Tax Harmonization Research Articles

A regulatory model for harmonizing tax collection across Nigerian states: The role of the joint tax board

Nigeria's decentralized tax system presents significant challenges to efficient tax administration, with disparities across states leading to issues such as double taxation, revenue leakage, and non-compliance. The need for a harmonized tax system has become more critical as the country seeks to improve its revenue generation and create a more conducive environment for businesses. This paper examines the role of the Joint Tax Board (JTB) in creating a regulatory model that harmonizes tax collection across Nigerian states. The study outlines the complexities of the current tax structure, highlighting the fragmentation between federal and state tax authorities. It also explores the successes and limitations of the JTB in coordinating tax policies, particularly with regard to the Personal Income Tax. Drawing on international examples of successful tax harmonization, the paper proposes a hybrid regulatory model that balances state autonomy with centralized coordination. Key principles for the proposed model include the standardization of tax policies, strengthening of enforcement mechanisms, and the adoption of modern technology to streamline tax administration. Furthermore, the paper discusses the challenges of implementing a harmonized tax system, such as political resistance from states, disparities in technological capacity, and weak enforcement mechanisms. Recommendations include legislative reforms to strengthen the powers of the JTB, capacity building for state tax authorities, and increased collaboration between federal and state governments. In conclusion, this study emphasizes the pivotal role of the JTB in driving tax harmonization and highlights the need for a unified tax system to promote economic growth and improve compliance in Nigeria. Keywords: Regulatory Model, Harmonizing, Tax Collection, Nigerian States, Role, Joint Tax Board.

THE TAX SYSTEM OF UKRAINE: MODERN ASPECTS OF FUNCTIONING AND DIRECTIONS OF OPTIMIZATION

Objective. The purpose of the article is to study the conditions and results of the functioning of the tax system of Ukraine in the pre-war period and during the full-scale military invasion. Methods. The research was conducted using abstract-logical, graphical, analytical and other methods of scientific cognition. Results. During 2014-2023, the tax system of Ukraine underwent a number of improvements and reforms, which, despite the declared focus on improving efficiency, did not allow achieving the specified results. The improvement of certain aspects of the tax system was particularly active at the beginning of the full-scale invasion, when a number of stimulus laws were adopted to reduce the tax burden on the economy, consumers and entrepreneurs. At the same time, the level of budget revenues and the share of tax revenues in consolidated budget revenues and expenditures tended to increase in 2014-2021. Only in 2022-2023 did this figure decline significantly. However, the qualitative assessment showed that the overall level of the tax burden remained fairly stable throughout the study period and amounted to more than 30%. Such a high rate negatively affects the efficiency of the tax system, as it encourages taxpayers to violate tax laws and narrows the range of potential investors. Scientific novelty. Given the situation under study, the author proposes relevant directions for optimizing the functioning of the tax system of Ukraine at the present stage, taking into account not only economic (contextual focus on the relevant areas and sectors of the national economy), social (regulation of the actual effectiveness of the tax-free minimum) and political (openness of data on the directions and amounts of tax revenues, streamlining and harmonization of tax legislation, etc. Practical significance. Implementation of the above vectors of improvement of the tax system will allow stabilizing it at the stage of active hostilities and will be an impetus for further development in the post-war period.

Tax harmonisation versus tax competition: an endless perpetual debate?

Tax harmonisation versus tax competition: an endless perpetual debate?

Harmonizing fiscal policy: Indirect taxes and global public goods

AbstractThis article focuses on the welfare effects of the interaction of a rule of indirect tax harmonization under the destination principle and the provision of public goods that are global in nature. It stresses the role of international transfers between governments set in order to equalize the social (i.e., worldwide) marginal cost of public funds across countries. Under this condition, it is shown how the combination of the tax and expenditure side of such a “harmonizing fiscal policy” can give rise to a potential Pareto improvement. This requires considering aggregate revenue effects (and the ensuing effects on the provision of public goods) of the fiscal reform jointly with under/over provision of public goods in the (first‐best) Samuelson sense.

Políticas de armonización fiscal en la Unión Europea: análisis comparado

Within the framework of the European Union (EU), tax harmonization has become an issue of crucial importance to promote economic cohesion and equity among member states. The following article is a historical-comparative study of tax policies in the European Union. It focuses on analyzing the harmonization process that has taken place in the elaboration of these policies, with the focus of study on the Corporate Tax, a fiscal tool of great relevance for companies and national governments. In addition, the different positions and oppositions that have arisen in the face of tax harmonization reforms will be analyzed, considering the concerns about fiscal sovereignty, competitiveness, and the economic and social diversity of the Member States. Finally, the improvement proposal established by the OECD and the European Commission to close the tax gap between countries and put an end to harmful practices related to tax competition will be discussed.

