Reduction Of Tax Burden Research Articles

Incremental marketization reforms and venture capital strategy adjustments: Based on industrial chain innovation development

Marketization reforms are essential for ensuring long-term development. This paper examines the effect and mechanisms of marketization reforms on venture capital strategy adjustments using panel data from 31 provinces in China from 2010 to 2022. The study finds that marketization reforms have increased the level of venture capital primarily by enhancing industrial chain innovation and reducing tax burdens. Based on the findings, recommendations are proposed to deepen marketization reforms and advance venture capital strategy adjustments in China.

Does local government debt pressure hamper green transition? Evidence from China

The accumulated local government debt will change government fiscal behavior, which will further impact regional environment performance to a certain extent. However, the literature on how local government debt pressure (LGDP) affect green transition is scarce. By measuring the green transition by green total factor productivity (GTFP), we analyze the effect of LGDP on GTFP. We find that LGDP significantly reduces the GTFP. The negative effect acts through reducing green innovation and loosing environmental regulation. In addition, the negative impact will be more pronounced in cities with weak governance, development, and environmental protection efforts. Finally, enhancing marketization, lowering GDP growth target, and reducing tax burdens can alleviate the adverse effect of LGDP on GTFP. The conclusions of this study provide theoretical support for appropriate government debt governance and have important practical significance for green sustainable development in developing countries.

Silence vs. Catering: Carbon Information Disclosure Strategies and High-Quality Corporate Development

A corporate carbon information disclosure strategy is essentially an environmental responsibility manifestation of “inconsistency between words and deeds”. It has two forms:, green “silence” and green “catering”, both of which restrict the externalization of green productivity and affect the high-quality development of enterprises. This study shows that ① there is a U-shaped relationship between carbon information disclosure strategies and the high-quality development of enterprises. Green “silence” positively affects the high-quality development of enterprises, and the impact of green “catering” on the high-quality development of enterprises changes from negative to positive. ② Green “silence” affects the high-quality development of enterprises by increasing R&D investment, reducing tax burdens, and intensifying financing constraints, while green “catering” affects the high-quality development of enterprises by decreasing R&D investment, increasing the tax burden, and easing financing constraints. ③ If the competition in the industry is fierce, the green “silence” strategy should be adopted. When there is monopoly in the industry, the green “catering” strategy is dominant. The findings of this study not only provide management suggestions for enterprises on how to correctly treat the carbon information disclosure strategies that have been implemented or planned to promote their own high-quality development, but also provide policy inspiration for relevant regulatory authorities to complete the transition from voluntary disclosure to mandatory disclosure.

Perceptions of Individual Taxpayers towards Tax Avoidance: A Case Study of Cuttack District of Odisha

The primary and major source of revenue of any government is collection from the tax. The amount of tax revenue is expensed for the welfare of the public. Various provisions are laid down in the Income Tax Act, of 1961 for the levy and collection of tax. The taxpayers have to take the benefits of loopholes of the provisions for the reduction of tax burden and it is called Tax Avoidance which is a legal action. Ultimately, tax avoidance reduces the sources of revenue of the government. This paper attempts to study the perception of the individual taxpayers towards Tax Avoidance in Odisha. This study is based on both the primary and secondary sources of data. The primary data has been collected and compiled from the responses of 100 numbers of individual taxpayers. The secondary data have been collected and compiled from the various ancillary sources such as magazines, periodicals, journals, and some apparent websites. The data collected from these sources have been categorized and tabularized as per the necessities of the current study. There are various statistical and mathematical tools and techniques like the Chi-square test, percentage, trend Analysis, and Likert scale have been applied for the exploration and understanding of results. The present paper shows that a huge number of taxpayers or people are considering payment of taxes as a load in spite of the amount of tax is very less. The average perception of individual taxpayers differs significantly among different groups of the selected demographic and financial variables. The perception of individual taxpayers toward Tax Avoidance shows the adverse impact on the economic development of the country.

Navigating the Nexus of Tax Avoidance and Strategic Planning: Insights and Strategies

Tax avoidance and tax planning are two concepts often discussed in the context of corporate governance, financial management, and government fiscal policy. While both aim to minimize tax liabilities, they differ significantly in their legality, ethical considerations, and long-term implications. Tax planning involves strategic decisions within the bounds of tax laws to optimize tax efficiency, ensuring compliance while maximizing benefits for stakeholders. In contrast, tax avoidance exploits loopholes or ambiguities in tax laws to reduce tax burdens, sometimes pushing the boundaries of legality and ethical standards. This abstract explores the distinctions between tax planning and tax avoidance, their impacts on financial transparency, corporate social responsibility, and regulatory responses worldwide. Understanding these distinctions is crucial for policymakers, corporations, and taxpayers navigating the complexities of modern taxation systems. This paper is a humble effort to understand the concept of ‘Tax Evasion’ and ‘Tax Planning’ difference between these two concepts. It also explores how can existing legal aids be made more accessible and reap better results.

