Special Tax Research Articles

Prospects of organizational and legal provision of energy security of Ukraine in the conditions of modern geopolitical processes

The scientific article is devoted to one of the important objects of national security – energy security. The organizational and legal approaches to the regulation of energy security are singled out and certain aspects of state regulation of energy efficiency are outlined, taking into account modern geopolitical processes. The definition of energy security is formulated, its global nature is indicated, which determines its provision through the joint efforts of all countries of the world, taking into account the internal characteristics and needs of the industry. It was emphasized that energy security as an object of state policy in the conditions of armed aggression against Ukraine requires proper legal regulation and continuous coordinated state management influence in order to ensure the energy independence of the country and the stable operation of energy infrastructure facilities. The analysis of the legal provision of energy security in Ukraine allowed us to come to the conclusion about the ramifications of the legislation in the specified area, the lack of optimization and systematization of energy legislation, its conflict and tolerance for the monopoly position of energy market participants. In the conditions of the war in Ukraine, the main direction of legislative regulation of the energy market is the introduction of tax benefits, temporary special taxation regimes. It was concluded that the introduction of the Institute of the Authorized President of Ukraine on Energy Safety, the development of the Institute of Public Control in the specified field is considered a promising direction for improving the national institutional mechanism for ensuring energy security. Arguments are also given that the institutional and legal mechanisms for ensuring energy security should provide for: permanent strategic planning of the development of the energy sector; coordination of energy policy with other areas of state policy; elimination of illegal administrative influence on energy market participants; taking measures to improve energy efficiency; creation of conditions for the development of technological innovations in the field of functioning of the energy infrastructure; increasing the effectiveness of preventing cyber threats; taking measures to reduce the level of corruption and the influence of the political will of elites on the energy market of Ukraine, state deregulation and demonopolization of the energy resources market.

Tratamiento tributario de las criptomonedas en el Perú

Cryptocurrencies are digital intangibles, whose use has become widespread and their value has increased exponentially in recent years. However, despite more than a decade having passed since its creation, there is little regulation around cryptocurrencies; and, in particular, with regard to tax law, it is practically nil.Now, although in Peru there are still no specific tax regulations on cryptocurrencies, it is possible that some taxes, due to their general nature, are levied on some types of operations carried out with cryptocurrencies. This article seeks to identify the nature of cryptocurrencies and, based on this, verify whether the operations carried out with these assets fit into the income tax and general sales tax regulations. , in order to determine if some cryptocurrency operations are taxed in Peru.

On the Criminal Behavior Type of Falsely Issuing Special Value-Added Tax Invoices in Mainland China

On the Criminal Behavior Type of Falsely Issuing Special Value-Added Tax Invoices in Mainland China

Предпринимательский доход или целевой капитал: спорный вопрос налогообложения товариществ собственников недвижимост

Understanding the meaning and content of legal norms is one of the most important processes carried out in the field of application of legislation on taxes and fees, while legal and technical techniques for expressing certain legislative provisions establishing special tax regimes are of great importance. The uncertain nature of the rules on the formation of endowment capital by non-profit organizations allows the business practices of these partnerships to be brought under preferential tax regimes, although they do not form endowment capital, but they can actively use a pseudo-legal mechanism for tax exemption.

