Tax Regulations Research Articles

Towards Economic Optimization: Evaluating The Impact of Legal Changes

Restorative justice symbolizes a paradigm shift in enforcing criminal laws, right from focusing on penalizing the offenders to attending to mending the damages caused by crime while promoting reconciliation and restoration of relations within the society, has been found as well in the context of taxation to address violations of tax regulations. Tax law enforcement with a Restorative justice approach is considered to provide a more comprehensive and sustainable solution in dealing with violations. Dispute resolution is focused on reconciling the parties, in this case between the state which is positioned as a victim and the party who committed the violation, this is done to create a better compliance climate and reduce protracted problems. This journal article is prepared in order to analyse the impact of the implementation of Restorative justice regulated in the Law Harmonisation of Taxation Regulations. By using a doctrinal legal research method based on theory and application to regulations, it is hoped that the results of theoretical analysis based on the principle of restorative justice and the economic analysis of law approach can provide further insight into how Restorative justice applied as a law enforcement approach, especially in the field of taxation, can benefit the state as an effort to achieve harmonisation of tax regulations and their efficiency for sustainable economic.

Analysis Of The Growth Rate Of Hotel Tax and Advertising Tax In Ambon City

This study aims to look at the rate of tax growth on the realization of hotel tax receipts and real estate tax of Ambon City District during the period 2018-2022. This study is a quantitative study whose results can be accounted for in numbers. Population and sample research is a report on the realization of receipts of hotel tax and advertising tax in the year 2018-2022. Data collection techniques using data collection techniques such as Time Series, Documentation and Library Studies. The research shows that the highest rate of growth of hotel tax is in 2021 at 33.59%. This figure falls in the category “Less Successful” while the advertising tax has the greatest percentage of 17.40% but this figure is in a category below 30% which means in category “No Success”. For that, the local government is expected to reevaluate and maintain the regional tax so that it can rise to the category of success or very success.

Future Regional Tax Predictions in Malang City Using Time Series Method Based on Growth Rates

Future Regional Tax Predictions in Malang City Using Time Series Method Based on Growth Rates

Streamlining Indonesia's Tax Compliance through Successful e-Bupot Unification

This study examines the calculation, payment, deposit, and reporting of Income Tax 23 for internet rental services at PT. Alif Investama Teknologi Indonesia, following Law PER-24/PJ/2021. Using an interpretive qualitative method, including interviews and data analysis, the research found that the company’s practices align with current regulations. The implementation of e-Bupot Unification was consistent and thorough from January to December 2022, ensuring compliance with tax laws. The findings highlight the importance of keeping up with regulatory changes to facilitate compliance and efficiency. Highlight: Compliance: Practices align with Law PER-24/PJ/2021. Implementation: Consistent e-Bupot Unification from Jan-Dec 2022. Adaptability: Importance of staying updated with tax regulations. Keyword: Income Tax 23, e-Bupot Unification, internet rental services, PT. Alif Investama Teknologi Indonesia, PER-24/PJ/2021

Правовая характеристика и новые аспекты перехода к налогообложению недвижимого имущества организаций по кадастровой стоимости в рамках налога на имущество организаций. Часть 2

The author of the article continues to analyze the problems of legal regulation of Corporate Property Tax related to the transition to taxation of the immovable property of corporations by cadastral value within the framework of this tax, and also examines the circumstances that can complicate the implementation of such a transition.

Tax control as a tool to curb the shadow economy

Subject. Numerous scientific works in the field of tax administration are devoted to the problems of tax regulation, the imperfections of current tax legislation, as well as the identification of the causes of the functioning of the shadow economy and ways of tax evasion. However, the issues of economic security of the state and tax control in its provision have been little studied today, despite the entry into force in the legal field more than six years ago of the Decree of the President of Russia dated May 13, 2017 No. 208 "On the Strategy of Economic Security of the Russian Federation for the period up to 2030". Thus, the object of the study is tax control, the subject is the effectiveness of on–site tax control as a factor in identifying and suppressing shadow activities in order to ensure the economic security of the country and its public legal entities. Purposes. To summarize approaches to the definition of the term "shadow economy", to distinguish methods for identifying factors of business fragmentation and optimizing the tax burden. Based on the data obtained, we propose an approach to the tax administration process that allows us to quickly respond to "risk signals" in the process of selecting candidates for tax control measures and further conducting tax audits, with a high probability of their effectiveness.Relevance. Tax control is an important regulator of the economic security of the state. The issues of its improvement in order to increase its efficiency and effectiveness have been important at all times. Currently, issues related to the shadow economy are one of the urgent problems affecting the economic development of the country and the functioning of tax systems. Understanding the term "shadow economy" and developing effective counteraction methods are important for tax authorities and society as a whole.Methodology. In the existing conditions of the study, the analysis of the database of tax authorities is carried out (without providing information about taxpayers), the analysis of judicial practice, and methods of logical and statistical analysis are also used. Thus, in the course of the study, the works of foreign and domestic authors were analyzed in order to study the terms "shadow economy" and "business fragmentation". The data of statistical reporting of tax authorities are analyzed, the dynamics of efficiency and effectiveness of on-site tax control are analyzed. The arbitration practice of court cases on the application of business fragmentation schemes by taxpayers has been studied and analyzed, which made it possible to identify a number of distinctive features of business fragmentation from its optimization in order to ensure the sustainable development of organizations (taxpayers) and, based on these indicators, propose a methodology for identifying tax evasion schemes in order to select candidates for on-site tax control.Conclusions. The conducted research allows us to develop the theoretical aspects of such concepts as "shadow economy" and "business fragmentation". Having analyzed the works of domestic and foreign researchers, the author substantiates his definition of the concept of "business fragmentation". The author provides a system of the most significant indicators that can be fully taken as the basis for risk benchmarks signaling the use of fictitious tax optimization schemes by the taxpayer.

