Tax Declaration Research Articles

ENVIRONMENTAL TAXES: PROCEDURE FOR TAXATION AND DISCLOSURE IN ACCOUNTING SYSTEM

The tax system of any country is formed primarily in order to fulfil the fiscal function, which is aimed at filling the state budget. However, the problem of environmental pollution has risen in the world; therefore, this issue may be solved at the expense of different levers of the state influence at the level of the national, regional and local government. This process can be assisted through the intensification of the control function of such kind of tax payments as environmental tax. To control the activities of enterprises in the part of economic operations that cause environmental pollution through the construction of high quality information base, it is necessary to study the approaches established by the system of environmental taxation and reflection of such operations in the accounting. Recording of transactions on the accounting of the environmental tax settlements is carried out using the Settlement of tax commitments on the environmental tax, which is charged for emissions into the air of pollutants by stationary sources of pollution and Settlement of tax commitments on the environmental tax, which is charged for the placement of waste in the places or objects designated for these purposes. Based on the information given in the above-mentioned documents, the Tax Declaration of Environmental Tax is drawn up. These documents are constituents of tax reporting on the environmental tax, which show generalized information over the reporting period, i.e. a quarter. Currently, businesses want to have information that has been formed in time during a rather short time period in order to make operational and tactical decisions. We consider that it is necessary to meet the requirements of users through the formation and submitting accounting information in the form of auxiliary information on the charging of the environmental tax taking into account the specific approaches to taxation for one or another type of the environmental pollution. Such accounting information can be grouped at the request of users for certain time period, e.g. a week, a month, etc. Real environmental commitments can be reflected in the accounting system of the business entity in the context of analytical accounts, which are opened in the account 64 “Settlements of taxes and payments” and sub-account 641.5 “Settlements of the environmental tax”. The loan of this subaccount reflects the charge of the environmental tax, and its transfer to the budget – for a loan. We propose to carry out analytical accounting of settlements for environmental taxes by the types of payments (basic payment, fines, penalties) with the allocation of analytical accounts, i.e. the tax on actual emissions into the atmospheric air of pollutants by stationary sources of pollution; tax on actual volumes of emissions; tax on actual waste disposal. Accounting performed in the context of the proposed analytics will enable to form information on environmental commitments in terms of tax payments in order to provide effective management of the environmental activities of the enterprise. According to the Methodical recommendations on management reporting, one of the areas in which this form of report is being developed is the disclosure of environmental aspects. Proposals for the improvement of the procedure of documenting operations for charging commitments to the budget, as a result of meeting the requirements of environmental taxation in the form of auxiliary information and reflection in the accounting system of accounts, will improve organization of the accounting process during its practical application. This will enable not only to resolve the accounting issue on the formation of qualitative, reliable and unbiased information by its characteristics of information for reporting, but also to strengthen control over compliance with the environmental legislation and preservation of the environment. The accounting information formed by this method way will serve as an information base, in particular, to make the management report.

Податок на виведений капітал: обліково-звітний аспект

Recently, officials have been talking a lot about such a legislative initiative as tax on withdrawn capital, which should replace income tax. The income tax is different from the tax on the withdrawn capital (distributed profit) by the tax base. Although tax on withdrawn capital has not yet been introduced in Ukraine in 2019, the probability of its introduction in the coming years remains quite high. Therefore, it is advisable to justify the accounting of tax on withdrawn capital in advance, because if this tax becomes part of the current taxation practice, accountants have a methodical basis for its reflection on accounts and in financial reporting forms. The purpose of the article is to analyze the experience of introduction the tax on withdrawn capital in Estonia, a review of the legislative norms that are planned to be implemented in Ukraine, and the rationale for accounting methods for calculating and paying tax on withdrawn capital, as well as its reflection in the financial statements. The advantages and disadvantages of tax on withdrawn capital were disclosed. The structure of the tax base for the withdrawn capital in Estonia and Ukraine was investigated. The analysis of the indicators of the declaration of distributed profit, which is filed by tax payers in Estonia, was carry out. The article provides an example of calculating the tax on withdrawn capital according to the Estonian model. Accounting methods for elements of the tax base for withdrawn capital was proposed for Ukrainian enterprises. The expediency of dividing all operations into two groups was proved: operations on the withdrawal of capital; operations equivalent to capital withdrawal operations. The accounting for such operations proposed in the article allows collecting the necessary amounts in tax accounting to form the tax base, which will be displayed in the tax declaration. Author's attention is focused on the problematic aspects of determining and disclosing the tax on withdrawn capital in the accounting and reporting of Ukrainian enterprises.

