Tax Management Research Articles

Inovasi dalam Pengabdian Masyarakat: Memecahkan Tantangan Pajak Lokal

Community service is not just charity, but also includes innovative efforts to improve community welfare. This article identifies and analyzes the main challenges in local tax management by local governments, which can hinder community progress and prosperity. Factors such as a lack of efficiency in the tax collection and monitoring process, a lack of public understanding, and an outdated tax system are the main focus of the analysis. Based on the data and information obtained, this article conducts qualitative analysis to understand existing practices and literature. The ever-changing global context demands innovative and sustainable solutions from local governments. Therefore, community service through innovation in local tax management is imperative. Several innovations are proposed, namely digitalization of local taxes, tax education for the community, performance-based tax, citizen participation in tax decision making, partnerships with the private sector. By using these innovations, local governments are expected to be able to create a tax system that is efficient, fair and sustainable. In an era of social and technological change, innovation in community service is a relevant strategy for achieving sustainable development and equal distribution of prosperity. This article summarizes the key role of innovation in addressing local tax challenges, shaping an inclusive local tax future and supporting sustainable economic growth.

Tax Management Strategy for Company Operational Effectiveness

Within a dynamic and intricate corporate environment, the strategic significance of tax management is progressively crucial in guaranteeing operational continuity and fostering company growth. This study aims to examine the influence of tax management on the operational efficiency of companies. This study employs a qualitative methodology utilizing descriptive techniques. The research findings indicate that implementing a proficient Tax Management plan has a beneficial influence on the operational efficiency of manufacturing enterprises. Companies that effectively utilize tax deductions and incentives, strategically plan their financial structures, and implement a comprehensive tax management system are more likely to achieve greater operational cost efficiency. Engaging in partnerships with external tax specialists has been demonstrated to offer valuable perspectives and professional guidance. Additionally, regularly monitoring alterations in tax legislation enables organizations to foresee their consequences and adapt tax plans in advance. Hence, the research findings validate that implementing intelligent Tax Management can serve as a crucial determinant in enhancing manufacturing organizations' operational and financial efficacy.

IRPJ tax planning using the worker's food program: a case study in a company in the area of industrial equipment of Araraquara/SP

The Worker's Feeding Program (PAT) is a tax incentive of deduction established by the Federal Government through Law 6.321/76, with the purpose of providing food to its employees and in return the reduction of the income tax due of the legal persons. In this sense, the objective of the research was to analyze the tax economy of a company that makes industrial machinery and equipment, located in the city of Araraquara in the state of São Paulo, by means of tax planning of the calculation methods of the Worker's Feeding Program (PAT), with the deduction provided for in Law 6.321/76. The research characterized itself as descriptive, case study and documentary, taking a quantitative qualitative approach. Data collection was performed through company documents, digital bookkeeping and tax bookkeeping from 2017 to 2021. The values of food expenses were collected, LALUR and ECF were tabulated, the rates indicated in the legislation were applied, the values of the IRPJ to be paid were calculated, and the comparison between the two methods was finally made. The results obtained demonstrate that the tax economy using the method of deduction of taxable profit is R $ 724.855,00 already updated by SELIC until 09/2022. It was possible to identify that the company collected values in an improper manner, for not carrying out the method proposed by Law 6,321/76, an amount of R$ 557,712.00. It is concluded that the research on the PAT emphasizes the importance of tax planning and the correct application of the tax deductions of Law 6.321/76, highlighting the need for effective tax management and knowledge of tax laws, since the non-use of tax incentives can bring significant tax costs to the companies. This demonstrates the importance of reviewing tax practices and implementing strategies to optimize the tax burden, promoting greater competitiveness and growth of organizations.

