Tax Rates Research Articles

The Statutory Format of Structured Financial Statements Has Limited Impact on the Profit Tax Determination and Shall Not Be Used as an Argument for Not Allowing the Voluntary Use of IFRS. Evidence from Slovakia

Objective: The objective of this research was to verify whether it is useful to proceed with financial statements in the legally ordered form to determine the profit tax. Theoretical Framework: Financial statements in Slovakia display the amount of profit tax without any information about how the tax has been determined. Method: Despite the fact that the tax rate is given by the law and the tax base is calculated from the financial profit before taxation, we have examined whether structured financial statements bear the information required to determine or verify the profit tax amount. On the random sample of publicly available financial statements from Slovakia we examined whether any of the 201 disclosed variables correlate to the profit tax and whether disclosed figures could be used to determine or verify profit tax. Results and Discussion: We have shown that requiring the submitting of official financial statements in a legally ordered structured form, has no added value regarding to profit tax. Research Implications: Profit tax determination from financial statements cannot be used as a relevant argument to require a legally ordered structured form of financial statements. Companies should be given the possibility of issuing their financial statements based on IFRS or IFRS for SMEs, if the company wishes to do so in order to better display their financial statements. Originality/Value: This research shows that legal requirements on financial statements shall be regularly evaluated whether their structure is still relevant considering technological progress, information value and effort companies, especially SMEs, must expend.

After the Big Deal: Data-Informed Management of Unbundled Journal Packages in a Consortial Environment

ABSTRACT In response to rising subscription costs, academic libraries and library consortia continue to adjust journal subscriptions to limit spending and maximize value from journal packages. Facing increasing costs for their Elsevier ScienceDirect bundled subscription, the 60 libraries of the State University of New York (SUNY) System restructured their large package in favor of a smaller curated list of titles and adopted a data informed approach to assess the new package. SUNY used Unsub and other data analysis tools to drive a data-informed journal package restructuring and reduction. This article presents a three-year review of the work of this unbundling and assessment project. Based on the experience of other consortia, the authors expected an increase in usage of subscription alternatives such as open access content, interlibrary loan, post-termination access requests, and individual article purchases. Preliminary review showed usage of Elsevier content initially dropped 50% after unbundling and then increased annually at a marginal rate. While consortia staff attempted to use a data-informed approach to evaluate titles for yearly subscription reviews and yearly package adjustments, this approach was not sustainable post-unbundling. After allaying initial concerns regarding a reduction in subscribed journal titles, continual yearly review of usage data became less important than the stability of the curated package.

Chief Executive Officer and Tax Avoidance: A Systematic Literature Review

This study aims to examine the development of chief executive officer (CEO) and tax avoidance. The researchers employed a structured literature review method, utilizing reputable electronic databases to gather data from 2018 to 2024, resulting in the selection of 16 studies based on inclusion and exclusion criteria. The findings of this study comprehensively present the developments, types of variables and measurements. There are several types of CEO variables, including CEO overconfidence, CEO narcissism, CEO power, CEO greed, contractual and behavioral CEO attributes, founder or descendant CEOs, masculine-faced CEOs, CEO publicity, CEO stock options, CEO duality, and CEO hometown ties. These variables serve as independent variables for the dependent variable of tax avoidance, measured by the Effective Tax Rate and Book-Tax Difference. This research contributes to the academic discourse and practical applications in the fields of CEO and tax avoidance, offering valuable insights for future studies in this area.

