Principles Of Taxation Research Articles

Optimization of forestry indirect and direct taxation in sustainable development conditions

The indirect and direct taxation mechanism is examined in the article. It is determined that a significant place in total income part of the Ukraine’s state budget is occupied by indirect taxes, but the larger share falls on direct taxes. The structure and dynamics of indirect taxes in budget of Ukraine were carried out. The biggest disadvantages of the taxation existing system are established. It is suggested to add new principles to the legislative principles of taxation, their compliance will strengthen the country’s tax system. The indicators of the tax burden and profitability of three business forestry entities are analyzed. It was established the existence of a closeness between the tax burden and the financial results of forestry companies via using the coefficients of correlation and determination. Ways to improve indirect and direct taxation in Ukraine in terms of some indirect taxes are proposed (VAT, excise tax and toll). The problems of applying the environmental tax in Ukraine are identified and ways to eliminate them are suggested. The new formula for calculating the single forest tax is developed. The advantages of its use are substantiated.

An Old song in a New Way: About the Progression in the Personal Income Tax

The issues of choosing between proportional and progressive taxation of personal income and assessment of the principle of fair taxation in relation to these methods accompany the centuries-old history of world tax policy, which is the relevance of the research, being the subject of discussions of Russian and foreign scientists. The purpose of the study is to develop the idea of taxation of income of the population in Russia, taking into account the principle of fair taxation. The theoretical objectives of the study include an analysis of the validity of the method of taxation chosen, as well as an analysis of the progressive method of taxation, which allows for a fair redistribution of income through the progression of rates and an adequate system of tax deductions. The practical objectives of the study are to study the influence of income taxation methods on the formation of budget revenues and incomes of the population, to assess the “shadow” fiscal potential of income, to determine the level of demand and significance of tax deductions. As a result of the research, it has been scientifically proven that proportional taxation and weak progression discredit the principle of vertical equity, lead to a hidden progression in the withdrawal of income, have no obvious positive effect on capital outflow and, in combination with insurance premiums, affect the size of the potential tax base. The practical significance of the study is to develop concrete proposals for the methodological development of personal income tax through differentiated tax deductions, tax mechanisms for strengthening the institution of family and marriage, and the expansion of the tax base.

Transformation of the principle of VAT neutrality in the digital age

Neutrality has always been a key principle of taxation, on the basis of which the economic and legal structure of value added tax (VAT) was initially formed. At the same time, the establishment of the obligation to register a foreign organization that provides electronic services to Russian consumers actually negates the effect of such a principle. The article deals with problematic issues of legal regulation of obtaining a VAT deduction by a foreign taxpayer provided for under the condition that contradict the VAT structure and put Russian and foreign taxpayer suppliers in an unequal position. Attention is drawn to the actual difficulties of identifying new digital phenomena from the point of view of their attribution to the objects of VAT taxation. It is noted that at present the problem of developing fundamental ideas on how to tax and administer the activities of foreign companies subject to VAT in the new digital realities at the Russian and supranational levels is significant.

Stanley Surrey, the Code and the Regime

Stanley Surrey (1910–1984) was arguably the most important tax scholar of his generation. Surrey was a rare combination of an academic (Berkeley and Harvard law schools, 1947-1961 and 1969-1981) and a government official (Tax Legislative Counsel, 1942-1947; Assistant Secretary for Tax Policy, 1961-1969). Today he is mostly remembered for inventing the concept of tax expenditures and the tax expenditure budget. This paper will argue that while Surrey was influential in shaping domestic tax policy for a generation and had an impact after his death on the Tax Reform Act of 1986, his longest lasting contributions were in shaping the international tax regime, since the concept of the single tax principle that shapes contemporary international tax reform efforts can be traced directly to his writing and activities both in academia and in the government.

