Tax Liability Research Articles

Effects of Stockholders’ Secondary Tax Liability on Corporate Investment

Effects of Stockholders’ Secondary Tax Liability on Corporate Investment

Ecological tax as a tool for leveling the negative impact on the environment

The current environmental impact fee falls short in compensating harm and encouraging environmental protection. It lacks fiscal function and transparent regulation, risking unreliable pollution accounting. The hypothesis of the study is that the transition to tax relations with organizations and individual entrepreneurs that have a negative impact will create objective prerequisites for the effective regulation of environmental externalities by increasing the reliability of the payment base, improving administration as a result of establishing tax liability and tax incentives for environmental protection measures. The purpose of the study is to develop the concept of an environmental tax as a way to achieve a balance of interests of the state, society and companies while reducing emissions, discharges of pollutants and waste disposal. The study is based on general scientific methods of scientific knowledge (analysis, synthesis, generalization, grouping, classification), as well as special economic and mathematical methods. The concept has been proposed and the elements of an environmental tax have been developed to replace the current fee for negative environmental impact. The novelty lies in the proposed approach to the calculation of the tax base, based on the “conditional pollutant” indicator, the use of which greatly simplifies the mechanism for calculating and administering the tax.

УПРАВЛІННЯ ПОДАТКОВИМИ РИЗИКАМИ ПІДПРИЄМСТВА ЧЕРЕЗ ІНСТРУМЕНТ СТРАХУВАННЯ

The introduction of the newest tax risk management approaches has become more and more critical for Ukrainian enterprises. This paper analyzes and summarizes international experience in tax risk management and defines trends in this area. The author presents several recommendations for improving fiscal relations using an insurance coverage mechanism. The article also emphasizes the changes in tax relations determined by the development of information technology, as well as new opportunities and challenges associated with these processes. The methods used worldwide to manage these processes are analyzed in order not only to mitigate tax risks but also to implement necessary changes required to make tax function more efficient in a company. Given the complexity of tax regulations and the development of new instruments for managing tax risks, the author proposes to consider and put into practice the US experience, where, as a way of providing transparency and consistency in accounting for income tax liabilities, Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48) was adopted in 2006 by the FASB. Practical foreign experience of insurance coverage for tax risks, uncertain tax positions, and the potential development of such insurance in Ukraine are outlined. It is noted that the essence of tax risk insurance is to cover possible financial losses incurred by a business entity as a result of changes in tax legislation or an unformed approach of court practice. It is determined that there are certain inconsistencies in the sectoral legislation regarding the absence of rules governing tax risk insurance. At present, the national legislation does not define tax risk insurance as an independent class of insurance (or its component), which reduces its effectiveness. The development of tax risk insurance in Ukraine could become an effective tool to help minimize business risks of monetary liabilities to the budget. The authors argue that there is a need for high-quality transformation in the transparency of business, accounting, financial, and tax reporting within relationships with tax authorities. In addition, it is determined how the implementation of the Standard Audit File (SAF-T) could affect the taxpayer's cooperation with the government and insurers in assessing tax risks.

The impact of taxation on firm performance and risk: Evidence from Greece

<abstract> <p>In this paper, I examine the relationship of taxation with performance and risk with the usage of a sample of 76 non-financial companies traded on the Athens Stock Exchange. The period covered by my study spans from 2018 to 2022, while correlation and panel data analysis is conducted. Both financial performance and stock return are considered, while risk concerns the volatility of the companies' share prices. The explanatory variables used concern figures reported both in the balance sheet and the profit and loss statement and include net deferred tax, deferred tax asset, deferred tax liability, total tax expense/revenue, income tax, and deferred tax expense/revenue. The empirical results reveal a positive relationship of financial performance with net deferred tax, total tax expense/revenue, income tax and deferred tax expense/revenue. Moreover, deferred tax asset is found to affect financial performance in a negative fashion, while deferred tax liability bears a positive influence on financial performance. The opposite relationships with deferred tax asset and deferred tax liability are detected in the case of stock return and risk. Finally, evidence of a negative relationship of total tax and income tax with stock risk is obtained.</p> </abstract>

