Regular Tax Research Articles

Financial Frictions and the Non-Distortionary Effects of Delayed Taxation

Financially constrained agents discount future cash flows at above-market rates. In this paper, we present the hypothesis that delaying tax payments can materially reduce distortions when agents are credit constrained. We test this hypothesis in the context of the labor supply decisions of young workers in Norway, where a kinked income-contingent student-debt conversion scheme replicates an income tax with delayed payments. Bunching analyses reveal elasticities that are an order of magnitude below those we find at a regular income tax threshold, and which are increasing in ex-ante financial resources. These findings underline the potential for delayed taxation to be a powerful new component of optimal tax policy.

Economic violence or the law of war? Swedish contributions from the period of the Great Northern War as an example of extraordinary provisions imposed on the residents of the cities within the Polish-Lithuanian Commonwealth

The literature on the subject mentions three kinds of levies imposed in the early modern era. The first was a regular tax for the benefit of the army, irrespective of whether it was an occupying, neutral or friendly force; its amount depended on the property of the individual in question. The second type, called Brandschatzung in German, was usually a one-off payment aimed at securing the area seized by the occupier against looting or destruction. The third type, the so-called Kontribution, was imposed by the occupier depending on the needs of the army. Its payment deadline was short, so it was often paid in instalments and its collection was entrusted to an official designated by the municipal authorities. This last form was the most popular levy imposed by the Swedish troops on the regions they occupied, also on the Polish-Lithuanian Commonwealth during the so-called Deluge and the Great Northern War. The aim of the article is to provide answers to questions about the practice and legitimacy of the imposition of the Kontribution on cities in the Polish-Lithuanian Commonwealth by Swedish troops, and to determine its place in the general system of levies. The last question concerns research possibilities offered to us by Kontribution registers. The article is divided into three parts: the first is devoted to the classification of levies making it possible to determine what type of levies were imposed on the people of the PolishLithuanian Commonwealth during the two occupations. The second part focuses on the system of organising and collecting levies in the cities of the Polish Crown as well as criticism of this unique kind of source. Part three contains examples of the use of Kontribution registers — using registers from Warsaw and Lviv from 1702 as examples — to carry out research into residents of early modern cities.

Taxation for a New 'New Deal': Short-, Medium-, and Long-Term Options

If there is one thing that is relatively clear about the COVID-19 pandemic, it is that governments will need new sources of revenue to offset its costs and build a better social safety net. All over the world, governments are borrowing and spending at a pace not seen since World War II, and at the same time revenues from both income and consumption taxes are falling because of pandemic related slowdowns in economic activity. The result is unprecedented levels of debt that even with low interest rates mean inevitable needs for more revenue down the road. Even a country that borrows in its own currency like the US or Japan cannot incur debt well in excess of GDP forever without risking either inflation (if it creates money to pay off the debt) or a sharp increase in borrowing costs that crowds out other government expenditures at a time when they are most needed to bolster the social safety net, which the pandemic revealed to be quite fragile in many countries including the US. What kind of revenue sources are we talking about? Here we need to distinguish among short, medium and long-term solutions. In the short term (1-5 years), governments need to rely on immediate solutions like excess profit taxes (EPTs) on companies that benefit from the pandemic and digital services taxes (DSTs) to capture some of the increase in the use of such services that may escape regular income and consumption taxes. In the medium term (5-10 years), governments should permanently increase taxes on the rich and on corporations to address the inequality that is likely to be exacerbated by the pandemic, and adopt carbon taxes to mitigate climate change. In the long term (10 years and more), new and innovative sources of revenue may emerge like taxes on artificial intelligence, bit taxes, financial transaction taxes and others. In addition, governments of countries like the US that lack a VAT should adopt one.

ASSESSMENT OF THE TAX BURDEN OF THE ENTERPRISE IN THE CONDITIONS OF REFORMSIN THE TAX LEGISLATION OF THE REPUBLIC OF UZBEKISTAN

The article considers the typical scheme of formation of the company's revenue, types and rates of regular tax and mandatory payments of the Republic of Uzbekistan in 2018-2020 y., their analysis, highlights the main taxes that are directly related to the company's revenue, the method of mutual influence of the main taxes, as well as issues of determining the tax burden of the company within the concept of reforming the tax system of the Republic of Uzbekistan in 2018-2021 y.

