gas has become imperative for economic emancipation of Nigerians. Knowledge of plants foraged by bees for pollen and nectar becomes a panacea to this challenge. This study analysed the pollen spectrum of four honey samples collected from Southern Nigeria in order to determine the richness of the honey plants in the area, and to highlight the potential of these species in apicultural entrepreneurship in Nigeria for green growth economy, using Shannon-Wiener Diversity Index after a standard acetolysis method. A total number of 39 palynotaxa belonging to 21 plant families and distributed in 39 genera were identified. Fabaceae had the highest plant species (11 species), followed by Euphorbiaceae (5 species). The study revealed that Elaeis guineensis Jacq, Anacardium occidentale L. Diospyros mespiliformis Hochist ex ADC, Alchornea cordifolia (Muell)Arg, Daniella oliveri (Rolfe) Hutch & Dalz, Irvingia wombolu Okafor ex Baill, Treculia africana Decne, Nauclea latifolia Smith and Crossopteryx febrifuga Afzil ex Benth, were the dominant honey plants. The palynotaxa spectrum did not vary greatly in the four samples; however, Shannon diversity index was low to moderate (H= 2.7 -3.1). This baseline information has provided opportunity and amazing potentials for apicultural enterprise in these areas. However, most of these honey plants are rare, threatened and endangered. This calls for urgent conservation strategies by all players. Policy programmes could increase production and productivity of hive products through capacity- building for local populace.

The Theory of Reasoned Action and The Prospects of Waqf-Muzar’ah-Supply Chain Model in Zanzibar

The contribution of the agricultural sector to the development of Zanzibar Islands is considerable. This very important sector through the clove industry was the economic backbone upon which the government of Zanzibar relied for its foreign exchange and national revenue. However, since 1964, agricultural productivity particularly clove production has continually and significantly decreased due to many problems and challenges, especially financial ones. For example, financial intermediaries including banks, cooperatives and micro-enterprises provide micro-financing to the farmers but with high interest rates along with collateral requirements. The numerous programmes, measures and policies adopted by the relevant parties to find solutions to the dwindling clove production have failed. This study has therefore proposed a Waqf-Muzara’ah- Supply Chain model (WMSCM) to address the challenges. The study has used Theory of Reasoned Action adopt the model. To the model, SPSS, AMOS and SEM have used accordingly. The results show that, both the attitude and subjective norm of the clove farmers in Zanzibar towards using the proposed model are statistically significant and have influence on their behavioral intention in using the model.

Analysis of International Disputes over Digital Services Tax and Exploration of China’s Approach

With the continuous emergence of emerging information technologies, the digital economy is developing rapidly around the world. The global operations of multinational digital enterprises no longer rely on physical presence. The effectiveness of permanent establishment rules based on the traditional real economy settings has been questioned by market countries, which actively participate in Market countries where digital business value is created do not receive corresponding taxation rights. Multinational digital companies take advantage of loopholes in digital platforms and current tax rules to actively carry out tax planning, resulting in digital companies’ global tax burden being much lower than that of traditional companies. Tax sources cannot be fairly and reasonably distributed in the places where value is created and profits are taxed, which harms the tax interests of market countries. Against the background of slow progress in the OECD global unified solution, as a temporary unilateral measure to address the challenges of the digital economy, some countries have taken the lead in imposing digital service taxes on specific digital businesses of digital enterprises. On the basis of discussing the relevant concepts and theories of digital service tax, this article discusses the relevant concepts and theories of digital service tax, and analyzes the international development of digital service tax and the positions of various countries around the world. Further analyze the impact of digital service tax collection from three aspects: national fiscal revenue, tax trade disputes and international tax order coordination, and analyze the impact of digital service tax on digital enterprises. Then the perspective is focused on my country, sorting out and summarizing my country's relevant digital economy tax policies, and analyzing the impact of digital service tax on my country in the near term and long term based on the development of my country's digital economy. Finally, based on the previous comparative analysis and impact analysis, my country's tax system for promoting the development of the digital economy has gradually improved and actively participated in the reshaping of international tax rules, and my country's response strategies under the digital service tax have been proposed. The different levels of digital economic development between China and countries that have levied digital service taxes will inevitably lead to disharmony in the international tax order. The study found that the fiscal revenue brought by digital service tax is limited and has a certain degree of distortion effect. It is necessary to actively participate in international cooperation and make China's voice heard before reaching a consensus on international tax rules. In the long term, we should focus on the connection between the two-pillar plan and the domestic tax system, strengthen tax information exchange, improve the domestic digital tax rule system, and promote the healthy and sustainable development of my country's digital economy.