Abortion care preferences and trade-offs when traveling out-of-state for facility-based services: findings from a discrete choice experiment

BackgroundPregnant people living in states that banned abortion after the US Supreme Court’s decision overturning Roe v Wade (Dobbs v Jackson Women’s Health Organization -Dobbs decision) may evaluate multiple factors when deciding where to obtain facility-based abortion care in another state. We examine Texans’ stated preferences for out-of-state facility-based abortion care and quantify the trade-offs they would make when choosing between out-of-state facilities following a 2022 abortion ban.MethodsIn August 2022, we surveyed Texans ≥ 16 years old seeking abortion at in-state facilities or who were searching online for information about accessing abortion care. We used a Bayesian discrete choice experiment to analyze 12 choice sets for out-of-state facility-based abortion care and to assess preferences for three care attributes: wait time to appointment, distance to facility, and cost. We estimated conditional, multinomial, and mixed logit models to examine respondents’ attribute preferences and how these differed across subgroups. We used marginal rates of substitution to express Texans’ tradeoffs in terms of willingness to pay and willingness to travel for different attributes.ResultsAmong 136 respondents (1,362 observations), time to next appointment was the most important attribute (β = -0.887, p < 0.001), followed by cost (β = -0.006, p < 0.001) and distance (β = -0.001, p < 0.001). Respondents were willing to pay an additional $248 (95% CI: $220, $278) and travel 917 miles (95% CI: 711, 1123) further to get an appointment one week sooner. The willingness to pay for a one-week reduction in wait time to appointment was higher among respondents who did not report any economic hardships ($313, 95% CI: $255, $371) than among those who had one or more economic hardships ($175, 95% CI: $142, $208).ConclusionThis discrete choice experiment examining Texans’ preferences for out-of-state facility-based abortion care demonstrates that people seeking abortion prioritize wait time to appointment when deciding where to obtain care. Efforts to make timely care a more feasible option for all those seeking abortion care are needed to mitigate the potential widening of disparities in access to care now that more states have banned abortion.

Pengaruh Intensitas Modal dan Konservatisme Akuntansi Terhadap Penghindaran Pajak

Tax is a very important component of state revenue. because 82.42% of total state revenue comes from taxes. One type of obstacle that hinders tax collection that causes state revenue to decrease is tax avoidance. This research aims to examine the influence of capital intensity and accounting conservatism on tax avoidance. Tax avoidance is measured using the Cash Effective Tax Rate (CETR). The approach used in this research is a quantitative method using secondary data obtained from financial reports published on the Indonesia Stock Exchange (BEI) website and company websites. The population in this study were Food and Beverages Sub-Sector companies listed on the Indonesia Stock Exchange (IDX) for the 2018-2023 period. The sample used in this study included 15 companies obtained by purposive sampling method and SPSS software version 23 was used to analyze the data with a multiple linear regression analysis approach. The findings show that capital intensity has a significant negative effect on Tax Avoidance and accounting conservatism has a significant positive effect on tax avoidance. Large fixed asset storage is carried out by a company not solely to avoid taxes but rather it is done by the company with the aim of running the company's operations. The principle of conservatism applied in accelerating the recognition of costs or losses and delaying the recognition of income has an impact on reducing the profit used as the basis for calculating the company's tax obligations.

Income Inequality and Growth: Calibration and Simulation for the Kenyan Economy

Abstract We investigate the notable decline in wealth and income inequality in the Kenya over the 10 year period between 2005 to 2015. Using a calibrated continuous time heterogeneous agent model, we attribute up to 80% of the variation in top wealth and income inequality to a persistent but slow increase in the return to capital, a low risk free rate, and rising ‘effective’ income tax rates. Our study suggests that a macroeconomic environment characterised by low risk-free interest rates anchored by low debt-to-fiscal revenue ratios are key to reducing both wealth and income inequality.

