Tax Experts Research Articles

A Study on Management of Administrative Challenges and Market Strategies in the Implementation of Carbon Tax in Indonesia

This research discusses administrative challenges and market strategies in implementing a carbon tax in Indonesia. The carbon tax was introduced through the 2021 Harmonization of Tax Regulations Law to control CO2 emissions from fossil fuels such as coal, oil and natural gas. Key challenges include administrative complexity, strong inter-agency coordination, effective monitoring systems, and consistent law enforcement. The global carbon market in 2023 shows great potential for economically efficient emissions reductions, but implementing this model requires adapting to Indonesia's socio-economic landscape. The research method used is a qualitative approach with case studies, combining data from policy documents, interviews with tax experts, and local carbon market analysis. The research results show that the implementation of a carbon tax is faced with several major challenges, including a lack of accurate data on emissions, an immature monitoring system, and resistance from certain industrial sectors. Effective market management strategies, such as the allocation of tax revenues to sustainable projects, are key to mitigating negative economic impacts and encouraging investment in green technologies. This research makes a significant contribution to the understanding of the complexity of carbon tax implementation in developing countries and its relevance in the global context for achieving climate change goals.

Risk attitudes of tax practitioners and firm influence

PurposeThe purpose of this paper is to garner a deeper understanding of the site of influence of aspects of risk management for tax practitioners.Design/methodology/approachThe research design is twofold. Phase one consisted of a wide-scale international survey with 1,061 tax experts across 59 jurisdictions. In phase two, the authors followed up with 68 semi-structured interviews with tax practitioners working in 11 different countries.FindingsThe findings recognise the importance of the firm as a significant “site of influence” for tax practitioners in shaping their risk appetite in their tax work. The firm eclipses other influences of risk such as professional body oversight, public interest and demographic markers such as gender and career stage. The authors show that firm is significant, irrespective of size of firm.Practical implicationsThis work has practical implications as the findings highlight the importance of oversight of professional service firms by both the professional accountancy bodies and revenue authorities. The findings may have impact on the ethical training and guidance for trainee accountants in terms of an increased awareness on the employing firm as a site of influence for tax practitioners.Originality/valueThis research is important as it adds to the significant body of work on firm socialisation and highlights the important role that the firm holds in moderating (or exacerbating) the risk appetite of tax practitioners, which has significant implications in terms of pushing the boundaries of tax aggressive behaviours. The work aims to recognise the important role that tax practitioners can have in moderating aggressive tax practice, and, thus, reducing tax inequalities and shaping a better world of “Reduced Inequalities” (SDG10).

Article: Power and Expertise in Global Tax Governance

It is a rather broadly held misconception that the project on Base Erosion and Profit Shifting (BEPS) began in September 2013 when the G20 Leaders’ endorsed the OECD’s Action Plan on BEPS.1 The general acceptance of this narrative is understandable and perhaps largely trivial. However, it does tell us something important about our tendency to focus on the foreground of issues – on the immediate and obvious. When public focus is narrowed down to notable events, such as the G20 Leaders’ summits, the background work of tax experts fades out of focus. Often, the work of the expert is not even associated with the idea of public power and authority; it is reduced to something concerned with mere technicalities. Yet, it is the expert who outlines the agenda and prepares the discussion drafts and executive summaries that inform the (political) actor in the foreground of the issues that, based on objective expert knowledge, should somehow be addressed in one way or another. The more complex the issue, the less that the actor in the foreground has the technical ability to assess the merits of the experts’ proposition. Sometimes, owing to our desire to be confident in our ability to grasp difficult concepts, we may ultimately support the expert who makes the claim of superior knowledge over an issue we do not fully comprehend precisely as a result of our lack of understanding so as to deny or conceal this deficiency. Occasionally, such false confidence of the foreground actor in their ability to assess the propositions of the expert may result in a feedback loop in which the ideas of the expert appear to legitimize the power of the foreground actor, and this power subsequently appears to legitimize the expert’s ideas. This article will discuss the role of experts and the everyday power they use in the realm of global tax governance. To date, such a discussion has largely escaped the agenda of legal academic discussion.3 Yet, the importance of the discussion on expert power in tax is paramount; unawareness over this constituent element of the current paradigm results in an inability to address what is known as the legitimacy deficit of global tax governance. This will continue to reproduce global power imbalance in favour of the privileged and at the expense of the disenfranchized. The development of international tax norms into a regime of global tax governance will serve as a framework for this discussion thereby rendering the role of experts working under the auspices of the League of Nations and, subsequently, the OECD at the center of the focus. Global tax governance, technocracy, politics of taxation, experts, framing, BEPS, structural bias, legitimacy

