So-called Tax Research Articles

Legitimacy and tax morale in fiscal contract

The purpose of this paper, building on the so-called fiscal contract theory, published by Margaret Levi (1988, 1998) and Jeffrey F. Timmons (2005), is to investigate the nature of the relationship between the so-called tax morale and government legitimacy. More specifically, it discusses the important theories and empirical researches to highlight on the significance of the role of the government in influencing citizens’ moral considerations during taxpaying. According to the fiscal contract theory, there is an unspoken agreement between taxpayers and the government to oblige the government to maintain services reflecting on collective needs and to oblige citizens to comply with the law, i.e. to pay their taxes. Thus, taxpaying is voluntary, but conditional. This paper relies on this theory when it argues that fiscal contract is rooted in citizens’ responsibility for their community, inducing their tax morale. In other words, this bilateral agreement suggests, that tax morale, what is rooted in citizens’ responsibility, is a significant factor of taxpaying motivations.

Značaj poreskih prihoda na volumen budžetskog deficita

The budget is a set of all planned revenues and expenditures of individuals and corporations, institutions, the state... for a certain time frame, usually per year. We will put emphasis on the government budget. In a situation where exactly these planned revenues are at a lower level compared to planned expenditures, a government budget deficit occurs. The big problem of the modern states is the chronic budget deficit. It arises in a situation where a negative gap between public revenues and expenditures appears every year for a long period of time. The so-called tax revenues have a huge importance in the public revenues of the budgets of modern states. In the paper itself, we will pay attention to tax revenues. We will show an empirical presentation of the trends in the structure of these revenues in countries with different levels of income per capita, we will analyze the impact of tax revenues on the level of the budget deficit. The structure of tax revenues largely depends on the level of development of that country's economy.

Tax monitoring in the construction organization

The contents and functions of tax monitoring are considered in the article. The possible ways of statement of tax monitoring in the organizations, their advantages and disadvantages are investigated. The authors drew the conclusion, that the transition to the so-called tax showcase is the most perspective of them. The stages of expansion of a tax showcase in the organizations are presented, the conditions necessary for its successful formation in the organization are formulated.

Tax Ofences in Bosnia and Herzegovina

There are two categories of tax offenses in the so-called tax legislation in Bosnia and Herzegovina, and these are criminal offenses and misdemeanors. Unlike tax crimes prescribed exclusively in criminal law (Bosnia and Herzegovina, Republika Srpska, the Federation of Bosnia and Herzegovina and the Brcko District of Bosnia and Herzegovina), tax offenses are prescribed by dozens of laws and bylaws in force at all levels of government. : at the level of Bosnia and Herzegovina, then the entities - Republika Srpska and the Federation of Bosnia and Herzegovina, cantons, Brcko District and finally cities and municipalities. The taxation system in Bosnia and Herzegovina is conceived and constituted in accordance with its constitutional system and it can be characterized as a hybrid system, but also a very complex system with a complex fiscal structure and divided responsibilities for taxation with direct taxes under the jurisdiction of the entity tax administrations. that is, the Federation of Bosnia and Herzegovina, the Republika Srpska and the Brčko District of Bosnia and Herzegovina. The competent institutions at the entity level are the Ministries of Finance (Ministry of Finance of the Federation of Bosnia and Herzegovina and the Ministry of Finance of the Republika Srpska), ie the Finance Directorate of the Brčko District of Bosnia and Herzegovina. On the other hand, indirect taxes are the responsibility of the Indirect Taxation Authority of Bosnia and Herzegovina, while at the level of Bosnia and Herzegovina, the Ministry of Finance has been established within the Council of Ministers of Bosnia and Herzegovina.

