Tax Burden Research Articles

Do we have the tools for achieving distributive tax justice?

Purpose: How can tax policies serve as a tool to promote distributive tax justice? The purpose of this study is to discuss several policies that research shows are both feasible and effective in achieving distributive tax justice. Motivation: By many accounts, income and wealth inequality has grown significantly in many countries in recent years, violating many peoples' standards of “distributive tax justice”. Exploring policies that research has shown are both feasible and effective in achieving distributive tax justice should provide useful guidance to governments. Design/Methodology/Approach: This paper reviews research on policies that have been suggested as options, examining both the feasibility that these policies may be enacted and the effectiveness of these policies if actually implemented. Main findings: This paper suggests policies that would increase the taxes paid by the rich, reduce tax evasion by the rich, and decrease the tax burdens by the gender, race, and ethnicity of taxpayers. Practical implications/Managerial impact: These policies all work through existing taxes, they are all administratively feasible and effective, none of these policies raises statutory marginal tax rates, these policies are all consistent with the standard “Broad Base, Low Rate” approach to tax reform, and variants of all of these policies apply worldwide. Novelty/Contribution: These suggested policies are novel among many other analyses because the policies here all emerge from a framework that emphasises feasibility and effectiveness in achieving distributive tax justice.

Revisiting Value-Added Tax Structures: Strategies For Mitigating Regressivity In Basic Commodities Consumption

This study explores the advantages and disadvantages of implementing a value-added tax on tax-exempt essential goods in Indonesia. The research employs historical, comparative, empirical, and normative legal methods to analyze the tax policy's legal and socio-economic context and assess its impacts and challenges. The analysis shows that applying VAT to necessities with exemptions can increase transparency, reduce tax avoidance, and ensure a fair distribution of the tax burden among businesses and consumers. However, this policy may impose additional administrative burdens and financial pressures on companies, particularly small and medium enterprises. It is crucial to balance promoting tax compliance and alleviating excessive administrative requirements. This research provides extensive insights into the dynamics of VAT policy on essential goods in Indonesia. It presents new perspectives on the distribution of economic burden and provides recommendations based on thorough legal analysis.

Harmonisasi Peraturan Perpajakan dalam Pandangan UMKM

The purpose of this study is to analyze more deeply regarding the HPP Law in the eyes of MSME actors in the Jombang region. This type of research is qualitative with primary data sources. The object of this study was at KPP Pratama Jombang and had 30 informants. Data collection techniques using source triangulation consisting of observation, documentation and interviews. The results of the research show that the HPP Law does not reflect justice. Nonetheless, the contribution and compliance of WP OP UMKM according to Jombang KPP Pratama data increased when the HPP Law was enacted. This is due to changes in the turnover limit of the HPP Law, where the tax burden will be less when compared to the previous law, thus having good implications for compliance with WP OP UMKM at KPP Pratama Jombang.

IRPJ tax planning using the worker's food program: a case study in a company in the area of industrial equipment of Araraquara/SP

The Worker's Feeding Program (PAT) is a tax incentive of deduction established by the Federal Government through Law 6.321/76, with the purpose of providing food to its employees and in return the reduction of the income tax due of the legal persons. In this sense, the objective of the research was to analyze the tax economy of a company that makes industrial machinery and equipment, located in the city of Araraquara in the state of São Paulo, by means of tax planning of the calculation methods of the Worker's Feeding Program (PAT), with the deduction provided for in Law 6.321/76. The research characterized itself as descriptive, case study and documentary, taking a quantitative qualitative approach. Data collection was performed through company documents, digital bookkeeping and tax bookkeeping from 2017 to 2021. The values of food expenses were collected, LALUR and ECF were tabulated, the rates indicated in the legislation were applied, the values of the IRPJ to be paid were calculated, and the comparison between the two methods was finally made. The results obtained demonstrate that the tax economy using the method of deduction of taxable profit is R $ 724.855,00 already updated by SELIC until 09/2022. It was possible to identify that the company collected values in an improper manner, for not carrying out the method proposed by Law 6,321/76, an amount of R$ 557,712.00. It is concluded that the research on the PAT emphasizes the importance of tax planning and the correct application of the tax deductions of Law 6.321/76, highlighting the need for effective tax management and knowledge of tax laws, since the non-use of tax incentives can bring significant tax costs to the companies. This demonstrates the importance of reviewing tax practices and implementing strategies to optimize the tax burden, promoting greater competitiveness and growth of organizations.