ЗЕМЕЛЬНІ РЕСУРСИ В СИСТЕМІ ОПОДАТКУВАННЯ СУБ’ЄКТІВ АГРОБІЗНЕСУ

Land resources in the agribusiness sector are the main element of production and resource potential, the use of which ensures obtaining economic benefits from agricultural production. The article examines the specifics of taxation of land resources in the field of agribusiness. The paper establishes that taxation of land resources in the agribusiness sector has its own peculiarities depending on the type of land plot and legal relations of land use, the organisational and legal status of agricultural producers and the system of their taxation. It identifies the main tax payments levied for land use by agribusinesses. The publication establishes that tax revenues to local budgets are represented by land tax, rent for communal land, single tax on agricultural producers applying the simplified taxation system, personal income tax (PIT) received from lease or sale of land plots, and a positive difference between the minimum tax liability and the amount of taxes paid by agribusiness entities that own agricultural land. The study shows the dynamics of tax revenues from the use of land resources and establishes that the largest source of tax revenues from land use is the rent for communal land paid by agricultural companies – legal entities. It systemises the main categories of agribusiness entities that have to calculate the minimum tax liability for the use of agricultural land. It is proved that the current mechanism for calculating the minimum tax liability will increase the tax burden on small agribusinesses. Basic proposals for improvement of taxation in the field of land use by agricultural producers are presented, which should be implemented with due regard for the organisational and legal status of agribusiness entities, the size of their land use and specialisation of agricultural production. Reforms in the field of agribusiness taxation should be aimed at stimulating the development of farms and medium-sized agricultural enterprises.

Посилення ролі амортизаційної політики у формуванні фінансового базису капітальних інвестицій та інвестиційної безпеки держави

In martial law conditions, the problem of making capital investments becomes even more tangible for business entities, given the limitation of their financial capabilities, which, accordingly, affects the investment security of the state. The situation is aggravated due to the lack of sufficient interaction between the state's investment security provision and depreciation policy. The article's purpose is to form conceptual directions for the development of depreciation policy as a tool for financial support of the state's investment security. The study results indicate that the current state of affairs with the allocation of depreciation deductions to finance current assets contradicts the laws of the circulation of individual capital and does not allow the restoration of fixed assets at the required level. This situation is caused by the improper reflection of the content of depreciation in Ukrainian legislation at various levels, which reduces its perception as a means of reducing tax liabilities. The economic content of depreciation as a source of capital investments should not change depending on the way to ensure the targeted use of these funds because depreciation deductions are costs from the point of view of the economic (accounting) concept and a source for investment – from the point of view of the financial concept. However, to ensure all functions (reproductive, financial, regulatory), the state must delegate to business entities the maximum rights to determine depreciation norms and methods. Accelerated depreciation should not be an exception, as it loses meaning in interpreting depreciation in the context of classical approaches to circling individual entrepreneurial capital. The proposed theoretical approaches, subject to the application of appropriate mechanisms, will increase the resource base of capital investments, including the expanded reproduction of fixed assets, ultimately improving the state's investment security.

ЗОЛОТАЯ СЕРЕДИНА В АМОРТИЗАЦИОННОЙ ПОЛИТИКЕ: ПОИСК ОПТИМАЛЬНОЙ СТРАТЕГИИ

The article is devoted to the problems of developing an effective depreciation policy in the context of the interaction of accounting and tax accounting. The authors analyze the current problems associated with the choice of depreciation methods and offer recommendations on finding a golden mean, accounting for depreciation deductions and optimizing tax liabilities. As a result of the analysis of the features of the depreciation policy, the factors influencing its formation in both types of accounting are determined.

