Tax Enforcement Research Articles

Against the backdrop of continuous tax system reform in China, the business environment for market entities has undergone significant transformation. This study employs the staggered implementation of Tax Administrative Penalty Discretion Benchmarks by provincial tax authorities since 2016 as a quasi-natural experiment. Using a sample of A-share listed companies from 2007 to 2021 and a multi-period difference-in-differences approach, we examine how tax enforcement standardization affects corporate investment. Our findings demonstrate that standardized tax enforcement significantly promotes corporate investment growth. Furthermore, from a government-enterprise relationship perspective, we examine in depth the heterogeneous effects across firms with different characteristics. The investment response is particularly pronounced for enterprises without political connections and non-state-owned enterprises, suggesting the reform has helped level the playing field. Overall, by constraining enforcement discretion and improving institutional predictability, tax enforcement standardization effectively optimizes the business environment and stimulates corporate investment. This study not only enriches the theoretical framework examining taxation-investment relationships but also provides valuable insights for corporate investment decision-making. Keywords: Tax Enforcement Standardization, Corporate investment, Business environment.

ABSTRACT This study uses the implementation of the Golden Tax Project Phase III (CTAIS-3) in China as a quasi-natural experiment to explore the impact of big data tax enforcement on the corporate tax digital transformation. By constructing the corporate tax digital transformation index and employing the staggered difference-in-differences method, the findings reveal that CTAIS-3 significantly promotes corporate tax digital transformation through compliance and cost effects.

The use of big data and artificial Intelligence in tax administration should be guided by principles of transparency, fairness, and privacy protection. These technologies should improve the efficiency and accuracy of tax collection and enforcement, thereby respecting taxpayers' rights and ensuring equitable access to the necessary technological tools. The objective of this study is to describe the risks and challenges faced by taxpayers with the application of big data and artificial intelligence in tax administration. The methodology was based on a thorough review of previous studies and bibliographic material using a selective and critical documentary approach to collect and analyze data from scientific articles on the topic. Critical analysis and information synthesis techniques were used to carefully examine related topics and condense relevant information. The review included a total of 31 relevant scientific articles. The risks identified are loss of privacy and data security, lack of transparency, and technological complexity. The challenges identified are technological adaptation, inequality in the use of technological means, and in the academic preparation of both taxpayers and tax advisors.

This paper investigates the impact of state ownership on corporate tax avoidance among Vietnamese listed firms during 2015–2022. Drawing on agency theory, the study emphasizes the dual role of the state as both regulator and shareholder, which may either constrain or facilitate tax planning depending on institutional settings. Using 2,350 firm-year observations and applying robust regression techniques to address heteroskedasticity and autocorrelation, the results show that state ownership is negatively associated with tax avoidance, indicating that government shareholders limit aggressive strategies due to reputational and fiscal considerations. Financial leverage also reduces tax avoidance, while firm growth increases it, reflecting different financing incentives and expansion pressures in a transitional market. Audit quality, proxied by Big4 auditors, surprisingly shows a positive relationship, suggesting larger firms may exploit auditor expertise to engage in more sophisticated tax planning, whereas auditor switching has no significant effect. Overall, the findings enrich the literature by providing novel empirical evidence from Vietnam, a frontier market where the state still plays a dominant role in corporate governance. The study contributes to debates on the ownership–tax avoidance nexus, highlights the interplay between capital structure and governance mechanisms, and offers policy implications for regulators seeking to strengthen compliance, enhance transparency, and ensure equitable tax enforcement in emerging economies.