TAX MONITORING IN THE SYSTEM OF STATE FINANCIAL CONTROL

The article talks about the concept of tax monitoring, its place and significance in the state financial control system. The purpose of the work is determining its place and importance in the system of state financial control. Tax monitoring as a form of tax control refers to the so-called horizontal tax control, which is expressed in a system of constant online partnership between tax authorities and taxpayers on the calculation and payment of tax payments, accounting and tax accounting. This procedure is carried out in relation to large taxpayers who are subject to certain requirements of the tax legislation Its distinctive features are the absence of in-house and on-site tax audits during the period of its implementation, as well as the preparation a motivated opinion on the initiative of the tax authority or taxpayer, which allows to the occurrence of possible harmful consequences in the tax area. The main conclusions obtained in the course of the research: the relationship that develops between an organization and a tax authority when conducting tax monitoring mediates both private and public interest. Tax monitoring, being a subspecies of state financial control, has its own specific features, expressed in a special relationship between the taxpayer and the tax authority, based on the principles of trust, openness and reliability of information, which allows you to quickly resolve possible disputes in real time. Since the main function of tax monitoring is preventive, it was assigned to the form of preliminary control. According to the criteria for classifying financial control into mandatory and proactive, tax monitoring is classified as proactive, since it is carried out on the basis of a taxpayer's application submitted within the legally established time frame.

GOVERNMENT-OPPOSITION RELATIONS IN UKRAINE, 2010–2013

Summary. The research aims at defining the key methods Yanukovych’s regime applied to fight the opposition parties and their top leaders. The research methodology is based on historicism and objectivity principles, comprises general scientific (analysis, synthesis, comparison) as well as specified historic methods (those of diachrony, synchrony, historical genesis and retrospective). The article’s scientific novelty is determined by a system analysis of the methods Yanukovych’s retinue applied against his political opponents highlighting their role in building up the fourth President of Ukraine’s authoritarian rule. Conclusions. The specificity of Ukraine’s political and legislative climate under Yanukovych’s rule has been demonstrated. The patterns of the criminal proceedings against the opposition leaders have been defined and researched. The criminal prosecution against Yuliya Tymoshenko, the Preimer and the leader of Batkivshchyna party, following her government’s management audit, serves as a case of Ukraine’s political field’s prime cleanup. The key phases of the criminal prosecution against Yurii Lutsenko, the Orange Top leader, have been defined. The political repressions of more than twenty Tymoshenko’s supporters, the article suggests, serves as a background for preparing and implementing the tax overhaul project authored by V. Yanukovych and S. Tigipko. The fundamentals of this reform, as well as its reception by Ukrainian business elite, have been analyzed in brief to provide the necessary context, i.e., to demonstrate the roles the agents affiliated with the Regions Party had taken and the methods they applied to break the so-called Tax Maidan and to subsequently persecute its organizers and participants. Specific attention has been paid to the fight Yanukovych’s regime initiated against the radical right and nationalist movement, forging the criminal cases against the members of certain nationalist organizations and movements functioning in Zaporizhzhya and Kyiv regions, i.e., "Tryzub" ("The Trident"), "Ukraine’s Patriot", "Social National Assembly". Restraining the forces opposite to the Regions Party and the regime was done through bribing or granting governmental preferences to the business elites. The secret ledgers of the Regions Party serve as an important source for identifying the officials thus corrupted by the regime. To define the corruption scales and the key bribery initiators identities, a thorough analysis of these ledgers (known as "the spreadsheets") has been provided.

Tax incentives for export activity in the Republic of Turkey

The subject of this research is the norms of tax legislation of the Republic of Turkey aimed at incentivizing export activity, case law on their implementation, as well as doctrinal sources that affect the development of legal regulation of tax incentives in the country. The methodological framework is comprised in the formal legal method, which allow assessing the actual effect of the norms of the Turkish tax legislation. The method of content analysis was used for the analysis of the corresponding norms to determine the characteristic trends in the development of legal regulation of taxes, as well as for outlining various export support measures in the Republic of Turkey. Within the tax system of the Republic of Turkey, the author establishes the presence of the effective mechanisms for stimulating export activity. Such mechanisms are associated with the possibility of purchasing necessary products by the exporter without paying VAT, as well as a simplified procedure for its refund without conducting tax audit in rendering preferential guarantees or a positive decision of a certified auditor, which also reflects partial delegation of authority in the sphere tax control to special entities outside the structure of the government bodies. Turkish legislation also features the system of quick VAT refund within 5 days to a certified individual. Acquisition of such certificate suggest observing the criteria of good faith, which has a positive impact upon the so-called tax compliance. Tax incentives for export activity in the context of direct taxes in the Republic of Turkey consists in the practical application of the territorial concept of taxation to the income of Turkish companies carrying out certain types of activity abroad, which positively affects the export of labor, services and related commodities. Therefore, the obtained results can be valuable in the development of Russian tax legislation in the area of tax incentives for export activity.