Assessments on Compliance/Non-Compliance of the Digital Service Tax in Regard to Constitutional Principles of Taxation

Assessments on Compliance/Non-Compliance of the Digital Service Tax in Regard to Constitutional Principles of Taxation

Pesan Dakwah tentang Motivasi Sedekah dalam Youtube Jusuf Hamka

The aim of this research is to find out the da'wah messages on Jusuf Hamka's YouTube and how to motivate alms. This research uses a qualitative descriptive method which not only collects and compiles data but further analyzes and interprets or interprets the data. The results of the research show that the preaching message about the motivation for alms in Jusuf Hamka's YouTube is that as servants of Allah, never feel that you will become poor because you help other people, no matter how much wealth we spend in the way of Allah, we are sure that Allah will multiply it. The power of sadaqah will save human life, whenever and wherever you are able to continue giving charity in the path of Allah's religion. As humans, we must continue to be grateful for the blessings of Allah SWT, because if it were not from Allah, humans would be nothing, and one way to be grateful is by giving charity to those who need it more. As a human being, make your life useful for others, convince yourself to be successful in this world and the afterlife by increasing your charity. The alms motivation technique conveyed by Jusuf Hamka is through taxpayers, the obligation to pay taxes is like giving alms in Islamic teachings. The principle of taxation and alms is almost the same, namely setting aside a portion of assets to be given to people who are entitled to receive it. Selling Yellow Rice in this case opens a business aimed at helping other people. According to Jusuf Hamka, the motivation for Muslims to be successful and diligent in giving alms is that they must be rich but not rich through corruption, that is, they must be rich from the results of hard work.

Does e-commerce ease or intensify tax competition? Destination principle versus origin principle

This study examines the relationship between e-commerce development and the intensity of commodity tax competition under two tax principles for goods purchased online: the destination principle and the origin principle. The main findings are as follows: Given that origin-based tax is applied to purchases made in brick-and-mortar stores, (i) tax competition under destination-based taxation on e-commerce is more intense than tax competition under origin-based taxation; and (ii) the expansion of the online market intensifies destination-based tax competition while easing origin-based tax competition. The main factor leading to the results is that replacing the choice of “where to purchase” goods, consumers will have a new choice of “how to purchase” when online purchasing becomes available, and destination-based taxation distorts the latter choice, while origin-based taxation is neutral.

Features of the special principles of taxation of services from the IT sector

The paper examines the peculiarities of the operation of special principles of taxation of services from the IT sector to increase the level of tax security of the state, which determine the principles of taxation exclusively in the IT sphere or emphasize its uniqueness and separation from others. An analysis of the main special principles of taxation of IT services was carried out, which include: the combination of two criteria when establishing the tax jurisdiction of the state - residency and territoriality, which provide for the right of the state to set and collect taxes on income received by resident payers as within its territory , as well as outside its borders, while non-residents pay taxes only on income received on the territory of Ukraine; unification and harmonization of national tax legislation with international legislation in matters related to the taxation of IT services, because it is impossible to close the legal regulation of taxation of the IT sphere within the framework of one state, because the nature of these services is different from the services provided in the material world, IT activities knows no spatial boundaries, as it is carried out regardless of borders; elimination of double taxation, because in IT-legal relations, questions regarding double taxation arise, as a rule, when paying repatriation tax (income tax on income received by a non-resident with its source of origin in Ukraine is actually a tax at the place of origin of capital); the application of a preferential tax regime, the essence of which is a low tax burden and compliance with the general principle of stability of tax legislation for a period of 15 years; taxation of IT services due to the expansion of the taxation base and the object of taxation of already existing tax mechanisms, which means that when taxing IT activities, it is not necessary to invent new taxes and payments, but it will be more correct to adapt the existing taxation system to new informational and virtual realities.

Establishment and Observance of Tax Law Principles as a Factor in Protecting the Rights and Legitimate Interests of Taxpayers

The article is devoted to the analysis of the problems of legal regulation of tax law principles. The author draws attention to the fact that the principles should serve not only as a guideline for the legislation development in the tax sphere. The taxpayers’ rights and legitimate interests will be protected only in case of strict compliance with the established taxation principles. The author emphasizes the analysis of compliance with the principle of taking into account the actual ability of the taxpayer to pay tax. It is indicated that the presence of a taxable object does not always indicate the actual ability to pay tax. It is established that the correlation of the factor’s absence is possible through the establishment of social tax benefits. Attention is paid to the characterization of violations of the principle of tax certainty from the insufficient legal regulation to its redundancy, which leads to use of complex legal structures that are difficult for understanding. The principle of interpretation of all irremediable doubts, contradictions and ambiguities of legislative acts on taxes and fees in favor of the taxpayer, its possible violations is investigated. The conducted research allowed to come to the conclusion that the basic principles of taxation should not be declarative, they should be reflected and developed in other norms of legislation on taxes and fees.