Assessing the Impact of Fiscal Policy on Economic Growth Rates

Relevance. The Guidelines for Budget, Tax and Customs Tariff Policy for 2024 and for the planning period 2025–2026 show that there will be a significant increase in expenditures for all funds of the Russian budget system. The expenses’ structure is changing significantly: it is expected to shift towards power expenses against the backdrop of a slight reduction in investments in human capital, social policy and the national economy growth. To ensure the budgetary balance required by law, the state predicted an increase in the tax burden in the next three years. This paper attempts to assess the impact of these changes on GDP dynamics. The authors calculated multipliers, including in key functional sections of the budget classification, to assess changes in fiscal policy, tax, and budget expenditure. Methods. We based these calculations on the impulse responses of the structural VAR model of the Russian economy. Also, the authors assessed the model on data for 2004–2021 to reckon the average-sized model (10 indicators) involved having used the Bayesian estimation method. Results. The calculated financial multipliers confirm a significant effect of fiscal policy on GDP; expenditures on social policy and the national economy showed the greatest stimulating effect.

What COVID-19 Vaccine Distribution Disparity Reveals About Solidarity

What COVID-19 Vaccine Distribution Disparity Reveals About Solidarity

Labor Supply Responses to Income Taxation among Older Couples: Evidence from a Canadian Reform

I assess whether the tax code is a viable policy lever for influencing labor supply among older workers. Specifically, using administrative data from Canada, I estimate the earnings responses to a unique reform that lowered tax burdens for couples with a pensioner, using quasi-experimental methods. I find that workers decrease labor supply as tax bills decline but do not respond to changes in marginal tax rates. Hence, while public policy often aims to keep people in the workforce longer, there are conflicting effects of offering tax advantage for seniors on work incentives. I consider implications of these results for age-dependent taxation. (JEL H24, H31, H55, J14, J22)

МОЖЛИВОСТІ ЗАСТОСУВАННЯ ЗАРУБІЖНОГО ДОСВІДУ У ПРОЦЕСІ УПРАВЛІННЯ ФІНАНСОВИМИ РЕСУРСАМИ ВІТЧИЗНЯНИХ ПІДПРИЄМСТВ

The article considers the need for the formation and use of financial resources for the need for effective functioning of modern enterprises. The need of domestic enterprises to improve the management of their financial resources is analyzed. It was determined that there are a number of ways of managing the financial resources of economic entities, which make it possible to increase the efficiency of the use of funds. The global practice of modern cash flow management, which is based on such theoretical models as V. Baumol's model, the Miller-Orr model, B. Stone's model, and the method of simulation modeling or statistical tests, is studied. It is noted that the successful implementation of cash flow optimization directions at the business level requires appropriate measures to be taken on a national scale as well. Measures are proposed that will contribute to the optimization of cash flows and the activation of entrepreneurship. Special attention is paid to such a way of managing financial resources as planning. It is noted that the world experience of developed countries proves that planning can be replaced by forecasting only in the conditions of a country in which the economy functions successfully and the general economic condition is stable. It is proven that the management of financial resources of French, German and English companies is carried out taking into account certain factors influencing the formation and management of the structure of financial resources of business entities. These factors include the level of financial risk, financial stability, tax burden, and financial management features. It is proven that the management of financial resources of French, German and English companies is carried out taking into account certain factors influencing the formation and management of the structure of financial resources of business entities. These factors include the level of financial risk, financial stability, tax burden, and financial management features.