Lying on Two Dimensions and Moral Spillovers

The expanding literature on lying has exclusively considered lying behavior within a one-dimensional context. While this has been an important first step, many real-world contexts involve the possibility of simultaneously lying in more than one dimension (e.g., reporting one's income and expenses in a tax declaration). We experimentally investigate individual lying behavior in one- and two-dimensional contexts to understand how the multi-dimensionality of a decision affects lying behavior. Our paper provides the first evidence regarding the pure effect of dimensionality on lying behavior. Using a two-dimensional die-roll task, we show that participants distribute lies unevenly across dimensions, which results in greater over-reporting of the lower-outcome die.

Upotreba analize masovnih podataka za unapređenje efikasnosti naplate poreza u Poreskoj upravi Republike Srbije

Tax evasion poses a major problem for the overall business environment in every economy - it endangers competition, reduces resources for budgetfunded public goods and services, and public policies enforcement as well. Moreover, fundamental human rights are denied in an informal labour market. The reform of the Tax Administration of the Republic of Serbia, which has been implemented since 2015, has already contributed to the increase in efficiency of tax collection over the past years; however, there is still significant room for improvement of tax collection, especially individual income taxes, social security contributions, and value added tax. One of the pillars of the Tax Administration Reform refers to the improvement of the analytic function regarding risk management aiming to make the tax control function more efficient, and raise the awareness of voluntary tax declaration. The paper presents the first results of a joint scientific-research project between the Tax Administration and the Faculty of Sciences of the University of Novi Sad, aiming to develop the algorithms for detecting the risk of tax evasion by using advanced methods in big data analytics and the development of artificial intelligence with the help of machine learning. The presented indicator is based on the weighted norm distance between income distribution in a legal entity and the average income distribution in the business sector which it operates in. The results show the sound performance of the developed indicator. In addition to improving the efficiency of field control, the approach is also going to enable an affirmative approach to those taxpayers who are classified in a low-risk category in terms of tax evasion. Furthermore, additional positive effects are expected based on higher self-reporting of risky categories due to higher probability of being a subject of a field control and detecting tax evasion.

Who is More Honest in Tax Declaration Decisions, the Guilty or the Ashamed?

This work is to find the differences in tax compliance between two categories of people: the guilty and the ashamed. We divided the participants of tax payment experiments into different categories by a questionnaire, analyzing the data of the experiments. Results indicate that the ashamed exhibit a higher level of tax compliance than the guilty do with no public good and unaware of peer behavior. Additionally, we analyzed the reaction to public goods and peer behavior. Thus, the analysis indicates more discoveries: (1) the guilty improve the level of compliance under the mechanism of returning public goods linearly but decline when receiving fixed public goods; (2) returning public goods has no significant effect on the ashamed; (3) the guilty perform herd behavior following peer compliance; (4) peer behavior on tax compliance has little effect on the ashamed.

Country note: The Failed Representative Office in France: A View from Germany

A large number of companies use the so-called representative office (or ‘rep office’) (In the regulated credit industry, the term ‘representative office’ refers to the economic activity in a branch, which, in the absence of a bank license, cannot be lead to postings of banking transactions in its books.) as an organizational form for their foreign activities in particular in the banking or financial services industry. This type of organization below the threshold of the permanent establishment (PE) is, surprisingly, still very popular despite the significant amount of legal uncertainty that it naturally entails; even more so after the measures in Action 7 (OECD, Preventing the Artificial Avoidance of Permanent Establishment Status – Action 7: 2015 Final Report 15, 28 and 42, OECD/G20 Base Erosion and Profit Shifting Project (OECD Publishing 2015).) of the OECD’s Base Erosion and Profit Shifting are gaining traction. The administrative hassle going hand in hand with the need to file tax returns if a PE has been created may be the driving force behind the non-declaration of a PE, hoping at the same time that the business operations carried out in the representative office qualify as preparatory or auxiliary. ‘Hope’, however, is not a very reliable basis for tax planning, as is currently demonstrated by the surge of tax raids in France in a number of representative offices of German companies, banks in particular. This statement will become even more true in the future because the OECD and G20 have thoroughly ‘combed through’ their catalogue of preparatory and auxiliary activities in Action Item 7 of their Base Erosion and Profit Shifting Agenda (OECD, Preventing the Artificial Avoidance of Permanent Establishment Status – Action 7: 2015 Final Report 15, 28 and 42, OECD/G20 Base Erosion and Profit Shifting Project (OECD Publishing 2015).). Consequently, in the future there will probably be no more than a few trees left in the ‘forest’ of potential representative offices. To deal with the issue of representation and its qualification for tax purposes is thus becoming a necessity, be it ex post, in arguing against the assumption of a PE for as many past years as possible, or ex ante, by thoroughly analysing and, if necessary, changing the status quo of the tax declaration of these assumed representative offices. An active management of this matter is essential in particular because the inherent risk of additional tax payments, interest and penalties does not become smaller but larger as the time progresses. Hence, ‘wait and see’ is not a real option. This carries through to the question on how much profit (or loss) would have to be allocated to such PE.

