Use Of Taxes Research Articles

Environmental Taxes as a Path to a Green Transition

The integration of sustainability elements into all spheres of human activities is one of the primary initiatives of policymakers in individual European countries, but also in a broader international perspective. The transition towards more sustainable production-consumption models is now becoming a challenge for European countries. This shift is an essential part of the commitments and goals that the European Union has set itself in the medium and the long-term horizon. The future economic orientations of European countries will depend not only on the willingness and effort to use classical tools in the process of creating a green future, but especially on the level of knowledge of their appropriate implementation in practice. The paper is focused on the issue of the evaluation of selected economic instruments of environmental policy (environmental taxes) in the European area in the context of the transition to a green economy. The aim of the paper is to evaluate the use of taxes with an environmental aspect across European countries and to analyse the similarities in the process of their application towards green transformation. The need for a deeper knowledge and understanding of this area is essential in the context of the implementation of the Sustainable Development Goals in the countries involved in the 2030 Agenda. Keywords: environmental taxes, sustainability, energy, transport, green transition

Investment in tax haven jurisdiction by Indian MNCs: a conceptual study

PurposeThis study aims to understand the investments made by Indian MNCs in different tax havens to optimize their tax liabilities. The study also aims to provide insights into the conceptual framework of such practices, highlighting potential benefits and risks and providing policy recommendations that promote transparency, fairness and sustainable economic practices.Design/methodology/approachThe study involves a combination of quantitative and qualitative approaches. The quantitative aspect analyzes investments made by Nifty 50 companies in tax haven jurisdictions from the financial data of the parent company from 2019 to 2023. The qualitative aspect involves a conceptual framework developed from previous studies and examining the role of various organizations in combating tax avoidance. This mixed-method approach enables a comprehensive understanding of the motivations, impacts and regulatory responses related to the use of tax havens.FindingsThe paper provides conceptual and descriptive insights on investments made by Indian MNCs in tax havens during 2019–21 to save tax. The study suggests that while investing in tax havens, businesses give more priority to ease of doing business and other considerations such as a lower tax rate.Research limitations/implicationsThe present study suggests policymakers about the effectiveness of current tax laws and their enforcement, highlighting loopholes and potential avenues for modification.Originality/valueThis paper assesses the reasons for Indian MNCs starting subsidiaries and making investments in different tax haven jurisdictions and suggests appropriate measures to avoid the menace of tax havens.

FISCAL ASPECTS OF ESG BUSINESS DEVELOPMENT CONCEPTS

The subject of the study is the fiscal aspects of the ESG concept of business development. Methodology. The study uses general scientific methods, in particular, theoretical generalisation, methods of analysis and synthesis and statistical analysis, as well as the graphical method to visualise the results of the study. The purpose of the study is to analyse the strategic guidelines of tax policy through the prism of the ESG concept. Conclusion. The fiscal aspects of the ESG concept are an important element in understanding its impact on business. They include various tax incentives and mechanisms that promote the implementation of ESG standards and take into account the consequences of non-compliance for businesses. In particular, fiscal policy includes tax incentives for businesses that invest in green development, support social initiatives or improve corporate governance. In a broad sense, instruments such as environmental taxes are aimed at achieving sustainable growth and economic development. Strategic tax policy guidelines under the ESG approach include encouraging investment in sustainable technologies through tax incentives for companies investing in renewable energy and environmentally friendly projects. Social initiatives are supported through tax rebates for companies that develop programmes to develop local communities and improve working conditions. Corporate governance regulations require companies to report on the environmental, social and governance aspects of their activities. Promoting the circular economy includes tax incentives for companies that implement recycling and waste reduction practices. Support for small and medium-sized businesses includes tax incentives for SMEs that implement ESG standards and easier access to green finance. International cooperation involves bringing tax policy in line with international ESG standards and participating in global tax transparency initiatives. Adaptation to climate change includes the introduction of taxes on greenhouse gas emissions and the transition to low-carbon business models. Green project financing involves the use of tax revenues to support green initiatives. Innovations in tax administration are being introduced through new technologies, and education and training include funding for ESG training programmes. These guidelines will help businesses adapt to new conditions, create sustainable value and meet modern environmental, social and governance requirements.

