Taxation Research Articles

An examination of direct and indirect taxation in OECD countries and the case of Greece

This paper attempts to analyze and interpret the principles of direct and indirect taxation. Initially, a theoretical approach to the general concepts and principles governing tax law is presented. It is followed by a presentation of the Greek tax and financial system. The key points demonstrating the harmonization of tax legislation, in accordance with the OECD (Organization for Economic Cooperation and Development) guidelines so far are highlighted. Any future reform of the Greek national tax system should incorporate the fundamental principles of national tax policy. Additionally, it must be in line with OECD principles and guidelines. The further implementation of the Organization's recommendations will shift the balance between direct and indirect taxation, leading to strengthening the first and reducing the second. Over the last decades, the ratio of direct to indirect taxes has been on the increase, particularly in developed countries. The main reason is that direct taxation is socially just and effective. Direct taxation is attributed by the liable person, while indirect taxation is transferred according to the ability of each person to react to the relevant market. The OECD supports, for member countries, the strengthening of direct taxation, which takes into account income and other social criteria and satisfies both the criterion of efficiency and the criterion of fair distribution of economic burdens. On the contrary, indirect taxation is reduced to inversely progressive taxation in terms of the income of consumers and is not consistent with the OECD principles of socially just and effective taxation in economically developed countries. The taxation of the citizens in general follows the principle of the citizens contributing to the public burdens according to their powers, for there is nothing more unjust than to treat unequal men as equals. From this proportional treatment of the taxing units, the constitutional principle of equality is also satisfied by reflection.

Taxation of e-commerce in the USA and other countries

The relevance of the topic of taxation of electronic commerce in the USA is due to the changes that are taking place in the global economy. The article examines the taxation system in the USA and other countries.

Influence of Tax Administration on Public Revenue Growth in Western Region of Kenya

Influence of Tax Administration on Public Revenue Growth in Western Region of Kenya

Оподаткування і фіскальна соціологія: фінансова думка Заходу та уроки для України

Introduction. In the process of fair interaction between authorities and taxpayers, a relationship of trust is created. This trust ensures support for government fiscal initiatives from the business sector. Conversely, if the relationship is not transparent and equitable, it can lead to a passive or even negative attitude towards taxes, thereby reducing the efficiency of the tax system. Problem Statement. There is a gap in Ukrainian fiscal theory, which is still underdeveloped in terms of fiscal sociology. Compared to Western countries, where fiscal sociology has already become an integral part of economic analysis, in Ukraine this issue has been studied only by a narrow circle of scholars. This limitation necessitates a deeper study and integration of sociological approaches into financial science, because without it, Ukrainian researchers and policy makers lose the opportunity to gain a more complete understanding of the interaction between economic and social processes. The purpose is to substantiate the directions of integration of fiscal sociology into Ukrainian financial theory and to develop recommendations for its inclusion into Ukrainian financial practice. Methods. The methods used are systematic, structural-functional, comparative analysis, analogy, grouping, description, comparison and generalization. Results. It is proved that by integrating fiscal sociology, Ukrainian fiscal theory can benefit from a more nuanced understanding of the socio-economic factors influencing fiscal policy. Such integration could lead to more effective policy making and a deeper understanding of the economic challenges facing Ukraine. Conclusions. Ukrainian academics and policymakers should prioritize the interdisciplinary study of fiscal policy, taking into consideration the rich tradition of fiscal sociology in the West. Joint efforts should be made to develop tax policies that strengthen state legitimacy by addressing issues of fairness, transparency, and trust. Strategies for managing public debt and improving tax morale should be a central element of fiscal policy to ensure that Ukraine's financial system can withstand socioeconomic pressures and contribute to long-term stability and development.