Complexity Analysis and Control of Output Competition in a Closed-Loop Supply Chain of Cross-Border E-Commerce Under Different Logistics Modes Considering Chain-to-Chain Information Asymmetry

To investigate the dynamic complexity of chain-to-chain output decisions in a closed-loop supply chain system of cross-border e-commerce (CBEC), this study decomposes the system into four product–market (PM) chains, based on the e-commerce platform’s information-sharing strategy and the manufacturer’s selected logistics mode (direct mail or bonded warehouse). By combining game theory with complex systems theory, discrete dynamic models for output competition among PM chains under four scenarios are constructed. The Nash equilibrium solution and stability conditions of the models are derived according to the principles of nonlinear dynamics. The stability of the model under the four scenarios, as well as the impacts of the initial output level and comprehensive tax rates on the stability and stability control of the system, are analyzed using numerical simulation methods. Our findings suggest that maintaining system stability requires controlling the initial output levels, the output adjustment speeds, and tariff rates to remain within specific thresholds. When these thresholds are exceeded, the entropy value of the model increases, and the system outputs decisions to enter a chaotic or uncontrollable state via period-doubling bifurcations. When the output adjustment speed of the four PM chains is high, the direct-mail logistics mode exhibits greater stability. Furthermore, under increased tariff rates for CBEC, the bonded warehouse mode has a stronger ability to maintain stability in system output decisions. Conversely, when the general import tax rate increases, the direct-mail mode demonstrates better stability. Regardless of the logistics mode, the information-sharing strategy can enhance the stability of system output decisions, while increased e-commerce platform commission rates tend to reduce stability. Interestingly, the use of a non-information-sharing strategy and the direct-mail logistics mode may be more conducive to increasing the profit levels of overseas manufacturers. Finally, the delayed feedback control method can effectively reduce the entropy value, suppress chaotic phenomena in the system, and restore stability to output decisions from a fluctuating state.

House price dynamics in the wake of the Tax Cuts and Jobs Act of 2017

The Tax Cuts and Jobs Act of 2017 (TCJA) changed tax policy in two important aspects. It limited state and local tax deductions (SALT) to $10,000 and lowered marginal tax rates in most income brackets. In this analysis, I estimate house price time series models for 20 U.S. cities using Case-Shiller data and test for series breaks when TCJA was adopted and implemented. The purpose is to test whether there is a unit root with breakpoints in each series. If so, the TCJA shock was permanent, not transitory, and the time series process is not mean reverting. Results reveal significant breaks in 12 of the 20 city indices. Additionally, there are significant breakpoints in 22 of the 48 tests across city price tiers (16 cities with three house price tiers each). The modal break date is the month of TCJA legislation passage with another 13 significant breakpoints within six months of TCJA adoption. Results indicate that TCJA was associated with an initial negative effect on house prices in many housing markets and price tiers. Importantly, the presence of unit root processes indicates that house price dynamics are more variable subsequently.

Comparative analysis of the impact of cigarette taxation on consumption, revenue and mortality in Jordan

Background: Tobacco taxes are a powerful tool for reducing tobacco consumption and a reliable source of revenue for government. Aim: To investigate the potential efficacy of tobacco taxation strategies in Jordan in relation to their fiscal and healthrelated outcomes. Methods: Using Tobacconomics, we conducted a comparative analysis of several taxation scenarios: maintaining the status quo; increasing both specific excise and tiered taxes; increasing tiered tax rates alone; and raising specific excise taxes only. Results: We obtained the projected fiscal and health outcomes under the different tax policy scenarios: current scenario with no adjustments; 20% increase in specific excise taxes coupled with a 10% boost in tiered tax rates; raising tier tax by 20%; and raising specific excise by 20%. A 20% increase in excise taxes will decrease cigarette consumption, increase government revenues and reduce deaths among adults and adolescents. It can provide up to 87.5% reduction in adolescent deaths if coupled with a 10% boost in tiered tax rates. Conclusion: A consistent and aggressive approach to tobacco taxation can effectively decrease tobacco consumption and increase government revenue if Jordan's multi-tiered specific excise tax system is adjusted according to retail price.