Obstacles and appeal of environmental taxation: Insights from sub-Saharan Africa

Increasing the slow pace of adoption of environmental taxes across low-income countries has become a significant priority among international financial institutions, multilateral development banks, and international donors. Yet little is known about the practical institutional, administrative, and political obstacles that have led to their slow implementation and how they can be made more appealing, especially across sub-Saharan Africa. Based on a review of the literature and 16 in-depth interviews with ministries of finance, revenue authorities, and other government representatives across six African countries, this paper provides exploratory evidence of these stakeholders' view about environmental taxes deployment in their countries' context. By increasing the visibility of these policymakers’ opinions and priorities, this study aims to individuate areas in which further research can provide support for the introduction of environmental fiscal measures. While there are differences across the countries covered, a lack of data and analytical capacity to develop effective environmental taxes is a common theme, as well as the historical prioritisation of their revenue mobilisation capacity over their environmental impact. A great variety of government actors with a mandate over natural resources, often with competing policy priorities, coupled with a lack of coordination fora, has also impeded the harmonisation of the environmental charges they levy. These measures are also often perceived to be regressive and to pose an obstacle to industrial development, lowering their appeal, given that poverty reduction and employment creation are an overarching priority. Nonetheless, support for introducing specific environmental tax measures exists across the population and policymakers, especially if their revenue can be earmarked for environmental purposes.

Impact of tax policy on the development of agrarian enterprises and organisations

The purpose of this study was to analyse the role of tax policy in the agricultural sector to determine its impact on innovative development, investment decisions, and competitiveness of enterprises in this area. The study performed a comparative analysis of various aspects of tax regulation, review of taxation instruments, consideration of special tax regimes in such countries as the USA, Germany, France, Spain, Poland, and Kyrgyzstan. The study investigated various aspects of tax regulation that have direct and indirect impact on the functioning of the agricultural sector. The role of tax policy in stimulating investment and development in agriculture by providing tax incentives and subsidies for investment in innovative technologies, process mechanisation, and research was examined. Special tax regimes aimed at supporting agricultural enterprises were analysed, and examples of tax policies in different countries, including the USA, the European Union, China, India, and Kyrgyzstan, were provided. The state of agricultural development in Kyrgyzstan was reviewed, and the main challenges, government support measures, and the main land tax rates across the country were identified. The key point was to develop recommendations for improving the tax system to stimulate agricultural development derived from the synthesis method. This involves the introduction of tax exemptions and investment incentives, differentiation of tax rates depending on segments and regions of agriculture, stakeholder consultations, simplification of tax administration, and attraction of foreign investment through special tax regimes. Concrete examples were also given of large agricultural enterprises in different countries where improved tax policies can contribute to the development and efficiency of their operations

Distributional Impacts of Tobacco Excise Taxes in Serbia.

Numerous studies worldwide have investigated the impact of tobacco tax increase on household welfare, focusing on concerns regarding potential tobacco taxation regressivity and its effects on the poorest, whereas their scope was limited to the working population. To explore the effects of tax changes on household budgets, accounting for the retired population as well, we employed the modified Extended Cost-Benefit Analysis (ECBA) framework, assuming a 43.6% specific tax increase that fits the EU Tobacco Tax Directive recommendation of minimum EUR 90 excise taxes per 1,000 cigarettes. Our analysis encompassed changes in: 1) tobacco expenditure (accounting for price elasticities by income groups: low-, middle-, and high-income), 2) medical costs linked to smoking-related diseases (utilizing relative risk of morbidity/mortality and smoking-attributable fractions), 3) years of working life (considering the years of working life lost among the working population), and 4) years of pension receipt (accounting for the years of retirement life lost due the premature death). Under an assumed specific excise increase leading to a 22.4% retail tobacco price rise, the net gains in disposable household budgets would be 0.01% for high-income, 1.3% for middle-income, and 2.9% for low-income households. A tax increase would yield a progressive effect on income distribution, benefiting the most economically disadvantaged population thereby contributing to a more equitable income distribution. To effectively reduce tobacco consumption, subsequent smoking-related medical costs, and associated productivity and pension losses, it is recommended that Serbia implement a minimum 43.6% increase in the specific tobacco excise tax.

Transfers, taxes and tax credits for those on low incomes: beyond Mirrlees

Abstract For any given amount of tax revenue obtained from a specific tax, the standard model of economists focuses on the financial incentives in the tax schedule and requires that inevitable and unavoidable trade-offs are made between individuals who receive different levels of tax rates. Increasing the work incentives for one group or in one part of the earnings distribution necessarily requires that those incentives are decreased for some other group or in some other range. But a more attractive set of policy options consists of those that combine these considerations with work programmes drawn from a mix of employment and human capital strategies for different segments of the recipient population. Worth exploring are greater connections between individuals on benefit and the educational sector, sectoral employment and training strategies—including some with conditionality, even if only in a mild form—and other strategies to increase long-run earnings capabilities.