Development of an economic and information system for the optimization of city traffic flows

The paper presents a critical analysis of current approaches to reorganizing urban transportation routes. It proposes addressing the problem of optimizing traffic flows as a multidimensional issue encompassing social and economic aspects. An economic-information model for continuous monitoring and optimization of urban traffic flow configurations based on the criterion of congestion wait time has been developed. The calculation of the economic consequences of such waiting time is proposed. The developed system has practical significance and can be applied in managing traffic flows as an economic subsystem of the city within its socio-economic system. Urban transportation infrastructure in Ukraine faces significant challenges due to social changes, including increasing passenger flow, extended waiting times, and the need to adhere to modern urban planning standards. Current trends involve redistributing street and road space based on principles of equal access and safety. This includes pilot actions, intermediate reconstruction, and comprehensive reorganization of urban space and transportation routes. Proposed methods for enhancing transportation infrastructure include improving government management, implementing proactive management strategies, executing investment projects, establishing public-private partnerships, temporarily reducing tax burdens, developing comprehensive solutions for consumers, and optimizing transportation pricing. These strategies aim to address the pressing problems in Ukraine's transport sector and facilitate sustainable development and growth. The study focuses on the financing of infrastructural projects in Dnipro city through the municipal budget. It proposes integrating economic-mathematical models into a unified economic-information system for optimizing traffic flows, allowing for continuous monitoring and improvement. This system emphasizes minimizing congestion wait times and can adapt to dynamic changes in traffic patterns, ensuring efficient and effective urban traffic management. By implementing this system, the city can enhance its transportation network, contributing to overall economic efficiency and better quality of life for its residents.

Economic and institutional drivers of trade-related illicit financial flows

This paper aims to examine the influence of controlling corruption, tax burden reduction, price stability and trade liberalization on trade-related illicit financial flows. The analysis focuses on a sample of 120 developing and emerging countries, drawn from data collected over the period 2008–2017. The econometric results reveal that controlling corruption, tax burden reduction, prices stability and trade liberalization contribute significantly to reducing trade-related IFF or false invoicing of foreign trade transactions. These results can be observed both within and outside Africa. In addition, increased competition on the domestic market helps to reduce trade-related IFF, while higher public spending significantly increases trade-related IFF.

Is tax avoidance one of the purposes of financial data manipulation? The case of Romania

PurposeCompanies avoid taxes in a variety of ways and use different methods to do that, one of the most common being earnings management. The purpose of this paper is to investigate whether companies manipulate their financial data in order to reduce taxes paid.Design/methodology/approachWe considered a sample of 63 listed Romanian companies for the period 2016–2021. The Beneish model was used for estimating earnings management, and the effective tax rate was used to measure tax avoidance. The analysis was carried out using regression analysis in Stata13 software.FindingsThe findings of the research indicate a negative and statistically significant association between effective tax rate and earnings management, implying that one of the main reasons why companies manipulate their earnings to reduce tax burden and avoid taxes. Moreover, our results show that return on assets (ROA) has a statistically significant negative influence on the effective tax rate. Furthermore, our analysis reveals that firm size, growth, and Big4 audit have no effect on effective tax rate.Research limitations/implicationsBecause it analyzes concrete cases using financial data and provides some recommendations for addressing the issue of tax avoidance, this work is useful in advancing both quantitative and qualitative research on this topic. This research is relevant for businesses, governments, regulators, audit professionals and investors.Originality/valueThe study, by analyzing concrete cases using reported financial data, contributes in filling the gap within the literature that results from a lack of scientific research on the relationship between tax avoidance and earnings management, and then it clarifies the nature of the causal connection between them. Moreover, it considers a combination of firm related variables including performance, size and also audit quality.

