Tax Provisions Research Articles

WHAT CAN CAUSE CUSTOMERS SHOP ONLINE FOR IMPORTED GOODS POST-ENACTMENT REGULATION OF FINANCE MINISTER CONCERNING CUSTOMS, EXCISE AND TAX PROVISIONS ON IMPORTED SHIPMENTS?

This study aimed to analyze the determinants of online shopping decisions for goods from abroad after the enactment of Regulation of Finace Minister number 199 year of 2019 regarding customs, excise and tax provisions on imported shipments. Foreign goods purchased for more than USD 3 will be taxed so that the existence of this provision will result in the price of goods becoming more expensive. This research will identify factors that can shape shopping decisions by Indonesian consumers. The population in this study is market place consumers who have made transactions of imported goods or purchases through the marketplace. The number of samples used as many as 30 respondents based on the number of indicators with an error rate of 5%. The survey was conducted using an online questionnaire and processed using a data processing application. Based on the results of data analysis, this study resulted in 5 new factors, namely Product Quality, Physical Factors, Shopping Value, Service Quality, Platform, and Subjective Norms. The most dominant factor among these factors is product quality.

General rules regulating tax provisions in the United Arab Emirates

The study aims to analyze the general principles of tax provisions in the UAE legislation by evaluating the UAE tax system and identifying its economic effectiveness. The study will also show the ability of UAE legislation to oblige those in charge to pay taxes, and the extent to which taxpayers are convinced of the general government policy. The study will also review the challenges facing the state in collecting taxes and ways to address legal gaps. The problem of the study lies in the challenges facing the state regarding the application of tax legislation and the insufficiency of the stipulated penalties. The researcher has used the descriptive, analytical, and historical method in his research. The study concludes with a number of results, the most important of which are that the Emirati legislator did not clarify the extent of the possibility of reconciliation in crimes of tax evasion. The UAE legislation also does not clarify all forms of crimes related to evasion from paying the value-added tax since is the most common among tax evasion crimes.

Why Exit Taxation of Natural Persons Regarding Unrealized Capital Gains in Company Shares is Contrary to EU Tax Law

This article discusses the exit taxation provisions applicable to natural persons holding shares in corporations as private assets. In this context, Member States are obliged, under EU law, to grant a full deferral, without interest, of the assessed exit tax until an actual disposal of the shares. The provisions allowing for payment of the exit tax in instalments prior to an actual disposal of the shares, which is only allowed in the area of business entities, is not transferable to natural persons under EU law.

Promoting education under distortionary taxation: equality of opportunity versus welfarism

A common claim in the policy discourse is that a government wishing to achieve equality of opportunity should use public provision of education for equalisation of opportunities rather than income taxation, which only equalizes incomes. We develop a framework in which the tax and education provision rules in the welfarist and non-welfarist/equality of opportunity cases can be transparently compared. We show that in addition to education policies, progressive taxation also plays a role in achieving equality of opportunity, and illustrate how its use may differ under the two objectives. We also show how the provision of public education depends on how private education choices respond, potentially differentially by higher- and lower-income families.

Book Review

Book Review

The Possible Regulation Model To Optimize The Automatic Exchange Of Information (Aeoi) In Indonesia Through Directorate General Of Taxation, Ministry Of Finance And Financial Services Authority

Tax Treaty is a bilateral(two-party) agreement made by two or more than two countries to resolve some issues involving double taxation, transfer pricing, and treaty shopping. Several governments and organizations use model treaties generally as starting points, such as OECD Model Convention and US Model Convention. As a member of G20, Indonesia has participated in The Automatic Exchange of Information (AEoI) provides for the automatic exchange of predefined set of financial accounts information between tax authorities, based on The Common Reporting Standard (CRS), as also mentioned in Tax Information Exchange Agreement (TIEA) implemented in 2018. In order to implement AEoI the Indonesian regulator needs to review the Banking Law and the Tax Provisions and Procedures, There is an urgent need to regulate a regulation as a standard that will be used in CSR, support the tax reform and to enhance the capacity and the authority of Directorate General of Taxation, Ministry of Finance and Financial Services Authority, while still considering the protection for the Bank Secrecy. This research will formulate a model regulation that can facilitate the implementation of the AEoI, by carrying out a study in 3 countries, which is Indonesia, Malaysia and Singapore