The effects of management practices on effective tax rates: evidence from Ecuador

The effects of management practices on effective tax rates: evidence from Ecuador

Faktor - Faktor yang Mempengaruhi Kepatuhan Wajib Pajak UMKM dalam Melaksanakan Kewajiban Perpajakan: Studi Kasus pada Wajib Pajak UMKM di KPP Pratama Seberang Ulu

This study aims to examine the effect of tax knowledge, tax sanctions, service quality, tax rates and application of e-filing on taxpayer compliance of UMKMs at KPP Pratama Seberang Ulu. The independent variables in this study are tax knowledge, tax sanctions, service quality, tax rates and application of e-filing while the dependent variable is taxpayer compliance. There are 2 theories in this study, namely attribution and the theory of Planned Behavior. This study uses a quantitative method. The population in this study are UMKM actors registered at KPP Pratama Seberang Ulu. The sample was determined using purposive sampling. Data were collected by distributing questionnaires to 47 UMKMs registered at KPP Pratama Seberang Ulu and in accordance with the specified characteristics. Primary data collection techniques and data analysis using multiple linear regression analysis SPSS software version 25. The methods used in this study are Descriptive Analysis, Validity Test, Reliability Test, Classical Assumption Test, Multiple Linear Regression Analysis Test, F Test, R2 Determination Coefficient Test and t Test. The results of the study indicate that tax knowledge, tax sanctions and the application of e-filing have an effect on taxpayer compliance, while the quality of service and tax rates have no effect on the compliance of UMKM taxpayers at the Seberang Ulu Pratama Tax Office..

Mixed Marginal Rates of Substitution for Analyzing Banking Efficiency Using a Linear Programming Approach

This paper introduces a Mixed Marginal Rates of Substitution (MMRS) approach for analyzing banking efficiency within a linear programming framework. For this purpose, a linear programming model is proposed that efficiently calculates Marginal Rates, revealing how partial input changes affect multiple outputs simultaneously. Applying this methodology to data from the Taiwanese banking system spanning 2010 to 2020 reveals diverse efficiency patterns across financial institutions. The analysis demonstrates that while increased financial inputs generally improve outputs, individual banks exhibit varying sensitivity to these changes. Some institutions were resilient to input fluctuations, while others showed marked sensitivity, particularly in loans and investments. As a result, the proposed MMRS framework provides a robust tool for analyzing indicator relationships within efficient units, offering valuable insights for tailored management strategies and policy formulation in the banking sector. The findings emphasize the importance of institution-specific approaches to enhancing banking efficiency and managing risk effectively, contributing to a more nuanced understanding of economic outcomes in the financial industry. Additionally, symmetry concepts in input–output relationships are suggested as a potential area for future research, offering a possible framework for identifying balanced efficiency patterns among banks.

Article: How Did Anti-tax Avoidance Measures Affect ETRs and Profit Shifting?

This study examines the impact of anti-tax avoidance measures on the effective tax rates (ETR) and profit shifting activities of Multinational enterprises (MNEs) across several key countries. It employs a two-pronged approach to evaluate the effectiveness of the base erosion and profit shifting (BEPS) Actions 3 and 13 in particular. First, the study analyses the generally accepted accounting principles (GAAP) ETRs of large listed firms. Second, the data from tax reconciliation is utilized to investigate ETR items. The findings show a significant increase in ETRs since 2017 which suggests a reduction in profit shifting due to implementing CbCR and controlled foreign company (CFC) rules. However, the effectiveness of these measures in terms of profit shifting varies across countries. France and Germany have demonstrated substantial improvements while Sweden has exhibited positive but volatile results. In contrast, Switzerland and the United Kingdom have presented outcomes that are more complex and nuanced. The study highlights the necessity for continuous fiscal vigilance and implementing adaptive tax policies in order to effectively combat tax avoidance.

Price, Piracy, and Search: Which Pirates Respond to Changes in the Legal Price?