Contribution and Effectiveness of Remuneration Tax in Nepal

The research has been carried out with the aim to examine the contribution and effectiveness of remuneration tax in Nepal. Both primary and secondary sources of data have been used in the study. Opinion survey technique has been adopted while collecting primary data. Tax experts and employees from Kathmandu valley covering sample size 120 are taken. The remuneration tax has a significant contribution on total government revenues. Remuneration tax has 2% to 20% contribution on total income tax during ten fiscal years. Highest 22% opined unfair and weak administration is found as major problem of remuneration tax. The main factor that should be initiated to increase the contribution of remuneration tax in Nepal is making tax deduction at source (TDS) effective. The other factors should be initiated to increase the contribution of remuneration tax in Nepal are, reform in the income tax policy, rules and regulation, reduction in exemption limit and increase in tax rates.

Auditors’ and Tax Specialists’ Interprofessional Collaboration during Audit Engagements: Implications for Audit Production and Audit Quality

ABSTRACT Tax specialists are often part of interprofessional teams that conduct financial statement audits, yet little is documented about their role and collaboration with auditors during these engagements or their contributions to audit quality. Our interviews with 33 highly experienced audit and tax professionals reveal variation in tax specialists’ roles during audits. Further, we find that auditors and tax specialists perceive a greater need for interdependence of expertise, particularly across different types of tax experts, due to increased tax specialization and global tax complexity. However, our interviewees acknowledge that power dynamics and differing attitudes toward shared goals and partnership affect the collaboration process. Interviewees also report instances where ineffective collaboration impacted audit quality. Collectively, we document how auditor and tax specialists’ collaboration (or lack of) influences both audit production and quality, providing insight for practice, regulators, and research regarding tax specialists’ audit involvement and extending the interprofessional collaboration literature to accounting. JEL Classifications: L84; M40; M42.

A Discussion on the International Tax Issues Arising in Chinese Enterprises’ Investments to Brazil

Brazil is a member state of the Golden BRICS and the biggest economy in South America. China is also a member state of the Golden BRICS and the second biggest economy in the world. To enhance mutual economic cooperation in trading and investment is in line with the interests of both countries. Against this background, this paper discusses a few tax issues arising in the cases concerning Chinese enterprises’ investments in Brazil from the perspective of double tax treaty and the protocol signed in 2022. Due to the differences in double tax treaties and domestic tax systems, for Chinese investors, to invest in the European Union Member States such as Poland and to invest in Brazil will translate into different tax issues. The differences in tax issues would lead to different tax plans. Most of the tax practitioners in China could not speak Portuguese. This is a realistic obstacle preventing Chinese tax experts or Chinese enterprises from managing the tax risks arising in the Brazilian market. Macau as an area once having so close link with Portugal and nowadays still having some residents able to speak Portugal hopefully might build up a bridge between China and Brazil, if Macau has a plan to sign a double tax treaty with Brazil that is attractive to Chinese enterprises, and also if it has a competitive domestic tax regime.

The importance of perceived fairness regarding tax burden in compliance behavior: a qualitative study using the Delphi method in Morocco

Purpose This study aims to understand the interaction between tax fairness perceptions, equitable tax burden distribution and tax compliance within Morocco’s unique socio-economic context, with the goal of uncovering strategies to enhance tax compliance. Design/methodology/approach Using the Delphi method, this study engaged tax experts in the Moroccan context to explore the impact of taxpayers’ perception of fairness, tax rates and tax burden on compliance. Their responses were gathered and analyzed with the aid of IRaMuTeQ software, which helped the authors identify themes relevant to the research question. Findings The preliminary results indicate a positive correlation between perceptions of tax fairness and compliance behavior, corroborating earlier studies conducted in different contexts. Notably, a substantial majority of Moroccan taxpayers perceive the current tax system as inequitable, deeming tax rates too high and the tax burden unfairly distributed among various taxpayer categories. This perception potentially influences their voluntary tax compliance behavior. Practical implications The findings have significant policy implications for the Moroccan Government and stakeholders. They suggest that by improving tax fairness, particularly by aligning tax assessment and payment modalities for employees, civil servants and small to medium enterprises, policymakers can encourage higher voluntary tax compliance, thereby potentially enhancing the efficiency of the Moroccan tax system. Originality/value This study adds to the existing body of knowledge by exploring the dynamics of tax fairness and compliance behavior in Morocco, a context which has been significantly understudied.