Capital Allowance and Financial Performance of Manufacturing Firms

Purpose: The main objective of this study was to examine the effect of capital allowance on the financial performance of manufacturing firms in Nyeri County
 Methodology: A descriptive research design was adopted. In this study, the population comprised all the 15 manufacturing firms in Nyeri County that are registered by the Nyeri County finance department; licensing office 2023. The study used census methods to acquire information from finance managers, tax managers, and senior managers of the targeted manufacturing firms. To gather primary data, questionnaires with Likert scales were used. The study collected secondary data from the manufacturing firms' internal sources for six years. The researcher utilized descriptive statistics, including measures like the mean, standard deviation, and frequency, to analyse the data. Additionally, the study employed Pearson correlation and regression analysis to investigate the relationship between the variables and ascertain whether the independent variables could predict the dependent variable in the study. The program Statistical Package for Social Sciences (SPSS) was used to analyze the data. Data was presented in the form of tables and graphs.
 Findings: The study findings established that there exists a significant relationship between capital allowance and the financial performance of manufacturing firms in Nyeri County. Capital Allowance emerged as a crucial predictor of financial performance (Beta = 0.766. Participants expressed a positive perception regarding the influence of capital allowances on their respective firms' financial performance, with strong agreement on investment deductions, wear and tear allowance, capital allowance incentives, and overall satisfaction with the current level of capital allowances. 
 Unique Contribution to Theory, Practice, and Policy: The study was anchored on tax discrimination theory to show the effect of capital allowance on the financial performance of manufacturing sectors. The study recommended that there is a need to maintain and even improve capital allowance laws to meet taxpayers' demands and expectations and encourage investment.

The Influence of Good Corporate Governance and Liquidity on Tax Management in Indonesia: The Study on Manufacturing Companies

The aims of this study is to analyse the effect of good corporate governance and liquidity on tax management. Tax management is measured by modified measure based on Cash effective tax rate (CETR) compared with corporate tax rate. Corporate governance is measured by proportion of independent commissioner, audit committee, audit quality, institutional ownership, and compensation of executive managements, liquidity is measured by current ratio. This research sample consist manufacturing companies selected by purposive sampling. There are 14 companies fulfilling the criteria. This research used binary logistic regression analysis. The results of this research indicate that the proportion of independent commissioner and audit quality positively affect tax management significantly. Meanwhile, audit committee, institutional ownership, compensation of executive managements and liquidity do not significantly affect the company's tax management.

Corporate thanksgiving in blissful nations: An empirical analysis of happiness and corporate tax avoidance

This paper examines the corporate under-sheltering tax puzzle by investigating how a nation's happiness affects corporate tax management. Drawing on the theory of the economics of happiness, our findings provide initial evidence that happiness deters corporate tax management. This association is more pronounced among firms in well-governed countries.

Research And Analysis on Tax Risk Management of Enterprises Proposed for IPO

In recent years, IPO has become one of the important financing methods for many enterprises, and IPO listing has brought more resources and opportunities for many enterprises. However, some enterprises to be listed on the IPO lack the awareness of risk avoidance and do not do a good job in tax management, which leads to negative impacts on the IPO listing and even failure of the IPO listing, which can be seen from the fact that enterprises deal with the tax-related issues is a key factor for the success of the listing on the IPO, and it is very important to carry out effective tax risk management. Effective tax risk management is of great importance. This paper analyses the tax risk problems of IPO enterprises by studying the tax risk problems of today's IPO enterprises and puts forward suggestions for tax risk management of IPO enterprises, as well as puts forward the outlook for future research.

Bank branching and corporate tax avoidance: evidence from a quasi-natural experiment of banking deregulation in China

ABSTRACT Using the small and medium-sized commercial banks’ market entry reform policy implemented in 2009 in China as a quasi-natural experiment of banking deregulation, we examine its effect on corporate tax avoidance. Our empirical results show that banking deregulation significantly reduces corporate tax avoidance. Banking deregulation not only promotes the expansion of joint-stock banks and city commercial banks, but also increases the credit supply and bank competition in the region. Further tests imply that banking deregulation restrains corporate tax avoidance through two channels: alleviating financial constraints and strengthening external monitoring. Our paper sheds new light on the spillover effects from regulations in the banking sector to tax management behaviours in the corporate sector.

Does Corporate Social Responsibility Expenditure Influence Tax Avoidance? Evidence from Tanzanian Listed Firms

This study examines the relationship between corporate social responsibility expenditure and tax avoidance in Tanzanian listed firms, utilising secondary data from 25 firms listed on the Dar es Salaam Stock Exchange over a ten-year period from 2013 to 2022. Employing a retrospective research design and purposive sampling, we applied the fixed effects model as the estimation technique. The analysis reveals a positive and significant association between corporate social responsibility expenditure and tax avoidance, indicating that firms with higher levels of corporate social responsibility expenditure are more likely to engage in tax avoidance practices. Furthermore, control variables such as firm size, profitability, and leverage also demonstrated positive and significant relationships with tax avoidance. The findings contribute to the understanding of the intricate dynamics between corporate social responsibility initiatives and tax management strategies in the Tanzanian context. The implications of this study extend to policymakers, suggesting the need for a nuanced approach to corporate tax regulation, taking into account the interplay between corporate social responsibility initiatives and tax management practices. Policymakers should recognise that firms engaging in higher corporate social responsibility activities may employ tax planning strategies that warrant attention in regulatory frameworks. This study contributes to the ongoing discourse on the complex dynamics between corporate social responsibility and financial decision-making in emerging market contexts.