УГЛЕРОДНЫЙ НАЛОГ НА ЖИВОТНОВОДСТВО И ПРОДОВОЛЬСТВЕННАЯ БЕЗОПАСНОСТЬ

This article examines the risks associated with the introduction of a carbon tax on domestic agricultural products. The professional community is increasingly raising issues of regulating the generation of greenhouse gases in various sectors of the national economy through the introduction of the so-called carbon tax, which implies the collection of additional fees in proportion to the amount of greenhouse gases produced per unit of production. If this measure of state regulation is applied, a change in the cost of meat due to an additional tax burden will lead to a significant decrease in its consumption.

Suzbijanje zakonitog nelegitimnog izbjegavanja poreza opštim antiabuzivnim pravilom u poreskom pravu EU

One of the greatest challenges modern states are faced with is finding a way to tackle unacceptable tax avoidance, especially aggressive tax planning schemes and the use of the so-called tax heavens. In this process, many states adopt a general anti-avoidance rule that allows for tax administration to deny tax benefits realized through the use of abusive tax arrangements, which are in accordance with the letters of the law but circumvent its purpose. At the EU level, Article 6 of the Directive 2016/1164 (Anti-Tax-Avoidance Directive, ATAD), laying down rules against tax avoidance practices that directly affect the functioning of the internal market, contains the general anti-avoidance rule (GAAR). This paper aims to analyze the ATAD's GAAR and related case law of the European Court of Justice in tax avoidance cases in the context of abuse of EU law. In the first section, the author defines tax avoidance and tax evasion in order to clearly distinguish the two terms, and explains the need for the GAAR. The second part presents the elements of the GAAR and the consequences of its application. The third section addresses the issue of legal certainty in applying the GAAR. As one of the prerequisites for tackling the unacceptable tax avoidance and aggressive tax planning is enhanced cooperation of tax administrations and greater transparency of tax information, the author analyzes the 2011 Directive on administrative cooperation in tax matters (DAC) and its numerous amendments. Finally, we present perspectives on the harmonization of direct taxes and depict a potential global solution to reform the outdated international corporate tax system, with action on the reallocation of taxing rights and minimum effective taxation.

Методологические подходы к оценкам незаконного импорта и уровня собираемости таможенных платежей Methodological Approaches to Assessing Illegal Imports and the Level of Collection of Customs Payments)

Russian Abstract: В данной работе проанализированы имеющиеся методики оценок незаконного импорта и уровня собираемости таможенных пошлин и налогов, описан международный опыт измерения т.н. «налоговых разрывов», оценок незаконного импорта. Представлены различные оценки незаконного импорта в Российской Федерации. English Abstract: This research analyzes the applicable methods for estimating illegal imports and the level of collection of customs duties and taxes, describes the foreign experience in measuring the so-called tax gaps and the share of illegal imports.