Revisiting the self‐supply model: A foundational, not a complimentary model for water supply in rural households

AbstractIn this opinion article, we propose that self‐supply, as a model for household‐managed water supply in rural areas, is the foundational model for water supply in rural households. Any other model is only complementary while it lasts. Therefore, self‐supply needs more emphasis in research and intentional exposure and support in practice. This is underscored by the fact that despite the use of taxes, transfers, and tariffs that fund other service models, major water service gaps still exist in rural households forcing them to invest directly in self‐supply. Over 2.2 billion people globally still lack access to safe water. Our argument is not that other models such as communal or government models are irrelevant; rather, it is that self‐supply is the foundational and often preferred model for rural households due to reliability, predictability, control, and flexibility. Yet it is overlooked often. Therefore, we call for investing in research informing self‐supply policy, practice, and funding especially where it links with other models to be prioritized. This will likely accelerate the achievement of SDG 6.

The chicken or the egg? Spillover between private climate action and climate policy support

People engage in many different activities with climate consequences, including mundane everyday activities, such as eating meals and either saving or throwing away leftovers, and collective actions, such as voting, participating in political events and in other ways expressing support for or resistance against climate-relevant policy. Does engaging in everyday climate-relevant activities have implications for support of climate policy, and vice versa, as suggested by research on pro-environmental behavioural spillover? A repeated survey was collected yearly between 2018 and 2022 from representative samples of Norwegians, most of whom participated in more than one survey. The surveys included self-reports about two everyday climate-relevant behaviours (eating red meat and discarding food waste) and the support for two types of policy to mitigate climate change (expansion of wind power and “carbon taxes” – the use of taxes or fees to regulate climate-relevant behaviour). Cross-lagged structural equation modelling of relationships between everyday climate-relevant behaviour and support for mitigation policy reveal that, as expected, all auto-regressive effects (of a latent variable on itself, measured one year apart) are highly significant. There are also significant, positive cross-lagged (i.e., spillover) effects, which are generally bigger between the two types of everyday behaviours and support for the two types of policies than between everyday behaviour and policy support. However, support for carbon taxes has a strong positive effect on reducing meat consumption. Hence, it appears that when it comes to climate actions, consumer and citizen roles are intertwined. Spillover effects are partly mediated through climate concern.

The Use of Tax Incentives to Attract Foreign Investment to Ukraine: A Solution to the Current Economic Instability

This article analyses the effectiveness of existing tax incentives aimed at developing the Ukrainian economy and contributing to post-war reconstruction. Statistical economic analyses, trend comparison and forecasting were used to examine the incentive instruments. The article details various tax incentives and analyses the activities of international agencies and funds that provide security for such financing. Recent examples of international brands investing in Ukraine’s reconstruction are considered, as well as the State Tax Service of Ukraine’s guide to tax incentives. In addition, the article looks at the distribution of recovery investment projects, both by region and chronology.

O PLANEJAMENTO TRIBUTÁRIO DO PRODUTOR RURAL PESSOA FÍSICA: UMA ANÁLISE SOBRE A EVASÃO FISCAL

The agribusiness is one of the most relevant sectors in the economy. In 2022, it represented 24.3% of the Brazilian GDP. Due to its complex production chain, the stage within the gate is essential, as it represents rural activities focused on agriculture and livestock farming. In these activities, rural producers make crucial decisions related to plant and animal production and the allocation of resources for these activities. The general objective of this study is to present tax planning for individual rural producers within the gate as a strategy to avoid the hypothesis of tax evasion. To achieve this, the specific objectives are to conceptualize tax planning applied to individual rural producers, present the strategic use of tax planning for individual rural producers within the gate, and analyze tax evasion by individual rural producers. The methodological approach is based on logical-semantic constructivism, being a qualitative study with bibliographic, legal, and documentary research as instruments. As results, tax planning, or fiscal avoidance, was conceptualized as a strategic tool that uses legal means to reduce the tax burden. As a tool for individual rural producers, it requires continuous effort for its full implementation, as it is embedded in the complex scenario of sector management and taxation. The study also presents tax evasion considering the incidence of Income Tax (IR), Rural Territorial Property Tax (ITR), Circulation of Goods and Services Tax (ICMS), Social Integration Program (PIS), Contribution to Social Security Financing (COFINS), and Rural Worker Assistance Fund (FUNRURAL) on individual rural producers and their ancillary obligations, highlighting the Digital Cash Book of the Rural Producer (LCDPR), eSocial, and EFD-Reinf.