Dynamic feed scheduling for optimised anaerobic digestion: An optimisation approach for better decision-making to enhance revenue and environmental benefits

Anaerobic digestion (AD) offers a sustainable solution for clean energy production, with the potential for significant revenue enhancement through enhanced decision-making. However, the complexity and limited flexibility of AD systems pose challenges in developing reliable optimisation methods. Changing feeding strategies provides opportunities for efficient feedstock utilisation and optimal gas production, especially in volatile gas markets.To provide better decision-making tools in AD for energy production, we propose an integrated site model for the dynamic behaviour of the AD process in a biomethane-to-grid system and optimise production based on predicted gas prices. The model includes methods for optimal feed co-digestion strategies and integrates these results into a scheduling model to identify the optimal feedstock acquisition, feeding pattern, and potential gas storage operation considering feedstock availability, properties, sustainability, and fluctuating gas demand under different pricing variations.The methodology was tested on a 150 tonnes per day farm-scale AD plant in the UK, processing energy crops and manure considering both environmental (global warming potential) and economic objectives. The results showed strong adaptability of the proposed feeding schedule to the general trend of gas prices over time. To address the challenge of immediate price peaks, typically unattainable due to the system's sluggish behaviour and high retention times, the impacts of on-site storage were explored, leading to annual revenue increases ranging from 2 % to 7.4 %, depending on the pricing scheme, which translates to a significant boost in terms of revenue.

AN ANALYSIS OF GST IMPLEMENTATION AND TRENDS IN REVENUE COLLECTION FROM 2017-18 TO 2023-24

India’s Goods and Services Tax (GST), implemented on July 1, 2017, revolutionized the country's indirect tax system by replacing a complex array of taxes with a unified consumption tax. This study analyzes the implementation, features, and trends of GST from fiscal year 2017-18 to 2023-24, utilizing secondary data from the Economic Survey of India 2023-24. The total GST revenue has shown significant growth, rising from ₹5,39,601 crores in 2017-18 to ₹15,18,127 crores in 2023-24. The GST structure operates under a dual system, with Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) being key components, alongside the Integrated Goods and Services Tax (IGST) for inter-state trade. High-contributing states like Maharashtra and Karnataka have strengthened their positions, while states like Himachal Pradesh and Uttarakhand face challenges. The analysis also reveals fluctuations in revenue due to the COVID-19 pandemic, with a robust recovery in subsequent years. Key findings underscore the need for targeted interventions in lower-performing regions, improvements in tax administration, and policy adjustments to address the declining share of cess. This research highlights the pivotal role of GST in enhancing tax compliance and broadening the tax base, laying the groundwork for sustainable economic growth in India. KEY WORDS: Goods and Services Tax (GST), Tax Compliance, Indirect Taxation, Economic Growth, Public Finance

Certain aspects of the introduction of mandatory administrative (pre-trial) tax conflict settlement

Certain aspects of the introduction of mandatory administrative (pre-trial) tax conflict settlement

A network security protection scheme for tax system based on elliptic curve cryptography

With the rapid development of modern information technology and network technology, the construction of tax informatization plays an important role in improving the level of tax management and work efficiency. However, in the centralized data processing mode, the establishment of large data center and the efficient, stable, and secure connection of server bandwidth have become key challenges. Moreover, the openness and interconnectivity of the tax system network pose various network security threats, seriously threatening the integrity and security of data. For the above issues, this article proposes a tax system network security protection scheme based on elliptic curve cryptography. This scheme combines hash function and elliptic curve cryptography to achieve user anonymity and secure generation of session keys, effectively ensuring the secure transmission of confidential information. The security and effectiveness of the scheme are verified through informal and formal security analysis based on security proof, BAN logic and AVISPA tool. And a comprehensive evaluation of the scheme is conducted, and the results show that the scheme significantly reduced the costs while providing security features.

Recent Changes in Income Tax and GST: Implications for Commerce

The landscape of taxation in India has undergone significant changes in recent years, particularly in the areas of Income Tax and Goods and Services Tax (GST). This paper examines the latest amendments in both these areas, focusing on their impact on businesses and commerce in India. The Income Tax reforms introduced in the Finance Act 2023 aim to simplify the tax structure and enhance compliance, while GST amendments focus on addressing loopholes and improving the efficiency of tax administration. This study explores these changes in detail, their expected effects on businesses, and the broader economic implications for the Indian commerce sector.