OBJECT OF TAXATION UNDER DIGITALIZATION

The article investigates the problem of content change of the concept object of taxation in the Russian tax law on the path to digital economy. The purpose of the article is to analyze the provisions of the Russian tax legislation, international norms, as well as academic literature devoted to identification of certain new goods and phenomena as possible objects of taxation, thus updating the concept of the object of taxation itself. The development of information technologies generates the following unavoidable problems related to the object of taxation concept content, which allows reviving the discussion about the content of this tax and legal category: the impossibility to assess implementation operations as potential tax objects with the help of the classical triad product, work, service; recognition in certain situations (for example, in case of electronic money payment) as the object of taxation is not one, but a set of legal facts (cause of action); the need to establish the object of taxation through the so-called tax relationship between the object and the subject of taxation. In connection with the first problem, the author proposes to unambiguously define in the Tax Code the legal nature of transactions with digital products for tax purposes, treating them as a new type of service. The conclusion is based on the experience of international regulation and suggests supplementing the provisions of the Tax Code in terms of legal regulation of the concept taxation object as well as VAT taxation. The re-search of the second problem leads to the conclusion that it is necessary to clarify the rules of the Tax Code when the counterparties carry out taxable transactions, whose settlements are made with electronic money. In this situation, the object of taxation is not single, but suggests several legal facts-actions of the potential tax-payer. On the third problem the author raises the issues of identification of the taxpayer in case of certifying the taxable transaction by the digital signature analogue. Taking into account international experience, as well as national civil law regulations, it is considered necessary to include provisions on digital certificates and digital signatures in tax legislation.

Tax subsidies for entrepreneurs in case of property tax

In Polish tax law, real estate is subject to taxation. Property tax rates depend not only on the type of property but also on the taxable person. Thus, as far as persons conducting business activity are concerned, real estate in their possession is taxed at a higher rate than that of natural persons. The amount of the tax payable annually may exceed the income of the trader concerned, since it does not depend on the taxable person's financial situation (as is the case with other taxes, e.g. personal income tax). Due to this fact, a catalog of tax reliefs and exemptions, i.e. the so-called tax subsidies, as well as the possibility of spreading the tax in instalments and deferring its payment date is an important role in real estate tax. The state, including municipalities, may create this form of aid, as long as it does not conflict with the provisions of the Act on State Aid and similar provisions in force in the European Union, which are designed to observe free competition in the market. The purpose of this Article is to indicate what are the current forms of assistance to entrepreneurs on the example of property tax.

Dodatkowe zobowiązanie podatkowe jako sankcja za unikanie opodatkowania

Jedną z dominujących form tak zwanego oporu podatkowego jest unikanie opodatkowania polegające na wykorzystywaniu legalnych metod minimalizacji obciążenia podatkowego. Z punktu widzenia podatnika działaniem racjonalnym jest zachowanie, które prowadzi do minimalizacji ob-ciążenia podatkowego. W konsekwencji uwaga ustawodawców skupia się na prze ciwdziałaniu opi-sanym tendencjom poprzez wykorzystywanie uregulowań międzynarodowego prawa po datkowego, jak również w drodze wprowadzania wewnętrznych przepisów mających na celu przeciwdziała-nie unikaniu opodatkowania. Celem niniejszego artykułu jest zaprezentowanie regulacji dotyczą-cych dodatkowego zobowiązania podatkowego w podatku od towarów i usług oraz w Ordynacji podatkowej określanych jako sankcje podatkowe, których podstawowym celem jest zapobieżenie unikaniu opodatkowania.

The institutionalisation of zero transaction cost theory: a case study in Danish district heating regulation

A principle of socioeconomic viability is implemented in the legislative basis of the contemporary Danish decarbonisation energy policy. Consequently, economic theory and method are institutionalised in the energy sector as a de facto regulation of investment decisions. A disputed element of this regulation is the so-called tax distortion loss principle which is rooted in neoclassical zero transaction cost theory. Motivated by its direct effect on investments, this article examines whether the applied economic method underpins the technological transition. By applying a Coasian critique, it is shown that its application has no solid foundation in the neoclassical economic theory as the assumption of zero transaction costs is not fulfilled. Meanwhile, the implication of its use involves economic inefficiencies and barriers to the technological transition. As such, the method is in conflict with the aim of the legislation that has spurred its institutionalisation. It is thus a case study of the limits to the institution free mainstream economics and how it may fall short in a real-world application.

