Principles Of Taxation Research Articles

О ПРИНЦИПАХ ПОСТРОЕНИЯ СОВРЕМЕННОЙ РОССИЙСКОЙ СИСТЕМЫ НАЛОГООБЛОЖЕНИЯ

An important issue for ensuring the construction of a logical, internally harmonized, stable and fair system of legislation on taxes and duties, which provides for a combination of the observance of the rights and freedoms of each person and the interests of authorities at various levels, taking into account the existing federal form of the State structure of the Russian Federation, is the question of formulating the principles for the construction of a modern tax system. The article presents the materials of a theoretical study of approaches to the construction of a modern taxation system in the Russian Federation. In the framework of the problem studied in this article, not only the theoretical and methodological foundations of the issue being studied are considered, but also an analysis of the constitutional and legislative requirements of the Russian Federation in the field of forming a tax system is carried out. As a result of the analysis, the author systematized the principles of taxation declared in the Russian Federation through the beginning of legislation on taxes and fees, and also concluded that the fundamental principles of the Russian tax system should be directly reflected in the Tax Code of the Russian Federation.

Aspects of application of tax control by countries for cross-border operations

International taxation, as follows from the theory, is a study of the tax burden on individuals or legal entities in accordance with the tax laws of different countries or international law. Russia, the United States and the EU are global jurisdictions with the most complete tax legislation concerning transfer pricing. In this regard, it is very useful to consider the experience of countries with different principles of taxation of international transactions, which will undoubtedly contribute to improving tax control over international transactions. As a rule, when performing cross-border transactions, the state implements additional control measures, in particular, tax control over transfer pricing. Foreign trade transactions, if the subject of such transactions are goods that are part of one or more of the following commodity groups (oil and goods produced from oil; black metals; non-ferrous metals; mineral fertilizers; precious metals and precious stones) in Russia belong to the category of controlled ones, which necessitates the use of transfer pricing methods. The audit is carried out in relation to the main taxes, namely, VAT, income tax, mineral extraction tax and personal income tax (in relation to individual entrepreneurs), as well as tax on additional income from the extraction of hydrocarbons. The article examines various tools and methods of control over international transactions carried out by both residents and non-residents. The authors consider the experience of countries with different principles of taxation of international transactions, which will contribute to improving and increasing the efficiency of tax control over international transactions, the correctness of calculation and completeness of payment of taxes when applying transfer pricing.

Was Polllock V. Farmers’ Loan & Trust Co (1895) Decided Consistently with Existing Tax Principles?

The foundation of the modern tax system in the United States is based on the 16th Amendment passed in 1909. The Amendment was Congress’s response to the Pollock v. Farmers' Loan & Trust Company, 157 U.S. 429 (1895), affirmed on rehearing, 158 U.S. 601 (1895). Pollock held that an income tax levied on the US population based on “dividends, royalties, and rents” was unconstitutional. Because of this, Pollock v. Farmers' Loan & Trust Company was a key case in the history of taxation and tax law in the United States. Theoretically, the key question is whether a tax on property is the same as “dividends, royalties, and rents” arising from that property. Understanding the reasoning of this case illuminates key concepts in taxation, the history of taxation, and has implications on Constitutional history and interpretation.

“De facto” single real estate complex as an object of taxation in the context of corporate property tax of

The problem of qualification of property became urgent in 2019, when corporate property tax was levied on movable property. Tax authorities began to reclassify movable property into immovable property, using the terms and constructions of civil legislation. This article examines such legal constructs as a single real estate complex, and its impact upon taxation of corporate property. Special attention given to the following questions: 1. What objects can be incorporated into a single real estate complex? 2. Whether the range of objects united by a single technological network can be recognized as a single real estate complex, if the right to ownership is not registered as for a single immovable object in the uniform state register? Based on the analysis of the actual arbitration cases, it is concluded that the concept of a single real estate complex was completely revised by the tax authorities, and then by the courts, violating the goals pursued by the legislator, who tried to encourage corporations to renovate fixed assets, intentionally excluding movable property as the object of taxation in the context of corporate property tax. The author concludes that the interpretation of the terms of civil legislation proposed by tax authorities and established in case law led to unfeasibility of the goals set for the legislator, as well as to violation of the fundamental tax principles.