This study investigates the intricate relationship between tax audits and corporate tax avoidance, with a specific focus on the moderating role of audit quality within the unique economic and regulatory landscape of Palestine. Drawing upon established theories of tax avoidance and audit quality [2, 4, 6], this article develops a conceptual framework and testable hypotheses to examine how the intensity and effectiveness of tax audits influence firms' tax avoidance strategies, and how external audit quality can mitigate or exacerbate this relationship. While prior research has explored these dynamics in various global contexts [9, 15, 18], the Palestinian setting presents distinct institutional characteristics, including a developing tax administration system and a complex geopolitical environment, which warrant specific investigation. This article synthesizes existing literature, proposes a detailed methodology for measuring key variables, and empirically tests the hypotheses using panel data from Palestinian listed firms. The findings of this research are anticipated to offer valuable insights for policymakers and tax authorities in Palestine in designing more effective tax enforcement mechanisms and fostering greater tax compliance.

Abstract We examine the extent to which European listed firms use deferred tax accounting to manage their GAAP earnings in order to meet financial analysts’ earnings forecasts. The cross-country nature of our data allows us to compare the use of this earnings management channel across countries and to relate these differences to certain country characteristics, in particular country-specific features of the tax system. Our results clearly document that European listed firms use deferred tax assets to inflate earnings when pre-manipulated earnings fall below the average analyst forecast. On average, they increase their return on assets by 0.2 percentage points (or 3 percent) through this channel. Our results also show a large variation in this effect across countries. Firms that face larger deviations between tax and financial accounting, higher tax rates, a stricter tax enforcement and a more lenient tax loss offset may, to some extent, make greater use of this earnings management channel.

Indonesia has adopted a hybrid carbon pricing strategy, combining a postponed carbon tax with operational instruments such as the Emissions Trading System (ETS) and the IDXCarbon exchange. This study examines whether these early pricing signals have already shaped firm-level investment behavior before the formal enforcement of the carbon tax. The methodology incorporates firm level variables such as ETS exposure, carbon intensity, and export dependence on the EU Carbon Border Adjustment Mechanism (CBAM), while controlling for financial indicators like profitability, size, and leverage. Key results indicate that firms with higher exposure to ETS and CBAM related markets significantly increased their environmental CapEx during the observed period. Event analysis reveals marked investment shifts following the launch of IDXCarbon and the government's carbon tax announcements. These findings suggest that Indonesian firms are responsive to carbon pricing signals even before full regulatory enforcement, especially when those signals are perceived as credible and market relevant. However, policy delays and uncertainty have moderated the pace and scale of investment responses. The discussion highlights the importance of internal carbon pricing, sectoral heterogeneity, governance dynamics, and comparisons with early phase ETS experiences in the EU, China, and Korea. The study concludes that clear and credible carbon pricing frameworks are essential for mobilizing private sector investment in sustainability. Indonesia must enhance the regulatory predictability and institutional strength of its carbon pricing system to fully realize its climate and investment objectives.

ABSTRACT To commemorate the 100th anniversary of The Accounting Review, I was asked to provide my forecast of the future of tax research in accounting. In sum, my opinion is that the future is bright and full of opportunities for tax scholars. Governments are altering corporate income tax laws in fundamental ways and questions about how these changes affect investment, investment location, income shifting, corporate capital structure, and financial reporting will be very important aspects to study. New and newly-used taxes, such as tariffs and endowment taxes, will allow for novel paths of inquiry and accountants should contribute. The use of AI by tax authorities and taxpayers could alter both tax enforcement and tax planning. The increasing access to administrative data, the use of field experiments and field studies, and employing survey methods to obtain data should expand the settings available to study and improve identification.

From shadow to sustainability: How informality, environmental taxes, and green innovation reshape carbon and biodiversity futures in the G7 countries.

ABSTRACT The paper examines the impact of China’s Golden Tax Project III (GTP-III), a domestic digital tax enforcement initiative, on international tax avoidance practices among Chinese firms. Using a sample of Chinese A-share listed companies from 2010–2019, we employ GTP-III’s staggered implementation as the identification strategy. Results show that strengthened domestic enforcement reduces both tax haven usage and related profit shifting activities. Firms previously dependent on tax havens demonstrate higher operating profit margins and effective tax rates following GTP-III implementation. The effects are more pronounced for non-state-owned enterprises, companies operating in regions with stronger tax collection efforts, and firms with weaker corporate governance structures. The findings demonstrate that modernizing tax administration systems effectively curtails international tax avoidance behaviors, enhancing revenue collection capabilities in emerging economies.