Impact of Zakat Taxon Economic Recession Compared to Regular (State) Taxes

The Islamic obligation of Zakat plays a significant role in financing development, for Zakat has an investment role because it is oriented to generate and create new human productive capacities in society, in addition to its financing role through the means of expenditure. Furthermore, Zakat addresses and handles the psychological and objective reasons driving individuals to horde (amassment)and to refrain from participating in economic activity. Undoubtedly tax laws are not devoid of benefits to the state in case formulated according to well studied bases, where such taxes are imposed on segments of society which would not be harmed nor suffer distress as a consequence of such taxes, or which in principle should not be subjected to such taxes, given that they should basically be levied only on the wealthy, and should be imposed only in case the state is in need. And in all cases the present study focuses on highlighting the difference between Zakat as a religious obligation, and taxes as a legal obligation, and the impact of each of them on recession as an economic concept. Keywords: Zakat, Taxes, Recession. DOI : 10.7176/EJBM/11-9-04 Publication date :March 31 st 2019

Determinants of tax stamp evasion in rural districts in Ghana

PurposeThe purpose of this study is to examine tax stamp evasion at Twifu Atti-Morkwa and Hemang Lower Denkyira districts in the central region of Ghana.Design/methodology/approachA cross-sectional survey design was adopted to sample 305 micro-taxpayers through the use of multi-stage sampling technique. Primary data were collected from the micro-taxpayers using structured interview. Binary and multinomial logit regression models were used to regress the tax stamp evasion on economic and non-economic factors.FindingsThe study found that the likelihood of micro taxpayers to evade tax stamp is predicted by age, application of sanctions, guilt feeling, transportation cost to tax office and rate of tax audit. Thus, the study found partial support for expected utility, planned behaviour and attributory theories in explaining tax evasion behaviour of micro-taxpayers.Practical/implicationThere are several measures of addressing tax evasion behaviour of micro taxpayers. Evasion behaviour can be deterred by enforcement strategies such as application of sanctions and regular tax audit, establishment of more tax offices in the districts and writing normative messages on the faces of tax stamp stickers.Originality/valueThis study helps explains the tax evasion behaviour of micro-taxpayers of a developing economy like Ghana using a special type of tax design meant to capture such taxpayers in the tax bracket. To the best of our knowledge, the study is unique in terms of the means of measuring tax evasion and the methodologies used.

MENGAPA WAJIB PAJAK MENGIKUTI TAX AMNESTY (STUDI KASUS DI SOLO)

Tax amnesty program was obtain to apply Republic Indonesia government regulation number 11 year 2016. The present study aims at providing why do tax payers take tax amnesty. This study used Case Study Research approach. A single case study approach was choosen because one data was enough to achieve the research objective. Data were gathered by questionnaire and semi-structured interview with tax payers in Solo Raya. The finding shows that comprehension of tax amnesty only can be understood three of tax payers, they take tax amnesty program by working together with tax consultant, and the problems are for arranging technical and minim for socialization become obstruction of tax amnesty realization. The limitation of this research is not using comparative case study. In addition, this research timming is limited. However this research raises the higher of leader or personal commitment to do tax amnesty program with the hope by increasing regular tax amnesty socialization, simplification of procedure tax amnesty for small business tax payers, also if tax amnesty results, the tax money, actually were used for public wealthy.