ANALISIS METODE PENGHITUNGAN PAJAK PENGHASILAN TERUTANG WAJIB PAJAK ORANG PRIBADI DENGAN PEKERJAAN BEBAS

Low State revenue from taxes can cause obstacles to State development. While on the other hand, taxpayers want the minimum tax payment possible. The government provides options for Individual Taxpayers to choose between the bookkeeping method or the Net Income Calculation Norm (NPPN) as the basis for their tax reporting obligations. This study aims to compare the payment of tax payable for Individual Taxpayers with independent work using the Net Income Calculation Norm (NPPN) or by organizing Bookkeeping and how much tax burden reduction occurs. The results showed that the use of the bookkeeping method for Individual Taxpayers with independent work will result in a smaller tax liability than the Net Income Calculation Norm (NPPN). Savings in payment of income tax payable can reach 46.41%

Coordinating social equity and emissions: Challenges in carbon tax policy

This study addresses the challenging trade-off between maximizing environmental benefits and ensuring social fairness in a domestic carbon tax context. Focusing on France, where the pathway to decarbonization has faced public opposition, we explore four redistribution policies to reverse the regressive effect of a €100/t of CO2e carbon tax. While the homogeneous redistribution scheme reaches progressivity, its social and environmental implications are not without issues. A substantial portion of the emissions reduction achieved by the carbon tax dissipates due to increased emissions from overcompensated households. Additionally, the compensation generates higher tax burden inequality within and between income groups. Three tailored scenarios are designed to overcome misguided redistribution and maintain the social objective: a vertical scenario targeting financially constrained households, a horizontal scenario focusing on vulnerable households, and a mixed scenario considering both aspects. The vertical scenario efficiently reduces tax burden dispersion among the most affected households, limiting post-redistribution emissions (a mere 0.65% increase) and proving cost-effective for the government. While the horizontal scenario requires a larger share of tax revenue, it successfully reduces overall tax burden dispersion without increasing emissions. Compared to the previous scenario, the mixed scenario falls short in reducing tax burden inequality but exhibits promise in limiting greenhouse gas emissions.

Deferred Tax Accounting and Financial Performance of Listed Consumer Goods’ Manufacturing Companies in Nigeria

This research examines the relationship between deferred tax accounting and financial performance of listed consumer goods’ manufacturing companies in Nigeria using data from 19 listed consumer goods companies selected judgmentally. The study adopts the panel regression technique to test three hypotheses stated in line with the specific objectives. Findings from the study revealed that, deferred tax asset and liability have a positive non- significant relationship with return on assets of listed consumer goods’ manufacturing companies in Nigeria. Further findings revealed that, deferred tax asset has positive non- significant relationship with leverage of listed consumer goods’ manufacturing companies in Nigeria, while, deferred tax liability has a negative non-significant relationship with leverage of listed consumer goods’ manufacturing companies in Nigeria. Finally, the study revealed that deferred tax asset has a positive non-significant relationship with earnings per share of listed consumer goods’ manufacturing companies in Nigeria, while, deferred tax liability has a negative non-significant relationship with earnings per share of listed consumer goods’ manufacturing companies in Nigeria. Hence it recommends that companies in Nigeria should look into available tax credits for particular assets and explore the possibility of taking advantage of such tax credits in order to reduce tax burden through tax deferment. Also, that the companies’ managers should always consider choosing the right capital combination, as it is imperative that the managers and tax planners explore tax incentives and investments that attract less taxes.

CONTEMPORARY TRENDS IN INSURANCE UNDER MARTIAL LAW

The article attempts to provide insights into contemporary issues, risks and challenges faced by insurance companies in the wartime settings. It is observed that the Russian military aggression against Ukraine has caused huge losses and large-scale destruction to infrastructure, property and the national economy overall. Thus, the natural desire to protect property to prevent loss or damage that may occur due to military actions of the invaders is quite understandable. It is argued that insurance is a universal tool to mitigate risks. However, the war and hostilities have had drastic effects to the insurance market operation. It is noted that in each insurance company, the structure of insurance contracts is of an individual character as to the occurrence based insurance events resulting from military operations differ in each specific case and therefore, each such contract requires careful consideration of all its provisions. In the context of this study, a focus is put that in case of a natural disaster (any cataclysm) when property is damaged, the insurance contract will not cease to apply and will act as before the war. It is argued that the fact of imposition of martial law is not to be a reason to refuse customers in their insurance claims. The findings demonstrate that cause-and-effect relationship between the war / military actions and the losses incurred is the fundamental factor, therefore the occurrence of an insurance event on the temporarily occupied areas since February 24, 2022 cannot be the ground for denying a customer’s insurance claim for compensation. The study suggests that the government insurance policy should be focused towards effective implementation of a range of various actions that will help support the industry growth (tax burden reduction, improving regulations, etc.). Apart from the above, a conclusion is made that insurance contracts remain legally valid regardless of whether military operations are being conducted in Ukraine or not. The study has revealed that some insurance companies refuse to provide indemnity for military / war risks, and also exclude hostile zones from insurance coverage, which in turn might translate in lawsuits against insurance companies. It is also observed that currently, if an insurance company’s customer has a valid insurance contract, the imposition of martial law and active hostilities in Ukraine cannot be a barrier to respond to insurance claims and insurance payments. According to the results of the research, it is concluded that insurance companies should continue to operate effectively and enhance insurance products, simplify the procedures for concluding contracts as well as offer the opportunity to customers to sign insurance contracts online.