LANDSCAPE: THE IMPETUS NEEDED FOR A FAIRER TAX SYSTEM AND FAIRER USE OF TAXES

Innovation, new technologies and techniques have transformed the economy and especially the tax landscape. The rapid process of e–fiscalization in Albania has influenced the improvement of the performance of the tax administration and institutions, the business climate and trust. The paper aims to explore the impact of e–fiscalization toward a fairer tax system, illustrating with a case study from Albania. The study provides an insight into the multi–dimensional impact of innovation and e–fiscalization on the economy, with a focus on the financial ecosystem, organizations and key actors in society. The qualitative investigation used supports the influence of fiscal innovation and new practices for increasing transparency and restoring trust, creating a new institutional and governance potential for both fairer taxation and fairer use of taxes.

Tax Knowledge and Tax Manipulation: A Unifying Model

Tax Knowledge and Tax Manipulation: A Unifying Model

Pengaruh Persepsi Pelaku Usaha Mikro Kecil dan Menengah Tentang Penyusunan Laporan Keuangan UMKM Berdasarkan SAK – EMKM Terhadap Penggunaan Informasi akuntansi perpajakan (Studi Kasus Pelaku UMKM di Desa Perkebunan Ramunia)

The purpose of this research is to determine whether the Perception of Micro, Small, and Medium Enterprises (MSMEs) Regarding the Preparation of Financial Statements for MSMEs Based on SAK-EMKM Has an Influence on the Use of Tax Accounting Information. The research approach used by the researcher is associative quantitative research. The population in this study consists of 100 Micro, Small, and Medium Enterprise operators in the Ramunia Plantation Village. Meanwhile, the sample used in this study is 99 micro, small, and medium enterprise operators. The sampling technique used in the research is random sampling. The results of the research based on the regression equation above can analyze the influence of each independent variable on the use of accounting information, namely: the constant figure of 13.320 states that if the independent variable, namely the Perception of Micro, Small, and Medium Enterprises, is in a constant or unchanged state, then the Use of Accounting Information (Y) is 13.320. Based on the research, it can be concluded that the hypothesis testing partially for each independent variable against the dependent variable is as follows: The significance value for the Perception of Micro, Small, and Medium Enterprises is 0.872. This value is smaller than the significance level = 0.05. Based on the criteria above, the value of 0.872 > 0.05, so H0 is accepted and Ha is rejected, meaning that the Perception of Micro, Small, and Medium Enterprises does not affect the use of tax accounting information. This lack of influence is caused by the inability to recognize and interpret understanding of tax accounting information properly, the uncertainty of laws and taxes that often change, and the non-compliance of tax information.

Podatki w zrównoważonym rozwoju i zrównoważony rozwój w podatkach. Ujęcie teoretycznoprawne

According to assumptions of the implementation of the concept of sustainable development, it is postulated that environmental and climate objectives should be better integrated into other policies, and therefore also into tax policy. This means that the practical role of tax law in achieving sustainable development goals will increase in the near future. In this context, the article analyses the possibilities and the usefulness of taxes in the implementation of this concept, and at the same time, it is a record of the doubts that are formulated against the background of possible forms of the instrumental use of tax law. The use of taxes to implement the idea of sustainable development should be carefully designed, both in form and content, setting the specific objectives of tax law in such a way as to take into account socio-economic and environmental connotations.

A fistful of dollars: Rent seeking behaviour and local tax manipulation

The aim of this paper is to study whether politicians manipulate tax policy to extract private rents. We focus on the local personal income tax in the setting of Italian cities, which is a progressive instrument that allows mayors to set different rates to distinct wage groups. We exploit discontinuities in mayors' salaries, that are based on population thresholds, to study whether mayors apply lower rates to their own tax bracket, thereby distorting tax policy. The main results document large rent-seeking activity in tax policy. First, we show that when mayors's salary is exogenously located in the following tax bracket it receives a significantly lower tax rate than the previous one, compared to the control group. Second, we show that this rent-seeking activity is highly detrimental for the public treasury, with a considerable reduction in fiscal revenues. And finally, we document that the individual gain for rent-seeker politicians is rather limited and that there is no evidence of voters' punishment in the next elections. These results suggest that when tax policy is prone to be manipulated politicians do not hesitate to engage in rent-seeking activities even in case of little returns.