Digital Tax Regulation in Facing Society 5.0 Era to Realize Indonesian Tax Sovereignty

Technological advancements have catalyzed the emergence of the digital economy, where digital platforms, leveraging internet access, can penetrate multiple regions and accrue substantial profits unrestricted by national jurisdictions. This scenario presents advantages and convenience but simultaneously challenges a country's tax sovereignty. The traditional tax system, predicated on a company's physical presence for tax liability, finds itself ill-equipped to handle the digital domain's nuances. This research seeks to explore the potential and hurdles in implementing digital taxes in Indonesia, delving into the government's regulatory efforts within the framework of Society 5.0. From an academic standpoint, digital taxes illustrate the disruption in tax collection due to the absence of a tangible company presence. Thus, this study also aims to investigate the determination of tax sovereignty in the context of digital taxation, aspiring to enrich scholarly discourse. Employing a normative juridical approach, this study scrutinizes legal norms and rules while considering empirical facts from the field. The findings indicate that while the introduction of digital taxes in Indonesia holds significant promise and faces considerable challenges, governmental action to update and streamline digital tax regulations is imperative. Furthermore, the principles underlying digital tax proposals, such as Pillar One, require reinforcement to enhance their effective implementation.

ЦИФРОВА ТРАНСФОРМАЦІЯ ПОДАТКОВИХ СИСТЕМ ЗА ДОПОМОГОЮ ТЕХНОЛОГІЇ БЛОКЧЕЙНУ

The article examines the prospects for the introduction of modern information technologies in the tax system, the correct application of the advantages of which allows to detect and prevent fraud at the early stages, or minimise the consequences of their impact in case of occurrence. The purpose of the study is to analyse the possibilities of introducing blockchain technology into tax systems to increase transparency, efficiency and security of tax administration. The article discusses how digital technologies, in particular blockchain, can contribute to tax optimisation and improvement of existing tax systems. The research methods include analysis of literature and existing approaches to the implementation of blockchain technologies, theoretical modelling of possible scenarios of blockchain use for tax administration. As a decentralised database, blockchain is not owned or controlled by any entity, making it ideal for accounting, public law, finance, logistics, and other areas, including tax administration. The main aspects of this process include: protection of data in the blockchain with cryptographic algorithms, which guarantees the confidentiality and integrity of information, decentralisation of information flows distributed among all network participants, which makes data manipulation virtually impossible without changing the entire block chain. The research substantiates that the stability of the cryptographic hash and the consensus mechanism are the key elements for ensuring the security, reliability and decentralisation of the blockchain, as they allow all network participants to reach an agreement on the current state of the blockchain and prevent possible attacks and manipulations. The use of blockchain in tax systems enables the creation of transparent and immutable systems for tax administration, ensuring a high level of security and trust. This facilitates the automation of tax collection, transaction verification, tax reporting, and the implementation of smart contracts for the automatic accrual and collection of tax liabilities. Furthermore, blockchain can help improve the interaction between tax authorities and taxpayers, reducing administrative costs and minimising the risk of corruption.

Análisis comparativo de las reformas tributarias para el cálculo del impuesto a la renta de personas naturales bajo relación de dependencia

This investigation examines the evolution of Income Tax payments for individuals engaged in dependent employment in Ecuador over the years 2021, 2022, and 2023. Utilizing a descriptive and quantitative methodology, the study conducts a comprehensive review of the tax reforms enacted during this period, emphasizing the Organic Law of Simplification and Tax Progressivity, the Organic Law for Economic Development and Fiscal Sustainability post-COVID-19 pandemic, and the Family Economy Strengthening Law. The research centers on the impact of these reforms on the computation and payment of income tax, specifically addressing the elimination of personal expense deductions and the introduction of new rebates linked to the basic family basket and family dependents. The findings indicate a substantial increase in the tax liability for the year 2022 relative to 2021, attributed to the removal of deductions. Conversely, in 2023, the implementation of new rebates significantly mitigated the tax burden, particularly for taxpayers with family dependents. This analysis underscores the critical role of fiscal policies in ensuring the equity and efficiency of the tax system, providing a robust foundation for future reforms aimed at enhancing fiscal sustainability and taxpayer welfare.

