Tax Implications Research Articles

Burp tax: Regulation and revenue potential in Indonesia

The increasingly urgent phenomenon of climate change requires concrete actions from various sectors, including the livestock sector which is a significant contributor to greenhouse gas emissions, particularly methane. This study explores the potential of implementing Burp Tax in Indonesia as a regulatory mechanism to reduce methane emissions from beef and dairy cattle farms. By referring to New Zealand's experience as a Burp Tax pioneer, this study analyzes the policy scheme that includes tax subjects, tax objects, tariffs, and fair and efficient collection mechanisms. In addition, this study identifies various obstacles that may be faced in the implementation of Burp Tax in Indonesia and provides recommendations to support the national commitment in achieving the Zero Emission target in 2045/2060. The research used qualitative methods with literature study data collection techniques. The research concludes that there is great potential for the imposition of Burp Tax, so that in addition to being a form of effort to reduce methane emissions from beef and dairy cattle farms, Burp Tax can also increase the portion of state revenue from the taxation sector. The specific tariff scheme is IDR30/KgCH4 with tax subjects in the beef and dairy cattle farming sector, including individuals with 30 cows and business entities. However, it is important to note that the imposition of Burp Tax may have an economic impact on livestock business actors and affect the price of meat and milk commodities. Therefore, further studies are needed regarding the potential and impact of Burp Tax implications in Indonesia. The results of this study are expected to make a significant contribution to the development of sustainable taxation policies that are responsive to the challenges of climate change.

An overlooked market: loose cigarettes, informal vendors and their implications for tobacco taxation

ObjectiveTo examine the features of markets for loose cigarettes in several low-income and middle-income countries and their effects on tobacco control policies, particularly taxation.DesignAn analysis of survey data targeting people...

Economic Impact of Inward and Outward Remittances and their Tax Implications

Economic Impact of Inward and Outward Remittances and their Tax Implications

Tax Implications of Offshore Financial Centres (OFCs): A Case-based Study

Tax Implications of Offshore Financial Centres (OFCs): A Case-based Study

Wealth Taxation and Household Saving: Evidence from Assessment Discontinuities in Norway

Abstract Neither theory nor existing empirical evidence support the notion that wealth taxation reduces saving. Theoretically, the effect is ambiguous due to opposing income and substitution effects, and empirically, the effect may be masked by misreporting responses. Using geographic discontinuities in the Norwegian annual net-wealth tax and third-party-reported data on savings, I find that wealth taxation causes households to save more. Each additional NOK of wealth tax increases annual net financial saving by 3.76, implying that households increase saving enough to offset both current and future wealth taxes. This positive effect on saving is primarily financed by increases in labor earnings. These responses are the combination of small negative effects of increasing the marginal tax rates and larger positive effects of increasing average rates. My findings imply that income effects may dominate substitution effects in household responses to rate-of-return shocks, which has implications for both optimal taxation and macroeconomic modeling.

Freelancing as an additional income: commercialization of personal ideas and activity features

Introduction. Ukraine has lost approximately 4.8 million jobs due to the Russian aggression, creating a significant deficit in traditional employment opportunities and leading to substantial internal migration and economic instability. The purpose of the paper is to systematically analyze the specific characteristics of freelancing as a form of additional income in Ukraine and to assess the potential for commercializing personal ideas through this form of employment. The study aims to provide a detailed examination of freelancing's economic content and organizational features and to highlight the skills and competencies freelancers acquire. Furthermore, it explores the legislative landscape and tax implications for freelancers in Ukraine, emphasizing the importance of this employment form in the current economic climate. Results. The study systematically identified and categorized the primary aspects of freelancing activities in Ukraine. Economically, freelancing is characterized as a form of labor organization where the worker provides professional services on a temporary or project basis while maintaining autonomy and self-employment. Key features of freelancing include self-employment, flexibility, project-based work, and the ability to work with multiple clients simultaneously. The research highlighted essential skills and competencies that freelancers develop. From an economic perspective, the paper analyzed how freelancers can commercialize their ideas, emphasizing the need for market adaptation, brand formation, initial investment, and intellectual property protection. The study also identified various opportunities for freelancers in the market and social networks across multiple fields. Legislative changes regulating labor relations and taxation of freelancers in Ukraine were examined, revealing the gradual legalization and normalization of freelance activities. Conclusion. The paper seeks to offer insights into how freelancing can serve as a viable alternative for those who have lost their jobs and how it can help sustain income levels and economic stability for displaced and other affected populations.