ADMINISTRATION AND AUDIT OF THE EXCISE TAX ON BEER

Introduction. The role of excise tax in social and economic processes is determined by its ability to regulate the interest of producers before entering such industries as brewing. The excise tax is an effective instrument for realizing in the interests of society the strategic purposes and objectives of the state policy - socio-economic and fiscal. It is a basic of the sustainable development of the country. Thus, it is expedient to study the main trends of administration and audit of the excise tax on beer in Ukraine. The purposeof the article is to study the tasks and procedures for administering and auditing the excise tax for producers of malt beer. Results. Characterization of excisable goods and rates of excise duty on malting beer is carried out. The task of audit of excise tax is determined. The article presents the correspondence of accounts for the excise tax on alcoholic beverages. The number of declarants of the excise tax on malt beer in Ukraine has been monitored. The factors that influence the administration of the excise tax from the malt to the budget are determined. The article analyzes the main indicators of the excise tax declaration of the brewing enterprise. A viewpoint on optimization of excise tax rates for alcoholic beverages, in particular for malting beer, is formulated. Focused attention is paid to the role of the excise tax on alcoholic beverages (beer) for the financial resources of the states. The expediency of the strengthened tax regulation of the alcoholic drinks market in Ukraine was noted. Conclusions. The main problems of administration and audit of the excise tax are related to the growth of fiscal opportunities and the reduction of regulatory influence. Therefore, there is a need for a significant improvement of the procedure for charging and paying excise by enhancing its regulatory properties and expanding the tax base.

إستخدام أسلوب العينات في إجراءات الفحص الضريبي عند تطبيق نظام التقدير الذاتي في التحاسب الضريبي “بحث تطبيقي في الهيئة العامة للضرائب”

It is well known to all that the contribution of tax revenues within the revenues of the general budget is very little and does not exceed 6%, despite the importance of tax revenues in the public revenues of most countries, including those countries whose oil is the main source of revenue. Most countries in the world and developed countries in particular Methods of estimation and taxation, and those advanced methods to adopt self-assessment system in tax accounting. Self-assessment is the way in which the tax administration grants the taxpayer's legal right to pay the tax by calculating the tax that is incurred and determines the amount he pays or the amount he has the right to recover. The self-assessment simply means that the taxpayer pays his tax on the basis of what his accounts show and what he shows in his tax declaration of net income. Tax administration only accepts this at this stage, but the tax administration has the right to choose certain persons and call them to check their books and all their financial documents To ensure that their account is correct for the tax paid. If the calculation of the tax paid is not correct or the books and documents show that other income not declared by the person in his declaration then the tax will be properly refunded with the fine and possibly other penalties in countries of imprisonment for years. This method must be controlled by the tax administration on the activities and activities of the taxpayer during the period or periods. The researchers believe that the determination of the size  and number of taxpayers subject to tax examination by the Commission should be studied scientifically and objectively using the sampling method As a scientific means contributing to the provisions of the Authority's control over the taxpayer's activities and financial activities with a view to determining taxable income and accounting for it. In order to achieve the objectives of the research will discuss the following axes to represent  the general framework of research: - Self-assessment system in taxation. - Method of sampling in the tax examination

Tax declaration rates via audits: a prediction using Markov model

Purpose- This article predicts tax declaration rates by Markov chain model. Methodology- Four Markov models are constructed for the declaration rates of three tax revenues. Declaration probabilities for the year 2017 are estimated by constructing probability matrices of transitions between classes described for every model. Declaration rates are predicted by the product of the initial probability matrix and transition probability matrix. Limiting matrices of predictions are found. The best Markov model was found by estimating the sum of mean square errors for every model. Findings- Main results of this study are i) transitions of tax declarations are declining in higher states and improving in lower states, ii) in its best model corporate tax declaration rate is predicted to be between 47% and 64.5% in 2017 with a probability of 78% and would be stable in the same interval at a probability of 60% in 2038, iii) in the long run income tax would decrease ₺20,3 billion with a probability of 42% and Value Added Tax would decrease ₺26,2 billion with a probability of 40% and iv) expected declaration rates of income tax, corporate tax and value added tax in 2017 are 52.3%, 61.6% and 62.8%, respectively. Conclusion- Income tax and Value Added Tax payoffs may substantially decrease from 2015 to 2038 and 2023 respectively. This may cause a revenue deficiency to Turkish Revenue Administration. Therefore Income tax and Value Added Tax audits should be increased. Even though tax revenues increase over time, the declaration rates show a decreasing to stationary or increasing to stationary behavior.