IMPLEMENTATION OF INTERNATIONAL FINANCIAL POLICY PRINCIPLES IN THE TRANSFORMATION OF UKRAINIAN TAX LEGISLATION

The article analyzes the peculiarities of implementation of international principles of financial policy in the context of transformation of Ukrainian tax legislation. Some priorities of financial policy of some countries of the world in the context of modernization of tax policy have been defined. The basic principles of financial policy in the context of implementation of foreign experience are support of business activity, all-round assistance of production development, provision of employment of the population, mobilization of appropriate volumes of financial resources and their use for providing social guarantees, introduction of financial mechanism, which would provide rational use of natural resources. The main determinant of the formation of modern tax policy is the process of economic diversification, attraction of unconsidered sources of taxation, provision of proper level of tax administration, reduction of tax burden for business in order to increase the level of economic development, etc. The main innovations and prospects of the tax legislation of Ukraine for 2023 are analyzed. It is justified that international cooperation in the tax sphere, in particular access to the information platform IBFD (International Bureau of Fiscal Documentation), and participation of Ukraine in the EU Fiscalis program, is a positive step in the preparation of changes to the tax legislation of Ukraine in the context of implementation of international financial policy principles to ensure its harmonization with EU recommendations/standards. In the context of transformational changes, it is important to develop financial policy measures with appropriate level of adaptability and taking into account the tasks that need to be solved at a certain stage of development (increase of tax system efficiency, creation of appropriate conditions for economic development, improvement of business climate, increase of investment attractiveness, etc.). Ukraine’s financial policy should be directed to macroeconomic development, development of financial inclusion and ensuring financial stability, development of financial market, digital transformation and innovation development taking into account modern requirements in the context of European integration and world processes.

Awareness and Impact of GST among Small Business Owners: A Study with Special Reference to Mysuru City, Karnataka

GST (Goods and Service tax) is a visionary step intended towards rationalizing the giant indirect tax system in India. The implementation of GST is reducing tax burden and enhancing the ease of doing business in the country. The impact of GST has two key segments weight; one is to the business and second is to the customers who are the actual bearer of tax costs. Indian unorganized sector and portion of industry those who are enjoying the exemption will also contribute significantly to the growth of countries GDP. The basic purpose of conducting the study is to know the awareness level of small businessman towards GST and to assess the actual impact as they are facing. As it is known that impact will be there either on manufacturing or selling but to know the extent of impact and level of satisfaction study is conducted. The study is survey based in which data was collected from 50 business man who are residing in Mysuru city of Karnataka. The tool used for collection of data was structured questionnaire. The results obtained after analysis revealed that businessman are aware about GST implementation and opined that it’s a fair tax system but it requires more clarity, simplification in procedure because they have to depend on CA’s during the online submission. The paper had tried to attempt the actual impact of GST and suggestive measures have also been provided at the end of study. Keywords: GST, GDP, VAT, State Tax, Central Tax, Purchase Tax, Entry Tax.

Tax Burden and Corporate Investment Efficiency

Using A-share listed companies in Shanghai and Shenzhen from 2015 to 2021 as the research sample, a fixed-effects model was used to examine the effect of the reduction of corporate tax burden on investment efficiency under the tax reduction policy, as well as the role of tax avoidance and financing constraints in the mechanism. The results of the study show that the reduction of tax burden can effectively improve the efficiency of corporate investment, and this positive effect is reflected in the alleviation of corporate under-investment and discouragement of over-investment. The paper also analyses the mechanism through which tax burden affects the efficiency of corporate investment, and finds that tax reduction can discourage inefficient investment by reducing corporate tax avoidance and alleviating corporate financing constraints. In further analysis, it is found that the effect of tax cuts on investment efficiency is more significant in the sample of non-state enterprises, low corporate governance and low marketisation. The findings of the study support the positive significance of the current tax reduction policy. We provide a reference of tax reduction benefits to curb tax avoidance behavior, and provide a basis for relevant policy departments to further accelerate the implementation of tax reduction policies.

