Personal Tax Research Articles

Dividend taxes and investment efficiency: Evidence from the 2003 U.S. personal taxation reform

We examine the effect of a large dividend tax cut on corporate investment efficiency by exploiting the 2003 personal taxation reform in the U.S. as a quasi-natural experiment. Using a difference-in-differences approach based on the probability that a firm’s marginal investor was an individual investor, we show that the 2003 dividend tax cut significantly improved the investment efficiency of U.S. listed firms. However, we find no evidence that the dividend tax cut increased the level of investment of U.S. listed firms. Further, we show that the tax cut increased investment efficiency by mitigating agency problems associated with the excessive free cash flows of overinvesting firms and by relaxing the financial constraints of underinvesting firms.

Pandemic shows that global climate and biodiversity science assessments need to be annual

The coronavirus disease 2019 (COVID-19) pandemic has demonstrated that with daily data informing citizens and governments of the situation, society can respond to a crisis rapidly. We suggest that the current multi-yearly assessments of the, by comparison, chronic crises of climate change and biodiversity loss are no longer fit for purpose. Instead, annual assessments (as is standard for governmental budgets, commercial and personal taxes) are now required. As with COVID-19 data, the annual progress reports proposed here must be accompanied by new biodiversity and climate data that are both timely and open access, thus supporting scientific advice. With public transparency and accessibility of facts and figures, annual reports will lead to more accountability and progress in addressing the causes of these crises.

Financial economy of communes with a large forest area - example of rural communes of the Podlaskie Voivodeship

The financial situation of rural municipalities in the Podlaskie voivodeship, which a large forest areas was discussed. The problem that was undertaken was addressed on the basis of mass statistical data from the Central Statistical Office (GUS), and analysis covers the years 2016-2019. Assessment of the financial economy was carried out based on budget, per capita and debt liability indicators. Correlation analysis was conducted to determine relationships between indicators. Both incomes and expenses per capita are lower than the average for Polish rural communes. Large differences in the values of other indicators are present between groups, which arises from, among other things, the policy conducted by local authorities. Income from forestry tax supplement other income from taxation of natural persons’ property. The share of income from forestry tax is similar to the share of income from agricultural tax, and even higher in certain municipalities.

Effect of Implementing the E-Filing System Regarding Taxpayer Compliance with Tax Socialization and Internet Understanding as a Moderating Variable in DJP Regional Office North Sumatra I

The study aims to analyze the influence of Application System E-Filing against obedience must tax with socialization taxation and understanding the internet as variable moderation. research data was obtained from a questionnaire (primary) distributed to Must North Sumatra I Medan DJP Tax with the use method of convenience sampling. Population study is must personal Tax North Sumatra I Medan DJP. Sample used in research this as many as 50 respondents. The questionnaire was tested using a validity test and a reliability test before the research. Test assumptions classic used are the normality test, multicollinearity test, heteroscedasticity test, and linearity test. The hypothesis test used is simple linear regression and Moderated Regression Analysis. Research results show that implementation of system E-Filing has an effect significant to obedience must tax, socialization taxation strengthens the application of system e-filing to obedience must tax, and internet understanding strengthens the application of system E-Filing against obedience must tax.

PENGARUH PEMAHAMAN PERATURAN PERPAJAKAN, MODERNISASI ADMINISTRASI PERPAJAKAN DAN SANKSI PAJAK TERHADAP KEPATUHAN WAJIB PAJAK ORANG PRIBADI (Studi Kasus Pada UMKM Batik di Pasar Klewer Surakarta)

This study aims to examine the effect of understanding of tax
 regulations, modernizing tax administration and tax sanctions on
 individual taxpayers compliance in paying their personal taxes. This
 study uses a survey method. Sources of data using primary data,
 namely questionnaires. The object of the research was the individual
 taxpayers of batik SMEs in Pasar Klewer Surakarta. The population
 in this study were 2.576 batik SMEs in Pasar Klewer who had NPWP.
 The sampling technique uses the slovin formula as many as 130
 respondents. The data analysis technique uses descriptive statistics,
 validity and reliability test, classical assumption test, multiple linear
 regression analysis, t test, F test, and coefficient of determination (R
 2) test. The results of this study indicate that the understanding of tax
 regulations has no effect on individual taxpayer compliance, while
 modernization of tax administration and tax sanctions has a positive and
 significant effect on individual taxpayer compliance. Future research is
 expected to expand the object of research and use other independent
 variables.