The Effect of Audit Activity on Tax Declaration

This article provides an empirical contribution to deterrence analysis by evaluating the effect of tax audits on compliance taxpayer behaviors over the 2004 to 2009 period. We use two unique databases: the Tax Return Register (Anagrafe Tributaria) and Italian Revenue Agency (IRA) audits data, with a focus on self-employment and sole proprietorships. The difference-in-differences approach has been applied as estimation strategy to evaluate the effect of three IRA audit policies: on-site audit (i.e., soft audit), desk audit (i.e., deep audit), and a combination of on-site and desk audit activities. Our results show an overall positive effect of tax audits in terms of deterrence. In particular, the contemporaneous presence of soft and deep audits has the greatest effect on compliance reporting behaviors. Moreover, on-site audits show greater effects compared to desk audit activities. Reasons can be found in different purposes for which various policies are designed.

PARADOKS BEZKARNOŚCI PRZESTĘPSTWA SKARBOWEGO

Paradox Concerning Fiscal Crime ImpunitySummary The Penal Fiscal Code allows in some cases criminal impunity when the offender offers a justified correction of his tax declaration and compensates the public law due charge. The analysis concerns the art. 16a of the Penal Fiscal Code considered a lex specialis compared to the art. 16 of the same code regulating the conditions of applying active repentance.

Are Politically Connected Firms More Likely to Evade Taxes? Evidence from Tunisia

Are politically connected firms more likely to evade taxes? Using tax, social security, and customs records from Tunisia in which firms owned by former president Ben Ali and his family are identified, this paper demonstrates that connected firms were more likely to evade taxes. Ceteris paribus, connected firms are 4.6% more likely not to submit a tax declaration in spite of registering workers and/or customs transactions and 8.4% more likely to report anomalously low sales when submitting a tax declaration.

Waardering van inhoud en vorm in informerende teksten

This article describes a part of a research aimed at evaluating text-optimizing techniques. The respondents were presented with original texts and with differently manipulated versions of them. The text types studied here were an instruction manual to a digital camera and written instructions on how to fill in the annual tax declaration form. The original texts came in two language variants, namely Slovak and Dutch. They were tested on native speakers of both languages and learners of Dutch. Among other post-reading tasks, the respondents were asked to freely comment on the text they just had read. One interesting detail came up among the comments on the Dutch version of the texts that accompany the tax form: namely, there were relatively many comments questioning if these texts fulfill the canon of a “real” administrative text. On the other hand, no such questioning comments were recorded for the Slovak texts. More interestingly, the Slovak texts were more heavily manipulated than the Dutch ones, because the original Dutch texts were more suitable for the end recipient. Another striking fact is that the manipulation of the Dutch texts did not lead to statistically significant changes in the ability of the respondents to score better in questions about the facts in the texts, whereas the Slovak respondents did score better.

Mental Accounting in Tax Evasion Decisions An Experiment on Underreporting and Overdeducting

Although there is already a variety of papers analyzing tax evasion decisions, only little focus is put on tax evasion of gains and losses. As taxpayers can evade taxes by either underreporting their income or by overdeducting expenses, we study whether there is a significant difference if subject are confronted with a gain or a loss scenario. We find that individuals evade more in the first than in the latter case. As a consequence, subjects are more willing to evade taxes by underreporting income than by overdeducting expenses. We show that this finding can be explained by mental accounting and an asymmetric evaluation of tax payments and tax refunds. Our result is robust to treatment variation. However, if individuals have to complete only one tax declaration (but still decide on gains and losses) and we therefore expect subjects to use only one mental account, the effect vanishes. This provides strong evidence that mental accounting plays an important role in tax evasion decisions. Further results are presented and discussed.

