Tax Burden Research Articles

ДОЦІЛЬНІСТЬ РЕГУЛЮВАННЯ ГОМЕОСТАЗУ СОЦІАЛЬНО-ЕКОНОМІЧНОГО ВІДТОРГНЕННЯ В УМОВАХ ФІНАНСОВОЇ ТУРБУЛЕНТНОСТІ

The presented study contains the author's vision of the main aspects and approaches to the possibility and expediency of regulating homeostasis of socio-economic rejection in the conditions of post-war economic instability and financial turbulence. The purpose of the study is to determine the feasibility of regulating homeostasis of socio-economic rejection in the context of systematization of modern provisions and concerns of leading financiers regarding the spread of financial recession trends. The methodological basis of the study was scientific publications and monographs, articles of journals and materials of scientific and practical conferences. The research content of scientific periodicals was used during the study; comparative critical analysis of existing approaches and methods of analysis of financial stability and tax burden; Statistical methods of analysis. The main hypothesis of the study was to assume the possibility of leveling socio-economic rejection at enterprises by introducing the latest financial and economic technologies of digital transformation and restoration of Ukraine's production potential. Presenting main material. It has been proven that the disturbing momentum of rejection occurs at the enterprise daily and every hour, namely: the need for education, science increases, differentiation in the income of employees increases, the level of competitiveness of the enterprise's products is changing, a new product or technology that produces at least two consequences is formed. In the first case, fluctuation is suppressed and a new balance arises, and all the indignation energy inside the enterprise is absorbed by the dynamics of the individual preferences of the enterprise. In the second case, fluctuation energy does not dissolve in new passions of individuals, but on the contrary, it remains and even increases, ensuring the formation of interest of the enterprise as such. Originality and practical importance. Categorization of socio-economic rejection, where substantiated, is a key tool for avoiding socio-economic rejection –– socio-dynamic multiplier of economic growth of an enterprise, which functions in the form of interaction of three components: social effect, employees' inclination to constructive and collective and collective work; A set of formal and informal institutions that ensure a combination of socio-economic effect with the tendency of employees to constructive actions. Conclusions and prospects for further research. To support the homeostasis of the enterprise, it is proposed to introduce a mechanism of homeostat, which is an appropriate complex of enterprise management systems, taking into account the capabilities and needs of employees, which includes an ensemble of signaling and regulatory systems of the enterprise, which are self-regulating, where management is only an element, not a supervisor. It is proposed to create an entity entity in the form of a set of long -term partnerships with all "interested parties" of the enterprise

PENGARUH PROFITABILITAS DAN UKURAN PERUSAHAAN TERHADAP PENGHINDARAN PAJAK PADA SUB SEKTOR LOGAM YANG TERDAFTAR DI BEI PADA PERIODE 2019-2022

Legal efforts made by companies to avoid taxes by reducing the deferred tax burden are called tax avoidance. If tax avoidance activities are carried out according to the rules of the applicable law, it is considered legal by the company. The purpose of this study is to understand and analyze the various benefits of profitability (X1) and business growth (X2) on financial performance (Y) in the Metal Subsector listed on the Indonesia Stock Exchange. The method used in this research is quantitative, and the annual report of the Metal Company for the period 2019-2022 as secondary data. Panel data regression is applied for analysis techniques. The findings of this study explain that profitability produced with ROA and company size produced with SIZE have no significant effect on Tax Avoidance in Metal Companies on the Indonesia Stock Exchange.
 
 Keywords: Profitability, Company Size, Tax Avoidance

Social insurance contribution and firms’ digital transformation: Evidence from China

ABSTRACT We examine the relationship between social insurance contribution and firms’ digital transformation by using the data of Chinese firms listed in the Shanghai Stock Exchange (SHSE) and the Shenzhen Stock Exchange (SZSE) from 2007 to 2017. We find that social insurance contribution has increased the degree of firms’ digitalization transformation. We also explore two important mechanisms through which the Social Insurance Law (SIL) affects firms’ digital transformation: cash flow effect and factor substitution effect. The results indicate that the positive impact of the social insurance contribution on firms’ digitalization is more significant for firms that are not state-owned, have smaller sizes, labour intensive, with low tax burden, low financial leverage, and low productivity. One important implication of our study is that firms’ digitalization can be a strategic choice made by labour-intensive firms to overcome rising cost of labour as a result of the SIL.

