Tax Consultancy Research Articles

MECHANISM OF TAX CONSULTING IN THE MANAGEMENT OF THE TAX COMPONENT OF ENTERPRISE ECONOMIC SECURITY

The article considers the mechanism of tax consultancy as an important element of the management of the tax component of the economic security of an enterprise, which is particularly relevant in the context of constant changes in tax legislation and growing requirements for transparency of financial statements. Tax consultancy is a complex process of providing companies with qualified assistance in the field of tax planning, optimisation of tax liabilities and management of tax risks. It is substantiated that tax consulting not only helps to reduce the tax burden, but also ensures compliance of the company's tax policy with the requirements of current legislation, which, in turn, is a guarantee of long-term stability and financial sustainability of the company. The article examines the structural elements of the tax liability management mechanism, which include tax planning, ensuring conditions for timely and correct calculation of tax liabilities, as well as organisational and control components. Particular attention is paid to the analysis of the tax planning process as one of the key stages of tax consulting. It is determined that effective tax planning allows an enterprise to optimise the structure of income and expenses, thereby reducing the tax burden and ensuring the rational use of financial resources. This paper considers the methods of ensuring compliance with tax reporting requirements as an important factor in the process of tax consulting. The function of tax consultancy in the formulation and execution of strategies designed to mitigate tax risks and enhance the efficacy of enterprise financial management is established. The necessity of utilising contemporary information technologies in the domain of tax consulting is underscored, as this enables the enhancement of the precision and efficacy of managerial resolutions pertaining to taxation. It can be concluded that effective tax consulting plays a pivotal role in enhancing the economic resilience of an enterprise. It serves to fortify the enterprise against external and internal threats, including those posed by shifts in the tax environment and economic challenges.

Enhancing Tax Consultancy Services through an Innovative Website

This paper presents a detailed analysis and report on the development, implementation, and impact of a tax consultancy website aimed at enhancing the efficiency and effectiveness of tax advisory services. The website integrates cutting-edge technologies, user-friendly interfaces, and comprehensive tax-related information to provide a seamless experience for both clients and tax professionals. The study investigates the key features, challenges faced during development, and the overall impact on the tax consultancy sector.

Perceived Attractiveness of Tax Consultancy and Auditing Professions: Insights From a German-Speaking Area

Recruiting professionals in tax consultancy and auditing is becoming increasingly difficult in Germany and Austria. This study analyzes the attractive factors of a profession, specifically the tax consultancy and auditing profession, based on a survey of students ( n = 225) and practitioners ( n = 148) in a German-speaking setting. We find that the most attractive factors for tax consultancy and auditing are different company insights and consulting activities. Career opportunities and auditing activities are perceived as incentives to enter the auditing profession. Knowledge obtained during studies is perceived as less satisfactory for students compared to practitioners who assess it as good in retrospect. Students from different regions valued the tasks differently, which implies that strategies must be adapted to attract students. The number of accounting courses and internships significantly influenced career entry for both professions. Thus, higher education institutions are responsible for making professions more appealing to students.

How legal scholars facilitate tax avoidance: Case study on the power of tax consultancy firms

AbstractSocial scientists have neglected the ways in which the consultancy assignments of legal scholars mediate private interests, even though their opinions provide important guidance in legal proceedings. Through a case study from Finland, we document a process where private tax advisory firms utilize their access to academic forums to defend their clients' interests. With further evidence on related dependencies, we trace a twofold process that amplifies the voice of tax advisors and suppresses public interest‐related concerns. By achieving positions of trust in the academia, tax consultancy firms gain important gatekeeper roles that facilitate corporate‐friendly research and subdue critical arguments. The findings challenge the conventional understanding of the dynamics of knowledge production and call for a greater attention to the pitfalls of the marketization of academic legal advice and scholarship. The national‐level interpretative power of major tax advisory companies is also an important building block for international network power.

Scope of Activities as a Criterion Determining the Type of CSR Actions with Regard to Employees: A Case Study

Purpose: This article aimed to demonstrate the results of research carried out in 2019 on a group of 301 enterprises from the West Pomeranian Voivodeship in Poland and to analyze the differentiation of indications for the involvement of enterprises representing two different scopes of business activity in the implementation of specific actions with regard to employees. Design/Methodology/Approach: The CATI method was used to conduct the research on a group of 301 enterprises from the West Pomeranian Voivodeship in Poland operating in the service sector. The structure of respondents with respect to the scope of their operations, included 150 entities conducting accounting and bookkeeping activities, as well as tax consultancy – RKiDP (PKD 69.2 section) and 151 entities operating in the field of cleaning services – SO (PKD 81.2 section). Findings: The conclusions give indication of a relationship between the selection of specific CSR activities taken with regard to employees and type of business activity. At the same time, for the purpose of seeking a set of initiatives that respond to the specific needs of particular groups of enterprises, the need to broaden the scope of analyses with further examples was recommended. Practical Implications: The grounds to the hypothesis brought forward in this article was research conducted in the aspect of identifying the involvement of enterprises in the implementation of CSR activities undertaken in regard to employees. The frequency distribution of indications of specific initiatives shows a certain dependence of particular choices of the surveyed enterprises on the main criterion determining the scope of their activities. One example are two different groups of companies. Originality/value: The article presents the results of primary research.