The State Capacity Ceiling on Tax Rates: Evidence From Randomized Tax Abatements in the DRC

This paper investigates how tax rates and tax enforcement jointly impact fiscal capacity in low‐income countries. We study a policy experiment in the D.R. Congo that randomly assigned 38,028 property owners to the status quo tax rate or to a rate reduction. This variation in tax liabilities reveals that the status quo rate lies above the revenue‐maximizing tax rate (RMTR). Reducing rates by about one‐third would maximize government revenue by increasing tax compliance. We then exploit two sources of variation in enforcement—randomized enforcement letters and random assignment of tax collectors—to show that the RMTR increases with enforcement. Including an enforcement message on tax letters or replacing tax collectors in the bottom quartile of enforcement capacity with average collectors would raise the RMTR by about 40%. Tax rates and enforcement are thus complementary levers. Jointly optimizing tax rates and enforcement would lead to 10% higher revenue gains than optimizing them independently. These findings provide experimental evidence that low government enforcement capacity sets a binding ceiling on the revenue‐maximizing tax rate in some developing countries, thereby demonstrating the value of increasing tax rates in tandem with enforcement to expand fiscal capacity.

Local Taxes in the Jurisprudence of Local Government Bodies

This article explores the role of local taxes within the jurisdiction of the local government bodies. It first highlights the significance of local taxes and their two-fold expression of territorial and material sovereignty. The authors delve into the concept of local taxes, its legal definitions, and the scope of taxes that local government units have authority over. The paper discusses the functions of local taxes. Furthermore, it emphasizes the importance of proper income division between the state and local governments to ensure effective decentralization of administration and public finances. The article explores the entities responsible for administering local taxes and their roles in establishing tax liabilities, granting reliefs and collecting revenues. It outlines the decisions made by local authorities regarding taxes, distinguishing between declaratory and constitutive decisions based on how tax liabilities are incurred. It then delves into the impact of tax relief on local government budgets, discussing the criteria used to grant such relief and how it relates to the economic circumstances of taxpayers. The text also addresses relief measures introduced during the COVID-19 pandemic and their implications for local authorities. Lastly, the paper discusses the roles of local government bodies as creditors in enforcement proceedings, particularly in cases where tax liabilities need to be enforced. It outlines the conditions under which local authorities act as enforcement bodies.

Конформизм, социальные нормы и налоговый комплайенс

<p style="text-align: justify;">The article analyzes the impact of social norms on tax compliance. The author defines social norms as standards of non-legal behavior that have been established in society and assimilated by an individual, which people follow due to the fact that they receive either greater inner satisfaction from actions that they consider correct, or because of approval from others. The author comes to the conclusion that conformity and evaluation by society are a powerful driver of decisions made by taxpayers. A person's social identity is an important factor of tax compliance. In this context, tax liabilities do not exist in a social vacuum. The social, cultural and institutional environment in which a taxpayer lives and works, his interactions with other people and organizations have a significant impact on tax compliance. Therefore, if a taxpayer is convinced that all (or most) people consider it the norm not to pay taxes, he is more likely to do the same. And, on the contrary, if a taxpayer is confident that others, as a rule, faithfully fulfill their tax obligations, they are more likely to comply with tax compliance.</p>

Competence of Tax Authorities in the Gift and Inheritance Tax

The topic of tax authorities is essential from both theoretical and practical perspectives. It encompasses a variety of questions related to the fundamental features of these institutions and to the identification of comprehensive regulations for establishing their competency. Additionally, it holds particular importance regarding taxes since tax liability arises following the delivery of a constitutive decision by such an entity (a decision that determines the amount of tax liability). These premises facilitate an in-depth examination of the legal measures relevant to this case. Thus, the research presented here encompasses the relevant statutes, an implementing act, and the perspectives of legal scholars and commentators. Special attention is paid to the judiciary’s stance. The conclusions drawn from this study are useful for formulating de lege lata and de lege ferenda recommendations.