Zakat Calculation Model as a Reduction Factor for Income Tax Based on Law Number 11 of 2006 concerning the Government of Aceh

The purpose of this study is to examine the implementation of the provisions of Law Number 11 of 2006, especially Article 192 which regulates Zakat as a deduction from income tax. In this study, the researcher examines the extent to which this rule is applied in practice and attempts to evaluate the most effective zakat calculation model as a deduction from income tax. This study uses qualitative methods through interviews, observations, and documentation regarding Zakat as a deduction from tax. The research findings indicate that the implementation of the provision of zakat as a deduction from tax as regulated in Article 192 of Law Number 11 of 2006 has not been optimal in Aceh, especially in Lhokseumawe City. Although this law provides a strong legal basis, the practice in this field still refers to Law Number 23 of 2011 concerning Zakat Management. The implementation of Law Number 23 of 2011 in Lhokseumawe only focuses on the administration and distribution of zakat without providing clear guidelines in integrating zakat into the taxation system, thus inhibiting the use of zakat as a tax reduction tool.

COMPARATIVE LEGAL ANALYSIS OF TAX MEASURES TAKEN IN CRISIS CONDITIONS

The world's economic and legal systems are facing a huge challenge to overcome the negative consequences imposed by recent social distortions. In 2020, what started as a health crisis quickly turned into an economic-social problem where an express response was required to ensure the functioning of social actors. This economic-social crisis was followed in a short period by new security crises with additional consequences on national systems. The response to the newly created conditions requires a multidisciplinary approach that will include measures of a health, economic, social, and security nature, adopted on the principles of legislation and expediency within the national legal systems. These measures have their own direct or indirect tax component. The purpose of this paper is to perform a legal analysis of the tax measures taken in the national systems. The scope of the research covers the member states and candidate countries for membership in the European Union. The focus is on the more recent crisis period, with particular emphasis on the COVID-19 period. The analysis primarily focuses on the legal element of the tax measures, the procedure of their implementation, and their legal nature. Also analyzed are the challenges that they have on the taxpayers and the administrative authority for their performance. The method of comparison in the paper is used to compare the similarities and differences between the tax measures in the different national systems and to detect the legal challenges imposed by the established crisis conditions. At the end, conclusions are given about the current situation and recommendations on how the establishment of tax systems should be in the future in crisis conditions.

The impact of green tax system on idiosyncratic risk: evidence from China’s environmental protection tax law

ABSTRACT China’s enactment of the Environmental Protection Tax (EPT) Law is a pivotal milestone in the transition towards a green tax system; however, its impact on enterprises capital market performance remains unclear. We adopt a difference-in-differences approach to investigate the influence of green taxation on the idiosyncratic risk of listed companies. The findings reveal a significant reduction in idiosyncratic risk for heavily polluting enterprises following the introduction of the EPT Law, thus suggesting that green taxation contributes to firms’ enhanced capital market performance. This effect acts through environmental, social, and governance performance and is more pronounced for firms with a stronger resource base.

Triumph in taxing times? Linked transatlantic two-level games and the taxation of the digital economy

ABSTRACT In October 2021 136 countries reached a political agreement to transform the global tax regime for the first time since its creation. The disconnect between the digitalized economy and the global tax system was a key driver of the agreement, but it was not sufficient as negotiations only a few years earlier had failed to address the problem. This article advances a three-part explanation to resolve this puzzle. First, developments on one side of the Atlantic changed the default conditions and so increased support for compromise in the other. Second, those changes enhanced the bargaining power of higher-tax jurisdictions relative to lower-tax ones. Third, the Biden administration saw securing a multilateral agreement on minimum corporate taxes as a way to realize domestic tax objectives. The linking of the issues gave it an incentive to compromise on taxing the digital economy and paved the way for agreement.