ПОДАТКОВЕ ПЛАНУВАННЯ У СИСТЕМІ ФІНАНСОВОГО МЕНЕДЖМЕНТУ

The article examines in detail the importance of tax planning at the micro level. The main focus is on the analysis of the concept of tax planning, as well as a comprehensive study of the tactics and tools used in tax planning. It has been established that the tax strategy of the enterprise in the modern paradigm should be determined not only by calculating tax liabilities, but also by carefully studying the possibilities of their optimization. It has been proven that the effective use of tax incentives and the ability to avoid excessive tax burdens make it possible to significantly improve the financial position of business entities. One of the most common methods of reducing the tax burden is strategically oriented tax planning. There are other methods of tax optimization, but not all of them are legally acceptable. In the context of domestic law-making, where tax laws are often contradictory and interpretations can vary, the line between legal and illegal methods of taxation can be blurred and ambiguous. Under such conditions, it is important to clearly distinguish between concepts such as tax evasion, tax avoidance and legitimate tax planning. The tax planning process involves close cooperation between the manager, the accounting (financial) service and the lawyer. These specialists work on the development of appropriate innovative approaches and strategies, which include a thorough study of legislation, specialized literature, and also study successful practices in the field of taxation of other enterprises and organizations. Effective tax planning, involving the involvement of qualified specialists in this field, careful compliance with current legislation, systematic consultations with fiscal authorities and maximum optimization of the tax burden, is a key factor in creating a highly profitable, legitimate and stable business. These measures not only increase the financial efficiency of the enterprise, but also ensure compliance of its activities with legal requirements, thereby strengthening its position on the market.

Analyzing financial performance of resort and hotel subsector: A case study at Saung Dolken

The COVID-19 pandemic has significantly disrupted the stability of global economic flows and threatened the business of companies in the world. The purpose of this study is to analyze the existing condition of the financial performance of Saung Dolken Resort and Hotel for the period 2018 to 2022 and benchmarking with the hotel sub-sector industry, analyze the level of potential bankruptcy (financial distress) of SDO in Indonesia during the Covid-19 period, and formulate a financial performance model. This study aims to find out what factors affect SDO's financial performance which is proxied with return on equity (ROE) based on independent variables from the Dupont analysis components, namely: ATO: asset turnover ratio, LEV: financial leverage, TaxB: tax burden, IntB: interest burden, OPM : operating profit margin, and EM : Equity Multiplier (EM) Adjustment. The study examines Saung Dolken Resort and Hotel's financial performance from 2018-2022 using descriptive analysis and Du Pont Analysis, identifying strengths and weaknesses for investors. The results show that the period before and during the co-incidence period showed a significant decrease in ROE caused by a decrease in ATO, Asset Turnover, and LEV, followed by an increase in TaxB and intB. The strategy includes profit margin optimization, asset turnover improvement, and equity multiplier adjustment.

The Optimal Tax Structure from GDP-growth Perspective

The tax multiplier in macroeconomics assumes a negative relationship between the volume of tax revenue in a country and its GDP. However, it may also be relevant to GDP growth whether the same volume of tax burden is levied in a different structure. Can the fiscal government stimulate the GDP growth by restructuring the tax revenues? The following study analyses the linkage between GDP growth rate and the structure of tax revenues. A database contains data from 25 EU countries which are open economies in the European single market. The period starts in 1996 and lasts until 2018. The Eurostat classification is used for tax types. Dynamic GMM tests are applied for GDP equations based on expenditure and output approach and extended with taxation category determinants. The conclusions are that tax structure based on consumer taxes on production and income tax can support the economic growth, meanwhile higher weight of social contribution is a destructive factor for income expansion. The policy recommendation is to reweight the tax structure toward indirect taxes from direct taxes if economic growth is a preference in the tax system in a trade-oriented open economy. Novelty of the research: Application of Arellano-Bond version of Dynamic GMM test, comparable results for Solow-Swan and augmented Cobb-Douglas approaches, the composition of database, the falsification and verification of statements of the existing literature.