Who should deliver agri-environmental public goods in the UK? New land managers and their future role as public good providers

Agri-environmental policies in the UK stand on the threshold of significant change, with wide acceptance that radical changes are needed to ensure a better delivery of public goods in future. The UK’s departure from the EU presents an opportunity to fully realise the “Public Money for Public Goods” principle in the new suite of Environmental Land Management schemes. A likely priority will be the delivery of conservation goals at a landscape scale, which will require the recruitment of a broader range of actors and institutions than at present, including an emerging group of what we call in this paper ‘new land managers’. Understanding the changing dynamics of rural land occupancy, and the characteristics and motivations of these new land managers, will be essential in the future for the effective delivery of these public schemes. Data on land market trends is nevertheless patchy and poorly researched. For this paper, we drew on a survey of land agents in England, all of whom were members of the Central Association for Agricultural Valuers (CAAV), in order to gather information and reflections on contemporary land markets. A key finding is that agricultural policy reform and retrenchment is seen by many of these experts as a significant driver of future change. Taken together with other interacting factors such as the overall tax burden on businesses and the economic and personal situation of farmers and their succession status, many of our respondents predicted significant structural change, with more land coming on to the market for resale. At the same time, increasing demand for land from “lifestyle/non-farming landholders” and the growing presence of people entering the market interested in enroling land for carbon sequestration and natural capital improvements, will mean a shift in the types of individuals and organisations holding land. Those holding and managing land in coming years are likely to comprise an ever more diverse and fragmented community of land owners and occupiers The task for policymakers then, is to deliver a suite of interventions specifically tailored to the various types of landholders in order to engage them effectively into public goods delivery under ELMs.

Mediasi Kinerja Keuangan pada Hubungan Leverage dan Likuiditas terhadap Penghindaran Pajak

Purpose: Tax avoidance is a strategic approach aimed at reducing the tax burden while staying within the boundaries of applicable regulations. The objective of this study was to examine how leverage and liquidity influence tax avoidance, with financial performance acting as an intermediary factor. 
 
 Method: The research focused on publicly listed financial sector companies on the Indonesia Stock Exchange (IDX) from 2019 to 2022. The sample selection process adhered to specific criteria, resulting in a sample size of 38 companies. Smart PLS was employed as the data analysis technique. 
 
 Results: The findings indicated that leverage had an impact on financial performance, liquidity affected financial performance, and financial performance played a role in tax avoidance. However, financial performance did not act as a mediator in the relationship between leverage, liquidity, and tax avoidance.
 
 Implications: This research can be used as material for study and evaluation for the government in relation to existing tax policies. On the other hand, it is expected to increase compliance and awareness of the company in fulfilling its tax obligations.
 
 Novelty: This research uses profitability mediation in the relationship between leverage, liquidity, and tax avoidance

The role of shifts in the effective tax rate on the cost of equity

We propose an asset pricing model conditional on the effective tax rate, which allows us to explicitly estimate the impact of shifts in corporate taxes on the expected returns of equities. We evaluate the model using Spanish macro and market data to estimate the time-varying average corporate tax rate and average returns of different anomaly portfolios. Our results show that changes in corporate taxation are strongly explanatory of future stock returns and, consequently, the cost of capital of firms. Furthermore, uncertainty about the future tax burden generally translates into higher expected returns, which results in a lower value of firms.