Policy recommendations on supporting employee financial participation

Purpose From the first PEPPER report in 1991 until this PEPPER V Report the EU has not only expanded from 12 Members States to currently 27 but also faced complex and urgent challenges. Both the financial crisis of 2008/09 and the coronavirus disease 2019 (COVID-19) pandemic 2020/21 have left their marks on “Social Europe”. Although the overall dynamic of employee financial participation (EFP) across the EU 27 is positive, EFP is declining in terms of its share of household income in the light of the concentration of capital ownership and of capital income. Along with the issue of distributive justice, other challenges, such as business succession in small and medium enterprises (SMEs) that have been on the agenda for decades, and new ones like the extension of EFP to social enterprises, are calling for action.Design/methodology/approach From the comparison of the countries, the cluster analysis and the background of the importance of legal framework and fiscal incentives, two general principles can be derived: (1) establishing EFP schemes through legislation is of primary importance as countries that provide a stable and transparent regulatory framework for EFP also show a wider implementation of EFP practices; (2) when properly designed, fiscal incentives promote the spread of EFP effectively as both countries with a long tradition of tax incentives for EFP (e.g. UK, France) and those with a more recent development (e.g. Austria) confirm.Findings It is against this background that the following policy recommendations should be read. Tax incentives should (and in most countries they actually do) target those taxes, which constitute the heaviest burden in the national taxation system. (1) Tax incentives should be provided for both employees and the employer company. (2) Even substantial tax incentives may prove inefficient when the pre-conditions for eligibility are too restrictive, complex or inflexible. (3) Some forms of tax incentives are more suitable for certain types of plans, e.g. deferred taxation for employee share ownership (ESO), capital gains tax in lieu of personal income tax for dividends and sale of shares, or tax exemptions for matching contributions for European Employee Stock Ownership Plans (ESOPs).Originality/value In light of this need for SME action and the great potential for introducing ESO in this enterprise segment, from our recommendations we emphasise in particular: Alleviating the evaluation problem in unlisted SMEs through debt-to-equity-swaps. ESO may initially take the form of an employee loan to the company, creating corporate debt, which is subsequently converted into company shares. Facilitating share transfers in privately held limited liability companies (LLCs) by ending the requisite for notarial certification (Italy and France) or limiting it to the identity of seller and buyer. ESO in SMEs via intermediary entities, e.g. trusts, foundations, LLCs or other special purpose vehicle (SPVs) to hold and administer employee shares (AT, IE, UK, HU, FR, SI, USA).

Taxation mechanism of Kashmir under Maharaja Ranjit Singh

ABSTRACT This paper sheds light on the economic aspect of Kashmir under Sikh rule with the main focus being on the taxation system. The banking and taxation mechanism that ran in Kashmir was unique compared to the rest of India. Different weights and measures, land measuring instruments that were in vogue have also been studied. Apart from this, an attempt has been made to study the coins and currencies that were in use at that time. Moreover, an attempt has been made to bring forward the role of money lenders, their exorbitant interest rates and the deplorable conditions of the peasants.

E-taxing maturity in developing economies: evidence from corporate tax payers in Ghana

Purpose The adoption of e-taxing plays an important role in modernizing tax administration. Ghana, like many other developing countries, has adopted e-taxing to modernize its revenue collection processes and improve its tax-to-GDP ratio. This study aims to examine the current state of e-taxing maturity in Ghana, focusing on the advancements made and what can be done to achieve a mature e-taxing system. Design/methodology/approach Through qualitative design, interviews were conducted with Ghana Revenue Authority, National Information Technology Agency and Businesses to provide an in-depth understanding of the strengths, weaknesses and opportunities for improving e-taxing maturity. Findings The study reveals mixed e-taxing maturity. While the digital service aspect of e-taxing has seen progress, digital infrastructure, digital analytics, digital integration and digital culture hinder the full actualization of mature e-taxing. Research limitations/implications The findings suggest the need for a comprehensive plan that addresses regulatory, cultural, technical and organizational aspects to drive digital transformation in e-taxing tax implementation. Social implications The lack of resilient infrastructure, especially in rural areas, can worsen societal inequalities. Owing to the lack of telecommunication infrastructure and poor internet connectivity in rural areas, businesses in these areas may lack the needed information for business growth and expansion. This can result in unfair treatment of rural businesses widening the inequality gap between businesses in urban areas and rural areas. Therefore, the study is important from the standpoint that implementing the recommendations will help to bridge the gap between businesses in urban areas and rural areas. Originality/value To the best of the author’s knowledge, this study is among the first to conduct an empirical study on e-taxing maturity in Ghana.

