Sales Tax Research Articles

SWOT Analysis of Indirect Tax System: From the Perspectives of the lower Income Group in Malaysia

"As the only country that reverted from the Goods and Services Tax (GST) to the Sales and Services Tax (SST), Malaysia is circling around a strong rumor that the GST may be re-introduced to the country. Nonetheless, both SST and GST are deemed regressive since they can affect the household consumption expenditures of certain income groups, especially the lower-income group, which may be imposed with a heavier burden than the higher-income group. Hence, this study aims to gain the perceptions of the lower income group to assess their acceptance level towards SST 2.0. In addition, using a quadrant analysis, the study also evaluates what is still lacking in the Malaysian indirect tax system, which requires urgent attention from policymakers. Data were gathered using questionnaires disseminated to the lower income group or Bottom 40 with a household income below RM4,849 and the samples were selected using purposive sampling. A total of 236 usable questionnaires were collected and the quadrant analysis was employed to analyze the data. Overall, the results showed that Malaysia’s indirect tax system is still lacking in terms of public trust in the government, certainty, simplicity, appropriate government revenue, and the effectiveness of tax administration. Drawing from the findings of this study, policymakers can continuously mitigate the public burden by exempting or including more necessities (food) from the consumption tax, and the public should embrace the consumption tax if this could reduce their financial burden in the long run. In addition, it is important that the taxpayers feel assured that the taxes they pay using their hard-earned money are well managed in order to provide quality services to all citizens of Malaysia, especially during uncertain times due to the COVID-19 pandemic and other crises. Tax administrators could also develop adequate approaches to elicit a high public acceptance level by comprehending the good tax policy-public behavior association. In essence, the current study has significantly expanded the body of knowledge on indirect tax acceptance with novel techniques in the methodology section and additional insights into the factors impacting tax acceptance, particularly in indirect taxation."

Skin Cancer Prevention across the G7, Australia and New Zealand: A Review of Legislation and Guidelines.

Incidence rates of melanoma and keratinocyte skin cancers have been on the rise globally in recent decades. While there has been a select focus on personal sun protection awareness, to our knowledge, there is a paucity of legislation in place to help support citizens' efforts to protect themselves from the harmful effects of ultraviolet radiation (UVR). Given this, we conducted a comprehensive review of legislation and guidelines pertaining to a variety of sun protection-related topics in countries of the Group of Seven (G7), Australia and New Zealand. Australia was the only country to have banned tanning beds for individuals of all ages, while other select countries have instituted bans for minors. In workplace policy, there is very little recognition of the danger of occupational UVR exposure in outdoor workers, and thus very few protective measures are in place. With regard to sports and recreation, certain dermatological/professional associations have put forward recommendations, but no legislation was brought forward by government bodies outside of Australia and New Zealand. With regard to youth, while there are various guidelines and frameworks in place across several countries, adherence remains difficult in the absence of concrete legislation and standardization of procedures. Finally, only Australia and a few select jurisdictions in the United States have implemented sales tax exemptions for sunscreen products. In light of our findings, we have made several recommendations, which we anticipate will help reduce the rates of melanoma and keratinocyte cancers in years to come. However, minimizing UVR exposure is not without risk, and we, therefore, suggest the promotion of vitamin D supplementation in conjunction with sun protective practices to limit potential harm.

The influence of tax transparency on sales tax evasion among Jordanian SMEs: The moderating role of moral obligation

The influence of tax transparency on sales tax evasion among Jordanian SMEs: The moderating role of moral obligation

Summaries of Articles

Summaries of Articles

The Canadian Home: The Fate of Owners and Investors in the Great Depression

Although Canada’s is a liberal, settler-colonial society that has long valued the right to property, we know remarkably little about the experience of owners of, and investors in, residential real estate during the Great Depression. This was a period of great suffering for both. Scattered and neglected sources, coupled with cautious comparisons with the better-documented us experience, makes it possible to provide a plausible sketch. Many mortgaged homeowners, and a higher proportion of the stigmatized landlords, lost their properties through default or tax sales. Unlike the situation in the United States, lending institutions did not go under, but most residential mortgages were provided by private individuals, many of whom suffered. Because numerous owners fell into tax arrears, while an increasing number of families demanded relief, municipalities were squeezed. Out of necessity, landlords, lenders, and municipalities offered concessions to tenants and property owners, respectively. Although the Depression was a decade of occasional conflict, it was also defined by everyday compromise and cooperation.