CORPORATE TAX COMPLIANCE AND MEDIATING ROLE OF PERSONAL TAX COMPLIANCE AMONG MALAYSIAN IN-HOUSE TAX PROFESSIONALS

Studies relating to tax compliance disclose that there is much likelihood of the corporate tax compliance behaviour getting influenced by the tax compliance behaviour of the in-house tax professionals. However, no studies have investigated the nexus between the personal tax compliance and the corporate tax compliance so far. Therefore, this study aims at investigating the link between the above two tax compliance behaviours and the mediating effect of the personal tax compliance behaviour of the in-house tax professionals on their corporate tax compliance behaviour. A sequential explanatory design is chosen to collect data from 392 in-house tax professionals through a survey questionnaire, and the findings obtained from the survey are supported further by the supplementary findings made by nine (9) tax experts from the tax authority, tax agency, and tax scholars of the institutions in Malaysia. Structural equation modelling is used to analyse the data taken from the findings that reveal that the factors that contribute to the tax compliance behaviour have strong influence on the personal tax compliance of the in-house tax professionals. Interestingly, their tax compliance behaviour strongly influences their corporate tax compliance as well. Further, the bootstrapping test reveals that personal tax compliance behaviour has a significant indirect effect on the corporate tax compliance. The empirical findings give a clue to the tax authorities to identify the root cause for the corporate tax non-compliance by investigating the decision makers’ tax compliance pattern. The researchers of the future studies are encouraged to follow the same method of data collection, along with the sequential explanatory design, and to consider the moderation effect of the financial constraints on the tax compliance behaviour.

Exploring stakeholder perceptions of tax reform failures and their proposed solutions: a developing country perspective

PurposeThis study aims to examine why tax reforms fail and explores how tax collection can be improved within a developing country context.Design/methodology/approachData comprise 28 semi-structured interviews with taxpayers, tax experts and tax authority personnel based in Pakistan. The results are analysed using a combined lens of taxpayer trust and tax agencies’ capabilities.FindingsTax reforms failed to build taxpayers’ trust and tax agencies’ capabilities. Building trust is challenging and demands extensive ongoing engagement with taxpayers while yielding gradual permanent results. This requires enhancing confidence in government; educating taxpayers; removing complexities; introducing transparency and accountability in tax agencies’ operations and the tax system; promoting procedural and distributive justice; and reversing perceptions of corruption through reconciliation and stakeholder inclusivity. Developing tax agencies’ capabilities requires upgrading outdated technologies, systems and processes; implementing governance and organisational reforms; introducing an oversight board; and recruiting and training skilled professionals.Practical implicationsThe findings can assist policymakers and tax collection authorities in understanding why tax reforms fail and identifying potential solutions.Originality/valueThis study contributes to the emerging literature by exploring tax administration failures in developing countries. It contributes to the literature by engaging stakeholders to understand why reforms fail and potential solutions to stimulate tax revenues.

Tax evasion, psychological egoism, and revenue collection performance: Evidence from Amhara region, Ethiopia.

Tax evasion is the illegal withholding or underpayment of taxes, typically accomplished by intentionally providing false or no evidence to tax authorities. Tax evasion has had a severe detrimental influence on the economy of the Amhara National Regional State, Ethiopia. The Amhara Regional State lost tax revenue in recent years due to tax evasion. The objective of this study was to see how tax evasion, taxpayers' psychological egoism, and other relevant factors affect tax revenue collection performance in the Amhara Region, Ethiopia. Data were collected from 395 VAT-registered taxpayers through a structured questionnaire. The structural equation model and multiple regression analysis method were utilized for empirical test based on the softwares of SPSS and AMOS. This research revealed that tax evasion and psychological egoism negatively affect tax revenue collection performance. Tax education and technology significantly and positively affected tax revenue collection performance. Meanwhile, the relationships between the above factors (tax evasion, tax education, and technology) and the tax revenue collection performance are reliably mediated by taxpayers' psychological egoism. Those findings can give clues to researchers, tax experts, and policymakers for improving the tax revenue collection performance in Amhara Region. The government can enhance public education to reduce tax evasion and such misbehavior caused by taxpayers' psychological egoism. Meanwhile, the most up-to-date tax invoicing technologies, like artificial intelligence and machine learning technology should be adopted.

Auditor tax expertise and corporate tax avoidance: Evidence from Taiwan

AbstractThe link between auditor tax expertise and corporate tax avoidance is investigated in this study. Using a sample of Taiwanese listed firms from between 2005 and 2019, it is found that companies that hire auditor tax experts engage in a higher level of tax avoidance. The results also show that this association is more pronounced among firms that have subsidiaries registered in tax havens. The findings of this study show that this positive association between auditor tax expertise and corporate tax avoidance can be mitigated through the adoption of IFRS. This study makes a contribution to existing literature by using a unique Taiwanese setting to study the tax avoidance effect of auditor tax experts and the effect of a common tax avoidance technique have on tax savings.