En torno a la disyuntiva décima/subsidio en Castilla y la Corona de Aragón durante la Baja Edad Media

En este artículo, llevamos a cabo una sucinta revisión diacrónica y comparativa del largo proceso que, tanto en la Corona de Aragón como en Castilla, fue discurriendo en torno a dos formas de imposición fiscal extraordinaria (décimas y subsidios), que podemos tomar como representativas de un importante trasvase de renta eclesiástica a favor de la incipiente fiscalidad estatal. Siguiendo sucesivas fases cronológicas, desde el siglo XIII hasta la época de los Reyes Católicos, intentamos ver la frecuencia con la que ambas monarquías hicieron uso de ambos tipos de prestación, con o sin autorización papal, los diferentes motivos aducidos en cada caso, así como otras cuestiones relativas al consentimiento del clero y al papel de las asambleas eclesiásticas en la gestión de esas cargas. A pesar de ciertas divergencias y de las distintas dinámicas desarrolladas en cada reino, es obvio que ambas modalidades de contribución clerical condujeron al establecimiento cada vez más regular de impuestos sobre la renta, en tanto que constitutivos de una fiscalidad sustentada en base a la tasación de los beneficios eclesiásticos. Este artículo se ha elaborado a partir de una revisión selectiva de la producción bibliográfica y de la consulta, por lo que concierne a la Corona de Aragón, de fuentes archivísticas de primera mano.

MENGAPA WAJIB PAJAK MENGIKUTI TAX AMNESTY (STUDI KASUS DI SOLO)

Tax amnesty program was obtain to apply Republic Indonesia government regulation number 11 year 2016. The present study aims at providing why do tax payers take tax amnesty. This study used Case Study Research approach. A single case study approach was choosen because one data was enough to achieve the research objective. Data were gathered by questionnaire and semi-structured interview with tax payers in Solo Raya. The finding shows that comprehension of tax amnesty only can be understood three of tax payers, they take tax amnesty program by working together with tax consultant, and the problems are for arranging technical and minim for socialization become obstruction of tax amnesty realization. The limitation of this research is not using comparative case study. In addition, this research timming is limited. However this research raises the higher of leader or personal commitment to do tax amnesty program with the hope by increasing regular tax amnesty socialization, simplification of procedure tax amnesty for small business tax payers, also if tax amnesty results, the tax money, actually were used for public wealthy.

УПРАВЛЕНИЕ НАЛОГОВЫМИ РАСХОДАМИ В СТРАНАХ ОЭСР

The paper analyses the main approaches to tax expenditures management in OECD countries. Tax expenditures are considered as a significant public policy instrument and a substitute for direct expenditure programs. As such expenditures are being used nowadays more often and their structure is becoming more complicated, there is a need to improve management methods. The authors study different methodological approaches to benchmark taxes definition, tax expenditures identification, measurement and calculation methods. A practical example of the three methods of tax expenditure estimation comparison has been introduced. The consideration show that most countries use a foregone revenue method in tax expenditures cost estimating. The ways and elements of regular tax expenditures reporting and integration of tax expenditures with the budget documentation are also examined. Assessment of tax expenditures efficiency requires using the following criteria: microeconomic efficiency, social or strategic objectives meeting, efficient functioning of fiscal policy. Tax expenditures management requires taking into account the ways how different tax expenditures could help meet given economic objectives in given areas and risks of tax expenditures application. An important element of efficiency assessment is comparison tax expenditures to alternative expenditure programs and other public policy instruments with similar targets. Tax expenditures implementation is reasonable only if alternative public policy tools are less efficient. As tax privileges system reform and tax expenditures implementation in the Russian Federation is currently planned, the authors recommend to take into account the lessons of the practice of tax expenditures, including the risks that such expenditures can prove to be inefficient and to create inappropriate incentives for the taxpayers.

Implications of Corporate Dividend Policy on Corporate Taxation:

Corporate dividend policy is related with corporate tax liability. Tax liability of companies may vary depending on the payment of dividend. Effective corporate dividend policy can reduce corporate tax liability. Thus, effective corporate dividend policy can help corporations maximize shareholders’ wealth by reducing effective tax rate. Tax liability may increase or decrease depending on the dividend payment of a company. The objective of this study includes justifying the implications of Corporate Dividend Policy on Corporate Taxation in case of listed pharmaceuticals companies in Bangladesh. In this study 6 listed pharmaceuticals companies in Bangladesh have been included and it has been found that when those companies paid dividend at prescribed level as per corporate tax law, they got tax rebate on their regular tax rate. Thus, after deducting the tax rebate those companies paid tax liability at reduced rate and this eventually lessened effective tax rate. Companies may ensure payment of dividend in away, so that retained earnings can be used for future investment opportunities as well as the tax burden becomes logical. They should make balance between dividend policy and tax liability to maximize the wealth of shareholders