Decoding tax management: The role of corporate governance mechanisms

While tax pressure remains a major concern in corporate management, it is legitimate to ask whether tax has always been among the core factors of corporate governance (Chytis et al., 2020). This study aims to examine the influence of corporate governance on tax management practices within Moroccan firms listed on the Casablanca Stock Exchange (CSE). Focusing on three dimensions of corporate governance — board composition, audit committee structure, and external audit quality — we employed multiple regression analysis on data spanning 2014–2019 from a sample of 48 listed firms, totaling 288 firm observations. Significantly, board size, chief executive officer (CEO) duality, and external audit quality are found to be pivotal factors shaping tax management practices. Other corporate governance variables, notably the independence of the board of directors and the structure of the audit committee, do not appear to exert a significant influence on the tax management of listed Moroccan companies. Our study is one of the few to have addressed the issue of tax management in the Moroccan context. Moreover, it may also serve as a fundamental resource for researchers exploring the complex dynamics of tax practices in the organizational context.

Assessment of the impact of socio-economic indicators of the Volga Federal District of the Russian Federation on the number of payers of the Professional income tax

This article examines the impact of socio-economic indicators of the Volga Federal District (hereinafter – VFD) on the number of payers of the special tax - «Professional income tax (hereinafter – PIT)». The relevance of the article is due to the need to assess various socio-economic effects that cause an increase in the number of PIT payers in the regions of the Russian Federation. The purpose of this article is to identify these socio-economic indicators and then assess their impact on increasing the number of PIT payers in the region, which allows us to develop measures aimed at tax management in a particular region. Using econometric modeling methods, the authors assessed the impact on the number of PIT payers of such socio-economic indicators of the regions of the Volga Federal District as the number of individual entrepreneurs (hereinafter referred to as sole proprietors), GRP, the execution of regional budgets on PIT revenues, unemployment and nominal accrued wages. The materials used in the research process were obtained from open sources of official state statistics, consolidated tax and budget reports. The main results of this study are: - the indicator of the number of sole proprietors has a positive relationship with the number of PIT payers, which allows us to conclude that in regions with a larger number of individual entrepreneurs, the number of NPD payers is also growing; - the indicator of the number of unemployed has an inverse relationship with the number of PIT payers in the regions of the Russian Federation; Based on the results of an econometric study, the author concludes that a number of socio-economic indicators of the regions of the Volga Federal District have a significant impact on the number of PIT payers.

Dampak UU Harmonisasi Peraturan Perpajakan Terkait Perlakuan PPN Perusahaan Pertambangan

Regulations regarding Value Added Tax (VAT) have undergone changes with the enactment of Law No. 7 of 2021 on Tax Regulation Harmonization. One of the changes in the Tax Regulation Harmonization Law is the change of coal from non-taxable goods to taxable goods. This change will have an impact on the additional reporting obligations and the burden of collecting VAT on coal companies. In terms of input tax credit, companies can choose either to be credited to reduce output tax or to be charged, thus reducing the company's profits. PT XYZ is a private company engaged in the coal mining sector. The data used in this study are primary data in the form of interview results and secondary data in the form of documentation related to the imposition of coal as a taxable good. This study provides an overview that changes in the treatment of coal from non-taxable goods to taxable goods have an impact on the company's financial performance. With the inclusion of coal as taxable goods, companies must adjust their tax management whether to credit input tax or finance their input tax.