The Principle of Justice in the Settlement of Tax Disputes Based in Tax Law in Indonesia

The tax that is collected by a state to its people should be fair because one of the state’s goals is to create a just and prosperous society. Based on this, it is necessary to make a regulation that could provide justice to all parties by obtaining tax dispute resolution through existing legal or existing procedures. The principle of taxation adopted by Indonesia is self-assessment, which is a tax collection system that gives the authority, trust and responsibility to taxpayer to calculate, pay and report the amount of tax that should be paid themselves. When there is a tax dispute being filed to the Tax Court that is a process in the tax law that is expected to provide justice, both for the taxpayer and to the Government as a tax collector. The main issues to be discussed in this research are the fulfillment of the principle of justice in the settlement of tax dispute through self-assessment and legal protection for taxpayers in the settlement of tax disputes.

Principles of tax expenditure management

The subject of the article is tax expenditures that affect the formation of budget revenues of the budgetary system. The purpose of the article is to substantiate the principles of tax expense management. The principles are considered as the key rules on the basis of which the impact on tax expenditures is carried out according to the set goals. In the article, tax expenditures are equated with the falling budget revenues. The principles of tax expenditure management are considered as a symbiosis of the legislatively fixed principles of the budget system, the principles of taxation and the classical principles of the management system. The author presents arguments confirming, on the one hand, the intersection of individual principles, and, on the other, their independence. The paper defines the lack of priority of principles. A conclusion is made about the need to comply with them at each stage of management. The author describes the characteristics of the principles and justifies the need for their application in the process of managing tax expenditures. When writing an article, empirical (description, comparison) and experimental-theoretical (analysis and synthesis, induction and deduction) research methods are used. The practical significance of the work lies in the possibility of applying the proposed principles in justifying tax expenditures.

The Environmental Tax Scheme in China’s Large-Scale Pig Farming: Balancing Economic Burden and Responsibility

China has implemented an environmental protection tax for large-scale agricultural farming to address environmental pollution caused by livestock and poultry breeding. Studying the environmental management of large-scale pig farming is crucial for controlling agricultural pollution. However, the economic impact and effectiveness of the current tax design, including responsibility sharing, tax rates, and taxpayers, are unclear. This study aims to address these gaps. Firstly, two types of taxation principles, production-based and consumption-based, are established, and their effects on pollution emissions distribution between pig production and marketing areas are comparatively analyzed. Secondly, the economic impact of consumption-based environmental taxes is estimated from inter-provincial and rural–urban perspectives under the current tax mechanism. Thirdly, a new alternative tax rate aligned with inter-provincial pig consumption levels is proposed based on the consumption principle. By comparing alternative tax systems, the potential impact of the current environmental tax on the regional economic burden is analyzed. The results highlighted that a production-based tax system resulted in 83% of regions experiencing varying degrees of implicit emission transfers, and a consumption-based tax system helped coordinate the environmental economic burden between pig production and marketing regions. Additionally, a linear relationship between tax rates and pork consumption expenditure not only alleviated the overall economic burden, leading to tax savings in 30% of regions, but also increased the national environmental revenue from the pig farming industry, resulting in a remarkable 147% rise in overall environmental tax revenue. These findings provide theoretical support for adjusting responsibility and economic burden through environmental tax modifications, facilitating the establishment of a compensation mechanism for the benefits between pig production and marketing areas.

Environmentally friendly tax measures in the Portuguese jurisdiction. Enforcement of the polluter pays tax principle

PurposeThis paper aims to understand what green tax measures Portuguese corporate tax law foresees and whether the measures observe the polluter pays tax principle.Design/methodology/approachThe legal research method is applied to achieve the goals. Specifically, the research analyzes the most relevant corporate tax legislation to identify legal provisions influencing taxpayers’ behavior in sustainability decisions, particularly corporate income tax (CIT) and value-added tax (VAT) laws.FindingsThe results show that the Portuguese Green Taxation Law introduces several environmentally friendly taxation measures by benefiting or increasing the tax burden. The influence on the CIT law results from instruments such as the autonomous taxation of expenses, depreciation, provisions and the local corporate tax. In the VAT, electric tourism vehicles’ VAT deduction is possible. These measures enforce the polluter pays tax principle, increasing the tax burden on less environmentally friendly options and decreasing the tax burden on more green economic choices. These measures directly influence the companies’ choice because of the increase or decrease tax burden according to more or less polluting choices.Research limitations/implicationsThis study only studies the Portugal case.Originality/valueThis study highlights the Portuguese experience reconciling taxation and environmental dimensions.