The impact of depreciation savings on investment: Evidence from the corporate Alternative Minimum Tax

Over the past decade, the United States has offered investment incentives in the form of larger depreciation savings, namely, bonus depreciation. The neoclassical investment model implies that investment responds to changes in depreciation savings, but there have been few direct attempts to investigate this implication. This paper examines investment patterns surrounding the 1999 shortening of the Alternative Minimum Tax (AMT) depreciation recovery periods, finding strong evidence that firms subject to the AMT increase investment in response to the AMT reform. The empirical results show that firms subject to the AMT increase their investment, measured as the ratio of capital expenditures to capital stock, by around 0.0418 to 0.0622, compared to firms subject to the regular tax. Given their average annual investment rate of approximately 0.27 during this period, the results imply a relative increase in investment of 15%--23%. By contrast, I find that the 2002 introduction of bonus depreciation, available both for firms subject to the regular tax and for firms subject to the AMT, affects both groups of firms similarly. The estimation uses an empirical specification developed from the Summers (1981) tax-adjusted q model, and the results imply that the responsiveness of investment to the tax term is somewhat larger than previously estimated.

Coastal erosion perception and willingness to pay for beach management (Cadiz, Spain)

Coastal zones are complex systems where many different human activities and natural processes converge. One of the most profitable and enjoyable activities is beach tourism and recreation; however, coastal erosion can cause not only loss of land and asset values but also loss of environmental and landscape qualities and therefore their recreational value due to passive erosion from shoreline armouring and coastal development. This paper reports results from economic and demographic factors affecting public coastal erosion awareness and willingness to pay on the urban beaches of Cadiz, SW Spain. Although there is a great public awareness of coastal erosion among the interviewed adults from town, the willingness to pay for beach management improvement is minimal. The fact is possibly explained by the low regional economic status and the large number of local residents among the beachgoers. The majority of the respondents said that there should not be any extra charges because they pay regular local taxes and already pay for using beach services.

Smoking: Disease or Therapy

During the past 20 years Canada and several other state members of the WHO have been using regular sales tax increases as part of a policy to curb tobacco use. The WHO recent report (2015) on tobacco use classifies smoking as a disease. This report shows that the effect of tax increase on tobacco use is marginal and is difficult to isolate from the effects of other tobacco use measures such as restrictions on marketing, sales to minors, and public education. It is proposed that the unreasonable increase in tobacco taxes introduces additional stress on the smokers and further compromises their health. It is further proposed that tobacco use is treated as a form of selftherapy rather than a disease.

Regulation of road accident externalities when insurance companies have market power

Accident externalities that individual drivers impose on one another via their presence on the road are among the most important external costs of road transport. We study the regulation of these externalities when insurance companies have market power. Some of the results we derive have close resemblance to the earlier literature on externality regulation with market power in aviation and private roads, but there are important differences, too. Using analytical models, we compare the first-best public welfare-maximizing outcome with a private profit-maximizing monopoly, and oligopoly. We find that insurance companies will internalize some of the externalities, depending on their degree of market power. We derive optimal insurance premiums, and regular parametric taxes as well as “manipulable” ones that make the companies set socially optimal premiums. The latter take into account that the firm tries to exploit knowledge of the tax rule applied by the government. Finally, we also study the taxation of road users rather than that of firms.