Mobility of Top Income Taxpayers in Response to Regional Differences in Personal Taxes: Evidence from Spain

Abstract The study empirically tests whether regional differences in personal taxes (Personal Income Tax, Wealth Tax, and Inheritance and Gift tax) have had some influence on the decision of the richest Spanish taxpayers to change their residence. The estimates use the Personal Income Tax (IRPF) Panel database provided by the Ministry of Public Finance. The study offers evidence that regional tax differences affect the decision to change residence of the top income taxpayers and also that this decision is also affected by other attractiveness and opportunity factors offered by the regions, and by certain characteristics of the individuals. However, the marginal effects are very slight, except for the coefficient of the variable showing regional differences in IRPF: If the difference between average regional IRPF rates increases by 10 percentage points in favour of the other regions, the probability of a top 1% taxpayer changing its residence increases by 11.2 percentage points. The study also documents the importance of the Community of Madrid in the relocation decisions of rich taxpayers. Finally, the study finds that the behaviour of taxpayers aged 65 years and over in the top 1% does not seem very different from that of all taxpayers in the same income bracket.

Modern Economic Conditions and Impact of the Tax Regime on the Legalization of Self-Employment: Russian and Foreign Experience

This article analyzes Russian and international experience in approaches to taxation of self-employed individuals and their impact on the legalization of activities based on modern economic conditions. The purpose of the study is to conduct a comparative characteristic of the criteria for determining self-employed persons and various forms of their taxation in Russia and abroad at the present stage. The special tax regime for the self-employed in Russia has been in effect since 2019 and is one of the youngest in the tax system, so the analysis of foreign experience in the taxation of self-employed persons is of particular practical interest. The authors analyze global statistics on the number of self-employed persons and identify trends in their changes not only in the Russian Federation, but also in some foreign countries, especially in the light of the development of digital technologies and the emergence of new opportunities for independent activity by individuals. The research made it possible to draw intermediate conclusions for Russia at this stage of the new regime implementation: whether modern tax regimes stimulate the development of self-employment, how optimal these regimes are for legalizing citizens ' income, and what trends of foreign countries in the field of self-employed taxation may be relevant for modern Russia.

Personal Tax Planning: Ownership of Foreign Luxury Assets—Tax Considerations

This article aims to provide a general understanding of the tax implications and practical considerations associated with the ownership of foreign luxury assets. The authors outline common forms of ownership and provide a sample analytical framework, setting out the various factors to be considered in reviewing a client's ownership options. They also discuss common types of personal-use luxury assets, and the benefits and risks affecting the choice of an appropriate ownership structure.

Implementasi Kewajiban Perpajakan Orang Pribadi Dari Penghasilan Multi Profesi

One of the main objectives of making this Final Project Report is to find out whether the Implementation of Calculation, Depositing and Reporting of Annual Personal Tax Return on Income Originating from Mr. X's Multi Profession in 2019. And to achieve that goal, the writer has observed and cited documents. From the observations made by the author, it can be concluded that the Implementation of Calculation, Depositing and Reporting of Annual Annual Personal Tax Returns Income originating fromMr. X's Multi Profession in 2019 is not in accordance with the provisions ofthe Law and Regulation of the Minister of Finance. Because it is not appropriate, the authors suggest that Mr. X do the Correction 1 tax returnfor the mistakes and problems faced by Mr. X in his taxation obligations.

Research on the Restoration and Development of Tourism According to the Characteristics of Rural and Urban Groups --- Based on Cointegration and Error Correction Model

With the further establishment of the scientific development concept of "green water and green mountains are golden mountains and silver mountains", tourism has become an important part of the tertiary industry and an important way for urban development, poverty alleviation and prosperity. It is known as the "sunrise industry". During the epidemic period, even if the tourism industry and its related catering and accommodation fields are greatly impacted, the tertiary industry is still the driving force for maintaining local macroeconomic stability in all regions of China and the key to the victory of the "battle against poverty". Based on the modeling of non-stationary time series, this paper establishes cointegration and error correction models for the relationship between urban and rural residents' domestic tourism consumption, residents' income and social security, in order to put forward reasonable suggestions and measures on how to restore tourism in different regions after the epidemic. The innovation of this paper is to compare rural areas with urban areas, and explore and analyze the different effects and paths of influencing factors. The conclusion of this paper is that for urban residents, the policy of increasing residents' income or reducing personal tax to increase disposable income can better stimulate urban residents' tourism consumption, while residents in rural areas pay more attention to social welfare and security, Therefore, the economic recovery of tourism in the later stage of the epidemic should be developed according to local conditions and different consumer groups.