Regional Differences in the Capital Structure of Hungarian SMEs

Abstract Small and medium-sized enterprises play an important role in employment and also significantly contribute to GDP production. Therefore, an important function of economic policy in all countries is to create an economic milieu that supports the SMEs’ operation. By analysing several economic indices of SMEs in Hungary, we could identify that there are significant differences between the regions. About 40 percent of the enterprises are located in the Central Hungary Region. By examining specific indices of these firms, we can tell that enterprises operating in this region provide higher performance in the point of Return and Gross Value Added. The aim of this study is to assert that regional differences can be found not only in the performance of firms, but also in their capital structure. As a proof of this, we analysed the regional breakdown of capital structure based on a database which contains corporate income tax declaration data of Hungarian joint small and medium-sized enterprises (168,070 firms), and then we separated different financing characteristics by using cluster analysis. Finally, we discovered those endogenous and exogenous factors that could generate the disclosed regional differences and which interact with the performance of enterprises.

2014 Income Tax Reform in Norway

On 30 April 2015, the individual income tax declaration for 2014 is due in Norway. The present article is the only English language publication worldwide that enables the reader to calculate the income tax and tax on net worth of individuals for 2014 on the basis of the individual income tax reform 2014 in Norway, including rules impinging on cross-border relations. This is of particular importance today, as Norway - due to its rich natural resources - has become an important country both economically and in terms of immigration. Today the country has international connections based on economic relations and immigration. The present article provides a praxis oriented overview on the 2014 tax changes in Norway with special respect to the taxation of individuals, the taxation of corporations, the real estate tax and other. After that the resulting effects of the tax changes on the tax burden of individuals in 2014 are outlined and calculated.

PERCEPÇÃO DE ESTUDANTES E PROFESSORES UNIVERSITÁRIOS SOBRE A PROFISSÃO DO CONTADOR: UM ESTUDO BASEADO NA TEORIA DOS ESTEREÓTIPOS

Studies indicate that the Accounting professionals have been the most concerned with the public image in recent years and that understanding the external images of accountants if important to judge their roles in a broader social context. This study aimed to identify and analyze the perceived image of the accountants’ professional activity among students and professors from five undergraduate courses. The opinions declared see it as an uninteresting activity, involving repetitive activities, which complies with standards and involves many calculations. In addition, the professionals have been considered introspective and hardly critical and communicative. The accountants are seen as professionals without a business view, hardly participatory or involved in management and not very up-to-date; greatly uses logic and forgets about people; simply complies with standards and solves operational issues. As regards the profession itself, it is perceived as involving calculations and mathematics and related to fiscal and tax aspects, mainly the Income Tax Declaration. Therefore, it cannot be denied that there is a stereotyped perception of this professional, as the accountants remain linked to the image of bookkeepers, merely related to fiscal requirements.

2013 Income Tax Reform in Norway

On 30 April 2014, the individual income tax declaration for 2013 is due in Norway. The present article is the only English language publication worldwide that enables the reader to calculate the income tax and tax on net worth of individuals for 2013 on the basis of the individual income tax reform 2013 in Norway, including rules impinging on cross-border relations. This is of particular importance today, as Norway - due to its rich natural resources - has become an important country both economically and in terms of immigration. Today the country has international connections based on economic relations and immigration. The present article provides a praxis-oriented overview on the 2013 tax changes in Norway with special respect to the taxation of individuals, the taxation of corporations, the real estate tax and other. After that the resulting effects of the tax changes on the tax burden of individuals in 2013 are outlined and calculated.

Taxpaying Response of Small Firms to an Increased Probability of Audit: Some Evidence from Italy

Income tax evasion by small firms has been seldom investigated mostly because of lack of data. In this paper we use a large data set produced by the Italian Revenue Agency for this project to analyse a recent policy to contrast business income tax evasion. Since 1998 Italy has adopted a method to audit small businesses (Studi di Settore), which defines the probability of a tax audit based on presumptive and reported levels of sales. In 2007 a letter campaign was implemented by the Italian Revenue Agency aimed at reducing manipulation of reports by threatening that if the anomaly was repeated with the 2008 tax declaration, the probability of a thorough tax audit would have drastically increased. By using difference in difference with matching methods on a sample of about 50,000 treated firms and 95,000 controls, we find that the letter campaign had a positive and statistically significant average effect on treated firms. A cost-benefit analysis of the policy suggests that the letter campaign generated a net increase of revenues of about 140 million euros.

The Coat of Arms in Fra Filippo Lippi’s Portrait of a Woman with a Man at a Casement

The Coat of Arms in Fra Filippo Lippi’s <i>Portrait of a Woman with a Man at a Casement</i>