Brand Management Strategy of Kweichow Moutai

Baijiu has a long history in China, it is a special drink for the vast number of working people in China, which has survived thousands of years of history and continues to develop and improve, with a gradual rise in domestic consumption and an increasing amount of exports, which is the pride of our nation. China's ancient commodity exchange, liquor is second only to salt, iron, is one of the important sources of national revenue. The development of the liquor industry also promotes the development of supporting industries, in recent years, the liquor industry mechanization has been a great development, the need for more and more packaging materials, supporting a series of supporting industries such as glass, ceramics, papermaking, printing, bottle caps and other supporting industries have been a great development. At the same time, the comprehensive utilization of wine lees after brewing has promoted the development of agriculture and energy. Kweichow Moutai wine is the traditional specialty wine of China. It is one of the world's top three distilled spirits, along with Scotch whisky and French cognac, and one of China's three most famous spirits, "Kweichow Moutai Five Swords". It is also the originator of the Daqu soy sauce type of liquor, which has a history of more than 800 years. It is a world-famous brand. Therefore, this paper studies and summarizes how China Kweichow Moutai Liquor Factory (Group) Limited Liability Company conducts marketing and marketing management.

Enhancing Tax Compliance in Indonesian Government Institutions: Identifying and Mitigating Inhibiting Factors

Tax compliance in Indonesian government institutions significantly affects national revenue and resource allocation. This study addresses tax non-compliance by identifying its causes and proposing mitigation strategies. The research aims to understand why government institutions in Indonesia struggle with tax compliance, with objectives including identifying inhibiting factors, assessing their impact, and proposing mitigation strategies. This integrated approach encompasses various elements, including a descriptive analysis approach, comprehensive literature research, comparative analysis, a qualitative research approach, and secondary data collection. Findings highlight complex regulations, inadequate tax education, and inconsistent enforcement as compliance hindrances. The study quantifies their impact. Proposed solutions include simplifying tax rules, enhancing tax education, and enforcing tax laws. In conclusion, this research informs policymakers, tax authorities, and government officials about tax compliance challenges, offering insights to improve tax collection and resource allocation, potentially increasing government revenue and promoting sustainable development.

THE POLICY OF BANNING THE EXPORT OF RAW MATERIALS IN THE MINING SECTOR BY THE INDONESIAN GOVERNMENT FROM THE PERSPECTIVE OF INTERNATIONAL TRADE LAW

<p><em>The management and utilization of natural resources by a country are manifestations of exercising national sovereignty. The Doctrine of Sovereignty is designed to provide equality among nations under the law to develop their countries towards prosperity and well-being. The policy of restricting and prohibiting the export of raw materials in the mining sector, such as nickel, gold, and tin, by the Indonesian government, is recognized under international law, particularly international trade law. This policy will bring beneficial impacts to Indonesia's economy. By having the capability to process natural resources independently, Indonesia can enhance its economic self-reliance, reduce dependency on imports, and improve the country's position in the global competition in the mining sector, ultimately leading to increased national revenue and providing greater well-being for the entire Indonesian population.</em><em></em></p>

The national-level potential of Zakat and its integration into the fiscal framework: sector-specific insights from the economy of Bangladesh