Rozwiązania prawne wprowadzone w latach 2015–2019 w Polsce w celu uszczelnienia systemu podatku od towarów i usług – analiza i ocena wpływu na dochody budżetowe, pewność obrotu gospodarczego i koszty prowadzenia działalności gospodarczej

This paper investigates the effects of legal solutions introduced to the VAT system in Poland in 2015–2019 to prevent VAT fraud, primarily carousel fraud, which caused the so-called tax gap. The article begins with chron­ological presentation of these solutions. In the second part the author formulates the criteria of certainty of business transactions in relation to VAT and on this basis he analyses the presented solutions. Next, he considers the costs incurred by the VAT payer to meet the obligations or requirements established by the introduced regulations. In the final section the effectiveness of the introduced solutions from the point of view of the state budget revenues from VAT is assessed.

THE GEOMETRY OF INTERNATIONAL TAX PLANNING AFTER THE TAX CUTS AND JOBS ACT

The enactment of the so-called Tax Cuts and Jobs Act of 2017 (TCJA) significantly changes the landscape for tax planning and compliance by U.S. multinational corporations (MNCs). The promised shift...

TAX LICENCE OF A LEGAL ENTITY – PROS AND CONS

In 2013, the Slovak Parliament adopted the Law on Amendments to the Law on Income Tax. One of the most significant changes was the introduction of the Tax License of a Legal Entity. On January 1st, 2018, a minimum corporate tax (the so-called tax license), which was introduced in 2014, was abolished. The main aim of this paper is the evaluation and quantification of the impact which the minimum corporate tax has on the amount of tax liability of a selected group of legal entities in the agricultural sector. The research had tried to find an answer if the tax license abolishment was more in the political interests or if it had some economic background. The main research questions are how has the corporate tax duty increased in the agricultural sector in the Slovak Republic after introducing the minimum corporate tax and how has the tax burden for agricultural holdings increased after introducing the tax license. The analysis presented in this paper confirms that the instrument of introducing the minimum tax is for loss-making sectors, such as the agricultural sector, undoubtedly unfair. On the other hand, the study has confirmed that the public which regularly pays the taxes, agrees with its introduction.

Russian Oil and Gas Sector in 2017

The oil and gas sector is playing an important role in the income generation for the state budget and Russia’s trade balance. In 2017, the volumes of crude oil production somewhat fell owing to Russia’s commitments to curb production as a result of the oil output cut agreement between some OPEC and non-OPEC countries. Under the so-called tax maneuver in force in the oil industry, refining depth went up, production and export of fuel oil moved down and export of crude oil, a highly lucrative source of state budget revenues, increased. In 2017, natural gas production and export hit an all-time peak. Despite the plunge of oil and gas world prices, the oil and gas sector continues to constitute over a half of Russian exports.

Risk evaluation on leading companies in property and real estate subsector at IDX: A Value-at-Risk with ARMAX-GARCHX approach and duration test

Risk assessment and evaluation becomes essential for financial institution to measure the potential risk of their counterparties. In middle of 2016 until first quarter of 2017, there is national program from Indonesian government so-called Tax Amnesty. One subsector that has potential to receive positive impact from the Tax Amnesty program is property and real estate. This work evaluates the risk of top five companies in term of capital share listed in Indonesia stock exchange (IDX). To do this, the Value-at-Risk (VaR) with ARMAX-GARCHX approach is employed. The ARMAX-GARCHX simultaneously models the adaptive mean and variance of stock return of each company considering exogenous variables, i.e. IDR/USD exchange rate and Jakarta Composite Index (JCI). The risk is evaluated in scheme of time moving window. The risk evaluation using 5% quantile with window size 500 transaction days perform better result compare to other scenarios. In addition, duration test is used to test the dependency between shortfalls. It informs that series of shortfall are independent.

Kształtowanie i zobrazowanie progresywnej skali podatkowej

In most countries, a progressive tax is levied on the income of individuals. This article addresses the different design of a progressive tax scale taking into account the issue of the so-called tax bubbles that constitute an increased MTR. This feature of the tax function is a result of the exclusion of the high income taxpayers from the basic allowance or reduced tax rates. As shown in the article, this may lead to a higher tax burden under the joint taxation compared to the separate taxation. The analysis refers to the tax scales in Germany, Poland, the UK and the USA.