Prior research suggests that high prices may motivate the decision to pirate entertainment goods. We analyzed a natural experiment that decreased the tax rate, and hence also the net prices of e-books, by 14% in Ireland while several other European countries were not affected. Using country-specific data on piracy visits, we found that this price decrease caused only a small and statistically insignificant decrease in total e-book piracy visits. However, we further decomposed piracy visits into those of direct pirates, who navigated directly to piracy sites, and indirect pirates, who searched to find piracy sites. The 14% price decrease caused no change in direct piracy visits but caused a statistically significant 27% decrease in indirect piracy visits. These findings align with prior research suggesting that search can play an important role in piracy, but only for some pirates. Our results demonstrate the potential of using price to mitigate piracy, but they also highlight the challenges firms face in competing with piracy for experienced pirates. We conclude by detailing both the policy and managerial implications of our work.

Global public goods, fiscal policy coordination, and welfare in the world economy

A two-region endogenous growth model of the world economy with local and global public goods is used to study strategic interactions between national policymakers. Distortionary taxes are used to finance infrastructure investment at home and generate resources for vaccine production by a global fund. While the global public good is nonexcludable, it is partially rival. Optimal tax rates under cooperation and noncooperation are solved for analytically, under both financial autarky and openness, and numerical experiments are performed to evaluate the welfare gain from cooperation. Whether optimal levies are higher or lower under cooperation, and the magnitude of welfare gains, depend on the degree of integration of capital markets, the existence of a direct trade-off between expenditure components, and the nature of the tax base. When the health levy takes the form of a capital or wealth tax, cooperation is welfare-improving under both autarky and financial openness, but enforcement and collection costs may narrow the scope of taxation under all policy regimes.

Increasing Taxes on ‘Bads’ and Reducing them on ’Goods’: A Double Dividend Hypothesis of Carbon Taxation

We analyse the effect of adoption of a carbon tax on the effective labour tax rates using a difference-in-difference framework in which we incorporate staggered treatment adoption and account for heterogeneous causal effects. We use data on 143 countries during 1985-2018. We conduct our analysis using DID estimation developed by Borusyak et al. (2024) and Callaway & Sant’Anna (2021) followed by sensitivity analysis and placebo tests. We find that enacting a carbon tax on an average lowers the labour tax rate by 1.32 percent points. In country-specific analysis we find that carbon tax implementation is reducing labour tax by around 3.57 % for Sweden and Norway, however, the effect is insignificant for Denmark. Our findings indicate that implementing a carbon tax can help to reduce the tax burden on labour. Countries experiencing substantial welfare losses due to their present tax structure might implement carbon taxes as a means to mitigate these losses.

Optimum carbon tax rate for emission targets of electricity generation system by life cycle techno-economic-environmental optimization model

Reduction of greenhouse gas emissions from the electricity sector is of special interest for decarbonization of energy systems. Optimum carbon tax as a powerful policy tool is here studied by integrated techno-economic-environmental life cycle analysis in a unit commitment problem. The present model is formulated as a bi-level optimization problem to reach the optimum carbon tax rates for different emission targets. The total life cycle CO2 emissions are estimated to be 20333.90 tons/hr in a real case study of Iran's electricity sector for the peak demand hour. The carbon tax rate for a 2% and a 3% emissions reduction is equal to 15.87 and 24.65 $/ton, respectively. In the business-as-usual scenario, higher carbon taxes will be required each year to meet the same emission target. However, developing the electricity sector with cleaner technologies and strategic plans may decrease the carbon tax rate. The extent of this reduction depends on the type of development program implemented in the green revolution scenario. Therefore, policy makers play a direct role in ensuring the sustainable development of the electricity sector. The present model provides a robust framework to analyze the real carbon tax rates for the whole life cycle of electricity generation dispatch.