PurposeZakat, one of the fundamental pillars of Islam, holds the potential to significantly contribute to fiscal consolidation, particularly in developing nations. However, the national-level potential of Zakat often remains unexplored. This study aims to explore the potential of national-level Zakat and the opportunity to integrate it into the fiscal framework.Design/methodology/approachThis study estimates Zakat’s potential on national financial and economic components. The components include bank deposits, shares and securities, pensions (provident fund), industrial production and trade services, mining resources, Ushr on agro-crops and forestry, Ushr on livestock, Ushr on fishery, gross domestic product (GDP), national budget and national revenue. The study gathers data, ranging from FY2000 to FY2018, on national economic sectors from reliable secondary sources. The net value (NV) of each indicator is calculated as NV = TV − LA, where NV is the wage-adjusted net value after deducting the living adjustment (LA) value from the sectoral total. The proposed LA value, approximately 20%, is suggested to be deducted from the total sectoral value of each sector (excluding specific industries with preadjusted wages), equating to the Nisab value.FindingsIt is estimated that the aggregate potential of Zakat in Bangladesh was US$9,749m in FY2018, compared to US$809m in FY2000, revealing the value is 3.77% of GDP and 21% of the national fiscal budget. In FY2018, the service sector was the largest contributor (30%), followed by bank deposits (23%). Pension funds made minimal contributions, whereas shares and bonds, as well as the manufacturing sector, each made a 10% contribution to the estimated Zakat potential. Zakat on agriculture output accounted for 15% of the total. The aggregate potential Zakat in FY2018 was 12% higher than that in FY2000.Originality/valueThe paper highlights a novel contribution through its nuanced analysis of sector-specific Zakat on macrolevel data and its implications within the fiscal framework. The results suggest that Zakat has substantial potential to impact fiscal dynamics, providing valuable insights for policymakers and stakeholders to recognize the national-level Zakat for development plans such as the five-year plan. The study suggests piloting a central and independent national body to study the feasibility of national-level Zakat collection and its utilization in the fiscal budget. It will help the government reduce the burden of external debt and deficit budget and, instead, will promote revenue collection in collaboration with the National Board of Revenue.

REGULATORY AND LEGAL SUPPORT FOR POST-CUSTOMS CONTROL AND APPLICATION OF THE RISK MANAGEMENT SYSTEM AFTER THE RELEASE OF GOODS IN UKRAINE

The relevance of the research topic is due to the need to take measures to improve the efficiency of post-clearance control through the use of a risk management system. Further development of the risk management system and creation of prerequisites for a risk-oriented approach to determining the need for post-customs control will contribute to increasing its effectiveness. The purpose of the article is to analyze the regulatory framework of Ukraine regarding post-clearance control and application of the post-release risk management system. To achieve this goal, general scientific methods were used, as well as methods of legal analysis and legal comparativism, critical analysis of systematization and logical generalization. The regulatory framework of this work is based on the customs legislation of Ukraine. The subject of the study is the legal support for the application of the risk management system in the field of post-customs control. The articles of the Customs Code of Ukraine on post-customs control and risk management are analyzed. Amendments to this Code regarding the implementation of some provisions of the Customs Code of the European Union in the context of the article are studied. The National Revenue Strategy of Ukraine until 2030 was considered in terms of outlining tasks to improve the efficiency of post-customs control, conducting documentary audits and other measures in order to comply with the requirements of the legislation of Ukraine on customs through the improvement of approaches and procedures for post-customs control, planning documentary audits through the development of risk management. The provisions of the Procedure for risk analysis and assessment, development and implementation of risk management measures to determine the forms and scope of customs control have been studied. The content of the recommendation and technical pilot project for post-clearance control and the State Customs Service reform plan for 2024-2030 has been developed. The conducted scientific research allowed us to highlight the features of regulatory legal acts. The analysis also revealed some gaps in the implementation of post-clearance control and the application of the risk management system after the production of goods, and thus identified potential areas for improving the mechanism for applying the risk management system in the field of post-clearance control.

Social and Economic Problems of Entrepreneurship within the Scopes of the National Revenue Strategy for 2024-2030

Social and Economic Problems of Entrepreneurship within the Scopes of the National Revenue Strategy for 2024-2030