Tax Planning on The Multinational Companies in Indonesia

The discussion of this review is motivated by the problems of multinational companies, especially in Australia, America and Indonesia, which prefer tax planning efforts with Tax avoidance. The purpose of this paper is knowledge of tax planning in multinational companies that occur as a result of business transactions. The results of the discussion prove that each country carries out tax avoidance using 2 (two) measurements, namely the Effective Tax Rate (ETR) and Book Tax Differences (BTD). This writing describes the reasons why business people do tax planning by tax avoidance, which can be explained, namely: 1) Tax laws that cannot be obeyed by companies and provide high costs in fulfilling them. 2) The value of the tax payable becomes large due to the process of calculation errors and deposits as well as tax reporting. 3) The company feels that it is necessary to do tax planning in order to implement tax obligations and fulfill the tax provisions that have been determined, so as not to invite suspicion from tax inspectors, 4) Good public morals in tax reporting. Finally, it is suggested to the readers that the scope of this paper is in accordance with the cases that occurred in several reviewed journals, hopefully it will provide benefits and positive contributions. 4) Good community morale in tax reporting. Finally, it is suggested to the readers that the scope of this paper is in accordance with the cases that occurred in several reviewed journals, hopefully it will provide benefits and positive contributions. 4) Good community morale in tax reporting.

The impact of thin capitalization rules on capital structure and tax avoidance

This study aims to examine the effect of the thin capitalization rules on capital structure (leverage) and tax avoidance. This is quantitative research using the difference-in-difference (DID) method, with multiple linear regression models. The sample used in this research is companies listed on the Indonesia Stock Exchange (IDX). The type of data used in this study is secondary data in the form of financial statements from 2013 up to 2018. The sample selection using the purposive sampling method with the number of samples amounted to 804 observations (firm-year). The regression method employs panel data with a period of six years (2013 to 2018). The results show that the thin capitalization rules reduced the leverage of companies with high and low debt-to-equity ratio (DER). Companies with high DER experience a decrease in leverage 2.3 times greater than companies with low DER. The results also show that the thin capitalization rules do not affect tax avoidance for companies with high and low DER. This research contributes to providing improvement in tax provisions. In practice, it provides recommendations to the Indonesian Tax Authority (ITA) to revise PMK-169/PMK.010/2015 and that ITA should consider using the best practice suggested by the Organization for Economic Co-operation and Development (OECD) in conducting interest limitation (i.e., the fixed ratio rule).

Tax Harmony: The Promise and Pitfalls of the Global Minimum Tax

The rise of globalization has become a double-edged sword for countries seeking to implement a beneficial tax policy. On one hand, there are increased opportunities for attracting foreign capital and the benefits that increased jobs and tax revenue brings to a society. However, there is also much more tax competition among countries to attract foreign capital and investment. As tax competition has grown, effective corporate tax rates have continued to be cut, creating a “race-to-the-bottom” issue. In 2021, 137 countries forming the OECD/G20 Inclusive Framework on BEPS passed a major milestone in reforming international tax by successfully introducing the framework of a global minimum corporate tax, known as Pillar Two. It aims to set a floor for corporate tax rates with various corrective measures so that multinational enterprises’ income will be taxed once in either source country or residence country at a substantive tax rate. Hence, Pillar Two is the first implementation of the “single tax principle” at the global level. Because Pillar Two requires an unprecedented amount of coordination among countries, it is important to understand Pillar Two thoroughly so that countries can maneuver the challenges of implementation, while still enjoying the ultimate benefit that would come from this global tax harmony. This Article analyzes the issues of tax competition and why most countries in the world have come to the conclusion that a global minimum tax is needed. This Article explains the single tax principle as the theoretical underpinning of Pillar Two, breaks down the principles and policies that comprise Pillar Two, and anticipates what promise and pitfalls passage of the global minimum tax will bring. Because the basis of Pillar Two is a direct extension of the Global Intangible Low Tax Income (GILTI) and Base Erosion and Anti-Abuse Tax (BEAT) provisions of the Tax Cuts and Jobs Act, it is reasonable to anticipate that the global minimum tax will be considered a success if it is implemented by all the G20 countries.