Development of a Model for Minimizing Tax Risk by Combining Behavioral Criteria of Management Accounting and Its Empirical Test Using Mikhailov's Fuzzy Hierarchical Method

Objective: The objective of this research is to develop a model for minimizing tax risk and to empirically test it. This paper presents the optimal combination of behavioral criteria of management accounting information using Mikhailov's fuzzy hierarchical method. Methodology: The research method is a mixed, qualitative, quantitative, and analytical explanatory type. The statistical population consists of tax experts from the staff of the Ministry of Economic Affairs and Finance and professors of accounting from public universities, who are experts in the field of taxation. The sample includes 14 experts mentioned above, selected using a systematic elimination method for the period 2011-2021. Findings: The research results showed that all five selected behavioral criteria of management accounting in this study's model—beliefs and thoughts, social activities, culture-building and regulation, personal characteristics, accountability and demand for answers—have a significant impact on reducing tax risk. The most important behavioral priorities of these criteria, in the order mentioned, are religious beliefs, enhancing public welfare, tax culture, personal characteristics, and attention to taxpayers' demands. Moreover, among these priorities, personal characteristics are the most significant and impactful behavioral criterion. Conclusion: These findings have a significant effect on the performance of companies, tax collectors, taxpayers, other stakeholders, and the community as a whole.

Parliament

This overview highlights the Parliament’s (i) debate on proposed directive to prevent misuse of shell companies; (ii) discussion of Irish tax policy with tax experts; and (iii) rejection of three green transition legislative initiatives

Positioning Prem Sikka’s academic activism in the third space

PurposeThis paper applies Bhabha’s concept of the third space to frame an understanding of Prem Sikka’s use of digital media to bridge the academic–activist binary. In doing this, the paper makes two contributions. First, it conceptualises Sikka’s engagement, and second, through the lens of the third space, it analyses it to establish whether, in the era of the neoliberal corporatised university, public intervention has the potential to generate new perspectives and new knowledge.Design/methodology/approachSikka’s articles and blogs for the period 20 February 2002 to 15 April 2020 were analysed using Leximancer, a textual analysis software programme that displays the output visually. A discriminant analysis was used to identify where each year of the study is situated in the overall semantic analysis. Netnography, the examination of archived published texts, was then used to analyse the responses by members of the public, academics, accountants and auditors, tax experts, policy makers and regulators to Sikka’s digital media engagement.FindingsAs a third space practitioner, Sikka has overcome some of the shortcomings associated with academic research to challenge the activities of professional accounting firms, regulatory bodies and multinational corporations. Through extending the boundaries of accounting and accountability, he has facilitated new radical alliances aiming to create a just and equitable society. The paper also finds that by opening up a third space of engagement, academic activists’ work can play an essential part in social transformation and emancipatory change framed in terms of social justice and equity.Originality/valueThis is one of the few papers to provide an in-depth examination of the activities of an accounting activist over twenty years.

Seven-year tobacco tax plan in Ukraine: a case study of the actors, tactics and factors motivating policy passage

ObjectiveIn December 2017, the Ukrainian Rada passed legislation that would increase tobacco taxes for the next 7 years to meet requirements of the European Union-Ukraine Association Agreement (EU-UAA). We analysed...

Implementation of Value Added Tax in Nepal

In the empirical study, the analysis has been done about VAT on the basis of information collected from experts, tax officials, businessmen and consumers. The tool basically used is questionnaire. The questions were asked to 60 different individuals related to this field. Empirical as well as theoretical analysis showed that VAT is superior to other types of Sales tax. Not only that, most of the respondents have also viewed in VAT as best instrument for research mobilization, bright future and discouraging illegal business. Similarly, most of the respondents (Tax Experts & Officials), argued that billing problem, open boarder, administrative incapability as hunting problem. They also discussed about legal provisions, choice between single or multi rated VAT, behavior of tax personnel, rate of VAT, need of public awareness programs etc.