ТЕНДЕНЦІЇ РОЗВИТКУ ПОДАТКОВОЇ ПОЛІТИКИ: ВІДНОВЛЕННЯ ПІСЛЯ ВІЙНИ

The article is devoted to the study of trends in the development of domestic tax policy. The author analyzes the importance of the tax system for the recovery of Ukraine's economy after the war, since the military conflict and the unstable political situation in the country put serious pressure on the economic system and require strategic decisions on tax policy. Based on a report by the European Business Association and other sources, the current state of the tax system and its impact on the Ukrainian economy are analyzed. After reviewing the current economic situation in Ukraine, the article highlights the negative consequences of the military conflict, including significant damage to infrastructure, disruption of production, and labor migration. The increase in defense spending during the conflict also creates additional financial pressure on the state budget. It is noted that these changes require a positive review from international partners to ensure the financial stability of the country. The article discusses proposals for combating the shadow economy and optimizing tax revenues by creating favorable conditions for the return of emigrants to Ukraine and attracting funds from Ukrainians working abroad. The article also presents the main provisions of the National Revenue Strategy of Ukraine until 2030 regarding the internal reform of tax and customs authorities, restoration of taxpayers' confidence in tax authorities, and implementation of tax and customs policy measures. Particular attention is paid to the principles of reasonable management of tax audits in times of crisis. The article analyzes the methods and strategies aimed at ensuring compliance with the law and maintaining trust in the tax system in an unstable environment. The author also emphasizes the importance of reasonable management of audits in the context of military conflict. It is noted that effective regulation and supervision of tax audits can help reduce risks to business and maintain confidence in the tax system. The article identifies the key areas for tax reform in Ukraine, including measures to increase tax revenues, improve the tax system and ensure sustainable economic development of the country in the context of military conflict. Overall, the article provides an in-depth analysis of the current state of Ukraine's tax system and suggests constructive strategies for tax reform in the context of the crisis, with the aim of supporting the country's economic recovery and stability.

IDENTIFYING BEHAVIORAL RESPONSE TO TAX CHANGE OF LABOR INCOME IN UKRAINE

Introduction. The National Revenue Strategy states that one of the directions for the further development of the national taxation system is the restoration of the progressive rates’ scale of personal income tax. Such a proposal looks appropriate and corresponds to the trends in the development of the labor market, the system of income generation in the national economy, and the demands of society. At the same time, the opportunistic reaction of taxpayers to the introduction of additional (increased) tax rates may lead to further evasion of labor income from taxation and, accordingly, an increase in tax risks of the state budget. Purpose of the article is to identificate of the behavioral response effect of the economic agents to tax change of labor income in Ukraine. Results. Changes in the taxation of labor income in 2015-2017 are characterized by the dynamics of such analytical indicators as the average effective tax rate and the tax wedge. The nominal growth of the wage fund in 2016 and 2017 is due to the following changes in taxation: an increase in the tax base and an increase in the average effective tax rate. In the short and medium term, reducing the tax burden did not have the expected positive effect, as predicted by the logic of Laffer's model. There is a significant increase in the share of wages at the average level, from 53.5% in 2012 to 63.8% in 2020. The share of labor income in the intervals from the lowest to the average earnings as of 2020 was more than 80%. The presence of an alternative system of income taxation with a significantly lower level of tax burden than the general system creates additional risks of effective implementation of personal income tax with a progressive scale of rates. Conclusions. The system of formation and distribution of labor income has undergone significant changes. The extremes of the income distribution (lowest and highest) were in relative gain compared to others. the introduction of a progressive scale of taxation rates exclusively for labor income in Ukraine does not have sufficient fiscal potential. In the case of a suboptimal political decision, with insufficient institutional capacity of control bodies and the presence of an alternative system of income taxation, there is a high probability of a significant increase in tax risks for state and local budgets.

POWERS OF THE NATIONAL REVENUE ADMINISTRATION WITH REGARD TO TEMPORARY ATTACHMENT OF MOVABLE PROPERTY: LEGISLATIVE ASPECTS