The Influence of Corporate Governance and Accounting Conservatism on Tax Aggressiveness in Automotive and Component Sub-Sector Companies

This study aims to obtain empirical evidence regarding the impact of corporate governance, projected through independent commissioners and audit committees, as well as accounting conservatism as independent variables, on tax aggressiveness as the dependent variable in automotive and component subsector companies listed on the Indonesia Stock Exchange (IDX) during the research period from 2018 to 2022. In this study, independent commissioners are measured by the ratio of the number of independent commissioners to the total board of commissioners. The audit committee is measured by the number of current audit committee members in the company. Accounting conservatism is measured by summing operating income with depreciation of fixed assets, then subtracting the net cash flow from operating activities, and dividing by the total assets of the company, with the result then multiplied by -1. Tax aggressiveness is measured by the Effective Tax Rate (ETR), calculated by dividing income tax expense by pre-tax income of the company. The sample size for this study is 11 companies, where the sample data were selected using purposive sampling. The data are analyzed using a multiple linear regression model processed with IBM SPSS Statistics version 23. The results of this study indicate that independent commissioners have a significant negative effect on tax aggressiveness, while the audit committee and accounting conservatism do not have a significant effect on tax aggressiveness.

Influence of phosphorous fertilizer on mineral nutrition and yield attributes of wheat: Acquisition with PSTOL1 gene for arid environment

To boost agricultural yields, understanding mineral nutrition’s reliance on fertilizers is crucial, underscoring the need to evaluate nutrient-use efficiency for optimal fertilization. In this regard, a field study was conducted to elaborate the role of phosphorus fertilizer in enhancing growth, yield and marginal rate of return in four wheat varieties; two Zn-biofortified (Zincol-2016 and Akbar-2019) and two standard types (Anaj-2017 and FSD-2008). The study revealed that application of phosphorus significantly enhanced the uptake of nitrogen (N), phosphorous (P) and potassium (K) contents in straw (13 %, 59 % and 79 %) and grains (63 %, 92 % and 28 %) respectively. Similarly, the contents of Zinc (Zn) and iron (Fe) were reduced in straw (23 % and 19 %) and grains (19 % and 18 %) respectively after application of 80 and 120 kg P2O5, however at 40 kg P2O5 the contents of Zn and Fe were slightly enhanced. The grain yield (21 %) and harvest index (11 %) was maximum at 80 kg P2O5 as compared to 40 and 120 kg P2O5. The Marginal rate of return over investment (MRR) in P2O5 was maximum (241 %) in Akbar-2019 when P-fertilizer was applied at the rate of 80 kg P2O5 per ha−1. Regression analysis showed a positive correlation between grain yield and its determinants. Biofortified wheat varieties responded better to 80 kg P2O5, outperforming standard varieties in yield. Additionally, our findings demonstrate a significant upregulation of PSTOL1 gene expression at 80 kg P2O5 level. Concludingly the application of P-fertilizer at the rate of 80 kg P2O5 per ha−1 enhanced growth, yield and rate of return of testing wheat varieties especially the biofortified ones; Zincol-2016 and Akbar-2019.

The Influence of Corporate Social Responsibilty on Tax Avoidance

This research evaluates the disclosure of tax avoidance and corporate social responsibility in companies listed on the stock exchange and based on the age of the company. By using the effective tax rate indicator for tax avoidance and the Global Reporting Initiative for corporate social responsibility. This research was conducted on manufacturing companies in the basic materials sector listed on the IDX from 2018 to 2023. The sample selection in this study used the purposive sampling method and obtained 21 sample companies. The results of this study indicate that companies listed on the special and main monitoring boards tend to have higher corporate social responsibility disclosures and are more focused on social responsibility initiatives. This suggests that companies listed on the main and special monitoring boards are more focused on social responsibility, including environmental sustainability, human rights, and contributions to society. This research underscores the importance of the role of corporate social responsibility in creating long-term value and the competitiveness of the company. This research also shows that companies aged 5-10 years tend to reach the peak of disclosure in various aspects of corporate social responsibility. These results emphasize the importance of corporate social responsibility in creating a good reputation and supporting sustainable growth, especially in the context of companies of different ages.