Evaluating the Accounting Treatment of Value-Added Tax (VAT) at PT. Aneka Ragam Eng

Tax compliance is the fulfillment of tax obligations carried out by taxpayers to fulfill their responsibilities to achieve state development goals. PT. Aneka Ragam Eng is a manufacturing company operating in the field of Engineering, Construction & Manufacturing which is located at Jl. Palembang No. 35, Ex. Downstream Clever. The purpose of this research is to find out the causes of problems in evaluating the accounting treatment of Value Added Tax (VAT), to find out the obstacles faced, and the efforts made by PT. Aneka Ragam Eng on the evaluation of the accounting treatment of VAT. This research approach uses a descriptive approach and uses qualitative methods. Data management resulting from this research uses the Nvivo application. The accounting treatment for VAT in the company is in accordance with the Tax Harmonization Law No. 7 of 2021. After carrying out calculations, it is known that in the 2022 period the company experienced an underpayment of SPT because the output VAT was greater than the input VAT, this was caused by customer delays in paying bills. Apart from that, purchasing small amounts of materials or raw materials is also an obstacle faced by companies. The efforts made by the company to minimize the problems that occur are by ensuring customers pay their bills and following up on customer bills.

The Regulation of Personal Income Tax and Its Enforcement For Foreign Workers

Foreign workers who work in Indonesia are required to pay taxes, especially taxes on the salaries they receive. However, tax collectors are often considered to be detrimental to foreign workers, because they reduce the income from their salaries. The aim of this research is to analyze the regulations for imposing salary tax on foreign nationals who work in Indonesian territory and the sanctions that can be given to foreign nationals who do not pay tax from their salaries. The research method in this scientific journal uses a normative juridical approach using data available through Open Source. The results is based on the Tax Harmonization Law, which states that foreign citizens who have obtained work permits can automatically be said to be taxpayers. As for the imposition of PPH 21 income tax for salaries for foreign workers on fixed income, the amount of income subject to tax is in the Minister of Finance Regulation number 101/PMK.010/2016. The legal sanctions for foreign citizens do not pay their salary taxes include fines, interest sanctions and increased tax sanctions. The research contribution is to raise new scientific discipline for more comprehensive regulation of foreign taxpayers.

SOSIALISASI DAN ASISTENSI VALIDASI NOMOR INDUK KEPENDUDUKAN (NIK) MENJADI NOMOR POKOK WAJIB PAJAK (NPWP) ORANG PRIBADI

The use of an identification number (NIK) as a taxpayer identification number (NPWP) is one of the provisions stipulated in the tax harmonization law, which is related to administrative reform in the field of taxation. Given the importance of the process of matching NIK to NPWP not only for taxpayers but also for the government, as well as the consequences that will be received if individual taxpayers do not match, it is felt necessary to socialize as well as assistance for individual taxpayers to match NIK to NPWP. With this socialization and assistance, the public, especially individual taxpayers who come to the KPP Pratama Tabanan, will obtain information and avoid the difficulties and losses that will be incurred if, by the end of 2023, their NIK has not yet been matched to become an NPWP. The process of matching NIK to NPWP is carried out using the website www.djponline.pajak.go.id by following the stages according to those stipulated in the Minister of Finance Regulation number 112/PMK.03/2022 concerning taxpayer identification numbers for individual taxpayers, corporate taxpayers, and government agency taxpayers.

Forum Contribution: Tax Penalty Regimes, A Call for Harmonization

Recent Court of Justice of the European Union (CJEU) and European Court of Human Rights (ECtHR) judgments imply that some form of ‘European Intervention’ providing for a coordinated approach towards the determination, and quantification of tax penalties has become necessary. Disproportionate tax penalties and concurrent penalties pose a serious hurdle to achieving the European Commission’s political mission to put a tax system in place ‘where everybody pays their fair share’ of taxation. Given current judicial trends, the situation calls for the creation of an ad hoc taxpayers’ charter which imposes red lines for tax penalty regimes. Matters such as ultra duplum, minimus vitalis, non bis in idem, ceiling rates for cumulative penalties and the coordination of punitive measures call for an element of harmonization. Tax harmonization, Disproportionate penalties, Minimum Vitalis, Fundamental Human Rights, The EU Charter on Human Rights, European Court of Human Rights, Non Bis In Idem, Taxpayers’ Charter, Tax penalties, Concurrent Tax Penalties

Evaluación del plan de armonización fiscal en la Unión Europea

Study of Political Economy, Public Finance and European Economic Integration on the tax harmonizationplan of the European Union. It is based on the theoretical and methodological frameworks of the EconomicAnalysis of Law, in order to analyze the European tax harmonization process. In addition to analyzing ques-tions of incentives, efficiency and institutional quality, special attention is paid to the problems of attributionof powers in the European system and the different existing levels of tax pressure and effort in the MemberStates. This study will also analyze the European Commission’s latest proposal on taxation, which aims toachieve tax uniformity, combat tax abuse and put an end to unfair competition practices within the Europeaneconomic-legislative framework. These initiatives are particularly important in the current socio-economiccontext, when new ways of financing the post-Covid recovery fund, curbing the inflation that has beenlatent in recent months and dealing with the negative externalities that the conflict between Russia andUkraine may produce are being studied. All this is completed with a proposal for the feasibility of fiscalfederalism.