An Empirical Evaluation of the Determinants of Property Tax Compliance Rate in Kaduna State, Nigeria

This study examines empirically the variables that are driving property tax compliance rates in Kaduna State, Nigeria. In doing so, it relies on primary data sources. During the study, 400 respondents were targeted, but 406 completed questionnaires were analysed. The nature of the data collected necessitated employing the ordered logistic regression model to analyse the data. The result indicated that taxpayers’ satisfaction with the level of property tax digitalisation, the adequacy of property tax law, the administration of property tax and government provision of public goods are important determinants of the property tax compliance rate in Kaduna State. It further found that the average property tax compliance rate in the State is 18.32 per cent, the average satisfaction with the level of digitalisation of property tax is 39.71 per cent, the average taxpayer’s satisfaction with the adequacy of property tax law in the State is 27.68 per cent, the average satisfaction with the administration of property tax is 31.31 per cent and the average taxpayer’s satisfaction with the provisions of public goods is 58.21 per cent. The study recommends that the Kaduna State government should enact a property taxation law to adequately take care of the rate, base, time and procedures of filing and payments of the tax. The digitalisation of the tax should go beyond property registration but should cover all other aspects of digital taxation, ranging from assessment to payment of taxes.

South Africa’s Exchange Control Regulations and ‘Loop Structures’: The Income Tax Implications of the Removal of the Restrictions with Effect from 1 January 2021

This article analyses the implications of the income tax provisions introduced to address the potential tax avoidance that could arise from the lifting of the exchange control restrictions on ‘loop structures’ which were effected from 1 January 2021. Most South Africans and foreign investors do not quite understand the operation and implications of exchange controls due to the complexity of these regulations, and the perception that it is difficult to move money in and out of South Africa. Since the removal of exchange control restrictions on loop structures does not apply to existing unauthorised loop structures, this paper also provides a broader understanding of the operation of exchange controls regarding loop structures. The article first explains the administration of exchange controls and how the restrictions of exchange controls on loop structures have been relaxed over the years, and then it explains the 2021 removal of the restriction on loop structures as well as the amendments to the Income Tax Act to curtail tax avoidance risks.

The role of tax accounting as a tool in light of the problematic shadow economy in the Kingdom of Saudi Arabia

The increasing phenomenon of the shadow economy is progressing dramatically in the absence of State culture among officials, whether legislators or implementers, in the absence or ineffectiveness of an organized production sector. Non-compliance with tax accounting procedures is one of the first problems generated by the shadow economy and most difficult not to include it in national output. The lack of tax commitment in the shadow economy leads to an annual tax gap of billions of dollars, if there is no logical interest on the part of the taxing bodies in developing countries, and if domestic and international tax provisions and legislation are not amended to consider of these important economic developments, and how to keep up with this. The issue of the shadow economy is thorny, and the practical way to raise the revenue needed to finance government spending on the goods and services required by society lies in the local and international tax treatment at the technical and legislative levels. Consequently, the current tax systems and their related regulations must be prepared, whether at the technical or legislative level, especially in light of the flow rate of oil barrels and the alternative if it comes into force. The taxation processes allow time to study the tax accounting and tax and take what suits the Saudi environment from them - lessons for the Kingdom of Saudi Arabia, Critical terms for research/shadow economy, tax regulations and systems, tax gab, tax accounting.