Why Exit Taxation of Natural Persons Regarding Unrealized Capital Gains in Company Shares is Contrary to EU Tax Law

This article discusses the exit taxation provisions applicable to natural persons holding shares in corporations as private assets. In this context, Member States are obliged, under EU law, to grant a full deferral, without interest, of the assessed exit tax until an actual disposal of the shares. The provisions allowing for payment of the exit tax in instalments prior to an actual disposal of the shares, which is only allowed in the area of business entities, is not transferable to natural persons under EU law.

Foreign experience of taxation of financial investments of individuals

The subject of research is foreign experience of taxation of financial assets of individuals. Annually investment activity of individuals gains momentum. That is why tax legislation should be adaptable and effective. With the as high as possible tax revenue individual taxation should not prevent the investment activity of individuals. For that government should create comfortable conditions for investment activity of individuals. In this work were reviewed the basic principles of calculation and payment of personal taxes in foreign countries. The methodology of the research includes analysis, synthesis, deduction and modeling. Reviewed the main advantages of foreign personal income taxation of investment activity, there was achieved the main goal – analysis of tax aspects which are potentially could be used in Russian tax legislation. Among the most effective ways of improvement of personal taxation of investment activity are expansion of criteria of tax residency, implementation of preferential tax rates for investments and establishment of capital gains taxation. Earlier the issue of foreign experience of personal income taxation was raised in articles of such authors as U.V. Malkova, K.I. Gizzatullina, A.G. Garifullina, E.T. Anisimova. Furthermore, the uniqueness of this article consists of detailed analysis of personal income taxation of financial investments of individuals.

Analysis of the Implementation of Annual Tax Reporting Policy among Personal Tax Payer in Indonesia

Individual taxpayers awareness and compliance are predicted to be below expectations in numerous Indonesian regions, as evidenced by the yearly tax reporting (SPT), which is still below the expected aim. The number of taxpayers who submit the SPT is one indicator of compliance; the higher the number of taxpayers who report the SPT, the higher the level of compliance. The goal of this study is to look into how the Cileungsi Pratama Tax Service Office in West Java, Indonesia, implements annual tax reporting for personal taxpayers. The authors apply Van Meter Van Horn's Policy Implementation Theory to six test variables: standards and policy objectives, resources, inter-organizational linkages, implementing agent characteristics, social, economic, and political situations, and implementer disposition. The qualitative descriptive approach was adopted in this study. Observation, documentation, and interviews were utilised to collect data, which was then analysed through data reduction, data display, and drawing conclusions. The study's findings demonstrate that, from 2018 to 2020, individual taxpayers' yearly tax reporting at the Cileungsi Tax Office complied with applicable rules and regulations, but that it fell short of the aim.

A Study on China's Tobacco Taxation and Its Influencing Factor on Economic Growth.

Tobacco is a significant product providing considerable economic benefits to countries worldwide, while its increased consumption causes health and socio-economic losses for smokers and non-smokers. This paper constructs a decomposition system of tobacco taxation: the population aging factor is included in the influencing factors of personal tax, and personal tax revenue is regarded as the product of tax structure, macro tax burden, regional economy, reciprocal aging, and the elderly population. This article conducts an empirical study on the relationship between taxation and economic growth. The estimated coefficients of business tax and corporate income tax are significant at the significance level of 0.1, with a consumption tax and time-variable coefficients reporting a 0.02 level of significance. The T statistic value and the explanatory degree of the variables involved in the model to the explained variables are also very high, reaching more than 95%. We find that increasing the macro tax burden negatively impacts economic growth. Therefore, the study suggests that for fostering the industry’s economic growth, the country needs to ensure the optimal macro tax burden of 17.5%, with different types of taxes influencing economic growth. Personal tax reform should pay attention to the phenomenon of aging, adjust the tax structure to increase personal tax income, provide policy support and guarantee for the elderly labor force, and encourage the re-employment of silver-haired people to alleviate the adverse impact of aging on taxation.