Challenges in Applying Saudi Arabian Tax Treaties: Digitalization, Withholding Tax, and Permanent Establishment of Non-residents

As part of Vision 2030, the Kingdom of Saudi Arabia (KSA) has begun implementing broad economic and legal reforms to improve its tax environment and create an amicable setting for international investors. However, there are challenges to this endeavour, which are not limited to Saudi rules. Digitalization is one such challenge in income taxation at the global level. This study investigates the challenges in taxation arising from digitalization that can potentially affect base erosion and profit shifting (BEPS) mechanisms both internationally and in Saudi Arabia. One major problem in the Saudi tax judiciary is the interpretation of international tax treaties to determine the existence of a permanent establishment (PE) for the purpose of Saudi income tax for a non-resident providing remote services within Saudi territory. By examining contradictory decisions related to two typical digital services, namely online travel companies (OTCs) and international telecommunication, this study highlights the complexity involved in digitalization, withholding tax, and PE. By analysing Saudi practices against the context of international rules, this research also highlights the need to clearly define the meaning of a ‘permanent digital establishment’. Finally, it underscores the necessity of establishing a permanent higher chamber in the tax judiciary, which will make decisions on stable judicial tax principles. This will improve the Saudi legal tax environment and ensure its consistency with international practices. Saudi tax law, foreign income, digitalization, withholding tax, permanent establishment

2022년도 국세기본법 판례회고

In 2022, less than 10 Supreme Court’s Decisions pronounced, which include the issues of the Framework Act on National Taxes(“FANT”) and were published in the Judgement Gazette. Among them, this article is focusing on the 4 meaningful cases.
 First, “Supreme Court’s Decision August 25, 2022, 2017du41313”, reaffirms the position of existing precedents on the requirements and criteria for reorganizing transactions to deny a circumvention transactions or multi-level transactions for the purpose of tax evasion under Article 14(3) of the FANT. The decision is valid as it applies the principle of substantive taxation principle on circumventive or pyramid transactions in relation to calculating the tax base.
 “Supreme Court Decision May 26, 2022, 2022du32825”, reaffirms the position of existing precedents that determine the existence of fraud based on whether the counterparty files the VAT return, pays or refunds VAT. According to these precedents, even though the same taxpayers engaged in the same fictitious transaction, in the case of corporate tax, the taxpayer’s actions alone are used to determine whether fraud is committed, otherwise in the case of VAT, in addition to the taxpayer’s actions whether the taxpayer is aware that the taxpayer’s deduction of VAT will result in a decrease in national tax revenue. However, this decision is not justifiable as it violate tax jurisprudence because (1) it applies different criteria for different tax categories without any reasonable basis, despite the fact that the relevant regulations stipulate ‘fraud’ in the same way regardless of the tax category, and (2) despite the fact that the statute does not require such an additional requirement for long-term limitation for imposition of VAT, the decision requires the subjective requirement (i.e., recognition of the fact that it will result in a decrease in the national tax revenue) only in the case of VAT,.
 On the other hand, “Supreme Court Decision May 26, 2022, 2019du60226”, regarding whether an investor in an Fisheries Partnership are an ‘oligopolistic stockholder’ who is liable for secondary tax, held that an investor in an Fisheries Partnership cannot be such an ‘oligopolistic stockholder’ because he is not a stockholder or a partner in corporations. This decision is justified in light of the principle of strict interpretation of tax laws.
 Lastly, “Supreme Court Decision January 14, 2022, 2017du41108” is the first decision to explicitly determine that the reference point for determining whether there is a justifiable reason to exempt the penalty tax is the deadline for filing and paying taxes under the each tax law.