Legal Formulation to Overcome Base-Erosion and Profit-Shifting Practices of Digital-Economy Multinational Enterprise in Indonesia

This study discusses Indonesian legal strategies and formulations to handle tax avoidance originating from Base Erosion Profit Shifting (BEPS) carried out by the digital-economy multinational enterprise. It is a normative (doctrinal) study supported by non-doctrinal methods to reveal the truth based on the logic of legal scholarship. It also compared the practices to the tax provisions, legislation, and cases in India, the United Kingdom, Australia, and Malaysia. At least two theories underlie the study. The first is the legal theory of justice, certainty, and expediency from Gustav Radbruch. The second is the theory of international cooperation. The study found several points. First, multinational enterprise strategies avoid tax by means of Permanent Establishment techniques in low-tax jurisdictions, transfer pricing, and tax treaty shopping. Second, to tackle the multinational enterprise that conducts BEPS in the field of the digital economy, (1) all countries have developed and amended laws and regulations related to e-commerce taxation and the digital economy; and (2) all countries carry out international cooperation, both bilaterally and multilaterally through tax treaties, MLI, and CbC reporting.

Comparison Of Country Tax Provisions In Increasing Country Income

Tax is an important aspect of state revenue, which is then used for development and carrying out state activities. Different countries have different provisions in applying taxes to the public and companies. This condition has implications for different state revenues, so that public services in each country also show differences. On that basis, this article examines various tax provisions in emerging market and developed countries, in an effort to compare the provisions of the two groups of countries. This article uses a literature study from various literatures to examine tax provisions in emerging market countries and developed countries. The search results show that the percentage of taxes in developed countries, such as the United States and Germany is much higher than the percentage of taxes in Indonesia and Malaysia. This has implications for better optimization of public services in developed countries, because the government has sufficient funds. In addition, the existence of social security and health insurance is better in developed countries than in emerging market countries due to the high percentage of taxes. However, this large tax provision also received opposition from the community because it was considered burdensome for workers. References Akhor, S. O., & Ekundayo, O. U. (2016). The impact of indirect tax revenue on economic growth: The Nigeria experience. Igbinedion University Journal of Accounting, 2(08), 62-87. Amirudin & Sudirman. (2012). Perpajakan Pendekatan Teori dan Praktik di Indonesia. Jakarta : Salemba Empat Dua Media. Andries, K., Gallemore, J., & Jacob, M. (2017). The effect of corporate taxation on bank transparency: Evidence from loan loss provisions. Journal of Accounting and Economics, 63(2-3), 307-328. Apriliana, E. S. (2020). Upaya peningkatan pendapatan nasional di tengah wabah virus corona perspektif ekonomi Islam. Al Iqtishadiyah Jurnal Ekonomi Syariah Dan Hukum Ekonomi Syariah, 6(1), 19-28. Baok, R. T. L., Sasongko, T., & Rifa’i, M. (2020). Strategi Peningkatan Penerimaan Pajak Bumi dan Bangunan (Pbb) di Kota Batu. Reformasi, 10(1), 