Calculation, Deposit, Reporting and Recording of VAT Accounting With E-Invoice On PT. Cipta Medika Indonesia

VAT is a single tax that will be imposed on all transactions, both sales and purchases of goods and services that take place in Indonesia at a single rate as of April 2022, which is 11%. VAT is charged to individual taxpayers or business entities that obtain the status of a Taxable Entrepreneur (PKP). VAT and PPnBm have the same legal basis, namely Law Number 42 of 2009, which has been replaced or revoked by Law Number 7 of 2021 concerning Harmonization of Taxes. The purpose of this study is to find out how to calculate, deposit, report and record VAT with e-Faktur at PT Cipta Medika Indonesia. The data collection technique used is by using observation and interview methods. The data taken is real based on what is in the company. The results of this study indicate that calculating, depositing, reporting and accounting records VAT through the e-Faktur applications are very helpful and facilitate the process from accounting records to reporting at PT Cipta Medika Indonesia.

Tax competition and harmonization where tastes for public goods differ

Tax competition and harmonization where tastes for public goods differ

PARTICULARITIES OF INDIRECT TAXATION IN COUNTRIES OF THE EU

Modern business conditions require the formation of new management tools, particularly in the financial sphere. Under such conditions, the issue of effective taxation is gaining special relevance. Traditionally, the tax system of any country consists of direct and indirect taxes. In recent years, issues related to managing indirect taxes – such as VAT, GST, customs and excise duties – have risen on the corporate agenda. However, there is currently no universal model for the ratio of direct and indirect taxes, because there are a significant number of factors that affect the level of budget filling and payment administration.The article is devoted to the study of indirect taxation in EU countries. Indirect taxes are an increasingly essential source of revenue for governments worldwide. Indirect taxes are generally simple, both for the government to levy and collect since they are applied broadly and automatically included in purchases. This does not mean that these taxes are transparent. Gross receipts taxes lead to tax pyramiding, while sales taxes are clearly marked on invoices and receipts.Indirect taxes, like value-added taxes (VAT) and retail sales taxes, can be neutral because they have little effect on consumer behaviour and apply to all business models the same. Indirect taxes like excise taxes are not neutral because they target specific industries and activities, like cigarettes and alcohol.The article examines the types of indirect taxes, the main trends in the formation of indirect taxation, and its legal regulation in EU countries. It was determined that taxes on production and imports (indirect taxes) and imports accounted for 13.8% of GDP. Based on the results of the study, the main areas of harmonization of indirect taxes in Europe were formed.

Implementation of the Carbon Tax Policy in Indonesia

The current increase in the earth's temperature and significant climate change have a negative impact on the sustainability of all living things. Indonesia is one of the countries that is committed to suppressing greenhouse gas production through a carbon tax policy regulated in the Law on Harmonization of Tax Regulations as a net zero emission instrument. However, until now, this carbon tax policy has not been realized by the government because it is hindered by several factors, such as unclear plans for implementing carbon tax implementation and determining effective tax rates due to limited resources and inadequate capacity. This study aims to examine the concepts and challenges of implementing a carbon tax as a net zero emission instrument after the enactment of the Tax Harmonization Law in Indonesia. The research method used is normative-juridical, with a statutory approach and a conceptual approach using secondary data obtained through library research. Based on research results, the implementation of a carbon tax in the national tax agency is considered very important and must be carried out immediately to restore environmental damage due to carbon dioxide emissions, which have been agreed to be reduced by 29% in 2030 and achieve net zero emissions in 2060. Therefore, the government needs to immediately finalize derivative regulations regarding the carbon tax mechanism and other accompanying policies so that every carbon produced can be taxed to increase national tax efficiency.

Tax, trade, and investment conundrum in Asia-Pacific regionalism

ABSTRACT This article examines the interplay between taxation, trade, and investment in the context of new Asian regionalism. With the emergence of multilateral initiatives, tax rules have evolved with the potential to conflict with trade and investment treaties, resulting in tax-related disputes. This article argues that tax cooperation and harmonization between Asian nations are crucial for promoting tax certainty and maximizing the benefits of regional integration. To achieve this, it is necessary to align trade, investment, and tax policies in the region, which requires coordinated efforts between countries. One approach is to establish a regional tax framework that includes common rules and standards for taxation, as well as mechanisms for cooperation and coordination among member states. This article highlights the importance of a coherent and consistent international tax framework to prevent double taxation and erode the benefits of trade and investment. The increasing digitalization of the global economy has challenged traditional tax principles, leading to debates on the tax implications of digital transactions. This article proposes the implementation of a comprehensive approach that includes infrastructure development, human capital, and technology transfer to maximize the benefits of regional integration fully. Achieving this alignment ensures that trade and investment are not hindered by tax-related disputes, which can negatively impact economic growth and development. Thus, greater coordination and cooperation among Asian nations, along with the development of a shared vision and long-term strategy for regional integration, are necessary.