The amendment of the Act on the National Revenue Administration, in force since 1 January 2022, gave officers the right to temporary seizure of movable property. As a part of the ‘Polish Deal’, amendments were made to the Act of 16 November 2016 on the National Revenue Administration and added in Section V Chapter 1c ‘Temporary attachment of movable property’, as well as Chapter 5a ‘Approval of temporary attachment of movable property’ was added in Section II of the Act of 17 June 1966 on Enforcement Proceedings in Administration. Under these changes, from the beginning of 2022, movable property may be temporarily attached by an officer who conducts customs and tax inspection. Seized movable property may include, for example, machines, computers, raw materials and means of transport. An authority may temporarily seize movable property even before the end of the customs and tax inspection. The new regulations are aimed at increasing the efficiency of public debt collection. The change in the regulations resulted from the recognition of the existing legal regulations as defective, i.a. due to the difficulty in searching for the debtor’s assets. The aim of this paper is to assess the legislative correctness and operation of the construct of temporary attachment of movable property. The following problems have been identified: (1) whether the legislator has indicated the criteria for assessing if in a given situation temporary attachment will increase the efficiency of enforcement; (2) whether the legislator has included a definition of the term ‘efficiency’ in the discussed provision; (3) whether a tax and customs officer is obliged to temporarily attach movable property or whether it may not be seized despite the conditions being met; (4) whether the provisions establishing temporary attachment of movable property lay down rules for estimating the value of the seized movable property. A formal and dogmatic method has been used to carry out the above analysis. This method involves a linguistic and logical analysis of legal texts. In response to the questions posed, it has been established that the legislator did not indicate the criteria according to which it would be assessed whether in a given situation temporary attachment would increase the efficiency of enforcement. Nor did the legislator define the concept of ‘efficiency’. Interpretative doubts have also been raised as to whether the officer is obliged to temporarily seize movable property or whether it may not be attached despite the conditions being met. In addition, the provisions establishing temporary attachment of movable property do not lay down rules for estimating the movable property value.

CRISIS MANAGEMENT STRATEGIES AND ENTREPRENEURIAL RESILIENCE OF TOURISM BUSINESS OPERATORS IN JAKARTA AMID COVID-19

The tourism and creative economy sectors in Indonesia have undergone notable growth over recent years, playing a pivotal role in bolstering the nation's revenue and contributing to the advancement of communities across the country. Jakarta, as the nation’s capital and the economic center, serves as the primary entry point for international tourists, supporting the overall growth of the tourism industry. Soekarno-Hatta Airport, aside from being an international aviation hub, facilitates access to various tourist destinations across Indonesia. The emergence of Covid-19 has triggered a global crisis and greatly disrupted the world economy. The WHO's declaration of a health emergency led to the implementation of multiple virus control measures, including lockdowns, social distancing protocols, and travel restrictions. Consequently, the tourism sector which heavily reliant on human mobility, experienced severe setbacks and become one of the hardest-hit industry. To endure such crises, businesses are required to adapt swiftly and adopt an entrepreneurial perspective to meet consumer needs amid uncertainty. This research aims to investigate the strategies for crisis management and the application of entrepreneurial resilience among Jakarta's tourism business operators in response to the Covid-19 pandemic. The study employs qualitative descriptive approaches, using semi-structured interviews and documentary analysis as data collection techniques. Interviews were conducted with stakeholders in the tour and travel and hospitality industry. Findings indicate that not all businesses have crisis mitigation procedures for the unexpected threats. Businesses are responding to this crisis by adapting, innovating, and seizing every opportunity to ensure their survivals.

COVID-19 Pandemic and the Imperative of Functional Technology Education in Nigeria: A Historical Analysis

Nigeria has recorded great losses since the outbreak of the COVID-19 pandemic in December 2019. Over-reliance on oil as source of national revenue and inadequate human capital development have impeded the country’s response to the global emergency. This study examines how technology education can stimulate a diversified economy to boost Nigeria’s capacity to withstand future crises. It employed a historical research method, comprising mainly secondary sources. The pandemic exposed the morbidity and inadequacy of Nigeria’s health facilities. In addition, a sharp drop in the global price of crude oil worsened the country’s wobbling economy during the pandemic. At the micro level, the lockdown imposed by government turned many self-employed Nigerians to idlers. The COVID-19 pandemic could have been a platform to enhance researches in medical sciences and health technology but the extant problems in the country’s higher education sector such as poor funding, lack of motivation for teaching and research, brain drain, and poor curriculum prevented meaningful innovation in that regard. The study recommends reforms in technology education to create a work force for non-oil sectors like agriculture, solid minerals, small and medium enterprises, and indigenous industries. This would stimulate self-reliance and a diversified economy to keep Nigeria unperturbed during future emergencies.