Digital Innovations in the Fiscal Policy of Ukraine: Promoting Sustainable Economic Development

This study critically examines the nexus between tax legislation and digital innovation in Ukraine, focusing on the alignment of fiscal policy with the digital economy's growth. It analyzes the implications of Ukraine's tax reforms, including the Law "On Stimulating the Development of the Digital Economy in Ukraine," commonly referred to as the Diia City initiative, for promoting a robust digital economy. This research evaluates the effectiveness of these reforms in fostering digital advancements and their impact on sustainable economic development. Employing a comprehensive multidisciplinary approach, it researches into the theoretical and practical aspects of tax policies, particularly those targeting the digital sector. The findings suggest Ukraine's strategic positioning for leveraging digital innovation, underpinned by legislative reforms such as amendments to the Tax Code of Ukraine that cater to the IT industry through specific tax regulations through a conducive fiscal environment. This paper highlights the transformative potential of digital innovations and the critical need for tax legislation to evolve in tandem with technological advancements. Recommendations for ensuring the sustained success of Ukraine's digital and economic reform efforts emphasize the importance of addressing existing obstacles and perpetually refining fiscal policies.

Composition, structure and dynamics of poplar forests in the Lena Pillars National Park

This article presents the findings from research conducted on poplar forests within the Lena Pillars National Park. Prior to this study, there had been no detailed research on the poplar forests in the park; only general characteristicsand brief descriptions of forest types were available. The article provides a comprehensive description of tree stands, analyzes the ecological structure of the flora in poplar forests, examines the dynamics of floodplain vegetation, and traces the succession series in the floodplains of the Buotama, Kuranakh, and Labyya rivers within the National Park. At different stages of development, the forests formed by the poplar tree stand are serial (temporary) types, naturally progressing from rare-herb association, mix herb + Equisetum pretense + Calamagrostis langsdorffii (in young poplar stands) → mix herb + shrubs (middle-aged stands, ripening stands) → tall herb + shrub associations with spruce and larch (in ripening, and overmature forests). As the floodplain emerges, the development of poplar forests inevitably transitions to being replaced by coniferous forests. When the overmature poplar tree stand collapses, spruce and larchspruce and birch forests form in its place. Poplar forests in the Lena Pillars National Park are characterized by high productivity; forest stands develop according to Bonitat classes 3-4. Research on the taxation of poplar forests has allowed for the evaluation of the interdependence of different morphometric traits of poplar trees. The correlation has verified the existence of consistent relationships between specific tax indicators. The findings from the study will contribute to understanding the plant life and vegetation in Lena Pillars National Park and the poplar forests of Yakutia. This data can be used to evaluate how the vegetation in the park’s poplar forests may change in the future.

Specifics of Due Diligence procedure in mergers and acquisitions in the Russian Federation