The efficiency of social services provided by the municipalities: primary education case study

Motivation: The crucial value guiding local governments is to serve their residents (by carrying out public tasks that satisfy the collective needs of the local community). Although the municipality, as a non-profit organisation, does not have to be profitable, it must apply proper management practices to achieve its goals and attract investors. Local government’s efficient and effective functioning is now the basis of modern society. Measuring and analysing results have become an international trend in modernising public administration, and results-based management is seen as a manifestation of public concern for the proper use of taxes. Education is a significant area of local government activity due to its role in every country’s development and the fact that it absorbs considerable financial resources. The growing economic crisis and challenges local governments face today mean that efficiency analysis should also be conducted concerning this category of tasks.Aim: The article aims to assess the efficiency of resources (financial and human) used by municipalities to carry out their task in the field of primary education in the context of the type and wealth of the commune.Results: The results of this study confirm higher resource efficiency in cities than in rural municipalities. The percentage of cities where the total efficiency coefficient exceeded the level of the third quartile was 84.6% (including 97.3% in large units, 91.9% in medium ones, and 70.8% in small ones). At the same time, it was only 14.9% in rural communes. Medium-sized cities with high levels of own revenue per capita characterised the highest efficiency of converting input into output. In contrast, rural municipalities with low levels of own revenue had the lowest efficiency.

Size of government and willingness-to-pay for environmental policy: Evidence from a cross-country survey

Citizen support is an important precursor to climate change mitigation polices. Public opinion can shape public policy and vice versa. This paper uses the 2010 International Social Survey Programme (ISSP) Environment Module to investigate cross-national differences in support for climate policy. We introduce size of government, measured by government revenues as a share of GDP, as a new country-level factor. Our sample includes 31,511 responses from 33 countries. We use multilevel models to estimate the relationship between country-level factors and environmental policy support, conditional on a series of individual factors. Increasing the size of government by one standard deviation reduces support for environmental policy by 0.13 points on a 5-point scale. For comparison, a one standard deviation increase in GDP per capita leads to a 0.24 increase in support and a one standard deviation increase in air pollution leads to a 0.13 point increase. The implication for environmental policy is that high tax countries have an aversion to price and tax increases aimed at protecting the environment. We conclude that use of taxes for environmental policy must include clear expectations for how revenues will be recycled or how other taxes will be lowered if they are to gain widespread support.

A Legal Review of the Bounds and Theories of Taxation as a Revenue Pool in Contemporary Nigeria

This paper contextualises a review of literary and legal postulations, including theorems of taxation, the rationale behind its imposition, the conceptual meaning of taxation and revenue, sources of revenue, meaning and conceptualisation of the scope of taxation, an overview of tax administration in Nigeria and forms of taxation in Nigeria. It takes cognisance of the unshakable position of taxation as a panacea for raising the much-needed funds for meeting government’s unending obligations to its citizens. This paper takes a cursory look at the different shades of opinions of legal scholars on the theme of taxation and conducts an expose on the review of the types of taxes chargeable under the Nigerian legal system including the recently introduced hydrocarbon taxes as prescribed by the Petroleum Industry Act 2021. This paper sought to assess and review the limits of opinions and theories of taxation as revenue generation strategic policy in modern day Nigeria and it found that opinions are divided on the effective use of taxes as fund-generating springboard of government and that the various theories of taxation are all at amity regarding the fact that taxes are levied to be paid, not a duty to be avoided or a chore to be loved, it is a mandatory payment, irrespective of the many disincentives for its payment by Nigerian tax payers. It concludes by stating that a government with an efficacious tax policy will have sufficient revenue to meet its obligations and engender tremendous development in its territory and prescribes the need for justiciability of tax payer’s rights to ensue accountability on the side of the government, a systemic harmonization and corroboration from tax authorities and government delegates, in order to achieve an effective tax administration to enhance positive tax compliance.

Tennessee

Historical increases in tax revenue have allowed Tennessee to advance a competitive education agenda. The state has implemented a new K-12 funding formula (Tennessee Investment in Student Achievement), sought ways to keep qualified teachers in the classroom, and initiated a student voucher program. Regarding higher education, Tennessee, absent of modifications to its higher education funding formula, has moved to fully funding the state’s higher education commission appropriation requests. The state’s ongoing use of tax surplus from prior years to fund new, mostly nonrecurring projects such as capital improvement for the state’s technical college system is discussed.