The International Tax Regime at 100: Reflections on the OECD's BEPS Project

This essay will consider the outcome of Pillars One and Two in light of the history of international taxation since the foundation of the international tax regime in 1923. Specifically, it will consider how Pillar One fits with efforts to redefine the source of active income in light of the digital revolution, and the ways in which Pillar Two implements the single tax principle, which can be traced back to the first model treaty from 1927. Both of those ideas were already articulated and developed in my own early writing on international taxation from the 1990s, when the Internet was in its infancy.

Taxation of personal income in the context of issues of social fairness

The subject. The leading position of the personal income tax in most countries is due to a number of circumstances. First, it is a personal tax, the object of which is the income actually received by the payer, and not the estimated average income that could be received in specific economic conditions. Second, income tax allows to maximize the implementation of the basic principles of taxation - universality and uniformity. In recent decades, national regimes of personal income taxation regimes have been actively developed both in foreign countries and in Russia. Purpose of the study. The article shows the results of analysis of the framework of personal income taxation in the Russian Federation in the context of the principle of the social fairness. Dealing with selected provisions of the national legislation of European countries and Russia the article shows that elements of progressive taxation can be applied only in particular aspects. The proposals of taxation of rich taxpayers are also brought into light. Methodology. The research was carried out with the application of the formally legal interpretation of legal acts as well as the comparative analysis of Russian and European legal literature. Structural and systemic methods are also the basis of the research, The main results. After studying the European experience of personal income taxation the authors come to the conclusion that some of the ideas described can be transferred to the Russian tax legislation, but this should be done with caution. It is not necessary to introduce a progressive tax system in its pure form in the Russian Federation, but it is worth considering options for switching to a dualistic system. The authors believe that the elements of borrowing foreign experience should be aimed rather at a fair distribution of benefits, for example, through rules that fix tax benefits. Conclusions. The following proposals can be formulated to improve the legal regulation of personal income taxation in the Russian Federation: the distinction between taxation of taxpayers with ultra-high incomes and those with minimal incomes should be based not on the income criterion, but on the expenditure criterion; to establish a non-taxable minimum in the amount of the minimum wage, which will ensure tax fairness for taxpayers with lower-average incomes; to review the criteria of taxation of luxury vehicles, raising the border separating the mass and premium segments of the Russian car market by at least two times - up to 6 million rubles. The best solution would be to abolish the vehicle tax and impose an increased excise tax on fuel and lubricants for personal transport.

Lack of Uniformity in the Israeli Property Tax System 1997–2017

There are two different forms of property tax systems: value-based tax, which is used in most countries of the world, and area-based tax, which is used mainly in Central and Eastern Europe and developing countries in Africa. Area-based property tax provides more stable and predictable budget revenues. It is simpler to administer and scores worse on equity grounds from the perspective of the ability-to-pay principle of taxation. Against this background, Israel’s property tax system, known as Arnona, is complex, spatially diversified, and causes a lack of uniformity that leads to tax distortion. This paper’s primary purpose is to identify the weaknesses of Israeli property tax from 1997 to 2017 and indicate how to improve the property tax system. This paper is based on case studies from four of the most important cities in Israel: Tel Aviv, Jerusalem, Haifa, and Beersheba, which have four different measurement methods for calculating property tax. Unique data were collected from the Israel Central Bureau of Statistics. According to this analysis, it was found that there are substantial differences in property tax between the four cities over the two decades analyzed. The main weakness is the lack of uniformity of the taxation system; the solution is to unify the measurement of real estate area for tax purposes using drone technology.

Behavioural intention to adopt blockchain for a transparent and effective taxing system