Aim. To study the elements and main features of the Due Diligence procedure, including mandatory and additional stages of due diligence of Russian companies, as well as taking into account the peculiarities of the Russian legislation and regulatory bodies.Objectives. To perform an in-depth theoretical analysis of the main tasks of the Due Diligence procedure in M&A of enterprises; to develop proposals for improving the methodology of the Due Diligence procedure in the Russian Federation (RF).Methods. The authors used general scientific research methods, including data collection and processing, content analysis, generalization, systematization, analysis of legislation and legal practice in the field of mergers and acquisitions, as well as the experience of Russian enterprises in conducting the Due Diligence procedure.Results. The Due Diligence procedure is an important stage of corporate transactions in the M&A process in Russia. The article shows that one of the key features is the necessity to take into account specific legal and tax aspects of the Russian legislation when conducting due diligence. It is necessary to take into account not only the risks, but also the influence of state regulators and regulatory bodies on the results of the transaction. Based on the results of the analysis and systematization of the information obtained, general methods and recommendations in the course of the Due Diligence procedure were determined. The statistical data on M&A transactions in Russia are considered, the attention is emphasized on the importance of Due Diligence at the rapid growth of M&A transactions. It is proved that the Due Diligence procedure increases the transparency of Russian companies and contributes to the improvement of the investment climate in the country.Conclusions. The study of the peculiarities of Due Diligence in M&A in Russia allows us to focus on the importance of legal analysis, financial and economic evaluation, as well as personnel and corporate culture assessment. Legal analysis provides an opportunity to identify and assess legal risks and problems related to the company's operations. Financial and economic analysis and audit help to identify and assess financial risks and problems, current and potential. Personnel and corporate culture assessment helps to understand how well they are aligned with the business objectives and strategy of the transaction. All three areas of assessment must comply with the requirements of domestic legislation and take into account the specifics of the labor market in Russia. A proper Due Diligence assessment of all three areas will help to detect possible risks and problems related to legal, financial and personal aspects of the company's activities, as well as provide a reliable basis for making correct and informed decisions regarding the M&A transaction.

Проблематика характера взаимной связи налогов и специальных налоговых режимов: к вопросу определения правовой природы и сущности

The need to improve existing and develop new special tax regimes determines the need to study the issues of the legal nature and essence of such, their correlation and (or) connection with other tax and legal phenomena (primarily taxes). The aim of this article is to determine the nature of the mutual relationship between taxes and special tax regimes (including addressing the issue of the correctness and scientific permissibility of direct comparison of general, special, and preferential tax regimes). The research was conducted relying on the formal-legal method supplemented by the systemic method. The lack of unified normative and doctrinal positions highlights the pressing need for further scholarly inquiry into this subject matter. Moreover, the author’s assertion regarding the inadmissibility of equating taxes and special tax regimes is compellingly substantiated, emphasizing the distinctiveness of the latter as a tax and legal phenomenon of higher organizational complexity. Special tax regimes, as elucidated, transcend mere tax obligations or mandatory payments, warranting careful consideration and refinement in future tax policy and legal frameworks. This nuanced understanding is essential for fostering effective governance and equitable taxation practices in modern societies.

Tax policy and activation of internal factors of economic growth: EU experience for Ukraine

The state policy of Ukraine aims to promote sustainable economic growth and improve its quality through economic activity, particularly through the optimization of the tax system, which is particularly relevant both during the period of martial law in Ukraine and the post-war recovery. The purpose of the study is to assess the formation and implementation of the state tax policy to activate the internal factors of economic growth in Ukraine under martial law. The study of tax policy in Ukraine and EU countries has shown that the EU countries are characterized by a consistent and transparent tax policy that stimulates investment, innovation, and entrepreneurship to activate internal factors of economic growth. The paper uses fiscal analysis based on the Cobb-Douglas production-institutional function; its main concept is the mutual location of the Laffer points of the first and second types and the actual level of the tax burden. The results show a noticeable adjustment of the real fiscal climate in Ukraine in line with changes in threshold fiscal standards. Considering martial law in Ukraine and the need for the state’s ability to post-war recovery, the study suggests changing the rates of specific taxes, after which it is necessary to make a transition from private fiscal instruments with inherent rate values to the aggregate fiscal burden.

Relationship Between Product Features and the Prices of e-Cigarette Devices Sold in Web-Based Vape Shops: Comparison Study Using a Linear Regression Model.