ОСОБЛИВОСТІ ВПЛИВУ НЕПРЯМОГО ОПОДАТКУВАННЯ НА ФІНАНСОВО-ГОСПОДАРСЬКУ ДІЯЛЬНІСТЬ ПІДПРИЄМСТВА ФАРМАЦЕВТИЧНОЇ ГАЛУЗІ

Indirect taxes are one of the sources of state budget revenues. Value added tax is the basis of modern taxation systems around the world, including the EU and the UK. Since VAT is probably the most cost-effective way for countries to generate significant tax revenues, the issues of its calculation, collection, refund, and administration remain up-to-date and relevant. The pharmaceutical industry is one of the most difficult to forecast demand for goods, as new medicines are constantly being registered and launched, methods and approaches to treating diseases are changing, and the size and structure of the population is changing. Procurement of pharmacy goods always involves significant costs. Most pharmacy products are not in daily demand, but must be available to meet the needs of patients at any time. Ensuring access to medicines for citizens is an important function of a modern rule-of-law democratic state and a key element of social policy. One of the methods to facilitate access to medicines is to reduce their price, provide benefits, and partially or fully fund them by the state, especially for life-saving medicines. In most countries, there is a practice of mixed pricing for medicines. This paper focuses on optimizing the procurement schedule, analyzing trends in drug sales and indirect taxation by pharmaceutical companies. The article highlights the importance of indirect taxation for both state budget revenues and tax planning of business entities in Ukraine and European countries. To operate effectively, enterprises need to analyze the tax burden. Tax planning is a complex process based on a systematic approach to tax management using various economic and financial methods. The tax management system should be based on three subsystems: tax planning, tax regulation and tax control. In order to optimize the financial position of an enterprise, an important factor is the optimization of procurement, organization of the outflow of goods and forecasting of VAT payment. The article proposes to improve approaches to the use of VAT peculiarities of pharmacy goods on the example of a pharmaceutical distributor with a view to optimizing the procurement schedule, sales trends and payment of indirect taxes.

The Management of Agricultural Taxes in the Valley of Arad as Reflected by Arad Ostraca

Although research of the Arad Ostraca often focuses on the victuals supplied to military squads passing through the fortress, where these products originate from is rarely asked. This study examines the Arad Ostraca for evidence of agricultural products raised as taxes from the inhabitants of the Beer Sheva-Arad Valley. It aims to enhance our understanding of how the agricultural tax collection system was used to supply the army with victuals. Seven ostraca exemplify the collection and administration system of tax-in-kind in the valley. This conclusion arises from the registration of large quantities of unprocessed agricultural products in these ostraca and their connection to clans or even towns in the area.

Financial Tax Management of International Energy Storage and Transportation Project Tight Consortium

Financial Tax Management of International Energy Storage and Transportation Project Tight Consortium

Pengaruh Tingkat Hutang dan Inventory Intensity terhadap Manajemen Pajak

This research aims to investigate the impact of Debt Levels and Inventory Intensity on Tax Management Practices in Manufacturing Companies listed on the Indonesia Stock Exchange during the 2017-2021 period. A quantitative approach was used by collecting secondary data from the financial reports of 177 companies. The sample consisted of 54 manufacturing companies selected purposively, with a total of 230 data analyzed. Analysis was carried out using descriptive statistics, classical assumption tests, and panel data regression using Eviews version 12 software. The results showed that there was no significant influence between Debt Level (X1) and Inventory Intensity (X2) on Tax Management Practices (Y). These findings highlight the possibility of other factors having a more dominant role in tax management practices in the context of this research.

Structural Innovation and Theoretical Optimization of Modern Cultural Industry Tax Administration Based on Lasso Regression Algorithm

Abstract China’s modern cultural industry faces difficulties in tax collection and high pressure on expenditure; in order to solve such problems, this paper constructs a modern cultural industry tax model based on Lasso regression algorithm to promote the development of modern cultural industry. In order to further study the relationship between economic factors and the tax revenue of the modern culture industry, the relevant data on China’s tax revenue between 2000 and 2021 are selected, and 12 economic factors affecting the tax revenue of the modern culture industry are screened by combining the least squares method, Lasso regression algorithm and linear regression model. After the screening of indicator variables, according to the linear regression theory, the relationship between the key economic factors screened out by Lasso regression algorithm and the fiscal revenues is estimated by fitting and tested for normality, and the modern culture industry tax revenue model based on Lasso regression algorithm is constructed. Based on the tax revenue of the modern cultural industry between 2000 and 2021, the Lasso regression algorithm is used to analyze the modern cultural industry tax revenue. Examples are used to analyze the results. The results show that the tax revenue of the culture industry in 2020 is obtained as 208, 988, 838.42 billion yuan, and the tax revenue of the culture industry in a province in 2021 is 221, 794, 675 billion yuan, and its growth rate is 6.13%, which indicates that the Lasso regression algorithm is able to extract the information contained in the tax revenue of the modern culture industry well, and the coefficients of the parameter part are also in line with the actual tax situation coincides with the actual tax situation. Through the innovation of tax management structures and theoretical optimization, this study aims to promote the healthy and rapid development of modern cultural industries.