Tax Enforcement is the main legal instrument of the Public Treasury for the judicial collection of Outstanding Debt. It is a specialized and swift enforcement procedure, vital for state financing and the implementation of public policies. Unlike declaratory proceedings, it is based on a liquid, certain, and enforceable credit, embodied in the Certificate of Outstanding Debt (CDA). The procedure is governed by Law No. 6.830/80 (LEF), a microsystem procedurally complemented by the Code of Civil Procedure (CPC). Its purpose is the compulsory satisfaction of unfulfilled obligations through the expropriation of the debtor’s assets. The parties involved are the Public Treasury (claimant) and the debtor/responsible party (defendant). The relevance of this mechanism is undeniable for the economic order and taxpayers’ assets, being a pillar of the State’s financial sustainability. However, the pursuit of effectiveness must always harmonize with the constitutional principles of due process of law, adversarial proceedings, broad defense, and least onerous execution, ensuring a fair and lawful collection.

Tax enforcement and corporate overinvestment: Evidence from China’s STB-LTB merger

Wealth tax enforcement in Sweden: Filing requirements and pre-populated returns

Inter-municipal cooperation and tax enforcement capabilities

This study examines tax procedure, focusing on anti-enforcement actions, which are legal remedies filed by taxpayers to challenge unlawful tax claims. Due to the absence of a Tax Procedure Code, the Civil Procedure Code and the Tax Enforcement Law apply. Main remedies include Declaratory Action, Annulment Action, Writ of Mandamus, Tax Enforcement Objections (and related forms), Payment-in-Deposit Action, and Tax Refund Claim. These measures ensure due process, the right to defense, and tax justice, preventing abuses and the unlawful enrichment of the State.

This study conducts a bibliometric analysis of Base Erosion and Profit Shifting research, mapping its evolution, key contributors, and thematic trends. Using data from Web of Science and Scopus and employing VOSviewer for analysis, it identifies influential authors, leading institutions, and dominant research areas, offering valuable insights into the field's progression. The findings reveal a shift from early studies on multinational corporations' income, base erosion and profit shifting mechanisms, and tax competition to more recent discussions on tax evasion, offshore jurisdictions, and investment flows. This shift highlights the need for further research on enforcement mechanisms, policy effectiveness, and the broader implications of base erosion and profit shifting measures on global tax system. The study also emphasizes the importance of interdisciplinary approaches that integrate insights from public policy, political economy, and behavioral economics to improve tax compliance, enforcement strategies, and policy outcomes. Despite existing research on base erosion and profit shifting policies, there remains a lack of comprehensive quantitative analyses of the long-term revenue effects for EU member states. Furthermore, the taxation of the digital economy continues to be a contentious issue, particularly regarding the effectiveness of digital services taxes. As business models evolve, more investigation is needed into innovative taxation solutions and their implications for both developed and developing economies. By highlighting research gaps and emerging trends, this study provides a roadmap for future research into the ongoing challenges and developments in international taxation. JEL Codes: H26, F38, H87 Keywords: Base Erosion and Profit Shifting; Bibliometric analysis; Digital taxation; EU tax policy; Global minimum tax; Global profit shifting; Pillar One and Pillar Two.