Open-system electronic cigarette (EC) product features, such as battery capacity, maximum output wattage, and so forth, are major components that drive product costs and may influence use patterns. Moreover, continued innovation and monitoring of product features and prices will provide critical information for designing appropriate taxation policies and product regulations. This study will examine how product features are associated with the prices of devices sold in web-based vape shops. We draw samples from 5 popular, US-based, web-based vape shops from April to August 2022 to examine starter kits, device-only products, and e-liquid container-only products. We implemented a linear regression model with a store-fixed effect to examine the association between device attributes and prices. EC starter kits or devices vary significantly by type, with mod prices being much higher than pod and vape pen prices. The prices of mod starter kits were even lower than those of mod devices, suggesting that mod starter kits are discounted in web-based vape shops. The price of mod kits, mod device-only products, and pod kits increased as the battery capacity and output wattage increased. For vape pens, the price was positively associated with the volume size of the e-liquid container. On the other hand, the price of pod kits was positively associated with the number of containers. A unit-based specific tax, therefore, will impose a higher tax burden on lower-priced devices such as vape pens or pod systems and a lower tax burden on mod devices. A volume- or capacity-based specific tax on devices will impose a higher tax burden on vape pens with a larger container size. Meanwhile, ad valorem taxes pegged to wholesale or retail prices would apply evenly across device types, meaning those with advanced features such as higher battery capacities and output wattage would face higher rates. Therefore, policy makers could manipulate tax rates by device type to discourage the use of certain device products.

How does the e-cigarette industry respond to tax adjustments? Evidence from China.

China enacted an excise tax on e-cigarettes in November 2022, which offers a distinctive opportunity to examine the industry's reactions to this fiscal adjustment. This study delves into the industry's pricing strategies following the introduction of the excise tax, facilitating a thorough assessment of the subsequent impact on market dynamics and the government's revenue streams. We developed a TaXSiM model specifically tailored for e-cigarettes in China by integrating the country's e-cigarette tax framework. Our approach involved leveraging market data obtained from a representative product, the RELX Phantom Series, to ensure the model's effectiveness and relevance. The excise implementation of 2022 significantly heightened the tax burden on e-cigarettes, marking an increase of approximately 150 RMB per device and 19 RMB per cartridge. Despite these financial pressures, electronic cigarette firms exemplified by RELX, strategically endeavored to sustain competitiveness. Their approach involved initially implementing a 'Razor blade model' and eventually a 'comprehensive under-shifting' strategy, which mitigated the health impact of the tax hike, resulting in a relatively minor decline in sales while amplifying the impact on tax revenue. However, this strategic pricing maneuver came at a cost, as it led to a substantial decrease in profits, and therefore expedited a reshuffling of the industry by compelling smaller brands to leave the market rapidly. To effectively curb the use of e-cigarettes through tax policies, it is advisable to relocate the imposition of excise taxes on electronic cigarettes to the retail stage. This shift aims to narrow the scope for industry-level pricing strategies. Furthermore, this approach should be coupled with the introduction of an additional specific tax, strategically crafted to accentuate the health-related benefits associated with the excise taxation on electronic cigarettes.

Comparing ad valorem and specific taxes with corporate social responsibility

AbstractThis paper examines the welfare ranking of indirect tax systems with corporate social responsibility (CSR) in a duopoly. Findings show that the two firms' cost and CSR asymmetries both play important roles. If the cost‐efficient firm has a higher CSR level, the standard result in traditional tax theory is sustainable. Namely, ad valorem tax (specific subsidy) policies are considered superior to specific tax (ad valorem subsidy) policies. However, if the cost‐inefficient firm has a significantly higher CSR level, the standard result is reversed. This result remains robust in an oligopoly model or under a tax revenue constraint.