81-89. Barannyk, L., Dobrovolska, O., Taranenko, V., Koriahinа, T., & Rybalchenko, L. (2021). Personal income tax as a tool for implementing state social policy. Investment Management and Financial Innovations, 18(2), 287-297. Basalamah, Anies S. (2004). Perilaku Organisasi Memahami dan Mengelola Aspek Humniora dalam Organisai. Depok : Usaha Kami. Bawazier, F. (2018). Reformasi Pajak di Indonesia Tax Reform In Indonesia. Jurnal Legislasi Indonesia, 8(1), 1-28. Carrillo, P., Pomeranz, D., & Singhal, M. (2017). Dodging the taxman: Firm misreporting and limits to tax enforcement. American Economic Journal: Applied Economics, 9(2), 144-64. Davis, A. K., Guenther, D. A., Krull, L. K., & Williams, B. M. (2016). Do socially responsible firms pay more taxes?. The accounting review, 91(1), 47-68. Demirag, I., Dubnick, M., & Khadaroo, M. I. (2018). A framework for examining accountability and value for money in the UK's private finance initiative. In Corporate Social Responsibility, Accountability and Governance (pp. 77-92). Routledge. Gadenne, L. (2017). Tax me, but spend wisely? Sources of public finance and government accountability. American Economic Journal: Applied Economics, 274-314. Haryadi, S., & Riani, W. (2018). Metode Penetapan Tarif Pajak Penghasilan Yang Berkeadilan (No. ayg58). Center for Open Science. Kuhltau, C. C. (2002). Teaching The Library Research. USA: Scarecrow Press Inc. Kusuma, A. I. (2016). Pengampunan pajak (tax amnesty) sebagai upaya optimalisasi fungsi pajak. Inovasi, 12(2), 270-280. com. (2021). Industri Daur Ulang Bakal Dapat Pemotongan PPN Jadi 2 Persen. [online]. Diakses dari https://www.liputan6.com/bisnis/read/4601359/industri-daur-ulang-bakal-dapat-pemotongan-ppn-jadi-2-persen Lohonauman, I. L. (2016). Analisis Efektivitas Pemungutan Pajak Daerah Dalam Meningkatkan Pendapatan Asli Daerah Di Kabupaten Sitaro. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 4(1). Lubis, Abu Saman. (2015). “Perbandingan Persentase tax ratio di Indoneisa dengan negara lain”. http://www.bppk.kemenkeu.go.id Mansor, N. A., Mohd Fatzel, F. H., Shamsudin, S. M., & Khair Anwar, I. S. (2019). Zakat versus taxation: an overview of the implementation in Malaysia. Islamic Development Management, 329-337. (2011). Perpajakan. ed. Revisi. Yogyakarta : CV. ANDI OFFSET. Mascagni, G. (2018). From the lab to the field: A review of tax experiments. Journal of Economic Surveys, 32(2), 273-301. Mohamad, A., Radzuan, N., & Hamid, Z. (2017). Tax arrears amongst individual income taxpayers in Malaysia. Journal of Financial Crime. Mulyono, Djoko. (2011). Panduan Brevet Pajak. Andi, Yogyakarta. Nurcaya, I.A.H. (2021). 13 Tahun Menunggu, Industri Daur Ulang Minta Realisasi Insentif. [online]. Diakses dari https://ekonomi.bisnis.com/read/20210309/257/1365668/13-tahun-menunggu-industri-daur-ulang-minta-realisasi-insentif. Perez-Truglia, R., & Troiano, U. (2018). Shaming tax delinquents. Journal of Public Economics, 167, 120-137. Queralt, D. (2019). War, international finance, and fiscal capacity in the long run. International Organization, 73(4), 713-753. Siregar, L. H. (2017). Pengampunan Pajak (Tax Amnesty) Sebagai Upaya Peningkatan Pendapatan Nasional Dari Sektor Fiskal. Hijri, 6(1), 97-105. Winerungan, L. O. (2013). Sosialisasi Perpajakan, Pelayanan Fiskus dan Sanksi Perpajakan terhadap kepatuhan WPOP di KPP Manado dan KPP Blitung. Jurnal EMBA Vol. 1 No 3 September 2013. Yumbi, D. (2018). Impact of taxation laws on small businesses and entrepreneurs: Comparison between USA and Finland.