PurposeThe purpose of this research is to assess the tax stakeholders’ intention towards the adoption of blockchain technology (BT) for a transparent and effective taxing system in Bangladesh. It examines the factors influencing the behavioural intention of the users to adopt BT with a blended model built on the technology acceptance model (TAM) and self-determination theory (SDT). This research develops a prescriptive model to demonstrate how the stakeholders are interested in adopting BT for the taxing system.Design/methodology/approachData were obtained through a structured questionnaire from the stakeholders of the taxing system, including tax policymakers, tax commissioners, tax officers, lawyers, tax consultants and the taxpayers. Statistical analyses were performed using partial least square-structural equation modelling.FindingsResults reveal that out of the two primary TAM antecedents known as usefulness (PU) and ease of use (PEU), PU has a significant influence on the BT adoption intention. The only cognitive variable called autonomous motivation picked from SDT has a positive and significant impact on BT adoption for tax purpose as well. Finally, trust is found to be another important determinant for explaining stakeholders’ intention to adopt BT for an efficient taxing system where transparency can be ensured.Research limitations/implicationsThe proposed model does not include any moderator though there might be a moderating effect in this regard. The variation described in the behavioural intention to adopt BT by the predictors is half of the total possible variations. Hence, the inclusion of variables such as social influence and controlled motivation could be interesting.Practical implicationsThis study is expected to provide valuable insights into policymaking for tax administrations to enhance the tax collection net and maintain transparency and efficiency in the taxing system.Social implicationsThis research has social consequences for a recently graduated developing economy such as Bangladesh, where transparency and efficiency are a matter of question. Because BT adoption can assure a convenient and favourable environment for the taxpayers upholding the principles of taxation, it can play a significant role by ensuring social justice and equity through a transparent and effective taxing system.Originality/valueThis research is among the first few studies to address the issue of implementing a modern technology such as BT for an efficient taxing system from a developing country perspective. Furthermore, it combined TAM and SDT to propose a hybrid model for explaining behavioural intention to adopt an emerging technology such as blockchain, which is a new phenomenon.

The Genesis of the German Social Insurance Model: History and Present

This article examines a complex of problems associated with the formation and the initial stage of development of the German model of social insurance. Initially, three models of such insurance have been proposed, then the main characteristics of the considered model have been highlighted. The article states that the German scientist Adolf Wagner played an outstanding role in the theoretical substantiation of this model. At the same time, the stages of his biography are briefly considered, allowing us to understand why exactly his role was so significant. Further, such important scientific phenomena for the formation of the system of compulsory state social insurance as Wagner's law, the principles of taxation substantiated by him, its use for redistribution of income, etc., are analyzed. Special attention is paid to the activities of the Union of Social Policy, which played an important role in the preparation of regulatory bases of future social transformations. The conclusion is substantiated that the formation of the German model of social insurance was the result of a long evolution of social relations from voluntary insurance at the expense of the workers themselves to optional, then optional-mandatory and, finally, mandatory social insurance based on the relative consensus of the leading social forces: political power, workers and some of the employers.

Studying Public Sector Budgets at the Undergraduate and Graduate Level

Europe demands that its people be culturally and intellectually equipped in the ways that are suitable for their present and future. Only in this way they will be able to live meaningful lives in person and together. Higher education institutions play a key role in developing appropriate strategies as they are responsible for preparing their students for viable development of career and citizenship. Universities and other higher education institutions are increasingly realizing that their movement is a moving target and their leadership in the field of knowledge and understanding development and transfer means a new sensitivity to a society change. They are increasingly consulting their customers. Education inspires societal progress, but at the same time, it must respond with discernment to society by developing appropriate strategies for future study programs. Graduate studies in human resource management and national security programs prepare students for an independent national budget evaluation (acting as public finance specialists) which requires high qualification. The managers of human resource in the public sector are in charge of public finance expenditure accounting and budget matters in an institution and, besides typical knowledge of the budget, must demonstrate deep knowledge of public finance and the ability to combine human resource management and public expenditure issues. In order to achieve this goal, the Master study programme in National Security at General Jonas Žemaitis Military Academy of Lithuania (MAL) partially provides the study of specialized subjects in the fields of public finance and budget planning. One of the most important subjects is the national budget which requires from the students a lot of prior knowledge in the field of budgeting and taxation systems. Estimating that the main purpose of governmental sector’s human resource management could be public finance, it is useful to show students the differences in the approach of national budget operations and tax revenue purposes. The teaching process should be based on accurately selected cases obvious for students. From a didactic point of view, a properly selected case is the one that contains a lot of differences among national, government and municipal budgets and their records in the national legal system. One of the examples that meets the above criteria is revenues collected from different taxes. Settled income from taxes are one of the most important revenues for the national budget. Moreover, the principles of diversification of government and municipal budgets could be clearly understandable for graduate students. The paper presents the advantages and disadvantages of choosing different taxes for national, state and municipal budgets concerning tax burden for different groups of society. Furthermore, the purposes of teaching students public budgeting and the principles of taxation are discussed. Amid the many preferences, the most important one could be a pattern that clearly shows different approaches to budget expenditures and tax diversification as an interrelated issue that is the amount of budget expenditures strictly correlating with taxable and non-taxable income in the public finance and depending on the budget legislation. Certainly, the indication of such relations is the essence of public finance budgeting. Practical applications are constructed from years of practice in teaching public finance, national and municipal budgets. Taxation theories were also indicated by the results of a survey carried out in a group of students studying public finance in the last academic year.