Efficiency and Incidence of Taxation with Free Entry and Love-of-Variety Preferences

We develop a theory of commodity taxation featuring imperfect competition along with love-of-variety preferences and endogenous firm entry and exit. We derive new formulas for the efficiency and pass-through of specific and ad valorem taxes. These formulas unify existing canonical ones and feature a new term capturing the effect of variety on consumer surplus. As a proof of concept, we use theoretical formulas to identify love-of-variety preferences in an empirical application. Our welfare analysis shows that the marginal excess burden is sensitive to the estimated love of variety, which overturns classical results on the desirability of ad valorem versus specific taxation. (JEL D11, D21, D91, H25)

금사업자, 스크랩등사업자에 대한 조세특례 제도의 일몰(日沒) 종료에 따른 시사점과 법적 문제

The Act On Restriction On Special Cases Concerning Taxation has established the ‘Special Taxation for Payment of Value-Added Tax by Purchasers of Gold-Related Products, Scraps’ to fundamentally prevent tax evasion and disrupt the market's trading order, and also created a ‘Deduction of an input tax amount for scraps, etc.’ to expedite the settlement of the Special Taxation for Payment of Value-Added Tax by Purchasers. This entails deducting the tax amount for the increase in import amounts, etc. Although this Deduction of an input tax amount for scraps, etc. sunsetted on December 31, 2023, after termination by the sunset clause, it is considered necessary to improve the ‘Special Taxation for Payment of Value-Added Tax by Purchasers of Gold-Related Products, Scraps’ itself to ensure the continued promotion and maintenance of trade activation in the gold and scrap markets through value-added tax payer payments. It is necessary to induce smooth taxpayer cooperation by improving the system in the direction of reducing taxpayer cooperation costs. As specific improvement measures, suggestions include: ① reducing the difficulty of account management by assigning dedicated accounts by target business rather than item-specific accounts as current practice, ② limiting the compulsory use of dedicated transaction accounts to pay the value-added tax amount, without forcing the deposit of product values, and ③ proposing flexibility in the value-added tax payment date by not mandating the deposit of the value-added tax amount until the day after the date of supply.

Adjustments of VAT and income tax of banks

Subject. The article discusses excess profits of Russian banks in the amount of the planned Federal budget deficit in 2023, and financial relationships between banks and the budget as causes of excess profits. Objectives. The focus is on fairer taxation of commercial banks, using the case of the largest of them, and based on the latest experience of other countries. Methods. The study employs the comparative analysis of other countries’ practice on modifying the taxation of super profits of banks, financial analysis of reports of the largest banks regarding the specifics of the main taxes. Results. The article shows a zero net impact on the budget from bank operations. Budget payments by banks include income tax, tax on dividends, dividends to the State owned shares. Indirectly banks pay VAT on interest on corporate loans, interest on treasury funds in banks. Payments from the budget to banks include OFZ coupons and interest rate subsidies, banks earn margin on the treasury funds, zero VAT tax expenses on bank transactions with individuals. The international experience shows that other countries actively modify taxes on banks’ super profits. Italy and Spain introduced special taxes on banks, Brazil – a tax on financial transactions, Germany and Britain raised income tax rates, the U.S. regularly collect multi-billion dollar fines, France levies VAT on banks and encourages the European Union to do so. Conclusion. The fiscal effect of my proposals is about 1 trillion rubles, or one-third of the budget deficit. I offer to abolish zero VAT on bank operations with individuals, based on excess profits of banks, social inequality, and digitalization of tax control. Income tax for banks should be a minimum of 1% of risky assets, and it can be used to directly subsidize interest rates at the level of specific banks.

Реформирование пенсионной системы для плательщиков налога на профессиональный доход: региональная платформа

The difficulties that arose after the entry into force of the Federal Law “On conducting an experiment to estab-lish a special tax regime “Tax on professional income”” dated November 27, 2018 No. 422-FZ require a com-prehensive study and modification of the legislative framework. Many citizens who pay tax on professional in-come do not make contributions to the pension insurance system, which is one of the reasons for the high sub-sidy dependence of the Social Fund of Russia on the federal budget. According to the authors, it is necessary to develop a way to attract citizens to participate in the pension insurance program. The article considers an ex-ample of a possible solution to this issue: the introduction of tax deduction for taxpayers of tax on professional income in part of the tax paid, and assesses its impact on the regional budgets of the constituent entities of the Russian Federation.