Indicators of Tax Authority Monitoring: Firm Characteristics, Tax Avoidance and Reinvestment Allowance Utilisation

The Inland Revenue Board of Malaysia (IRBM) provides a monitoring mechanism of corporate governance through tax audits. However, indicators associated with the tax authority monitoring system remain underexplored due to data confidentiality. This study aims to examine the indicators used by the tax authority in performing tax monitoring where the tax return data of firms that claim reinvestment allowance (RA) were employed alongside the historical audit data of corporate taxpayers of both a tax-monitored firm and an unmonitored tax firm. The results of the analysis reported that the tax authority monitoring system is closely associated with fundamental details disclosed in the tax return namely, assessment year, profitability, scale of operation, firm directorship, tax consultancy and industry type. In contrast, the incidents of tax avoidance and incentive utilisation indicators were not prominent in tax authority monitoring. The investigation of firms that experienced tax monitoring provides insight into indicators which interest tax authorities when it comes to a firm’s tax audit. This research revealed new evidence on IBRM preferred indicators in conducting tax monitoring.

Contribution of Tax Consultancy Firm in the Reduction of Tax Evasion in Cameroon

This study attempts to examine the Contribution of Tax Consultancy Firm in the Reduction of Tax Evasion in Cameroon. The objectives are to: explore the contribution of Management of Tax Accounting Consortium (MTA) in the reduction of tax evasion in companies and to investigate the consequences of tax evasion on the tax payer enterprise. Methodologically, we used focus group discussion and quantitative data collected from MTA to estimate our result. The result shows that consultancy firm plays a major role in the reduction of tax evasion. Result by tax payer enterprise shows that companies that evade tax being good, bad or fraudulent faith end up losing much money that may lead to the collapse of the company. We recommend that tax payers should pay their taxes at the appropriate periods and rightly calculated to avoid penalties and interests. The government of Cameroon should absolutely encourage the growth of tax consultancy firms; it’s a wise step towards economic growth.

OFFER OF PRIVATE BANKING OF KEY BANKS IN POLAND - STATE AND PERSPECTIVES

Celem badań było rozpoznanie i ocena zmian private bankingu w Polsce. W toku badań ustalono między innymi, że produkty finansowe o najmniejszym ryzyku cieszą się obecnie największą popularnością wśród klientów private bankingu badanych banków. Na podstawie wyników badań ustalono również, że najbardziej popularną usługą, świadczoną w ramach private bankingu w najbliższych 2 latach będzie prawdopodobnie doradztwo inwestycyjne. Usługi pozabankowe takie jak doradztwo prawno-podatkowe, doradztwo edukacyjne czy usługi concierge będą w dalszym ciągu dodatkiem oferty w ramach private bankingu w Polsce.

ПОДАТКОВЕ КОНСУЛЬТУВАННЯ В ЗАРУБІЖНИХ КРАЇНАХ: ДОСВІД ДЛЯ УКРАЇНИ

У статті висвітлено досвід вибраних країн світу з питань розвитку інституту податкового консультування. З’ясовано, що процес формування ринку фінансового консалтингу підлягає групуванню та має типові риси. Вказано, що податкове консультування в Україні має спільні ознаки розвитку із групою країн, що не мають законодавчого регулювання таких процедур. З’ясовано, що перевагами державного регулювання ринку податкового консалтингу є те, що права замовників послуг з податкового консультування захищені чинним законодавством, що обумовлює необхідність законодавчого врегулювання податкового консалтингу в Україні.

‘Paying taxes is losing money’: A qualitative study on institutional logics in the tax consultancy field in Romania

The role of the tax consultancy industry in promoting tax avoidance products is under increasing scrutiny in the Western world. Various societal actors, such as governmental and non-governmental organisations, academics and the media, have voiced their dissatisfaction with the negative effects of tax avoidance on state budgets. This is indicative of a changing attitude towards tax avoidance practices, and the public’s expectations of tax consultancy activities. Applying an institutional logics framework, this paper interprets the traditional values of tax consultancy as articulating commercial logic, and identifies new societal developments exerting pressure for ethical practices in the tax consultancy profession. While there are visible signs of both logics currently coexisting in Western countries, less is known about how these logics manifest in contexts beyond the Western world. We take an in-depth look at tax consultancy in Romania, a country that continuously strives to balance the remnants of its communist past with its newly claimed European identity. We examine the dynamics of these two institutional logics and how the features of Romanian society affect them.