Foreign experience of tax regulation of self-employment

The article examines and structures the foreign experience of taxation and state regulation of informally employed individuals. The object of the study is the practice of state regulation of the activities of the self-employed in a number of foreign countries. The subject of the study is tax and special legislation regulating the activities of self-employed citizens in Asia, Europe, North and South America, etc. The uncertainty of the legal status of the self-employed as a new category of taxpayers is revealed in scientific and specialized literature, the general features of the definition of the concept of "self-employed" in Russian and foreign practice are indicated. The specifics of taxation of self-employed persons in a number of foreign countries are considered, as well as the tools used for additional regulation of the activities of this category of taxpayers, such as licensing and certification, civil liability insurance, etc. Special attention is paid by the author to structuring the studied foreign experience and highlighting common country features, such as the procedures for registering the self-employed, the absence of a limit on the maximum possible income, the need for certification and licensing, participation in the social insurance and liability insurance system, the presence or absence of preferential taxation, additional support programs, etc. The novelty of the research consists in a broad review and systematization of the experience of foreign states in the areas of state regulation identified by the author: non-interference; general rules of taxation and additional regulation; special taxation. The author's approach to identifying the main scenarios of state regulation of self-employment may be of practical interest for the development of domestic practice.

Taxation of the Natural Persons’ Incomes Based on Income Rules

The purpose of this paper is to present the specific features of income taxation of the self-employed population, based on income thresholds. Income thresholds are a fixed amount established by the General Regional Directorates of Public Finances for several economic activities performed by self-employed population and represent the taxation base for the income tax of self-employed persons. Our objective is to provide some guidelines on this method of taxation, given the increase of self-employment in recent years in Romania.

Investigation on the Contributing Factors of Compliance with Online Transaction Tax: An Empirical Study on MSME Actors

This study aims to analyze the factors that influence personal tax compliance in paying the income tax from online sales of SMSE, namely tax policy, tax knowledge, tax sanctions, and tax incentives . This study adopted the attribution theory and used a quantitative approach employing a survey method by distributing the questionnaires related to paying online sales tax to the individual taxpayers of MSMEs. A total of 159 respondent data across Yogyakarta, Central Java, and Lampung who met the criteria were analyzed and tested using Structural Equation Modeling (SEM) with the help of smartPLS 3.0. The results of this study indicate that tax knowledge and tax sanctions have significant effects on tax compliance, but tax policy has no significant effect on tax compliance. Likewise, tax incentives are not able to moderate the relationships between tax policy, tax knowledge, as well as tax sanctions and tax compliance.

The Global Corporate Minimum Tax: A Cure or Not?

This paper examines how the corporate income tax base is to be shared with the proposed global corporate minimum tax, which has been agreed to by more than 130 countries. The aim of the global minimum tax is to reduce the incentive for profit shifting by putting a floor on corporate tax rates so that they do not fall below 15 percent of adjusted accounting profits. However, the global minimum tax itself will introduce new capital market inefficiencies. Foreign-owned capital can be taxed more heavily than domestic capital. The minimum tax distorts capital allocation by favouring labour-intensive projects over capital-intensive projects when the tax is paid. It also distorts the accounting decisions of corporations when they seek to avoid paying the tax. The corporate tax gains to Canada, net of personal tax revenue losses, are small, between $170 million and $645 million annually, depending on whether host countries adopt a top-up tax or not. After adjustments are made for economic losses, the annual net gain to the Canadian economy ranges from $95 million to $360 million, exclusive of administrative and compliance costs. Overall, it is not clear that the global minimum tax will work any better than other policies aimed at reducing corporate profit shifting.

Do Personal Taxes Affect Investment Decisions and Stock Returns?

Do Personal Taxes Affect Investment Decisions and Stock Returns?

AN ANALYTICAL STUDY OF TAXATION LITERACY AMONG INDIVIDUALS

Over the recent years, taxation literacy has become a major area of concern for governments, banks, community service groups, other similar organizations, and people in India. People largely lack basic knowledge about financial matters, required to take household decisions, day-to-day money management as well as saving for the long term. Taxation literacy is defined as the knowledge which an individual should possess to manage the issues concerning personal taxation effectively. It helps the individuals in assessing their tax liability, tax management, and tax planning too. Lack of financial and taxation literacy often makes people vulnerable to a financial crisis. It also adversely affects market operations and competitive forces. On the other hand, people who are well informed and well knowledgeable can help to create a more competitive and more efficient financial and tax planning system. The basic purpose of this study is to determine the relationship between financial and taxation literacy among the people, the impact of various government awareness programs on salaried individuals. An illiterate person may arise issues related to tax evasion which is illegal in Indian perspectives. Descriptive type of research will be used to describe the meaning of taxation literacy and review various research papers. Data will be collected from secondary sources. The later section of this review paper observes the views of the different researchers on taxation literacy and will give valued suggestions and future viewpoints on the same. KEYWORDS: Taxation Literacy, Financial Literacy, Tax Management, Tax Planning, People