EDUKASI PERPAJAKAN DAN PELATIHAN PENGHITUNGAN PAJAK PUSAT SISWA-SISWI SMAN 20 KAB.TANGERANG

The direction of the Minister of Finance and the Minister of Education and Culture for the younger generation starting at the elementary, junior high and high school levels are already tax literate by creating a tax-aware and intelligent generation to understand the importance of the role of taxes in Indonesia as a source of state revenue apart from the oil and gas sector for the welfare of the people. PKM is intended to help Partners understand the science of taxation, which is part of Accounting Economics. In Indonesia, the central tax which is managed centrally by the Ministry of Finance through the DGT, consists of Income Tax, Value Added Tax, Land and Building Tax, Stamp Duty, and Sales Tax on Luxury Goods. PKM uses primary and secondary data, where primary data is obtained directly from Partners, such as data from interviews with school principals and teachers as well as data in the form of information to what extent students understand taxes. PKM utilizes secondary data from journal articles, internet news sources, and books to support PKM. The results of PKM PKM activities have been carried out on Friday 12 May 2023 at 10.00 WIB until finished, offline by visiting schools with students as part of PKM. The outputs of PKM activities are presentations in national seminars as speakers, and articles uploaded by PINTAR as additional output.

An Assessment of the Supreme Court's Ruling in South Dakota V. Wayfair: A Macromarketing Case Study

Years ago Shelby Hunt noted that cromarketing focuses on marketing systems, the impact of marketing systems on society, and the impact and consequences of society on marketing systems. The ruling by the United States Supreme Court enabling states to require remote sellers to collect and remit sales taxes on in-state purchases exemplifies the latter. Imposing a new tax burden on previously untaxed remote sellers has the power to alter the structure of retailing and impact consumer welfare. Responding to “new economic realities,” the Court reversed long-standing precedent requiring that sellers must have a physical presence in the state to be subject to taxation. Proponents viewed this as a major step in restoring lost tax revenues to the states. Critics point to the inconsistency of the Court's ruling with stare decisis, the regressive nature of sales taxes, and recent public policy mandates stemming from the Covid pandemic. Although the Wayfair ruling is now the law and many of the concerns voiced prior to the Court's action seem to have been unfounded, the macromarketing implications remain. The potential impact of public policy on retailing cannot be ignored nor should the regressive nature of an increase in sales taxes on income inequality be overlooked. Additionally, there remain questions of fairness and administration with the ruling. Students of macromarketing should not ignore these issues. The responsibility to examine the impact of society—and the Court—on marketing systems was reinforced years ago by Bartels and Jenkins: “…the goal of marketing is the achievement of entrepreneurial goals in a manner consistent with the best overall interests of society… Macro models represent value judgments made by society for society; by governments in the form of laws, administrative orders, and judicial decisions…and by others who assume the role of advocating what is best for the general welfare.”

The COVID-19 state sales tax windfall.

Policymakers were surprised to find increases in sales tax revenues in 2020 due to expectations that they would drop 8-20%. We investigate this puzzle and provide novel insights into consumption taxes based on this experience. Using a case study from the State of Utah, we document that shifts in the structure of consumption played a significant role in the robustness of sales tax revenue. Two factors stand out in our results. The first factor is the structure of the tax base for sales taxes in the USA. This tax base covers only a subset of personal consumption, excluding, for example, many services. During the pandemic, when services were restricted or shut down, this caused a shift in spending toward goods that are more likely to be in the sales tax base. The second factor is the boom in e-commerce during the pandemic, which boosted sales tax collections. This was catalyzed by recent legal changes that made the collection of sales taxes in e-commerce easier. Interestingly, this e-commerce boost also shifted the point of sale and related sales tax revenues away from urban areas toward suburban areas. Our case study of the pandemic's effect on sales taxes in the USA generally, and Utah's experience specifically, provides lessons for consumption taxes, such as the VAT more broadly, and lessons on the role of consumption taxes for tax revenue volatility.