ANALISIS METODE PENGHITUNGAN PAJAK PENGHASILAN TERUTANG WAJIB PAJAK ORANG PRIBADI DENGAN PEKERJAAN BEBAS

Low State revenue from taxes can cause obstacles to State development. While on the other hand, taxpayers want the minimum tax payment possible. The government provides options for Individual Taxpayers to choose between the bookkeeping method or the Net Income Calculation Norm (NPPN) as the basis for their tax reporting obligations. This study aims to compare the payment of tax payable for Individual Taxpayers with independent work using the Net Income Calculation Norm (NPPN) or by organizing Bookkeeping and how much tax burden reduction occurs. The results showed that the use of the bookkeeping method for Individual Taxpayers with independent work will result in a smaller tax liability than the Net Income Calculation Norm (NPPN). Savings in payment of income tax payable can reach 46.41%

PROBLEMS OF PRESENTING INFORMATION ABOUT DEFERRED TAXES

Currently, accounting standards in the area of income tax accounting continue to be vague and unspecific. In this connection, this paper investigates the key aspects of the presentation of deferred tax information in accordance with the rules of modern accounting standards and theoretical provisions. The article describes the peculiarities of deferred tax classification in the balance sheet and the profit and loss statement. An attempt is made to explain the effect of restoration of deferred tax liabilities. The conclusion is made that in scientific literature the essence of income taxes still remains undisclosed and that because of this the developers of accounting standards are deprived of an opportunity to compile them adequately. The example of the use of provisions of IAS 12 «Income Taxes» in order to conceal important economic information is given. American and international experience in terms of indicating the sources of recovery of the value of deferred tax assets is compared. It has been defined that the Russian standard in the field of accounting of income taxes is not transparent in the part of representation of the information on deferred taxes. In the conclusion the directions of improvement of accounting legislation are presented.

Duty to pay tax and tax liability: concepts, relationship problems

The article deals with the problems of the relationship between the concepts: the duty to pay tax and the tax liability. The obligation to pay taxes has acquired the character of a constitutional obligation, the legal regulation of which is carried out by the provisions of the legislation on taxes and fees. The state is the main subject of tax legal relations, possessing powerful powers in relation to the rest of the participants, actively implementing an arsenal of imperative measures of influence that allow it to determine the nature of the behavior of the latter. The legal norms governing the identification of problems that arise when defining the concepts of the duty to pay tax and tax liability are analyzed. The ambiguity and inconsistency of these norms leads to the emergence of a significant number of tax disputes, in particular court ones.
 The article uses general scientific methods - analysis and synthesis, induction and deduction, generalization and comparison, systemic-structural, etc., as well as private-scientific methods - formal- logical, formal-legal, comparative-legal, legal modeling, comparative-historical, and others .
 It was determined that the obligation to pay the tax arises only in the presence of the corresponding object, which follows precisely from the requirements of the law and is conditioned by the public-legal nature of the mandatory payment.
 It has been established that the obligation to pay tax is associated with the taxpayer's performance of a number of tax-procedural actions, such as: registration with the tax authority; keeping records of taxation objects; calculation of taxes, if provided by law; maintaining, compiling, and submitting tax reporting within the established terms; compliance with the tax payment deadline and procedure.
 Regarding the expediency of using the category "tax liability”, it should be noted that the use of the category of tax liability as an independent, different from the civil law term is possible, but in law enforcement practice it will be more appropriate to use the category "obligation to pay tax”.