IMPACT OF CHANGES IN PERSONAL INCOME TAX ON TAXPAYERS WORK INCOME

Compared to other countries, following the World Bank analyses, Latvia compared to other countries of the European Union before 2018 tax reforms had relatively high labour taxes but very low capital taxes. It is important that tax reform from 2018 has given some impact on tax burden for all tax payers, including employers. Reducing tax burden can make impact on consumption of goods and services, employer’s competitiveness. The aim of the research is to study the changes in personal income tax since 2018 and their impact on earned income. The author studied the impact of changes in personal income tax on labor income in different categories and developed proposals on how to improve personal income tax in order to increase the net labor income of employees.

РИНОК ПРАЦІ ДЕРЕВООБРОБНОЇ ПРОМИСЛОВОСТІ В УКРАЇНІ: ВИКЛИКИ ВОЄННОГО ЧАСУ ТА ШЛЯХИ ПОДОЛАННЯ

This article conducts a comprehensive analysis of the labor market issues in the Ukrainian woodworking industry under the conditions of military conflict. The research is based on the systematization of available statistical data, observations of changes in economic and social processes in the industry, noting trends in employment and wages over the past six years. The identified labor market problems and challenges are thoroughly analyzed to develop strategic recommendations for overcoming the crisis consequences, restoring, and further developing the industry. The main task of the research is to systematize and analyze the dynamics of employment and wages in the woodworking industry from 2017 to 2022, as well as to identify the main challenges that have arisen for the industry due to the war. Special attention is paid to the personnel crisis, loss of logistics, problems with access to raw materials, and loss of customer base. The purpose of the article is a comprehensive review of the current state of the labor market in the Ukrainian woodworking industry and an analysis of various aspects of the labor market, namely employment, wages, and working conditions, to identify the main trends, challenges, and opportunities affecting the development of the Ukrainian woodworking industry. As a result of the research, it was found that after positive trends in employment growth in 2017–2019, there was a decrease in 2020, caused by the global pandemic. However, in 2021 the industry showed signs of recovery, which continued into 2022. Despite this, the war caused massive job losses, a personnel crisis, and a decrease in production activity. The main results of the research show that the average wage in the industry demonstrated steady growth from 2017 to 2022, indicating the efforts of employers to increase the competitiveness of the labor market. However, the war has made adjustments, and today the labor market experiences a shortage of skilled workers, requiring immediate action. The conclusions of the research emphasize the necessity of comprehensive state support for the woodworking industry, which should include financial assistance, reduction of tax burden, stimulation of investments, development of new markets, modernization of technology, and innovation. Attention is also focused on the importance of developing special programs to support employment and retraining of workers, as well as on the need to ensure the safety of workers and protect enterprises from hostile actions.

Tax Burden Reduction and Job Creation: A Sector-Specific Analysis in Brazil's [B]3 Companies

Tax Burden Reduction and Job Creation: A Sector-Specific Analysis in Brazil's [B]3 Companies

Audit Reform, Local Government Intervention and Tax Burden of State-owned Enterprises

The tax burden of state-owned enterprises has been widely disputed under the intervention of the government, and the tax collection and management audit can effectively restrain the intervention of local governments. Therefore, this paper theoretically analyzes the impact of audit management system reform on the tax burden of state-owned enterprises and the mechanism of action. The research shows that the audit reform has a catalytic effect on reducing the tax burden of local state-owned enterprises, which is mainly reflected in the reduction of the circulation tax burden of local state-owned enterprises, and the reduction of the tax burden of state-owned enterprises by reducing the degree of local government intervention.

Salam As Banking Financing for Agriculture in Developing Countries: Lessons From Sudan

The objective of this study is to measure the impact of commercial bank financing via Salam mode of finance on the Sudanese agricultural production and determine whether the Salam mode is suitable for financing agriculture or not. For the purpose of the analysis, the ordinary least squares method (OLS) was applied to a log - linear form of a simple regression model with a time series data on Sudan’s total annual agricultural production as a dependent variable and the commercial banks total annual financing via Salam for explanatory variable. The empirical results indicated that Salam mode of finance is appropriate for financing agriculture in Sudan due to its significant effects on agricultural production with a significant and positive relationship. In addition, agricultural sector highly contributed to the country economy during the study period and highly positively elastic to bank financing. However, it is hindered by heavy direct and indirect taxes, high marketing cost, long distance with poor rural infrastructure and weak agricultural returns. Therefore, relevant policy implications for both agriculture and bank financing are required. Hence, results of study suggest that banks should increase the provision for Salam mode for high agricultural production, reduce tax burdens, renovate the infrastructure, and facilitate financing procedures to agricultural sector.