Retailer Remittance Matters: Evidence from Voluntary Collection Agreements

Recent reforms have shifted tax-remittance responsibility for online purchases from consumers to sellers, thereby eliminating an important disparity between tax treatments of online and brick-and-mortar commerce. Despite the attention these reforms received, we know little about how shifting the responsibility to remit affects consumption or the tax system. To remedy this, we study US states’ staggered adoption of voluntary collection agreements, which committed large online retailers to remit sales taxes. We find that this change stemmed sales-tax base erosion and shifted consumption toward brick-and-mortar retailers. The increased tax burden resulting from the effective tax increase fell mainly on consumers, but it did not significantly alter the distributional burden of US sales taxes.

Comparing the Destination Principle and Origin Principle in Sales Tax: Implications for Pakistan's Tax System

This study evaluates the influence of destination and origin principles on the tax system of Pakistan. This study examines destination and origin concepts, terminology, and the VAT system. This report comprehensively examines literature, data, and case studies to evaluate the appropriateness of these approaches for Pakistan's tax system. Sales tax is levied based on the destination principle, whereby it is determined by the location of the eventual user rather than the producer. The origin principle imposes sales tax based on the location where goods or services are produced or rendered. To comprehend the practical implications of these principles, it is essential to compare and contrast the concepts of "sales" and "supply".The legal definition of "business" impacts sales tax in various transactions. Comprehending zero-rated supply is essential due to its influence on the tax liability of different goods and services. The excise tax is a component of the sales tax in Pakistan. Excise duty is levied on domestically produced, imported, and sold goods within the nation. The responsibility for liability lies with either the manufacturer or importer, depending on their manufacturing capacity or the specific items involved. Furthermore, the paper examines the concept of value-added tax (VAT). Producers improve raw materials prior to selling the end product or service. The Value Added Tax (VAT) system effectively captures value addition at every stage of production, thereby improving efficiency and eliminating biases in production choices. This study examines the difficulties encountered by small traders and retailers within Pakistan's tax system, specifically in relation to sales tax. An efficient tax system requires improved tax administration and voluntary compliance. Comparing sales tax principles is beneficial for tax policymakers in Pakistan. It facilitates comprehension of the pros and cons associated with each concept, enabling well-informed choices regarding tax systems to attain economic objectives and generate income. The report encompasses pertinent literature and legal obligations pertaining to the tax policy discourse in Pakistan.

Tax Analysis And Its Implications For The High Cost Of Education In The Procurement Of Training Aircraft

The purpose of this study is to analyze the imposition of import taxes and import duties for training aircraft procurement and its implications for thehigh cost of education at Indonesian Aviation Polytechnic Curug and Aero Flyer Institute in 2017-2020. This study is a qualitative descriptive study with data collection techniques used are interviews, observations, documents and triangulation, so that the researcher can draw conclusions. The conclusion of import taxes imposition and import duties has a high influence in determining the high cost of flight schools. With the high cost of flight schools, it will affect people's interest in becoming a pilot. However, this is a burden that must be borne by the educational institution itself which in the end causes the high cost of pilot school to be charged to prospective pilot students. The imposition of import taxes includes Sales Tax on Luxury Goods, Income Tax and VAT because aircraft training are subject to these three tax components. These three components cause the high cost of pilot school. In this case, the government must immediately review the taxation policy for the procurement of aircraft training and educational institutions must also cooperate with various airline operators both at home and abroad to attract pilot graduates and this will increase the interest of the Indonesian people to become professional and reliable pilots.

Analysis of Tax Planning Implementation to Minimize Value Added Tax Load

As a sizable source of state revenue, of course taxes are also a problem for the community, because taxes are in almost every activity we carry out, starting from Value Added Tax (VAT), Income Tax, and Sales Tax on Luxury Goods, and other taxes. This consider points to see how the execution of charge arranging to play down the assess burden payable esteem included assess at PT. Mobar Sarana Energi. The object of this research is tax planning and minimizing the tax burden payable for value added tax. The research method used was a qualitative study through a case study method, and the data obtained were both primary and secondary data. Primary data from interviews, observations and documents, then secondary data from company records or sales tax data. From the results of research in 2019 and 2020, it was found that by implementing tax planning on VAT with the mechanism of delaying input tax credits and compensation, it was able to equalize VAT while purchasing taxable goods/ services with VAT would be able to reduce the tax burden owed by 6.8 percent.