Налог на профессиональный доход: к вопросу о соответствии принципам налогообложения

Налог на профессиональный доход: к вопросу о соответствии принципам налогообложения

Fair Corporate Taxation: Why and How International Tax Rules Need to Be Changed

Tax avoidance harms public budgets as is estimated that at least 20 per cent of corporate income tax revenues are lost due to such corporate behaviour. Furthermore, the business models used by multinational enterprises to reduce tax payments (such as letterbox-type practices) have a detrimental impact on productive investment, on workers’ involvement in management’s decisions and on collective bargaining for a fair share of the wealth. Indeed, current international tax rules do not take into account the complex business and tax strategies in which multinationals are engaged at global level. First, a move towards a unitary taxation principle is required, which means that the profits of a multinational should be determined globally and shared out between countries in proportion to the real level of economic activity. Second, a global minimum tax rate should limit tax competition between countries and raise corporate tax revenues. And finally, greater transparency about tax practices, including a breakdown of revenues and profits by country (country-by-country reporting), is needed to enable workers’ representatives to understand the tax practices of their companies.

Ética tributaria en México, reflexiones sobre su aplicación práctica

La ética tributaria es imperativa en los modernos sistemas tributarios, los Estados requieren de una recaudación óptima para cubrir y asumir en tiempo y forma sus múltiples obligaciones que tiene hacia sus gobernados. Dotar de los servicios públicos a millones de personas solo será posible si los ciudadanos están conscientes y educados del alcance de sus obligaciones fiscales y de la importancia que tiene asumir su rol de contribuyentes. Los principios doctrinarios fundamentales de los impuestos cobran una mayor importancia cuando se trata de legislar y de aplicar la ley con la mayor justicia posible, sin dañar y atentar contra el patrimonio de ciudadanos, pero sin descuidar el gasto público, por tanto la ética tributaria adquiere un papel trascendente y prioritario en la conceptualización de las obligaciones fiscales, no obstante sigue habiendo evasión fiscal, ¿Por qué existe la evasión fiscal? El presente artículo hace una breve reflexión en torno a las teorías ético tributario donde se trata de lograr una aproximación a la explicación social de este fenómeno fiscal. La aplicación práctica de la ética fiscal es compleja porque parte de un sinnúmero de posibles variables que los teóricos de la materia fiscal buscan resolver. Esta reflexión partiendo del contexto mexicano puede servir como un marco de referencia de la ética tributaria y su aplicación práctica en diversos escenarios tributarios del mundo.

The EU Protection of Tax Data Transferred to Third Countries

Exchange of information is interwoven with the worldwide income taxation principle. Residence-countries taxing their residents on income produced both domestically and abroad need the cooperation of source-countries to obtain information about income produced by their residents in those countries. By neutralising the more advantageous effect of no or low taxation in the foreign jurisdiction, a residence-country actually is in a position to claim to subject foreign income to control through exchange of information and administrative cooperation.

Permanent Establishments under the OECD Model (2017) Based on the Principal Role Leading to the Conclusion of Contracts – A Doctrinal and Policy Analysis

This article examines the meaning and scope of the expression “playing the principal role leading to the conclusion of contracts” introduced into article 5(5) of the OECD Model (2017). From a policy perspective, the author argues that the 2017 changes realize the overarching principles of appropriate permanent establishment taxation.

Where’s the Source? Ambiguities in the Principles of International Taxation

The starting points in international taxation, as used by countries around the world to establish and divide tax jurisdiction and as the basis for the charge to tax income, embed an idiosyncrasy of analytic indistinctness. The residence and source principles are geographically geared in the same direction, towards the supply side of income and the country of origin. At the same time, however, the source principle is also geographically geared in the opposite direction, towards the demand side and the country of destination. This creates a world of smoke and mirrors, where a veil of apparent universal consensus on the principles of international taxation disguises deep underlying antagonisms between countries and regions when it comes to dividing entitlements to tax international income. In a time of isolationism and unilateralism, such divides are problematic. A political solution to the problem of how to geographically distribute tax base among countries is not (or not yet) available for the e-profits of tech giants, for example, or for dividing taxing rights on portfolio investors’ capital income between richer and poorer countries. The author believes that it would make a difference if we were to cease our troubled ‘residence-versus-source thinking’ and instead to direct the debate to what it is really about: tensions in the international tax regime as a result of a growing geographical divergence between the supply side and the demand side of income creation.