Analysis of Capacity Development Agenda on the Devolution Transition Plans of Local Government Units in Southern Philippines

This research investigated the imminent full devolution of services in the Philippines following the “Mandanas-Garcia Ruling” in 2018 and concretized by the E.O 138 in 2021, which augments local governments’ share in national tax revenue, bolstering their capacity and accountability. This study focused on the Southern part of the Philippines, specifically examining Local Government Units’ (LGUs) preparedness for expanded responsibilities. Employing a document analysis approach, the research evaluated the LGUs’ capacity status and delineated common and unique Capacity Development (CapDev) agendas in infrastructure, tourism, health, social welfare, and agriculture. Findings indicated that LGUs currently exhibit “low capacity,” signifying a basic capability of 20–39%, necessitating substantial interventions from national government agencies. The matrix of CapDev agendas underscored shared needs among LGUs. The study concluded by proposing indicative CapDev priorities to assist LGUs in prioritizing interventions effectively. This research contributed valuable insights into the challenges and opportunities associated with the devolution process in the Philippines, with implications for policy and practice in local governance.

Electronic Taxpayer Education and Tax Compliance of Manufacturing Small and Medium Enterprises in Nairobi City County, Kenya

To enlighten taxpayers regarding their tax information, the Kenyan tax authorities have made tax education a top concern. To promote voluntary tax compliance and boost national revenue, this kind of education is essential. Low tax compliance among SMEs limits revenue generation from the government and, consequently, inefficient government expenditure since it makes it harder for the state to amass family earnings, which are vital assets for speculating. This study sought to investigate how electronic taxpayer education affects the compliance with tax laws of manufacturing SMEs in Nairobi City County, Kenya. The study used a descriptive research approach and 641 manufacturing SMEs in Nairobi were the study's targeted audience. Output showed that electronic taxpayer education positively affected tax compliance in a significant manner as it relates to manufacturing SMEs. The conclusion arising from this outcome is that electronic taxpayer education plays an important role in manufacturing SMEs' tax compliance as most of them can access tax information electronically in their comfort zones. Policy makers should increase the utilization of electronic means to educate taxpayers on the need to pay taxes and the consequences of non-compliance to tax laws in Kenya. It is recommended that the Kenya tax authority should enhance the education of taxpayers via electronic means as most of the participants in the manufacturing SMEs are said to easily access electronic media that would enhance their competitive advantage over other firms in Kenya.

Reimagining a U.S. Corporate Tax Increase as a Supplemental Subtraction VAT

The U.S. federal government raises tax revenue almost exclusively through income taxes, both corporate and individual, whereas its trading partners and competitors rely for their national revenue on both income taxes and “destination based” value added taxes (VATs), which are not imposed on exports but are imposed on imports. As a result, U.S. corporations, which are subject to U.S. corporate income tax, may be at a serious trade disadvantage to competitor non-U.S. corporations with respect to both U.S. domestic sales and foreign sales, if the U.S. corporate income tax exceeds the foreign country’s income tax imposed on those competitors. The Biden administration has proposed raising the tax rate on U.S. corporate income from its current 21 percent to 25 percent and perhaps even more likely to 28 percent. The proposed rate increase faces substantial Republican opposition. The opposition to the proposed rate increase argues that such an increase will chase business offshore and put the U.S. at a competitive disadvantage in attracting business and selling products both in the U.S. and abroad that compete with foreign products. The problem, simply put, is that foreign countries rely on VATs and can afford to maintain lower corporate income tax rates than otherwise, but the U.S. does not have a supplemental source of revenue like a VAT. The issue of a competitive U.S. corporate income tax is not simply a current Biden/Republican tax rate disagreement about raising the U.S. corporate income tax. Rather, it is an issue about U.S. corporations having to compete with foreign corporations from countries that impose a lower income tax (and no VAT on exports) on those corporations than the U.S. imposes on its domestic corporations, and, further, that the U.S. cannot reciprocate by charging a lower income tax on its exports than on its domestic sales because of international treaty constraints. Thus, the issue reaches well beyond a proposed Biden administration corporate income tax increase, but rather to the structure of the U.S. business tax system of not having a VAT in some form as an integral part. This Article considers revenue raising alternatives to supplement the current business income taxes and recommends that a subtraction VAT should be added to the corporate income tax as, at the very least, a step in keeping the corporate income tax competitive with the U.S.’s trading partner countries, perhaps as the long-term solution but perhaps as a first step to the adoption of a credit VAT to supplement the corporate income tax. In doing the foregoing, the Article compares the two types of business-level consumption taxes, the credit method VAT and the subtraction method VAT, relating them back to the most basic consumption tax, the retail sales tax. The Article argues that the subtraction method VAT, although not adopted by any other country, should be the choice because it can be added to the corporate income tax as a supplemental tax and can most easily coexist and be coordinated with that tax. It thereby allows for the easiest transition and is likely to be most acceptable to the public, which is well used to the corporate income tax and, as many observers believe, would be unwilling to adopt a credit method VAT, seeing it as a refined retail sales tax, which is a consumption tax imposed on individuals. The Article then describes the proposed “Supplemental Subtraction VAT” that would supplement the tax on a corporation’s income and how it can be engrafted onto the existing corporate income tax to minimize the disruption to the current corporate income tax collection system. It then argues that the new supplemental subtraction VAT imposed on corporations, which would be destination-based, should be accepted as a VAT by the WTO and the U.S.’s trading partners for international tax and trade treaty purposes.