Effectiveness of Consolidation of Bank of Baroda: An Empirical Study

Consolidation through Merger & Acquisition is not a new phenomenon in the Indian banking space. After the adoption of the Basel-III norms by the RBI in 2013, the process of consolidation became more relevant and imperative in the Indian banking sector. Under such situations, study on effectiveness of the ongoing consolidation drive has become necessary. With this end in view, the paper attempt to highlight the effectiveness of Merger & Acquisition on the profitability of Bank of Baroda. The study is based on the secondary data collected from various sources for the period 2015-16 to 2022-23. ROE of Bank of Baroda is measured by using extended Dupont analysis. Furthermore, paired t test have been applied to determine whether there exists any significant difference among the drivers of ROE during the pre and post-merger period of Bank of Baroda. The Extended Dupont analysis revealed that though there was an increase in ROE during the post-merger period; Asset Turnover and Tax Burden were found to be lower than that of pre-merger period. Paired t-test pointed out that there was no significant difference in ROE during the pre-and post-merger periods. Additionally, among the five drivers of ROE, only operating margin was found to have a significant difference during the pre-and post-merger periods. The present study will help to provide an insight into the profitability of the merger of India’s third largest public sector banks in India.

People’s Contrasting Attitudes Towards Universal Basic Income in Sweden and South Korea

Abstract The discourse on universal basic income varies widely across countries. In Sweden, public opinion is generally negative even in the context of the Covid-19 pandemic, and it is barely discussed on the public policy table. On the other hand, in South Korea, public opinion is not as negative as in Sweden, and basic income is actively raised as policy agenda. Our study based on survey results reaffirmed the contrasting attitudes of the Swedish and Suth Korean people regarding basic income and related tax increase. The basic income could appeal to the people in South Korea. On the contrary, there is little room for the introduction of basic income in Sweden. The analysis also revealed similarities within the difference. Those with high income, political-right orientation, high protection against income loss, and high tax burden would be more unfavourable toward introduction of basic income no matter which country they live in.

Pengaruh Perencanaan Pajak, Beban Pajak Tangguhan, dan Financial Distress Terhadap Manajemen Laba

The study aims to determine the effect of tax planning and deferred tax expanse on earnings management in consumer non-cyclicals companies listed on the Indonesia Stock Exchange in 2018-2022. The population in this study were 113 companies and the research sample was 30 companies within a period of 5 years. The sampling technique used in this study is using sampling techniques. The data used is quantitative data sourced from secondary data, then the data collected is analyzed using descriptive analysis methods, classical assumption testing and hypothesis testing. Hypothesis testing in this study using panel data regression with t test and F test. Based on the results of the study shows that simultaneously tax planning, deferred tax burden, and financial distress have a significant effect on profit management. And the test results partially show that tax planning does not have a significant negative effect on profit management, tax burden has a significant negative effect on profit management, and financial distress does not have a significant negative effect on profit management.

Analysis of International Disputes over Digital Services Tax and Exploration of China’s Approach

With the continuous emergence of emerging information technologies, the digital economy is developing rapidly around the world. The global operations of multinational digital enterprises no longer rely on physical presence. The effectiveness of permanent establishment rules based on the traditional real economy settings has been questioned by market countries, which actively participate in Market countries where digital business value is created do not receive corresponding taxation rights. Multinational digital companies take advantage of loopholes in digital platforms and current tax rules to actively carry out tax planning, resulting in digital companies’ global tax burden being much lower than that of traditional companies. Tax sources cannot be fairly and reasonably distributed in the places where value is created and profits are taxed, which harms the tax interests of market countries. Against the background of slow progress in the OECD global unified solution, as a temporary unilateral measure to address the challenges of the digital economy, some countries have taken the lead in imposing digital service taxes on specific digital businesses of digital enterprises. On the basis of discussing the relevant concepts and theories of digital service tax, this article discusses the relevant concepts and theories of digital service tax, and analyzes the international development of digital service tax and the positions of various countries around the world. Further analyze the impact of digital service tax collection from three aspects: national fiscal revenue, tax trade disputes and international tax order coordination, and analyze the impact of digital service tax on digital enterprises. Then the perspective is focused on my country, sorting out and summarizing my country's relevant digital economy tax policies, and analyzing the impact of digital service tax on my country in the near term and long term based on the development of my country's digital economy. Finally, based on the previous comparative analysis and impact analysis, my country's tax system for promoting the development of the digital economy has gradually improved and actively participated in the reshaping of international tax rules, and my country's response strategies under the digital service tax have been proposed. The different levels of digital economic development between China and countries that have levied digital service taxes will inevitably lead to disharmony in the international tax order. The study found that the fiscal revenue brought by digital service tax is limited and has a certain degree of distortion effect. It is necessary to actively participate in international cooperation and make China's voice heard before reaching a consensus on international tax rules. In the long term, we should focus on the connection between the two-pillar plan and the domestic tax system, strengthen tax information exchange, improve the domestic digital tax rule system, and promote the healthy and sustainable development of my country's digital economy.