Economic justification for taxation and tax fairness: a new look at an old problem

A search for criteria of economically justified and fair taxation has been going on for a long time within studies in philosophy of law, constitutional law and tax law. Often such studies are one-sided and incomplete. The criteria developed by researchers, as well as research-based definition of “economic justification for taxation,” are unsatisfactory and unsuitable for practical use. Without understanding economic justification for taxation, it is impossible to give answers to many practical questions, in particular: is a tax economically justified or not? The purpose of this article is to formulate a new universal, practically applicable definition of “economic justification for taxation,” reflecting modern Russian and foreign ideas about fiscal social contract and constitutional principles of taxation. To achieve this goal, the author resorts to a comparative analysis of two incompatible principles of fair taxation: the equivalence (benefit) principle, arising from “individualistic” Anglo-Saxon theory, and the ability-to-pay principle that is based on continental European “welfare-state” doctrine. The author uses equivalence (benefit) principle to develop a so-called “beneficiary” theory of economic justification for taxation. The beneficiary theory is for the first time set out in this article. The beneficiary theory offers a new understanding of economic justification for taxation which is unconventional for Russian tax law and establishes a clearer – compared to previously known – criterion of economically justified taxation. This criterion makes it possible to identify economically unjustified taxes that do not comply with provisions of tax legislation and Russian Federation Constitution, and therefore can be applied when challenging: 1) validity of legislation establishing economically unjustified taxes; 2) constitutionality of tax legislation. The author, using the beneficiary theory he developed, assesses economic justification for bachelor tax and vehicle tax paid by owner of a vehicle not in use.

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

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

An Overview of the UN Model Tax Convention and Electronic Commerce

The development of Information and Communications Technology (ICT) on the field of international trade and commerce resulted into the development of online market or internet commerce (cyber market where vendors and buyers meet to trade); this later came to be known as Electronic Commerce (herein after E-Commerce). E- Commerce, being a new form of commerce World Wide, as against traditional commerce system, brought legal and administrative challenges to the traditional taxation system World Wide. This paperwork examined how the existing taxation principles can regulate e-commerce in line with United Nations Model Tax Convention (herein after the UN Model Tax Convention) and other international taxation guidelines adopted by Organization for Economic Co-operation and Development (herein after OECD) and World Trade Organization (herein after WTO) without compromising the on motion internet commerce and technological development on trade and commerce sector. Lastly proposed modifications of existing rules on imposition of taxation on conventional commerce to regulate e-commerce

Literature Review: Taxation, Data and Destination: An Analysis of Destination-Based Taxation from the Perspective of Tax Principles and Data Protection Regulation, J. Sinnig. IBFD. 2022

Literature Review: Taxation, Data and Destination: An Analysis of Destination-Based Taxation from the Perspective of Tax Principles and Data Protection Regulation, J. Sinnig. IBFD. 2022

Comparing the Destination Principle and Origin Principle in Sales Tax: Implications for Pakistan's Tax System

This study evaluates the influence of destination and origin principles on the tax system of Pakistan. This study examines destination and origin concepts, terminology, and the VAT system. This report comprehensively examines literature, data, and case studies to evaluate the appropriateness of these approaches for Pakistan's tax system. Sales tax is levied based on the destination principle, whereby it is determined by the location of the eventual user rather than the producer. The origin principle imposes sales tax based on the location where goods or services are produced or rendered. To comprehend the practical implications of these principles, it is essential to compare and contrast the concepts of "sales" and "supply".The legal definition of "business" impacts sales tax in various transactions. Comprehending zero-rated supply is essential due to its influence on the tax liability of different goods and services. The excise tax is a component of the sales tax in Pakistan. Excise duty is levied on domestically produced, imported, and sold goods within the nation. The responsibility for liability lies with either the manufacturer or importer, depending on their manufacturing capacity or the specific items involved. Furthermore, the paper examines the concept of value-added tax (VAT). Producers improve raw materials prior to selling the end product or service. The Value Added Tax (VAT) system effectively captures value addition at every stage of production, thereby improving efficiency and eliminating biases in production choices. This study examines the difficulties encountered by small traders and retailers within Pakistan's tax system, specifically in relation to sales tax. An efficient tax system requires improved tax administration and voluntary compliance. Comparing sales tax principles is beneficial for tax policymakers in Pakistan. It facilitates comprehension of the pros and cons associated with each concept, enabling well-informed choices regarding tax systems to attain economic objectives and generate income. The report encompasses pertinent literature and legal obligations pertaining to the tax policy discourse in Pakistan.