PENYUSUNAN SPT TAHUNAN UMKM PASCA UU HPP

Corporate Income Tax Return is a letter containing evidence of annual tax payments deposited by Corporate Taxpayers. Furthermore, proof of tax payment from the Income Tax Return must be reported to the Director General of Taxes. Then, the right alternative for reporting income tax returns is the Serpong tax consultant, because it is easier and more practical. The Annual Income Tax Return, hereinafter referred to as the Annual Income Tax Return, applies to a tax year or part of a tax year. The Annual Income Tax Return that must be reported annually or at the end of the tax year period is divided into two types, namely the Individual Annual Return (consisting of 3 types of forms) and the Corporate Return. Annual Income Tax Return (SPT) is a form used by taxpayers to report the calculation and / or payment of income tax, income tax objects, not income tax objects, assets and liabilities. As is known that the Tax Collection System in Indonesia uses the Self Assessment System where, the process of registering, calculating, paying and reporting Taxes is all done by the Taxpayer, so that taxpayers must report themselves to obtain an NPWP if they have met the objective and subjective requirements, taxpayers must calculate the tax to be paid in accordance with the taxpayer's business activities, taxpayers must pay the tax that should be paid by paying themselves to the State Treasury (through the Post Office or Perception Bank), and Tax Withholding / Collection by other parties and taxpayers must report all business activities in Periodic and Annual Tax Returns (SPT) according to actual conditions. For Corporate Income Tax Return must be reported at the latest on April 30th of the following tax year, so that taxpayers must immediately make and calculate their taxes from an early age, so that later there will be no errors in payment or reporting.

One-Participant 401(k): Saving for Retirement and Reducing Taxes

The adage that farmers and ranchers are often asset-rich and cash poor does indeed appear to be true! According to the United States Department of Agriculture (USDA), just forty percent of farmers contribute to a retirement plan. And because many farmers and ranchers invest profits in their business rather than take a high salary, they show little income on their tax returns. This means they will have paid less into Social Security and their benefits will be lower when they retire. This can create cash flow challenges, especially for an older generation of farm and ranch families wanting to bring the next generation into the operation and keep the business going. For self-employed farmers and ranchers without full-time employees, the opportunity to invest in a One-Participant 401(k) plan is a way to (1) save money for retirement, (2) reduce taxable income, (3) provide the potential option to borrow from the plan. This series of articles will review these features. This article focuses on saving for retirement and reducing tax liability.

საქართველოს საგადასახადო სისტემის რეფორმირება: პრობლემური საკითხები

The article deals with some problematic issues identified in the process of reforming the tax system of Georgia. We focused on the risks identified in the direction of writing off tax debts, simplifying the procedures for refunding overpaid amounts, as well as excise policy measures. Forms of the relationship between tax administration bodies and taxpayers are part of the tax system. The results of the functioning of the tax system depend not only on the tax legislation and the quality of tax administration, but also on the mentality of citizens, their obedience to law, their commitment concerning the established tax burden, and public tax culture. It is clear that different societies differ from one another in their specific tax culture. We believe that the level of readiness of taxpayers for the tax burden should be considered when planning for reforming the tax system. In this context, the measures should be planned in such a way that by providing the right positive or negative incentives, the motivation of tax payers and the attitudes of society as a whole proceed in the way that could be desired in the long run. Taking into consideration the above circumstances, we think that the reform of tax legislation and administration system should continue under the following conditions: • A further simplification of procedures of tax administration. The further strengthening of electronic services; • Keeping the existing low tax rates. Under the conditions of the current level of tax culture, high tax rates push taxpayers to shady operations, thereby undermining their loyalty to taxes; • At the current stage, we consider unfounded the recent practice of introducing additional (especially non-tax) regulations for tax payers; • Caution should be exercised when writing off tax debts. Such precedents, especially those of a continuous nature, undermine the motivation of taxpayers; • There is a need to correct some weaknesses in the tax legislation and administration. This applies not only to the procedures for refunding overpaid amounts, but also to the possibilities of illegal use of special taxation regimes and a number of benefits; • It is important to give a sense of the stability of tax practices in society. It is necessary to comply with tax liabilities, regulation by law, uniformity, justice and other principles. Only in this case, the public tax culture will develop in the right direction in the long run.