Stock option taxation and venture capital activity: a cross-country study

The VC sector is interesting both in its own right and as a proxy for entrepreneurial finance more broadly. We highlight the tax treatment of stock options as an important factor for variations in the size of the VC sector. VC often relies on option-based contracts to mitigate incentive problems. Granting stock options to founders and key employees also allows credit-constrained start-ups to attract and retain top talent. Such compensation cannot be unambiguously classified as either capital or labor income. Some tax systems treat stock options in VC-funded firms as highly taxed employee compensation, whereas others treat them as capital gains with low flat tax rates. The effective rate depends on tax practices and is not readily indicated by statutory taxes. The tax consultancy firm PwC calculated the effective tax rate for a standardized entrepreneurial case in 22 countries, which is supplemented with our own calculations for 16 additional countries. For this sample, we find a negative cross-country relationship between the effective tax rate on employee stock options and the extent of VC activity. The negative effect is stronger for countries with high R&D investments and weaker in countries with low R&D spending.

Conflicting logics? The role ofHRMin a professional service firm

AbstractHRM is considered of vital strategic importance in professional service firms, but professionals generally resist these managerial initiatives. In this article, I report on an in‐depth case study of a tax consultancy department in a major accounting firm by exploring the way professionals reconcile the logics of professionalism and HRM. Results indicate that the logics are reconciled in several ways as they are simultaneouslyreplicated,revised, andrejected. Whereas current theories argue that the different logics balance each other, this study indicates that the professionals strengthen professional logic by acknowledging HRM and its procedures, simultaneously circumventing them throughinverted appropriation. Results suggest that hybridity between conflicting logics may appear on an organisational level, whereas a single logic dominates in everyday work. The study contributes to in‐depth studies of institutional logics and to a detailed understanding of the workings of HRM in professional contexts.

SOCIAL AND PSYCHOLOGICAL ASPECTS OF TAX CONSULTING IN UKRAINE

Introduction. Increase in the community understand the need for full and timely calculation and payment of taxes and duties and conscious understanding of their importance for the viability of the state, providing qualified and effective consultative assistance to taxpayers acting priority at the state tax consulting and corporate levels. An important role in this context is played by psychological traits taxpayers that understand key aspects of tax consulting. It increases the level of tax literacy and tax culture in society, strengthens economic competitiveness and creates a series of macroeconomic effects. The purpose of the article is the study of social and psychological aspects of functioning and improving tax consulting services in Ukraine. Results. The theoretical aspects of the tax consulting are investigated. The basic indicators of the State Fiscal Service of Ukraine in the field of consulting are analyzed. The psychological traits of the conduct of fiscal and tax advisors are systematized. Deals with the social component of the tax behavior of taxpayers and outlines the reasons prompting them to deviation. Showed the role and place of business taxation in the formation of tax culture. Proved, that the active outreach by SFS of Ukraine will increase the level of tax awareness and create a tax culture in society. Formation and development of the effective market of tax consulting in Ukraine will increase the level of service taxpayers at the corporate level will lead to optimization of fiscal policy and strengthen its social role. Conclusion. The ability to use the tax employees in the work of social and psychological technologies can increase the efficiency of their operations and create the basis for improving the confidence of taxpayers to the tax system in general, increase of tax culture in society, and to create a basis for the functioning of the corporate tax consultancy in Ukraine

Conference on Creating your own Tax Consultancy

Conference on Creating your own Tax Consultancy

МЕТОДОЛОГИЧЕСКИЕ АСПЕКТЫ УПРАВЛЕНИЯ НАЛОГОВЫМИ ПОТОКАМИ КОМПАНИИ В ФОРМЕ НАЛОГОВОГО КОНТРОЛЛИНГА

The article considers the company’s tax controlling as a component element of strategic management of finance and financial controlling. It describes its composition, structure, objective in accordance with organizational and methodological basic of building a general system of financial controlling. The company’s tax controlling system is presented as a multi-functional, integrating and coordinating model of tax flow management. The system offered includes the concept, methodological and methodic basis of tax management, as well as two functional blocks and their elements: the block of tax management (tax planning and budgeting, coordination, motivation and control of tax plans and budgets performance); the block of information and service provision of the management process (tax management accounting, analysis and recording). Organization and introduction of the offered tax controlling system, it blocks and elements is considered as one of the tasks of the company’s financial and tax manager or an independent tax advisor. The system offered must become one of the stages of forming in Russia systems of tax controlling and tax consultancy with expanded rights and responsibilities of tax controllers and advisors.