CÓMO AFRONTAR UN PROCESO DE FISCALIZACIÓN TRIBUTARIA

Los profesionales contables, como asesores y consultores en materia tributaria, tienen como prioridad que sus clientes, empresarios y contribuyentes en general, cumplan puntualmente con sus obligaciones impositivas para evitar contingencias innecesarias y antieconómicas. Por tanto es deber del profesional contable que sus clientes tengan en lo posible una situación tributaria regular, cumplan íntegramente con todas las obligaciones formales y sustanciales y que su condición fiscal no se encuadre dentro de las conductas legalmente tipificadas como infracciones o delitos tributarios, con estos antecedentes se detalla algunos aspectos generales que deberá tener en cuenta el profesional contable ante el posible hecho de afrontar un proceso de revisión fiscal cuando la Administración Tributaria así lo requiera, haciendo uso de sus facultades de fiscalización, es así como el contador público debe resaltar su función de proteger los intereses del contribuyente, haciendo respetar sus derechos y recurriendo a los diversos medios de defensa, cuando se evidencie excesos o errores, interponiendo las acciones pertinentes ante las instancias correspondientes que contempla el Derecho Constitucional Tributario.

Debito, restituzione e fiscalità dalla città agli imperi. Teologi e tasse nella prima età moderna

This paper addresses the relationship between theology, debt, taxes and evasion between the fourteenth and sixteenth centuries, above all by comparing the idea of sevitus to that of citizenship. In the world of Italian and European communes, theological reflection faced the question of the legitimacy of gains derived from forced loans to subsidize the public debt. In the monachical context, the scholastic tradition gradually legitimized the regular and direct tax levy by the sovereign over his subjects. In the early modern period the growht of the tax burden and the public debt pushed some theologians to question the legitimacy of the charges and to cast doubt on claims that tax laws were binding on the consciences of the faithful, as the moral lexicon linked to the city or to the idea of a contract between the monarchy and the body social was fading. In Spain, theological discussion concerning taxes had a unique character because the bull of Cruzada granted to the sovereigns the alms paid by the faithful to fulfill the precept of restitution of the turpia lucra, including evaded taxes.

Editorial Policy and Style Information for The ATA Journal of Legal Tax Research

Editorial Policy and Style Information for <i>The ATA Journal of Legal Tax Research</i>

Understanding the AMT, and Its Unadopted Sibling, the AMxT

U.S. taxpayers are currently required to pay the greater of their liabilities under the regular income tax and their liabilities under the Alternative Minimum Tax (AMT). Despite its unpopularity, the AMT serves the function of permitting Congress to offer tax preferences for certain activities and expenditures while maintaining a progressive tax system. This paper examines this role of the AMT, and explores the possibility of adding an Alternative Maximum Tax (AMxT) that would augment the impact of the AMT. An AMxT limits a taxpayer’s liability to the minimum of the amount due under the regular income tax and the amount due under an alternative regime with the same tax base as the AMT, but higher tax rates. Adopting a coherent AMT/AMxT combination would increase the complexity of the tax system but make it possible to increase the progressivity of the regular income tax while using tax preferences to encourage socially beneficial activities, all without inducing excessive inequities in resulting tax burdens. Although the U.S. Treasury proposed an AMxT when it first advanced its plan for an AMT in 1969, and despite AMxT features of the current U.S. income tax, a comprehensive AMxT has never been enacted.

Tax compliance and behavioural response in South Africa: an alternative investigation

Taxpayer behaviour has in South Africa moved to the forefront of the investigation of revenue collection with regular tax awareness campaigns being launched by the South African Revenue Service (SARS). Issues relating to tax amnesty and the contribution of the informal sector (second economy) to tax revenue have become important. This paper attempts to find explanations, be they economic or psychological, for taxpayer behaviour in South Africa. Factors influencing tax evasion and ultimately collection targets are thus examined. A questionnaire was designed to determine how individuals, in this case a sample of students, respond when filing taxes. Each question frames a scenario to invoke a specific tax regime. The paper’s unique findings show, generally, that behaviour is to a large extent determined by economic factors, specifically inequality as predicted by the expected utility theory. This theory also successfully predicts 50 per cent of the responses to the control questions. The remaining 50 per cent are explained by combined economic and psychological factors, modelled by the prospect theory. This is significant considering the fact that the results were generated within a developing and not a developed context as is the case in most studies of this type.