An analysis of the implications of taxation on equity in relation to national development

An analysis of the implications of taxation on equity in relation to national development

Tax implications of influencer income in Peru through social media platforms

Tax implications of influencer income in Peru through social media platforms

Investors Preferences and Awareness towards Various Investment Avenues in Delhi-The Capital City of India

This research explores into investors’ investment preferences and awareness levels in Delhi- the capital city of India. Exploring a dynamic marketplace brimmed with traditional and contemporary avenues, this study sheds light on the following: This study identifies the most popular investment options among Delhiites and considering factors such as risk appetite and financial literacy and income levels. It analyzes whether traditional instrument’s such as bank deposits & real estate prevail or whether modern instrument’s such as mutual funds and the stock market are gaining popularity. This study investigates the level of awareness among different investors segments across a diverse spectrum of investment possibilities. It examines how factors such as age, education and occupation affect investors' knowledge of different options and highlights potential shortcomings and opportunities for financial literacy initiatives. This study examines the key factors influencing investment decisions in Delhi. It goes beyond risk return tradeoffs and analyze how the factors such as investment horizon and tax implications and emotional comfort levels shape investors choices. This research proposes targeted solutions by understanding the unique preferences and knowledge gaps in Dеlhi's investment landscape. It recommends strategies to bridge information gaps and promote responsible investment practices and promote a prosperous and inclusive financial ecosystem in the city. The aim of this research is to contribute to a more informed and empowered investment environment and ultimately boosting financial well- being and economic growth within the city by illuminating the motivations and behaviors of Dеlhi's investors. Keywords: Delhi investment preferences, Traditional vs. modern avenues, Investor awareness disparities, Decision- making drivers, Risk tolerance.

Tax incentives for funders of small businesses: A fit for crowdfunding?

Orientation: Internationally, crowdfunding has developed over several years as an alternative funding model for small businesses that would otherwise not be able to qualify for traditional business funding in the form of loans through normal funding channels such as commercial banks.Research purpose: The objective of the study is to determine whether the Income Tax Act of South Africa provides incentives to encourage crowdfunding.Motivation for the study: Tax policy is considered at a time when there is uncertainty globally about the tax treatment of crowdfunding and when there is no guidance specifically for the South African income tax implications.Research approach/design and method: A mixed-method approach, which commenced with legal doctrinal research followed by a survey, was applied. The tax implications of funding provided by the crowd (i.e. the public) in South Africa were compared with the tax implications in the United Kingdom and Australia.Main findings: A tax incentive will encourage funders to provide funding in instances other than donation-based funding that is made from pure generosity. However, existing provisions in the Income Tax Act of South Africa that provide incentives to funders of small businesses are not fit for crowdfunding. A single tax credit aligned with international practice is proposed to encourage funders to provide funding to small businesses.Practical/managerial implications: The findings provide valuable insights for policymakers as they demonstrated that tax incentives encourage funders to provide funding.Contribution/value-add: This article contributes to the limited research that has been done on crowdfunding in South Africa and provides some of the first empirical results.

Exploring the social acceptability of hybrid sweetgum plantations in the south-central United States

Hybrid sweetgum has potential as a dual-purpose plantation in the southern United States due to its rapid growth and suitability for planting on a wide range of sites. To understand its social acceptability, a survey instrument was administered among 3,000 private landowners in the states of Texas, Oklahoma, Louisiana, and Arkansas. The survey results showed that a considerable percentage of landowners (41 %) were uncertain and would probably benefit from more information available to them on the topic. A multinomial logit analysis found that landowners who had timber management objectives were more interested in growing hybrid sweetgum if it was profitable and practically feasible. Similarly, female landowners and those having higher education were found to be more interested in growing hybrid sweetgum. Study findings suggest a need for outreach on economic feasibility, management, start-up costs, and tax implications concerning hybrid sweetgum plantations.

Inequality and immigration

Abstract This article investigates the relationship between immigration and inequality in the UK over the past 40 years. This is a period when the share of foreign-born in the UK population increased from 5.3% in 1975 to 13.4% in 2015. We evaluate the impact immigration had on wage inequality in the UK through two channels: the first is the effect on the earnings distribution of natives and the second is the effect on the composition of the wage-earning population. We find both effects to be very small. We decompose wage inequality into inequality within the immigrant and native groups and inequality between the two groups. We find inequality among immigrants to be consistently higher than inequality among natives. We also examine the impact of immigration on the fiscal budget, and the potentially unequal impact of the ensuing tax implications on natives. In the UK, where immigrants are net fiscal contributors, this is not a factor that aggravates economic inequality. Even though the impact of immigration is found to be small, the way it is perceived across different population groups in the UK varies; a fact mostly attributed to racial and cultural concerns rather than perceived economic competition.

MANAGING SUPPLY CHAIN IN CONTEXT OF TRANSFER PRICING

It is now very widely known that supply of good and services across the borders by the associated / related companies is subject to the high risk of having disputes with the taxation authorities for abuse of transfer pricing for their international operations which very often may result in litigations. Thus, managing the supply chain when it is related with transfer pricing is extremely important for the smooth conduct of business, This paper in this context, therefore, first explains the relevant concepts of supply chain operations between the associated companies with tax implications, transfer pricing, abuse of transfer pricing, Arm’s Length Pricing, Advance Pricing Agreement, Safe Harbour Rules and then explains how such risk of disputes and litigations may be minimized or even eliminated by adopting a suitable legitimate techniques as per the prescribed guidelines and laws of the national and international institutions enabling MNEs to supply tangible and intangibles to their associate companies without having any issues with the taxation authorities.