The impact of the e-tax systems in improving tax collections and accountability in South Sudan a case study of the National Revenue Authority (NRA), Juba-South Sudan

The main purpose of this study was to assess the impact of the e-tax system on revenue tax collections and compliance in South Sudan. This research looked at three specific objectives which are the impact of the e-tax system on improving tax collections and compliance, the challenges faced by taxpayers in using the e-tax system. and the ways of improving the electronic tax system to enhance tax accountability. The study employed a mixed-method approach, combining both quantitative and qualitative data collection techniques. A total of 70 structured questionnaires were used to collect quantitative data from the respondents within the National Revenue Authority and the target population. These questionnaires were used to assess the effectiveness and impact of the e-tax system. Data analysis was conducted using Statistical Package for Social Sciences (SPSS). The study revealed that there are impacts of e-tax systems on improving tax collection and compliance in that the e-tax systems have made it easier for taxpayers to file their taxes, the e-tax systems have improved the transparency of tax information, the e-tax systems have led to a significant increase in tax compliance among taxpayers and the e-tax system has resulted in more accurate tax filings and payments. The study also found that there are challenges faced by taxpayers in using the e-tax systems in that users have experienced technical issues while using the e-tax systems, users are concerned about the security and privacy of the information in the e-tax systems and the e-tax systems lack adequate support for taxpayers facing difficulties. Furthermore, the study showed that the ways of improving the electronic tax systems to enhance tax accountability include improving the user interface and navigation of the e-tax system would make it easier to use, enhanced error-checking features should be integrated into the e-tax systems to reduce inaccuracies and the e-tax system should be enhanced through dedicated support channels, such as helplines, email support, or live chats. The study recommended that the National Revenue Authority needs to automate its revenue collection, by partnering with commercial banks and mobile phone networks whereby the taxpayers will be given the option of paying fees through mobile money or branded credit cards via a new revenue collection system.

Local Government Election Management in Lagos State and the Influence Of A Zero-Sum Game

By intent and definition, the Local Government in a democracy is supposed to be the closest government to the people and its administrator should be decided by its residents through a free and fair election. But in Nigeria, the works of the election management bodies that conduct Local Government elections in the States are cumbersome because the Governors have substantial control over them. For instance, the Chairman of the Lagos States Independent Electoral Commission is nominated by the Governor, who also has a major stake in the outcome of Local Government elections. The Local Government election in Nigeria is a zero-sum game for the ruling party in the State, as election into all the Local Government administrative centers is seen as a 'must-win' for the party of the Governor. One of the reasons for this is that Local Governments in Nigeria receive a monthly statutory allocation from the National Revenue. Also, local government official positions that include: the Chairman, Vice Chairman, Supervisory Councilors and other Councilors are used by the Governors and other ruling elites in the States to ‘settle’ loyal party members in their localities. This paper uses Lagos State to highlight the reality of the management of local government elections in Nigeria. It submits that the mode of configuration and procedure of local government election administration must be changed to a more transparent and unbiased one before the election can be taken seriously by the residents of the State.