Information Technology and its Role in Improving the Quality of Financial Control due to Corona Pandemic: the Jordanian Income Tax as A Case Study

Purpose: This study aims to examine the impact of information technology aspects and its role in improving the quality of personal income tax financial control in Jordan due to the corona pandemic Design/ methodology/ approach: The sample of the study consists of (166) tax auditors and programmers from the Jordanian Income and Sales Tax Department, and a questionnaire is prepared and delivered to the study sample to accomplish the study's objectives. Improving the quality of financial control for the Jordanian income tax, and the results also indicate that the region is not a modified variable for the function of technical equipment and software in enhancing financial control quality. Findings: As a result of the Corona epidemic's spread on the Jordanian income tax. While the area is a modified variable to reflect the role of networks and databases in improving the quality of financial control due to the Corona pandemic's influence on Jordan's income tax, the center has the biggest impact, followed by the north and then the south. Originality: This study extends the use of data science technology, big data, and artificial intelligence, as these are required and effective tools for enhancing the quality of financial control and contribute significantly to attaining the fundamental goals of containing, stopping, and controlling the epidemic.

Determinant Factors Influencing Earning Management The role of Tax Planning and Financial Performance

The goal of this study is to find out how sales growth, tax planning, firm size, and profitability affect earnings management in the consumer goods sector. Purposive sampling was used to pick samples. This study used 45 companies as its sample. Sales Growth has a small effect on earnings management, Tax Planning has no effect on earnings management, Firm size has no effect on earnings management, and Profitability has a small effect on earnings management for food and beverage companies on the Indonesian stock exchange in 2018-2021.

Harmonizing Sales Tax

In Pakistan, the sales tax base is divided between the supply of goods taxable by the federal government and the supply of services taxable by the provinces. This division has resulted in an unharmonized sales tax with different definitions, principles, procedures and rates for sales tax on goods and services. In this article, the author discusses existing constitutional arrangements for the collection of sales tax on goods and services in Pakistan, and analyses issues and distortions associated with unharmonized sales tax.

Associations between e-cigarette policies and adolescent use and access to e-cigarettes

BackgroundTobacco control policies have been adapted to address rising levels of adolescent e-cigarette use. Despite new restrictions, adolescents are continuing to access e-cigarettes. MethodsWe linked 2015–2019 Youth Risk Behavior Survey data on 503,154 14–18-year-olds from 40 states with state-level e-cigarette minimum legal sales age (MLSA) laws, taxes, and smoke-free legislation. Using two-way fixed effects probit regression models, we first examined the associations between these statewide e-cigarette policies and adolescent use and, second, with access to e-cigarettes. We subsequently tested interactions between age and each policy and present average marginal effects as percentage point (pp) changes. ResultsWhile MLSA laws for e-cigarettes were associated with slight increases in e-cigarette use (2.72 pp; 1.29, 4.15), associations were no longer significant after at least 1-year post-implementation. MLSA laws were also associated with decreases in e-cigarette purchases in stores (-9.50 pp; -18.21, -0.79) and increases in acquiring them from someone else (13.26 pp; 4.10, 22.42), particularly among 18-year-olds. E-cigarette taxes were associated with decreases in use (-9.18 pp; -11.63, -6.73), but there were limited associations with e-cigarette access. While smoke-free legislation prohibiting e-cigarettes was associated with slight increases in use (1.87 pp; 0.23, 3.50), after at least 1-year post-implementation, they were associated with decreases in use. Smoke-free legislation was also associated with decreases in purchases in stores by 14-year-olds, but increases in online purchases by 18-year-olds. ConclusionUnderstanding the immediate and longer-term consequences of e-cigarette policies is essential to influence adolescent e-cigarette use. Adolescents will continue acquiring e-cigarettes across varying sources if measures are not taken to address access alongside policies aimed at reducing use.