Green taxation, regional green development and innovation: Mechanisms of influence and policy optimization

As the severity of global climate change escalates, carbon peak and carbon neutrality have emerged as international imperatives. Green taxation, a crucial fiscal strategy promoting the transition to a green low-carbon economy, demands thorough investigation regarding its efficacy and operational mechanisms. Predominantly, existing research has concentrated on the macroeconomic implications of green taxes, while their influence on regional green growth and innovation remains underexplored. This paper delineates green taxation in both a broad and narrow sense, elucidating its essence and potential in stimulating regional green progress and innovation. Utilizing panel data from 30 provinces in China spanning 2004 to 2021, a bidirectional fixed-effects model was developed for empirical analysis. Moreover, an impact mechanism model was constructed to delve into how green taxation specifically affects regional green development and innovation. Findings reveal that green taxation significantly fosters regional green growth and markedly enhances green innovation. Nonetheless, due to the resource crowding-out effect, it adversely impacts the comprehensive innovation capabilities of regional enterprises. This insight offers a fresh perspective on the paradoxical effects of green taxation, underscoring the necessity for a balanced approach in policy design and implementation. Drawing on these conclusions, the paper presents tailored policy recommendations.

Internal Conflicts and the Moderating Role of Property Rights in Sub-Saharan Africa: Implications for Property Taxation

Internal Conflicts and the Moderating Role of Property Rights in Sub-Saharan Africa: Implications for Property Taxation

Tax Implications of Real Estate Investments: A Comprehensive Analysis

Real estate investments constitute a significant portion of many investors' portfolios, offering the potential for long-term wealth accumulation and diversification. However, beyond considerations of property location, market trends, and financing options, investors must also navigate the intricate landscape of tax implications associated with real estate investments. Taxes play a critical role in shaping investment decisions, impacting cash flow, profitability, and overall returns. Therefore, understanding and effectively managing tax obligations is paramount for maximizing investment success in the real estate market. This comprehensive analysis aims to delve into the multifaceted realm of tax implications related to real estate investments. By examining various tax strategies, structures, regulations, and their implications, this study seeks to provide investors with valuable insights and tools to optimize their tax position and enhance investment outcomes. From the tax treatment of rental income and capital gains to the utilization of tax-efficient investment structures like REITs and LLCs, every aspect of real estate taxation will be explored in detail. Moreover, with the ever-evolving nature of tax legislation and economic conditions, it is imperative for investors to stay abreast of changes that may impact their tax liabilities and investment strategies. Through a thorough analysis of historical trends and current tax laws, this study aims to equip investors with the knowledge and foresight necessary to adapt and thrive in a dynamic tax environment. In essence, this comprehensive analysis endeavors to empower real estate investors with the tools and understanding needed to navigate the complex terrain of tax implications effectively. By unraveling the intricacies of real estate taxation and providing actionable insights, this study aspires to assist investors in making informed decisions, optimizing their tax position, and ultimately realizing the full potential of their real estate investments.

Deciphering the Tax Landscape of EPC Contracts: A Comprehensive Analysis

This document aims to elucidate the tax implications of Engineering, Procurement, and Construction (EPC) contracts within the Indian jurisdiction, offering clarity to stakeholders involved. In recent times, there has been a noticeable surge in Income-tax notices targeting foreign companies engaged in EPC contracts in India, with a central focus on the taxability of offshore supplies.

Denmark: Danish Foundations

Abstract In this article, the unique structure of Danish Foundation law is described. Danish law has two pieces of legislation, one for non-enterprise foundations and the other for enterprise foundations. Enterprise foundations play a huge role in Denmark as long-term owners of some of its largest companies, for example, Novo Nordisk, Mærsk, Carlsberg, etc. This article describes the special rules on enterprise foundations as well as the tax implications of setting up a Danish (enterprise) foundation and explains how they are taxed on their income and distributions. The author also refers to Finnish, Norwegian and Swedish foundation law, where relevant.

Evaluating the revenue and taxation implications of cannabis legalization in South Africa: Insights from Canada and the United States

Purpose: This study aims to evaluate the impact of cannabis legalization on revenue mobilization and taxation in South Africa by analyzing the experiences of jurisdictions that have legalized cannabis. Methodology: A qualitative approach was employed, including a literature review and trend analysis. Data from Canada, California, Colorado, and Washington State, where cannabis has been legalized, were analyzed for 2018-2021. Results: The findings demonstrate that cannabis legalization significantly impacts revenue collection and taxation. However, optimal pricing and taxation policies are crucial to capture the illicit market, minimize negative externalities, and ensure industry growth. Legacy growers and previously disadvantaged individuals should be integrated into the legal market. Theoretical Contribution: The study contributes to the theoretical framework of Pigouvian taxation by examining its applicability to the cannabis industry and the challenges posed by illicit markets and product substitutability with alcohol and tobacco. Practical Implications: The study provides recommendations for South African policymakers on taxation policies, market regulation, and inclusive strategies to ensure a successful and sustainable cannabis industry while maximizing revenue mobilization.

Equity implications of tobacco taxation: results from WHO FCTC investment cases

BackgroundAcross time, geographies and country income levels, smoking prevalence is highest among people with lower incomes. Smoking causes further impoverishment of those on the lower end of the income spectrum...