Understanding the Role of DAC8 and MiCAR in the European Union’s Efforts towards Tax Harmonization

Crypto assets have come under the scrutiny of the EU legislator. Particularly from a regulatory perspective and in the field of tax transparency, the Eighth Directive on Administrative Cooperation (DAC8) has been introduced, which focuses on automatic exchange of information between the tax authorities of the Member States. DAC8 imposes an obligation on crypto asset service providers to obtain data from their users. However, this legislation is not free from challenges. The aim of this article is to present an overview of the recent laws enacted to regulate the crypto asset market and give a better understanding of how these rules come into play in the larger regulatory framework as well as the role that new intermediaries will have in the changing legal landscape.

The effect of tax harmonization law and tax sanctions on MSME taxpayer compliance in Jambi

This study examines the effect of the Tax Harmonization Law and Tax Sanctions on MSME Taxpayer Compliance in Jambi City. The research was conducted during the omicron variant of the covid-19 pandemic that hit in 2022. The study was tested on the MSME population in Jambi City with a sample of MSMEs in various sectors totaling 50 participants. Data were collected by distributed questionnaires and analyzed by Warp PLS 7.0. The results showed that the Tax Harmonization Law and Tax Sanctions had a significant positive effect on MSME Taxpayer Compliance in Jambi City. This research also contributes theoretically and practically and can be implemented for stakeholders and can be developed for further research.

Towards a harmonised eac tax sysyem: curent status, challenges and way forward*

Under Article 79 of the EAC Treaty, the Partner States have under- taken to harmonize and rationalize investment incentives to promote the Community as a single investment area while avoiding double taxation. Article 83 of the same Treaty states that the Partner States have committed themselves to adjust their tax policies to eliminate tax distortions. These provisions show the extent to which the EAC Partner States are willing to advance with tax integration as part of comprehensive regional integration. This approach is welcomed, as scholars generally agree that full regional integration cannot be achieved with- out tax integration. In this sense, tax harmonization is seen as a sure path to tax integration, a driver for effective regional integration. It is unfortunate, however, that tax harmonization in the EAC faces several challenges. Some causes of the challenges are legal, such as differences in legal systems, while others are geopolitically motivated. This paper discusses where the EAC currently stands in relation to tax harmonization. Starting with a theoretical framework, the paper focuses on the current practical aspects of tax harmonization in the EAC. The paper, therefore, highlights the existing discrepancies alongside the challenges in building a harmonized tax system in the EAC. The pa- per identifies three ways out de jure harmonization through traditional law-making by the legislature, de facto harmonization through judicial law-making processes, and tax coordination where tax harmonization does not work.

European Union Fundamental Rights Reflected in Tax Procedures. The Key for Tax Harmonisation inside The European Union?

Although it has an internal market with the aim of obtaining full tax harmonisation, the European Union is still struggling to provide a common standard for 27 different tax systems. Because there are almost no European Union tax procedural regulations, after the entry into force of the Lisbon Treaty, the fundamental rights of the EU have begun to play an increasingly active role inside the European Union. Therefore, the European Union Court of Justice is ever more often required to deliver decisions related to the compatibility between national tax procedures and the rights guaranteed by the EU Charter of Fundamental Rights. The present article aims to make a presentation of the most important decision delivered by the Court of Luxembourg and to analyse the way in which these decisions can support the European project of tax harmonisation. Keywords: Tax; Harmonisation; Procedures; Fundamental rights; EU Charter

Legal Regulation of Taxation of Transnational Corporations in the European Union

Abstract The purpose of this study is to identify the principles of taxation of transnational corporations in the European Union (EU), as well as the effectiveness of legal norms in this area based on the analysis of Ukrainian and world studies. The leading approach to the study of this problem is the method of review and critical analysis of the scientific literature on the subject of the study, as well as methods of logical deduction, scientific abstractions and a systematic approach that allows a comprehensive examination of the differences in the taxation procedures of transnational corporations in the EU Member States. The study presents topical issues of tax harmonisation in the field of taxation of transnational corporations in the European Union. The paper notes that the priorities of the EU Member States are aimed to a greater extent at combating the erosion of the tax base and tax evasion by transnational corporations than at eliminating tax obstacles in the internal market.