The aim of this article is to review digital tools implemented in the area of tax settlements and tax reporting that have an impact on the accounting information system of enterprises in Poland, as well as to identify the challenges and benefits that digitisation in taxation brings to enterprises and accountants. Currently, there are few studies in the literature that address the impact of digitisation and digital transformation in the field of taxation on the organisation of accounting. The research undertaken aims to fill this gap. In the course of the research, a literature review was conducted, covering the issues of tax digitisation in Poland. An analysis of legal regulations obliging entrepreneurs to use specific digital tools was also carried out. The research used methods of analysis and criticism of sources. The results of the research indicate that the implementation of new digital solutions in the area of taxation enables the tax administration to access tax data more quickly, streamlines the processes of their analysis and improves the effectiveness of tax enforcement. The digitisation of taxes also has a direct impact on the functioning of accounting in enterprises. It brings about changes in its organisation and increases the costs associated with fulfilling new obligations regarding the generation of tax data in the required form. The use of new digital tools also requires the improvement of professional skills of accountants and allows for the automation of tax activities, which in turn leads to time savings and minimises the risk of mistakes.

The analysis examines the effect of Minister of Finance Regulation Number 136 of 2024 (PMK 136/2024) on Indonesian tax ratio projections for 2025 until 2029. The regulation implements the Global Anti-Base Erosion (GloBE) Pillar 2 OECD/G20 rules. The simulation using microdata of 20 Indonesian multinational enterprises, tax ratio target and GDP growth from Perpres 12/2025. The study indicates a potential annual top-up tax revenue of approximately Rp43 billion. This potential tax revenue represents a negligible fraction of the estimated Rp44 trillion in tax losses until 2023. It highlighting the persistent issue of non-compliance and the limited standalone impact of PMK 136/2024 in addressing tax base erosion. The downward trend of top-up tax revenue projection to tax ratio demonstrates the improved corporate tax compliance among domestic tax obligations. From this study, researcher also finds the real main purpose of goverment by this regulation, which is to serve it as a tool to enhance compliance rather than a main state revenue source. The research confirms that effective tax enforcement combined with tax administration innovation is essential to achieving the 15% tax ratio target by 2029.

Purpose: The major goal of this research is to critically assess the economic impact of tax reforms in developing countries, with a particular emphasis on how various types of tax adjustments affect revenue mobilization, equity, and long-term economic growth. The study aims to integrate existing literature to identify major trends, conflicts, and policy gaps in the implementation of tax changes, particularly in the context of African economies like Ghana. Design/Methodology/Approach: To ensure emphasis and relevance, this study uses a Traditional Literature Review (TLR) strategy, guided by SPIDER framework features. A total of 56 publications published between 1943 and 2025 were reviewed, with Boolean operators and MeSH phrases used to search databases such as Crossref, Google Scholar, and Europe PMC. The inclusion criteria centered on studies about tax reform types, tax policy results, revenue effects, and inequality. Quality evaluation was based on citation frequency each year, authorship, publication credibility, and relevance to the research issues. Findings: The research reveals widespread agreement that well-designed tax reforms, particularly those underpinned by strong institutions and digital systems, can greatly increase domestic revenue mobilization and drive economic growth. However, the gains of reforms are frequently negated by continuing tax disparities, tax enforcement, and under taxation of the informal sector. Empirical data also show that financial growth and democratic governance are crucial in increasing the effectiveness of tax strategies. Despite substantial improvements, there are still gaps in reform type disaggregation, longitudinal data, and local government research.

In the context of dynamic socio-economic development in Ben Cat City, Binh Duong Province, refining the management mechanism for Value-Added Tax (VAT) collection is crucial to ensuring a sustainable source of revenue for the state budget. This paper focuses on an in-depth analysis of the current situation, assessing the achievements and limitations in VAT collection management at the Ben Cat City Tax Sub-department for the period 2022-2024. Using a qualitative research method, primarily through the analysis of secondary data, descriptive statistics, and comparison, the study reveals that although the Tax Sub-department has consistently met and exceeded revenue collection targets, its management still faces significant challenges. Core limitations include the low efficiency of tax debt management and enforcement, a rising trend in outstanding tax debts, and the inadequacy of tax inspection and audit activities to deter invoice-related fraud. Based on these findings, the paper proposes a system of integrated solutions focusing on tightening debt management, enhancing the effectiveness of risk-based audits, promoting the application of information technology, and strengthening inter-agency coordination.