Policy Forum: Digital Asset Mining and GST—Tax Policy Versus Public Policy

On February 4, 2022, the Department of Finance released draft legislation that, if enacted, would deem digital asset mining activities undertaken in Canada not to be "commercial activities" for goods and services tax (GST)/harmonized sales tax (HST) purposes. In 1991, Canada introduced the GST to remove sales tax as a cost of doing business in Canada with a view to making Canada's domestically produced goods and services more competitive in international markets. Yet 30 years later, Finance is proposing legislation hidden in the "special cases" provisions of the GST legislation that will make the 5 percent to 15 percent GST/HST an input cost to Canadian digital asset miners selling their computing services to non-residents of Canada. Further, it appears that Finance is doing so with an ulterior public policy objective—to impose financial market regulation and "know-your-client" rules on mining operators. This article provides an overview of how proof-of-work cryptocurrency blockchains operate, the parties involved, how GST would normally apply to the sector and to Canadian participants in particular, and why the proposed February 4, 2022 amendments are problematic from a tax policy perspective.

Policy Forum: Canada's Proposed Cryptoasset Legislation

Cryptoasset miners verify and record transactions, maintaining the integrity and security of the blockchain network. The Department of Finance ("Finance") has recently proposed new Excise Tax Act (ETA) provisions regarding the goods and services tax (GST)/harmonized sales tax (HST) treatment of crypto mining. Under these proposed provisions, crypto mining activities provided to anonymous recipients will not be subject to GST/HST, but the crypto miners performing these activities will also not be eligible to recover any GST/HST paid on their business inputs (and thus will be forced to bear the brunt of the tax themselves). We believe that Finance's decision to tax what it can identify—the business inputs of Canadian crypto miners—is a roughly balanced but reasonable approach. Although Finance might be legitimately criticized as departing from Canada's decision to eliminate the cascading of tax found in the former origin-based federal sales tax, it seems impossible to administer a destination-based transactional tax such as the GST/HST when faced with "anonymous" recipients (the users of the crypto miner's services). Finance appears to have minimized the cascading of tax by including a carve-out for identifiable recipients of a crypto miner's services, allowing the regular zero-rating rules in the ETA to apply in limited circumstances. In the face of utter uncertainty, Finance's reactive approach is likely the best that it can do. Given the rapid evolution and inherent decentralization of the crypto space, a more broadly based proactive approach would seem imprudent at this time.

Large sample evidence on tipping rates in the restaurant industry: A comprehensive study

Using over 68 million guest checks from 43 brand-name restaurants across 1202 locations, this study provides a comprehensive investigation into the drivers of tipping behavior. We document that tipping rates are positively related to sales tax rates and elapsed dining time and are inversely related to discount rates and the relative busyness of the restaurant. This evidence implies that consumers tend to tip based on the post-tax bill net of any discounts and after considering the length of their dining experience and the relative busyness of the restaurant. We also find significant U-shaped relationships between tipping rates and discount rates and relative busyness, respectively, suggesting that their effects on tipping behavior are non-monotonic and perhaps more complex.

The Impact of New Jersey's Urban Enterprise Zones on Local Employment: A Synthetic Control Approach

The designation of enterprise zones is a place-based policy that seeks to revitalize economically blighted areas. The literature on place-based policies has found mixed results regarding their effects on local payroll employment. This paper examines the causal effects of five of New Jersey's Urban Enterprise Zones (UEZs) on local payroll employment: Bayonne, Gloucester City, New Brunswick, Roselle Borough, and The Wildwoods (Wildwood City, Wildwood Crest, North Wildwood, and West Wildwood). All were designated as UEZs by the state in the 2000s, and none have been previously evaluated in the academic literature. The program offers reduced local sales tax, tax credits for newly hired employees, subsidized unemployment insurance costs, worker training assistance, and tax-free purchases on capital equipment and facilities. A synthetic control approach is used with the industrial composition of local firms and poverty rate as the covariate group and no impact of UEZ status on local employment in the treatment periods of the five areas is found. These results suggest that enterprise zones may not be effective job creators for treated areas, particularly for those zones that were added long after the program's inception.