Analysis of the effectiveness of freelance exchanges and their demand among corporate customers in the context of tax regulation

The relevance of the study is conditioned by the dynamic development of the freelance market and the prospects for cooperation between freelancers and corporations, considering the specifics of taxation of such labour relations. The paper examines the essence of the concepts of “freelancer” and “freelance exchange” and substantiates the reasons for the establishment and popularisation of freelancing in modern conditions. The freelance markets of the countries of the Balkan Peninsula and Ukraine were analysed in terms of supply and demand, the number of vacant projects, the cost that the customer is willing to pay for the completed project. The purpose of this study is to analyse the actual performance indicators of existing freelance exchanges and assess the prospects for cooperation between corporations and freelance employees in the context of the possibility of optimising the taxation of legal entities. The methodological basis of the study was the use of system analysis in evaluating the results of freelance exchanges and attracting and cooperating with corporate clients, theoretical data on further prospects for using online labour exchanges by enterprises to attract the contractor of project work were highlighted. The advantages and disadvantages of cooperation in the customer-contractor field on the online labour exchange in the context of financial aspects are summarised. The relevance of the further study of the development processes of freelance exchanges, due to their growing popularity among employers, is substantiated. The study results and the conclusions formulated on their basis are of significant importance for the management level of companies, since based on the conducted research and already existing analytical information, the effectiveness of attracting freelance employees through freelance exchanges, the possibility of reducing the company’s labour costs and optimising the tax burden in terms of paying taxes for an employee has been confirmed

Tax policy of Ukraine in terms of martial law

ABSTRACT The introduction of martial law, due to the full-scale invasion of Russia into Ukraine, has had a major economic effect on Ukraine. This article argues that it created a need to improve the tax policy to take into account the political and socio-economic situation, as well as the challenges posed by the war to the country. Increasing the efficiency of tax policy can positively influence the attractiveness of foreign investments and can stabilize the economic situation in the country. The measures applied by state authorities are aimed at reducing the tax burden in order to quickly adapt the country’s economy to the realities of the martial law and to ensure its rapid recovery after the war, and are related to import benefits, updating customs legislation, unshadowing the labour market, etc. It has argued that the tax policy of Ukraine needs a systematic update, including through the implementation of the norms of European laws into the national legal system. The formation of the modern tax policy of Ukraine should be based on a rational reduction of the tax burden, integration of innovative technologies into the production sphere and effective management decisions.

PREREQUISITES AND CONSEQUENCES OF THE USE OF OFFSHORE JURISDICTIONS BY UKRAINIAN BUSINESSES

Offshore zones, as legal, financial and tax entities, attract the attention of both governments and the business environment. These zones are used for a variety of purposes, including reducing the tax burden, ensuring confidentiality, privacy and asset protection, as well as facilitating business. However, the use of offshore zones is also associated with risks, which include tax abuse, tax evasion, corruption and money laundering. One of the catalysts of the “offshorization” processes on a global scale was scientific and technical progress, the wide and rapid development of modern means of communication and communication. The emergence and development of the global Internet, satellite communications, etc. have reduced the time required for communication between fairly remote parts of the world to a minimum. The listed points together created qualitatively new opportunities for the comprehensive and rapid development of the offshore sector of the world economy, which allowed it to reach a qualitatively new level. Recent years have been characterized by growing attention to transparency and the fight against tax evasion at the international level. Ukraine is implementing measures to control transactions with offshore jurisdictions and ensure transparency in taxation. The study of this topic allows to reveal the peculiarities of the legal, financial and tax environment of offshore jurisdictions, to identify the advantages and risks of their use, as well as to understand the influence of offshores on the economy and international relations.