Brexit: The Direct and Indirect Effect of the EU-UK Trade and Cooperation Agreement

The United Kingdom (UK) is no longer part of the European Union (EU). The new relationship between the two parties has led to a trade and cooperation agreement (TCA). While the agreement contains some specific tax provisions and ensures the freedom of movement, in principle, it has no direct effect. This raises questions about the actual impact of this agreement for taxpayers. The authors discuss the direct and indirect effect of the agreement, concluding that courts may, in accordance with World Trade Organization (WTO) law, still be held to interpret their domestic (tax) laws in compliance with the principles from the agreement, including comparably formulated fundamental freedoms. Brexit, treaty, WTO, direct effect, indirect effect, EU, interpretation, dispute resolution.

PERTIMBANGAN PEMBERIAN PENGURANGAN PAJAK BPHTB PADA PANDEMI COVID-19

Tax is an obligatory contribution of the people to the state which functions to finance all public interests, including finance development to aims for the welfare of the people. The current condition of the Covid 19 pandemic provides a responsive idea to provide taxpayers with “relief” as regulated in Governor Regulation Number 103 of 2011 concerning Granting of Deductions, Relief and Exemption of Duty on Acquiring Rights on Land and Buildings (BPHTB). Pro contra arise in relation to criteria issue for granting relief conflicting regulations with the legal concept of the phrase "economic and / or financial crisis and natural disasters", as stipulated in the provisions of Article 3 paragraph (1), (2) points a and b as well as paragraph (3). In this regard, this article will discuss several things, including: How is the provision of tax breaks in certain circumstances such as "economic and / or financial crisis and natural disasters"? From the results of the discussion, severalthings were found: (1) The argument which is alleged to be the legal reason for not granting relief is derived from the “tax debt write-off doctrine” where that doctrine has been normalized in Article 1381 of the Civil Code; (2) The provisions of Article 3 paragraph (1) and paragraph (2) points a and b The phrase "economic and / or financial crises and natural disasters" regulate different customs, so that the pandemic-19 variable is not regulated in the two articles as a natural disaster. which caused theeconomic crisis, meaning that there was a lack of rules; and paragraph (3) The governor has the authority to regulate and interpret the situation. Conclusion: The absence of the meaning of the Covid-19 pandemic as a natural disaster that causes an economic crisis and / or in the BPHTB tax provisions, must be arranged to be approached with the grammatical interpretation method (denotative) seeing the meaning of the dictionary and the teleological interpretation method to provide an explanation for the interpretation of the DKI Jakarta Governor Regulation on BPHTB Tax which has no official means of explanation. Recommendation: BPHTB tax discount can be given to individual / corporate taxpayers according to the time of payment during the pandemic, first 50% atthe beginning, 30% in the middle and 10% at the end of the pandemic period to ensure justice and legal certainty.

Tax Dispute Analysis 0f Surface Water Tax (Review Decision Number 2791/B/PK/PJK/2019)

The surface water tax creates different perceptions due to differences in the imposition of taxes regulated in regional regulations and contracts of work, one of which contains tax provisions that apply specifically. This study discusses a review of the arguments for the Judicial Review Decision Number 2791/B/PK/PJK/2019). This study uses literature research methods. The results of this study concluded that the panel of judges granted the appeal applicant on the basis that the Papuan provincial government could not collect surface water tax because it was not in accordance with article 32A and article 33A of the income tax law and the contents of the contract of work.

PPN Jasa Aplikasi Pada Ojek Online (Ojol)


 
 
 
 The development of technology makes online motorcycle taxis have users and partners that are increasing rapidly every year. However, this also brings problems related to the taxation aspect, namely in determining the business model and the very large number of realtime transactions. The purpose of this study was to determine the treatment of value added tax in an application company and the applicable tax provisions. The method used is descriptive qualitative using literature studies and interviews. The results obtained information that value added tax is imposed on drivers / partners as users of application services provided by online motorcycle taxi operators. The transaction submission of applications carried out by online motorcycle taxi operators does not fulfill the elements of being a retail entrepreneur because there is already a contract between the two parties. So that based on taxation provisions, online motorcycle taxi operators should make a tax invoice for each of these submissions, regardless of whether the application user has an NPWP or not.
 
 
 

Tax policy and charitable giving: an evaluation of the Tax Cuts and Jobs Act 2017 and its impact on charitable contributions

Studies of how the Tax Cuts and Jobs Act 2017 will affect charitable giving narrowly focus on the increase in the standard deduction. Based on these studies, the media and policy analysts warned that the Tax Cuts and Jobs Act would lead to a sharp decrease in charitable giving. However, these predictions did not fully account for some of the nuances in the tax code and the political economy of changes to tax policy. We explain that a richer analysis includes the political response of interest groups. Tax provisions other than changes to the standard deduction, such as an increase in the adjusted gross income limit, mean that the Tax Cuts and Jobs Act may change the composition of giving but that it is unlikely to have a large impact on overall giving. To supplement our analytical narrative, we present statistics on the pattern of charitable giving and estimate a predictive autoregressive model of overall charitable giving. The results show that the change in giving after the implementation of the Tax Cuts and Jobs Act cannot be distinguished from zero. We conclude that misleading interpretations about the effect of the Tax Cuts and Jobs Act on overall charitable giving are due to the omission of political economy from the analysis.

General Tax Provisions and Procedures Issues on the Omnibus Law in Indonesia

General Tax Provisions and Procedures Issues on the Omnibus Law in Indonesia