Natural disasters and corporate tax burden: Evidence from chinese energy sector

Given the importance of energy company in disaster reconstruction and economic stability, we focus on the intrinsic link between natural disasters and energy corporate tax burden. This study examines the impact of natural disasters on the energy corporate tax burden using panel data for listed energy companies in China from 2003 to 2021. We robustly find that the higher the number of natural disasters in an energy company's region, the lower the corporate tax burden. The mechanism analysis suggests that the government, motivated by concerns that energy companies are in business distress and facing financing difficulties, is the mechanism by which natural disasters lead to lower energy corporate tax burdens. In addition, the above effects are more pronounced among energy companies that are larger, have a higher market share, and are subject to stronger government intervention. We provide theoretical basis and data support for post-disaster reconstruction and economic stability.

Does it pay to be green? The impact of emissions reduction on corporate tax burden

Is there any benefit to reducing emissions for firms? Based on the China Industrial Enterprises Emission and Pollution Database and the Annual Survey of Industrial Firms, this study investigates the impact of firms’ emissions reduction on their tax burden. We find strong and consistent evidence of a significant reduction in the tax burden following a reduction of firms polluting emissions. This effect mainly manifests in large-scale firms, firms whose taxes are collected by the local taxation bureaus (LTB), and firms in regions with stricter environmental regulations. We also find that tax breaks and government subsidies are important pathways to reduce corporate tax burden. Further exploration documents that firms’ bargaining power and local tax enforcement have significantly moderating effects on the relationship between firms’ emissions reduction and their tax burden.

PENGARUH TRANSFER PRICING, LEVERAGE, PROFITABILITY DAN FAKTOR LAINNYA TERHADAP TAX AVOIDANCE

Abstract: Tax avoidance is a legal act to reduce tax liabilities by exploiting loopholes in tax law. This research aims to determine the influence of transfer pricing, leverage, profitability, company size, capital intensity, independent commissioners, and audit committees on tax avoidance.This research uses 51 manufacturing companies listed on the Indonesia Stock Exchange (BEI) in the 2019-2021 period. In this research, a purposive sampling method was used and the data analysis method used was multiple regression analysis.The results of this research show that transfer pricing, leverage, company size, capital intensity, independent commissioners, and audit committees do not affect tax avoidance. Profitability shows that the results have a negative effect on tax avoidance. High profitability tends to make companies carry out tax avoidance because the greater the value of a company's ROA, the more management will tend to carry out tax avoidance because management will feel that the tax burden paid by the company is too large even though the company's profits are increasing.

Carbon taxation in Europe

The subject of the study is the carbon tax legislations of European countries.The purpose of the article is to identify the general consistent patterns of carbon taxation in a number of European countries: the United Kingdom, the Netherlands, Norway, France, Sweden and Switzerland.The methodology of the research includes the analysis of the provisions of the carbon taxing legislation of these countries.The main results, scope of application. The analysis shows that the structure of the carbon tax in European countries has differences, but the predominant form of taxation is an excise tax on fuel. In Sweden and Switzerland the excise rate is in direct proportion to the carbon content of the fuel, however in the UK, Norway and France excise rates are set more voluntary. Each country countries grant exemptions for specific fuel uses and industries that they deem essential to protect from the exceeding tax burden. In the Netherlands, Norway and France, carbon/energy taxation is applied in addition to the emissions trading system. In all these countries, this is motivated by the evaluation of the latter as insufficient to attain the objectives of diminishing CO2 emissions. Based on the experience of these countries, there is no prevalent model for the arrangement of carbon / energy taxation. For instance, France imposes an energy tax as an excise tax, that is, a consumption tax. The UK levies excise taxes on the consumption of natural gas, LNG, coal and electricity, correlated to the amount of energy contained in these fuel products. Norway applies both an excise and an indirect output tax in the oil sector. In the Netherlands, a carbon tax is levied on actual CO2 emissions (as far as they are accounted for under the EU ETS), but this tax only applies to ETS participants and only if the ETS prices are below the established level. Despite the high tax rates (up to 120 euros per ton of CO2 in Sweden and Switzerland), the significance of the carbon tax for the economies of the considered countries is low due to both low energy consumption and the high proportion of carbon-neutral energy sources such as hydroelectric, nuclear and biofuel.Conclusions. An analysis of the provisions of the carbon taxing legislations of various European countries revealed that these countries adopt such carbon tax schemes that optimize their administrative feasibility, public acceptability, and economic impact mitigation for vital sectors. At the same time, in the majority of countries, the carbon tax is implemented as an excise tax on fuel.