Analisis Perencanaan Pajak Melalui Metode Penyusutan Untuk Menghitung PPh Pasal 17 Perusahaan Jasa Konstruksi Sebagai Upaya Meminimalkan Beban Pajak Pada PT. Bisma Indo Raya Surabaya Tahun 2022

This research aims to analyze tax planning using the depreciation method to calculate corporate income tax article 17 as an effort to minimize the tax burden. The data analysis technique used in the research is quantitative descriptive. The data source used in this research is primary data. This research was conducted at PT. Bisma Indo Raya which is located on Jl. East Gayungsari No.16 Surabaya (Behind the PKB Building). The results of this discussion show that the total profit before tax before tax planning from depreciation is Rp. 1,030,470,668, with corporate income tax article 17 amounting to Rp. 226,703,547, resulting in a profit after tax of Rp. 803,767,121. While the calculation of profit after tax planning because there is a correction of depreciation costs using the straight line method, the total profit before tax after tax planning from straight line method depreciation is Rp. 609,820,542 with corporate income tax article 17 of the company amounting to Rp. 134,158,319, so obtained profit after tax amounting to Rp. 475,652,223. Calculating the profit after planning tax due to correction of depreciation costs using the declining balance method, the total profit before tax after tax planning from depreciation is Rp. 486,588,810 with corporate income tax article 17 of Rp. 107,049539, so that the profit after tax is Rp. 379,539,272. So the difference in efficiency of paying income tax if using the straight line depreciation method is Rp. 92,545,228, whereas if using the decreasing balance depreciation method it is Rp. 119,654,009. So the declining balance is smore effective to use because it can provide greater tax reduction efficiency to the company.

TOPICAL ASPECTS OF IMPROVING THE ORGANIZATION OF PRODUCTION INVENTORY ACCOUNTING OF ENTERPRISES

The article studies some topical aspects of improving the organization of production inventory accounting, in particular, the issue of identification of this accounting category and the problems of accounting valuation of production inventories. The key components of the identification of the accounting category “production inventories” are determined. The author’s own definition is presented and substantiated, according to which production inventories are stocks (i. e., tangible current assets) held by an enterprise for the purpose of further one-time consumption (which will lead to a change in their natural and material form) in the process of production of products (works, services), maintenance of equipment, organization of management and marketing of products (goods). The article analyzes the issues of valuation of production inventories disposal. A comparison of the results of estimating the disposal of production inventories in the context of inflation using three main alternative methods of evaluation of disposal – the FIFO method, the weighted average cost method with price recalculation once a month and the weighted average cost method with price recalculation for each disposal. It is established that the use of the FIFO method in the context of inflation allows minimizing the accounting valuation of the disposal of production inventories, which in turn leads to maximizing the accounting valuation of the financial results of the reporting period and the value of inventory balances at the end of the period and, accordingly, improves the financial condition, increases the creditworthiness and investment attractiveness of the enterprise according to the financial statements. In terms of taxation, on the contrary, it is more attractive to use the weighted average cost method with prices recalculated once a month, since this method allows for a completely legal temporary optimization of the tax burden in terms of income tax in the conditions of inflation. The weighted average cost method with price recalculation for each disposal is recognized as a compromise option, the consensus of which is achieved by reducing the size of the effect. The issue of organizing the accounting and distribution of transportation and procurement costs by the methods of average percentage and direct distribution is studied. The disadvantages of the method of averaging transportation and procurement costs are identified and the expediency of direct distribution of transportation and procurement costs is substantiated, which allows improving the quality of accounting information on the movement of production inventories and the amount of costs generated as a result of their consumption.