An evaluation of the legislative and policy response of tax authorities to the digitalisation of the economy

Tax administration and reform within the digitalised economy is an ongoing global debate. In the study, the global tax response to various elements introduced by the digitalisation of the economy is synthesised, analysed and evaluated. The study is set apart from other studies, as it provides a global and holistic overview of current tax reform of all major tax types impacted by the digitalisation of the economy. The study’s results are based on evidence collected for 120 countries worldwide and reflect that while the digitalised economy is regarded as borderless and digitalised, current international responses remain influenced by country borders and traditional tax principles that have led to global tax reform that is complex, expensive and difficult for highly digitalised multinational entities to comply with. The findings further indicate that although the recommended interim tax measures (where applicable) were adopted in principle by the majority of countries worldwide, the application of these measures lacks uniformity. It can further be deduced that international tax response to the digitalisation of the economy does not fully embrace and acknowledge the hybrid nature and digital environment of the business models associated with a digitalised economy.

A Critique from a Developing Country Perspective of the Proposals to Tax the Digital Economy

The digital economy has revolutionized the way of doing business, but it poses challenges to the effectiveness of current international tax system. The OECD has called on the international community to consider new international tax rules for taxing the digital economy, with a plan to reach consensus by 2020. This article highlights that the feasibility of the new rules should be based on a principled approach. However, before international consensus could be reached, some countries started adopting unilateral measures that threaten the integrity of the international tax system, and they impact on foreign direct investment in developing countries. The article highlights the pros and cons of the proposals from a principled and developing country perspective. With country interests to protect, there is no guarantee that consensus will be reached soon. While uncertainty prevails, the article recommends measures that have historically been used to protect source tax bases and are in line with international tax principles that will be useful for developing countries.

Guiding principles of good tax policy: Is there an association between the principles of the income tax of Nepal and the principles of good tax policy suggested by AICPA?

Purpose – This article aims to examine the association between principles of income tax in Nepal and the principles of good tax policy prescribed by AICPA.
 Materials and methods – This study uses both primary and secondary data. Forth primary data, the study obtained data from several individuals using the Likert type scale questionnaires. To obtain the answer upon research questions and to reach into the conclusion, the study used the Chi-square and summated rating scale.
 Findings – The study found an association between the principles of income tax in Nepal and the guiding principles of the good tax policy suggested by AICPA. Only on three principles (i.e., certainty, information security and economic growth and efficiency) out of the twelve guiding principles came into the acceptance ofH0 (null hypothesis) while others came into the acceptance of H1 (alternative hypothesis). However, the study concludes that Nepal needs reform/s to its income tax principles to make them compatible with the principles of other countries.
 Practical implications – Theory and practice both are complementary to each other. Every theory is worthless in the absence of practice and vice versa. The theory, which people perceive as simple, progressive, and democratic is fundamental and practical. Thus, this writing keeps crucial importance in the government revenue sector and suggests being practical after reforming the required policy.
 Originality/value – This is survey research to find out the association between the principles of income taxation in Nepal and the guiding principles of good tax policy suggested by the AICPA. For which, the author prepared this product using both primary and secondary sources of data based on Kathmandu valley. Thus, this is original writing in this subject.

Tax In History: The Italian Statute of Taxpayers’ Rights: State of the Art 20 Years after Its Enactment

The Italian Bill of Taxpayers’ Rights (so called Taxpayers Statute) is twenty years old. Even if it is formally a primary law, its provisions are deemed to be general principles of the Italian tax system that directly derive from the Constitution. This is why it is the most important set of Italian tax rules. The Statute not only recognizes the main taxpayers’ rights, but also provides guidance to both the legislature and tax authorities in tax matters. It dramatically changed the relationship between tax authorities and taxpayers. During the twenty-year period since its enactment, the effectiveness of the statutory provisions has increased and changed. This is primarily because of the fundamental role of the Supreme Court, that has been a key player in the recognition of taxpayer rights and might also have a fundamental role in the future. The Taxpayers Statute and the literature encouraged the Supreme Court toward an innovative way of thinking and approaching tax cases by looking not only at taxpayer duties but also at their rights. Italian Taxpayers Statute, constitutional tax principles, taxpayers’ rights, bona fide principle, ‘state of the reasons’ duty, provocatio ad opponendum doctrine, right to be heard, legitimate expectation doctrine, tax ruling, general anti avoidance rule.