Can environmental protection tax force enterprises to improve green technology innovation?

The introduction of an environmental protection tax enables a smooth shift from the sewerage charge system to the environmental protection tax scheme. This, in turn, promotes a more sustainable development of enterprise growth, emphasizing eco-friendliness. This is of immense importance in advancing environmentally aware practices and sustainability. Based on data collected from A-share listed companies in Shanghai and Shenzhen from 2014 to 2021, this paper investigates the influence of environmental protection taxes on the advancement of green technology and the underlying mechanisms. Taking the execution of the Environmental Protection Tax Law in 2018 as a quasi-natural experiment, a double-difference model is employed to examine the causal relationship between environmental protection taxes and the adoption of green technology by companies. The findings indicate that the introduction of an environmental tax could markedly enhance the extent of green technological innovation within corporations. The evidence arising from the testing mechanism implies that such a tax can encourage firms to boost their investments in research and development, upgrade their innovative human capital, and mitigate financing limitations. The study found that there is heterogeneity in the promotion effect of the environmental protection tax on the green technological innovation of businesses in different regions and provinces with varying tax burdens and types of equity capital. Further research shows that the environmental protection tax has a greater impact on the promotion of utility model patent applications for green technology innovation. This paper presents empirical evidence to support further enhancement of the environmental protection tax system. It recommends designing the environmental protection tax policy with consideration for enterprises and local conditions and bolstering the system's capacity for guiding and stimulating enterprises' green development.

Do local governments tax homeowner communities differently?

AbstractThis article investigates whether and how strongly the share of homeowners in a community affects residential property taxation by local governments. Different from renters, homeowners bear the full property tax burden, irrespective of local market conditions, and the tax is more salient to them. “Homeowner communities” may hence oppose high property taxes in order to protect their housing wealth. By merging granular spatial data from a complete housing inventory in the 2011 German Census with historical homeownership rates and housing damages during the Second World War as sources of exogenous variation in local homeownership, we provide empirical evidence that otherwise identical jurisdictions charge significantly lower property taxes when the share of homeowners in their population is higher. This result is invariant to local market conditions, which suggests tax salience is the key mechanism behind this effect. Moreover, we find positive spatial dependence on tax multipliers, indicative of property tax mimicking by local governments.

Factors influencing forestland enrollment in Georgia's preferential property tax programs

More than two-thirds of Georgia's private forestland (or 14.6 million acres) are enrolled in one of the state's preferential property tax programs. Besides alleviating property tax burdens for rural landowners, the purposes of these incentive programs have gradually evolved from ensuring a sustainable supply of agricultural and timber products to promoting the conservation of rural open space and provision of ecosystem services. This study examined the factors associated with forestland enrollment in Georgia's major current-use tax programs using a combination of parcel-level spatial data, property tax roll, and county-level economic data for all private forestland in the study counties. A multilevel logistic regression model was used to control the effects of hierarchical data structure. A forest parcel's size, tax savings, neighboring parcel enrollment, land value, land productivity, landowner's residence status in relation to the property, development potential (e.g., distance to cities, county population density) as well as distance to lakes and identified conservation areas are important predictors of its likelihood of being enrolled in the property tax incentive programs. Larger forest parcels, located close to identified potential conservation areas, characterized by high soil productivity, held by non-absentee owners, and adjacent to enrolled parcels were more likely to be enrolled in the current-use tax programs.