The Netherlands: A Tax Haven?

All the empirical evidence indicates that the Netherlands is a tax haven. This is because it deliberately offers companies who would not otherwise seek to be resident within its territory the means to reduce their tax charges on interest, royalties, dividend and capital gains income from foreign subsidiaries. This SOMO report investigates the extent to which the Netherlands can be regarded as a tax haven, and analyses the factors behind this, such as the unique network of bilateral treaties for the avoidance of double taxation and the special fiscal regimes for group financing operations. It estimates the number of ‘mailbox companies’, mostly established to route financial flows through the Netherlands purely for fiscal reasons, at almost 20,000, and this number has been increasing rapidly in recent years. The Netherlands benefits primarily from attracting financial flows to its territory by increasing the tax yield it enjoys from corporate income and from employment generated in the trust and tax consultancy sector. These benefits do not, however, outweigh the negative consequences for other countries. Hence, Dutch tax policy is inconsistent with its policy on Official Development Assistance (ODA) and its associated high contribution to financing the achievement of the Millennium Development Goals (MDGs). The tax haven features of the Netherlands also facilitate money laundering and attract companies with a dubious reputation. In order to promote a fair and just global economic system in which tax avoidance by multinational corporations is minimised, the report gives recommendations for the Dutch government and all other relevant actors.

Non‐Audit Fees, Market Leaders and Concentration in the German Audit Market: A Descriptive Analysis

This is the first study to analyze auditors’ market shares and concentration in Germany on the basis of audit fees, which have been subject to disclosure since 2005. Previous studies have all used surrogates to measure concentration, and were therefore unable to distinguish between non‐audit and audit fees. We have at our disposal the data from 175 audits (including three joint audits) and 40 audit firms. These data show that the Big4 obtained 87% of the total audit fees and 90% of the total fees in the period under investigation. PricewaterhouseCoopers (PwC) is the market leader, based on both the total fees and the audit fees. KPMG earns the most in the sub‐market for tax consultancy. The non‐audit fees amount to 41.9% of the total fees. Audit firms specialize in certain industries or stock market segments. Market concentration increases over time. At present, concentration seems to be higher in Switzerland, although it is lower in the United States of America (USA) and the United Kingdom (UK).

Creativity and Space. Labour and the Restructuring of the German Advertising Industry

Joachim Thiel Aldershot: Ashgate, 2005. 194 pp. Price: $89.95/£45.00 A book about the German advertising industry. What is it that makes the German advertising industry more interesting than, say, hair dressing in France or tax consultancy in Mexico? Here is why this book is potentially of interest to economic geographers and regional and urban economists: 1 Or, as Marshall has put it, 'Employers are apt to resort to any place where they are likely to find a good choice of workers with the special skill which they require; while men seeking employment naturally go to places where there are many employers who need such skill as theirs and where therefore it is likely to find a good market'. Marshall (1890 book IV, Chapter X). However, this book is not about Berlin, the surprising winner of spatial restructuring, but about Hamburg, another, but much less surprising, winner of spatial restructuring. The annual growth of advertising employment in Hamburg—6%—was not as large as in Berlin, but Hamburg started from a higher level and still gained: among all German cities with over 500,000 inhabitants, Hamburg's share of employees in the advertising industry rose from 21.5% in 1980 to 26.1% in 2001 (p.68). 'Restructuring' (as the book is advertised in its subtitle) might be a too strong and catchy term for this increase by five percentage points. Does it make sense to devote a book-length study to explain it? The answer is yes if we learn something which we could also use for studying other regions (such as Berlin) and other creative industries. To some degree, this is indeed the case.

Expert Intermediaries and Legal Compliance: The Case of Tax Preparers

EPERTS are regularly called on for advice on legal matters. Yet little is known either about when such advice is sought or about the expert's influence on compliance with the law. As lawyers are the primary source of expert legal advice, legal scholars have been particularly attentive to the effects of legal advice on behavior but have had difficulty moving beyond speculation. Heinz observed: "To provide any reasonable definite answers to questions posed concerning the influence of lawyers ... one would need to have some measures of the nature of the relationships and interaction between lawyers and clients, including indices of lawyer influence."' Shavell recently analyzed the decision to consult a lawyer and the effect of the lawyer on legal compliance, but his focus was entirely theoretical.2 In this article, we assemble the empirical evidence urged by Heinz for one prominent area of legal compliance in which expert advice is commonly sought-tax-return preparation. We use the evidence to analyze both theoretically and empirically the types of tax-