Role of Proactive Forensic Audit in Safeguarding Assets of an Organisation

This study examines the role of proactive forensic audit in safeguarding assets of an organisation. Specifically, the study aimed to investigate the existence of qualified forensic auditors who safeguard assets, examine the existence of an automated proactive search for fraud indicators as a tool of safeguarding assets and to evaluate the integrity of the forensic auditors in Tanzania Revenue Authority, Kariakoo offices. The study collected data using questionnaires which were distributed to 144 respondents; among them were tax management officers, human resource officers, legal councils, ICT officers, accountants and auditors. The data were organized and analysed in SPSS. The study applied case study research design with qualitative and quantitative approaches. Findings of the study indicate that there is a shortage of qualified forensic auditors in TRA Kariakoo offices. The process of implementing the automated proactive search for fraud indicator is average. TRA Kariakoo examines its employees’ integrity on a regular basis. This study suggests to TRA Kariakoo to facilitate training to its employee in forensic audit skills. To tackle the challenge of automated search for proactive fraud indicators, TRA Kariakoo could adopt and make improvements in forensic audit tools, adopt new ones, create awareness to employees on these tools and to have continuous assessments of all employees.

Efficient use of computer programs for accounting: trends, problems and prospects

The article examines modern trends in accounting automation, identifies problems and prospects for the development of this process. In addition, it is stated that the automation of accounting at the enterprise is a very relevant process, as it makes it possible to significantly facilitate and speed up the work of accountants, reduce the probability of errors and improve the quality of accounting, which contributes to the improvement of analytical capabilities, ensuring compliance with accounting standards and legislation, as well as reducing costs for maintenance and resources necessary for accounting operations. Automation of accounting and the use of computer programs can lead to numerous positive consequences for the enterprise, in particular: the automation of accounting processes allows employees to spend less time on routine tasks and pay more attention to strategic analysis and management decision-making, computer programs provide automatic control of correctness data and calculations, which helps to avoid errors in financial accounting, thanks to automation, data is stored in a centralized database and is easily accessible for viewing and analysis in real time, computer programs provide opportunities for rapid generation of reports, analysis of financial indicators and forecasting of enterprise development, the automation of accounting allows you to reduce labor costs, paper documentation and other administrative costs, automated accounting systems allow you to ensure greater control over financial transactions, detect fraud and deficiencies in the system. The article detailed the main comparative characteristics of computer programs for accounting. Concepts and methods for improving the efficiency of accounting automation are proposed, which will contribute to increasing the quality and speed of accounting processes in organizations. Analysis of computer support for the process of accounting, reporting and taxation is important for the efficiency and accuracy of financial reporting of the enterprise. During the analysis, you should pay attention to the following aspects: software functionality, compatibility with other systems, data protection, updates and support and cost. Conducting an analysis will help to choose the optimal software for effective accounting and taxation management of the enterprise.

DOES THE DISCLOSURE OF ISLAMIC CORPORATE SOCIAL RESPONSIBILITY, ISLAMIC CORPORATE GOVERNANCE, PROFITABILITY, AND BANK SIZE AFFECT TAX AVOIDANCE IN ISLAMIC COMMERCIAL BANKS IN INDONESIA?

Abstract— This paper investigates the influence of Islamic Corporate Social Responsibility (ICSR), Islamic Corporate Governance (ICG), profitability, and bank size on tax avoidance in Islamic Commercial Banks in Indonesia. This paper introduces a novel perspective on the factors contributing to tax avoidance within Indonesia's Islamic finance framework. While the general notion of tax management is recognized, this study innovatively explores the intersection of Islamic principles, corporate governance, and tax practices, providing insights that have not been adequately explored in prior research. The study employs a panel data regression analysis, utilizing data from 13 Islamic Commercial Banks spanning 2017-2022, totaling 58 observations. This research approach enables an in-depth investigation into the relationships between ICSR disclosure, ICG, profitability, bank size, and tax avoidance. The empirical findings indicate that ICSR disclosure, the proportion of independent commissioners, and the audit committee positively influence tax avoidance practices. Conversely, the Sharia Supervisory Board and bank size negatively correlate with tax avoidance. Surprisingly, as measured by Return on Assets (ROA), profitability does not significantly impact tax avoidance decisions. This study underscores the intricate connections between Islamic corporate practices, governance structures, and tax avoidance strategies in Islamic Commercial Banks. The research highlights the significance of ICSR disclosure, corporate governance effectiveness, and the presence of religious oversight in shaping transparent and accountable tax practices. Furthermore, the research cautions against overreliance on profitability as a determinant of tax avoidance behaviors.
 Keywords: Bank Size; Islamic Corporate Governance, Profitability; Islamic Corporate Social Responsibility; Tax Avoidance