Dynamics of tax revenues as an indicator of strengthening the fiscal function of taxes

The importance of the fiscal function of taxes is due to the fact that without the receipt of financial resources into the country’s budget, most of which are tax revenues, the effective and normal functioning of the state is impossible. The implementation of the fiscal function of taxes also predetermines the possibility of implementing in the future other functions inherent in taxes.The article examines the leading role of the fiscal function of taxes in conjunction with other functions. An analysis of the dynamics of tax revenues of the consolidated budget of the Russian Federation and the structure of tax revenues for 2019–2022 is provided. The authors note an increase in tax revenues to the state budget, which indicates an increase in the implementation of the fiscal function of taxes.However, the process of increasing tax revenues is also an indicator of an increase in the tax burden, which is confirmed by the data of the Federal Tax Service presented in the article. Increasing the tax burden can lead to negative consequences for both the economy of the state and the country as a whole. In conclusion, the conclusion is substantiated that the growth of tax revenues to the state budget should be ensured through the development and implementation of new directions for improving the Russian tax system without increasing the tax burden of taxpayers.

Nothing comes for free: Evidence from a tax reduction of China

Using data from the National Taxation Survey from 2009 to 2015, this paper conducts a quasi-natural experiment on the tax reduction reform of "replacing business tax with value-added tax" (RBTVT) in China to empirically explore the impact of the fiscal pressure caused by the turnover tax reduction on the corporate income tax burden. The paper tries to explain why it is difficult to reduce the tax burden through tax reduction from the perspective of fiscal pressure. According to the empirical results, an extensive tax reduction creates a "tax substitution" effect, i.e., the stronger the tax reduction effect of the RBTVT, the greater the motivation of local governments will be to shift the fiscal pressure to enterprises through taxation, resulting in an increased local corporate income tax burden. In regards to "who pays the tax", the paper indicates that non-state-owned enterprises, small and micro enterprises, and non-RBTVT enterprises are the main bearers of the local fiscal pressure shift. With further examination, the paper finds that there is an obvious "tax substitution" effect in regions with poor business environments or large governments. In the mechanism section, the paper finds that strengthening tax administration, decreasing tax-rate reductions for enterprises, and levying excessive tax are the primary "tax substitution" methods. In the extended analysis, our results suggest that enterprises are not the ultimate bearers of fiscal pressure because they can shift the pressure on them to workers by reducing the cost of wages and benefits. Besides, the results show that cutting fiscal expenditure and improving fiscal expenditure efficiency can effectively alleviate the "tax substitution" effect. Finally, we find that the "tax substitution" effect discounts the impact of tax reduction, but does not entirely nullify it.

The Impact of the Real Estate Tax Reforms on the Tax Burden in the Czech Republic

The article deals with the evaluation of the impact of real estate tax reforms on their tax burden in the Czech Republic in the years 1993–2024. Real estate tax is one of the direct taxes, and in comparison, with income taxes, its importance lies mainly in providing income for local budgets. The unit type of tax rate specifically determines real estate rates. Facts, that tax reform in the area or real estate tax are minimal, the tax burden is often decreasing. As the tax burden decreases, so does the tax revenue. However, when tax reform occurs, this reform is often characterized by a significant increase in the tax burden. This is also evidenced by the last implemented tax reform in 2024 when rates increased by approximately 80%. The previous tax reform occurred in 2010 and increased rates by 100%. Despite this increase, the real tax burden decreased compared to the first analysed year 1993 and the last year 2024. The results of the regression analysis show that inflation is the factor that negatively affects tax revenue. To minimalize a decrease in tax revenue from 2024, a provision containing an inflation coefficient is implemented in the legislation as part of the 2024 reform. Conversely, a reduction in the tax burden was not found for real estate intended for permanent housing in small municipalities with up to 600 inhabitants. On the contrary, there was an increase in the tax burden. Scientific methods such as analysis and comparison, as well as regression and correlation analysis are used to achieve the paper’s goals.

Exploring the Application of Financial Indicator Prediction Models in Optimizing Tax Burden