The Effect Of Tax Avoidance On Firm Value With Tax Expert As Moderating Variables

The company's goals in this modern era have undergone significant changes. The company's focus has changed from focusing on maximizing profit to increasing firm value. Firm value, which is reflected in the value of the company's shares, can grow along with the increase in company profits. Tax, which is an element of development, is seen by companies as one of the factors that determine the company's value. This is a consideration for companies to behave in tax avoidance or not. This study tries to analyze the relationship between tax avoidance by the entity and its firm value and the extent to which the tax expert influences both of these. This study provides several conclusions, i.e., tax avoidance has a negative effect on firm value. These results contradict the initial testing hypothesis where tax avoidance has a positive impact on firm value. The moderating influence, tax experts, don't affect the relationship between tax avoidance and firm value.JEL: D13, I31, J22*

GST complexities in Malaysia: views from tax experts

PurposeThe Goods and Services Tax (GST) implementation in Malaysia had raised various responses from many parties involved when the new tax was introduced in 2015 until its abolishment in 2018. GST complexity has been stated as part of the reasons for its resistance and abolishment. The purpose of this paper is to identify causes of GST complexities during its implementation in Malaysia.Design/methodology/approachThis paper draws on causes of tax complexity from previous studies and conducted semi-structured interviews with tax experts. The respondents comprised of subject matter experts in GST and the findings are based on their numerous years of experiences handling clients with diverse backgrounds.FindingsFindings from this study are categorised into legal complexity and declarative complexities. Almost all the causes of complexities from prior studies were encountered by Malaysian businesses. This study concluded that the most likely reasons for the abolishment of GST in Malaysia are: numerous rules and exception to the rules (e.g. 35 tax codes, gifts rules, 21-day rules), frequent changes of GST rulings and guidelines, GST computations that were too difficult for mixed supply and process of GST refund that were onerous and lengthy.Research limitations/implicationsLimitations of this paper include reliance on the respondents’ ability to accurately and honestly recall details of their experiences, circumstances, thoughts or behaviours that are being asked.Practical implicationsDespite the abolishment of the GST in Malaysia, it is pertinent to identify the causes of GST complexities that can be learnt by the relevant authorities. Measures can be formulated to mitigate the identified GST complexities to ensure high compliance among businesses with other existing taxes or new taxes (if any) to be introduced in the future. This includes addressing the competency of RMCD officers and businesses on the rules and regulations, minimal rules and exception to the rules, a simplified GST computations for mixed supply and a systematic refund process.Originality/valueThe research method used is a flexible and powerful tool to capture the voices and the ways respondents make meaning of their experience dealing with the GST matters. The findings reveal a deep understanding of the issues from the views of the experts in the field.

Phenomenology of Employee Income Tax Policies during the Covid-19 in Indonesia

Objective - Covid-19 is a disaster that impacts various sectors of life, one of which has an impact on a country's tax revenue. Tax incentives are one of the policy steps that the Indonesian government has taken to face the economic strike due to the Covid-19 pandemic. This study aims to examine the factors that influence the implementation of employee income tax policies during the Covid-19. Methodology/Technique - This is a qualitative research using an interpretive paradigm with phenomenological methods. The data of this study are the results of observations and interviews with Corporate Taxpayers, Tax Experts, and Tax Officers. Based on the results of the interview, there are several factors that affect taxpayers' willingness to take advantage of this policy, including the ease of submitting incentives, certainty not to be audited, and not adding to the company's burden. Findings - Employers take advantage of this incentive, namely the company has an interest in maintaining the internal stability of the company. The provision of this incentive will increase (at least maintain) the purchasing power of workers and create a conducive business atmosphere. So, it is true that entrepreneurs will flock to take advantage of this facility. Novelty - This policy is expected to reduce the burden on business activities and help improve the condition of the company's cash flow, particularly during and after the epidemic. Thus, the company is expected not to terminate employment. If this condition occurs, there is potential for the national economy to keep moving, both in terms of production and consumption. Type of Paper - Empirical. Keywords: Employee Income Tax; Tax Policy; Tax Incentive; Covid-19 JEL Classification: H24, H29. URI: http://gatrenterprise.com/GATRJournals/AFR/vol6.1_3.html DOI: https://doi.org/10.35609/afr.2021.6.1(3) Pages 69 – 77

Do tax experts play a monitoring role in audit engagements?

Using proprietary data, this study is among the first to provide evidence on the monitoring role of auditors’ in-house tax experts. This role is important due to the relatively high frequency and proportion of tax expert hours in audits, and the salience of tax-related accruals in financial reporting. We show that tax expert effort is associated with client complexity and auditor characteristics. Next, we demonstrate that tax expert effort is associated with the incidence of tax-related internal control weaknesses, but it is not enough to fully mitigate the risk of material misstatements. We also find that tax expert effort is costly, resulting in higher audit fees and lower realization rates. Finally, tax expert effort is associated with conservative tax accruals but not with aggressive tax planning. Overall, although tax expert effort is associated with audit quality and financial reporting quality, it is not a seamless solution to audit tax-related accruals.