Beneish Model for the Detection of Tax Manipulation: Evidence from Slovakia

Beneish Model for the Detection of Tax Manipulation: Evidence from Slovakia

THE IMPACT OF PREFERENTIAL TAXATION ON THE STIMULATION OF INVESTMENT PROCESSES IN UKRAINE IN THE CONTEXT OF THE EXPERIENCE OF EU MEMBER STATES

In modern conditions, one of the main tasks of the fiscal mechanism is to create favorable conditions for maintaining and activating investment processes at the micro level. Thanks to tax incentives as a leading element of the fiscal mechanism, the state influences the amount of financial resources that are at the disposal of taxpayers − legal entities and individuals - and can be used for investment. Therefore, the purpose of the study was to evaluate the use of tax incentives to ensure the investment development of enterprises and households in EU member states and in Ukraine; to conduct SWOT analysis of investment tax incentives, and to find opportunities to further improve their management. The study substantiates the content of tax incentives and the conditions of their use to activate investment processes at the micro level. The experience of EU member states in the use of different ways of tax stimulation of investments of legal entities and individuals has been generalized. The tax incentives introduced in Ukraine have been considered and the key problems of their existence have been described in the context of stimulating the investment activity of taxpayers. SWOT analysis of investment tax incentives has been carried out, which helped to identify the positive and negative impact of the external and internal environment on their implementation. The necessity and principles of management of investment preferential taxation have been established. It has been proposed to improve the management of the provision of investment tax incentives in Ukraine based on the experience of the EU member states. The authors argue that the purposeful use of tax incentives stimulates the investment activity of households and economic entities. Therefore, the use by Ukraine of the experience of the EU countries to solve the problems of providing tax incentives to individuals and legal entities will eventually lead to the intensification of investment processes at the micro level. The research was conducted as a logical process, covering two main stages - theoretical and empirical. The theoretical stage of the research consisted in the collection, systematization and generalization of facts regarding the impact of preferential taxation on the investment activities of enterprises in the EU countries and in Ukraine. The authors considered the domestic and European practice of using tax benefits to ensure the investment development of enterprises and households. The experience of EU member states regarding the use of various methods of tax incentives for investments of legal entities and individuals has been summarized. The article considers the tax benefits introduced in Ukraine and the key problems of their existence in the context of stimulating the investment activity of taxpayers. The empirical stage of the study included a SWOT analysis of investment tax incentives and the search for opportunities for further improvement of their management. According to the results of the SWOT analysis, the positive and negative influence of the external and internal environment on the implementation of tax benefits was revealed.

The Impact of Preferential Taxation on the Stimulation of Investment Processes in Ukraine in the Context of the Experience of EU Member States

In modern conditions, one of the main tasks of the fiscal mechanism is to create favorable conditions for maintaining and activating investment processes at the micro level. Thanks to tax incentives as a leading element of the fiscal mechanism, the state influences the amount of financial resources that are at the disposal of taxpayers − legal entities and individuals - and can be used for investment. Therefore, the purpose of the study was to evaluate the use of tax incentives to ensure the investment development of enterprises and households in EU member states and in Ukraine; to conduct SWOT analysis of investment tax incentives, and to find opportunities to further improve of their management. The study substantiates the content of tax incentives and the conditions of their use to activate investment processes at the micro level. The experience of EU member states in the use of different ways of tax stimulation of investments of legal entities and individuals is generalized. The tax incentives introduced in Ukraine are considered and the key problems of their existence are described in the context of stimulating the investment activity of taxpayers. SWOT analysis of investment tax incentives was carried out, which helped to identify the positive and negative impact of the external and internal environment on their implementation. The necessity and principles of management of investment preferential taxation are established. Improvement of the management of providing investment tax incentives in Ukraine is proposed on the basis of taking into account the experience of EU member states. It has been proven that the purposeful use of tax incentives stimulates the investment activity of households and economic entities, so Ukraine’s use of the experience of EU countries to solve the problems of providing tax incentives to individuals and legal entities will eventually lead to the intensification of investment processes at the micro level.

Selected Aspects of the Financial Strategy of the Local Goverment Unit’s Oriented to the Development of Economic and Social Activity (Financial and Legal Analysis)

Fiscal burden, especially taxes, is undoubtedly one of the factors influencing business decisions. Taxpayers often prefer one location for their business to another based on the local fiscal policy. It can also lead to a decision to relocate the company’s headquarters or to start a branch or plant elsewhere. The intervention function (stimulative, incentive) of taxation is linked to its non-fiscal impact on taxpayers. The results of tax interventions depend on the proper selection of incentives and their intensity. Despite doubts that have been raised around the rationale for the use of taxes as a stimulus influencing economic decisions (due to the interference with the principle of fair competition), tax incentives are widely used in practice.