Abstract As economic globalization progresses unceasingly, the financial activities of enterprises are increasingly complex, paralleled by a concomitant increase in the intricacy of tax laws and regulations. Consequently, the tax risks faced by enterprises are becoming more pronounced. To predict the financial status of enterprises, a logistic regression model is created by combining relevant financial indicators. Considering the large amount of enterprise financial sample data, a Lasso-Logistic regression model is constructed, and the ADMM algorithm optimizes the model to improve the model's prediction accuracy. Finally, after using the ROC curve to test the validity of the constructed financial index prediction model, the A-share listed companies in the advanced manufacturing industry are taken as the research object of empirical analysis to analyze the relationship between the impact of financial indexes on tax burden. The regression equation for the standardization of tax burden is tax risk = -0.02341+0.03572 VAT effective tax burden +0.15451 income tax effective tax burden +0.21118 current ratio -0.26875 total asset turnover +0.06574 current sales revenue +0.02432 current cost of goods sold +0.13681 gearing ratio + 0.23708 Fixed Assets Change Ratio - 0.26895 Asset Size. Based on the analysis results, this paper proposes three optimization strategies for tax burden.

Налоговая нагрузка НДФЛ и страховых взносов в Российской Федерации

Introduction: the period between 2000 to 2020 was marked by serious changes in taxation in the Russian Federation. The consequences of these changes for both the budget system and residents of Russia are still poorly studied, in particular, with reference to the impact of changes in social contribution rates and the introduction of various tax benefits on reducing income inequality. Such studies are necessary for both determining the degree of distortion in various incentives by tax policy measures and evaluating the effectiveness of these measures. Objectives: to assess the tax burden on individuals and households in order to determine the degree to which tax reforms comply with the originally stated goals, primarily, in terms of fairness criteria. Methods: analysis of distribution curves, regression analysis. Results: the tax wedge assessments based on the survey data revealed the differences between the actual level of the tax burden and the formal tax burden as well as tax evasion typical for low-income groups of the population. At the same time, there were no significant differences found in the tax burden distribution in individuals and households. Conclusions: the taxation system for individuals in Russia is regressive. The results obtained turned out to be robust to the choice of specifications of the estimated equations. It is important to note that there is a relatively high degree of regressiveness of the taxation scale in terms of insurance premiums and, at the same time, a bell-shaped dependence of the tax burden on the size of the payroll.

Changes in Tax Burden, Solvency, Profitability, Operating Ability and Growing Ability: A Factor Analysis of China International Logistic Companies

Amid the expansion of global trade, China’s prominence in international commerce is clear, yet its international logistics companies face significant challenges related to tax risks and financial stability. This study examines the financial performance and tax risk of the international logistics sector in China, focusing on key indicators of tax burden, solvency, profitability, operational efficiency, and growth capacity. Employing factor analysis on data from 28 listed logistics firms in China from 2020 to 2022, the study investigates the interrelationships and overall impact of these indicators. The findings reveal that tax burdens exceed industry standards, solvency is weak, and profitability is influenced by both internal and external factors. Additionally, operational efficiency and growth capacity show significant gaps. This analysis identifies critical areas where logistics companies should adopt adaptive tax strategies, optimize debt structures, and invest in operational efficiency to enhance long-term sustainability. Strategic agility in responding to market trends is crucial for capitalizing on growth opportunities, particularly among logistics companies where these actions will strengthen financial performance and global competitiveness.

Decoding the government budget puzzle

Purpose: The relationship between public expenditure and revenue that determines the budget balance in the explanation of budget deficits is very important. This study aimed to examine the association between public spending and income in Turkey. Methodology: This article applies the continuous wavelet transform method (CWT) to study the relation-ship between government revenues and expenditures in Turkey. The study, which covers the period 2006-2020, consists of monthly data. The following four CWT tools were used in the analysis: Wavelet Power Spectrum, Cross Wavelet Power, Wavelet Coherence, and Phase Difference. Results: The results of the study, controlling taxes rather than expenditures, play a key role in reducing fis-cal deficits in Turkey in the short term. It is revealed that the dynamics of the budget balance in the medium term can be explained by the spend-tax hypothesis and that the tax burden can be alleviated by spending cuts. In the long term, results were obtained that support the spend-tax hypothesis. Conclusion: The paper reveals that taxes play an important role in controlling budget deficits in the short run. It turns out that the dynamics of the budget balance can be explained in the medium term by expendi-ture cuts and then the tax burden can be alleviated. In the long run, implementing fiscal policies based on public spending rather than taxation will be more effective against budget deficits.