Exploring The Impact of Internet of Things (Iot) Technologies on Tax Compliance: Opportunities, Challenges and Policy Implications

The proliferation of Internet of Things (IoT) technologies has revolutionized various aspects of modern life, including business operations and government services. This research paper delves into the intersection of IoT technologies and tax compliance, aiming to elucidate the opportunities, challenges, and policy implications arising from their integration. Through a comprehensive review and analysis of existing literature, this paper seeks to provide insights into the transformative potential of IoT in tax compliance, while also highlighting potential hurdles and offering policy recommendations. IoT technologies offer a myriad of opportunities to enhance tax compliance processes for both taxpayers and tax authorities. The ability of IoT devices to collect real-time data and automate various tasks can streamline recordkeeping, improve accuracy in reporting, and enable proactive compliance measures. For taxpayers, IoT-enabled systems can simplify tax documentation, minimize errors, and provide timely reminders for compliance deadlines. Likewise, tax authorities can leverage IoT data for better monitoring, enforcement, and risk assessment, thus enhancing overall tax administration efficiency. However, the integration of IoT in tax compliance also presents notable challenges. Privacy and data security concerns emerge as paramount considerations, given the sensitive nature of financial information involved in taxation. The vast amount of data generated by IoT devices also raises questions regarding data governance, ownership, and liability. Moreover, the digital divide may exacerbate existing disparities in access to IoT technologies, potentially marginalizing certain segments of the population and hindering equitable tax compliance. In light of these opportunities and challenges, policymakers must carefully design regulations and guidelines to harness the benefits of IoT while mitigating associated risks. Clear standards for data protection, encryption, and user consent are essential to safeguard taxpayer privacy and instill trust in IoT-enabled tax compliance systems. Additionally, implementation of measures to bridge the digital divide and ensure equitable access to IoT technologies, thereby promoting inclusivity in tax compliance efforts. Furthermore, tax authorities need to develop robust frameworks for data governance, encompassing data collection, storage, sharing, and usage. Collaboration between public and private sectors is crucial to foster innovation in IoT-based tax compliance solutions while adhering to regulatory requirements and ethical principles. In conclusion, the integration of IoT technologies in tax compliance holds immense potential to revolutionize the way in which taxes administered and enforced. However, realizing this potential necessitates a holistic approach that addresses technical, legal, and socio-economic considerations. By embracing innovation while safeguarding privacy and inclusivity, governments can harness the transformative power of IoT to foster more efficient, transparent, and equitable tax systems.

Юридическая хроника

October Chronicle offers comments on the Durov case (from the perspective of Information Law), the draft law on notarisation of real estate transactions, the law on expanding the grounds for suspending criminal proceedings, the cancellation of preventive measures and exemption from criminal liability for persons who have expressed a desire to join the military service under contract, as well as the second law, the adoption of which continued the reform of the Russian tax system.

Sufficient Statistics for Nonlinear Tax Systems with General Across-Income Heterogeneity

Sufficient Statistics for Nonlinear Tax Systems with General Across-Income Heterogeneity

Упрощенная система налогообложения: первые оценки изменений налогового законодательства 2024 г.

Changes to the simplified taxation system (STS) introduced in the course of the tax system fine-tuning will significantly alter its design: income limit requirements will be expanded and STS payers will be recognized as VAT payers. The objective of this study is to find out what percentage of STS and CIT payers will be affected by these changes. For this purpose, a distribution of STS and CIT payers by income level was plotted. Information from tax forms of the Russian Federal Tax Service, Registers of SMEs and the SPARK database for the period 2019–2022 was used as input data. It was found that there is a shift in the structure of both STS and CIT taxpayers towards lower incomes: about 70% of CIT payers and about 90% of STS payers earn less than RUB 60 million per year. The analysis revealed that for 85% of STS payers the reform will be neutral, while for 9% the situation will slightly worsen. The winners of the reform will be those companies that will switch from CIT to STS. This transition will be formally available for 87% of CIT payers, and most of them will switch due to the possibility to pay VAT. Expansion of income limits under STS may become a decisive factor for only 10% of CIT payers.