Понятие территории с особым статусом для целей налогово-правового регулирования

The article aims to explore the concept of territories with special status for tax and legal regulation purposes, focusing on their definition, types, and common features. It examines the methodologies used to identify and classify these territories and provides insights into their role in achieving strategic state objectives. Currently, there is no legislatively fixed general concept for these territories, nor are there theoretical developments elucidating this topic through various types of territories with special status, including their taxation aspects, which would allow for a universal approach to legal regulation in this sphere. The aim of this article is to define the content and types of territories with special status applicable for tax and legal regulation purposes. The research methodology includes deductive, inductive, comparative, and formal-legal methods. The author formulates the definition of territories with special status by identifying the characteristics of territories possessing a special legal regime of operation most commonly associated with the examined concept by scientists. Additionally, various types of other territories fitting this definition are determined. The author comes to the conclusion that territories with special status are diverse, created for different directions of state policy. However, they also share many common features, allowing for the formulation of a universal definition of territories with special status, including for tax and legal regulation purposes, and subsequently identifying types of territories falling under this definition.

Upgrade your knowledge in tax: Tax awareness from an early age in education

Taxes are the main pillar of government development funding, as mandated by Indonesian law. The primary challenge at Erenos High School in South Tangerang is the lack of taxpayer awareness regarding tax compliance. There is an urgent need to change citizens' perspectives on fiscal education from an early age through systematic strategies, including curriculum and student activities. The education sector has welcomed the Directorate General of Taxes' initiative to include tax education in the curriculum, fostering tax awareness among the younger generation. The implementation process includes several phases: interviews and discussions, module preparation, presentations, training and discussions, and mentoring. The Community Service Team monitored the activities, observing significant student interest in the subject matter presented. The students' enthusiasm and high participation indicated strong curiosity, evidenced by the variety of questions directed at the speakers. The speakers' engagement in asking about the students' tax knowledge was clear from the final evaluation results, showing that 91.8% of participants felt they had begun to understand their responsibilities as taxpayers. This initiative aims to instill a sense of tax awareness early on, ensuring that future generations are well-informed and compliant with tax regulations, ultimately supporting government development efforts.

A STUDY ON HOW MICRO, SMALL AND MEDIUM ENTERPRISES IS AFFECTED BY GOODS AND SERVICES TAX.

The goal of the Goods and Services Tax (GST), which went into effect in India on July 1, 2017, was to simplify the tax structure by combining several indirect taxes into one cohesive tax system. The effect of GST on Micro, Small, and Medium-Sized Enterprises (MSMEs) is evaluated in this study. By relieving MSMEs of the hassle of managing several federal and state taxes, the GST system improved their operational efficiency and made tax compliance simpler. Administrative difficulties were decreased via the GSTN interface, which made tax registration and return filing easier. A number of benefits of GST for MSMEs are highlighted by the report, such as the removal of the tax cascade effect, an increase in the threshold exemption for tax registration, better supply chain efficiency, and increased competitiveness. In addition, there have been notable advantages from the formalization of enterprises and the use of technology for tax compliance. But the report also lists difficulties like higher costs associated with GST compliance, more burdensome compliance requirements, problems with cash flow, and difficulties with interstate transactions. This research offers valuable insights into the ways in which MSMEs perceive the impact of GST on their operations, finances, and growth prospects. It employs both qualitative and quantitative methodologies, such as surveys and literature studies. The results imply that, despite the benefits that the Goods and Services Tax (GST) has brought about, MSMEs still face a number of obstacles that require government assistance in the form of streamlined compliance processes and educational materials. All things considered, MSMEs have experienced a mixed response to the implementation of GST, with both noteworthy advantages and difficulties. Maximizing the benefits of this tax reform will need ongoing efforts to improve small business understanding and ease GST compliance.

Empowering Local Governance Examining the Transfer of Land and Building Rights Acquisition Tax in Alignment with Regional Autonomy Principles

Taxes serve as the primary revenue source for governments, with the Transfer of Land and Building Rights Acquisition Tax (BPHTB) being a significant contributor. BPHTB is levied on transactions related to the transfer of land and building rights. While the central government initially managed this tax, the implementation of regional autonomy has shifted the responsibility for Transfer of Land and Building Rights Acquisition Tax management to local governments. This research aims to investigate the fundamental concept of local taxes in the context of regional autonomy and the role of local governments in collecting Transfer of Land and Building Rights Acquisition Tax, all within the framework of regional autonomy principles. The research methodology relies heavily on a literature review (library research) using secondary data sources, particularly legal regulations. The analysis follows interpretative principles and employs the hermeneutic method. The research findings indicate that, under the framework of regional autonomy, regions have specific rights, including the authority to impose local taxes and levies. As per the Regional Tax and Regional Levy Law, two tax types, Land and Building Tax (PBB), and Transfer of Land and Building Rights Acquisition Tax (BPHTB), previously managed by the central government, have now been transferred to local governments.

Unveiling the factors shaping corporate tax behavior: an empirical study

Research aims: This research investigates the determinants of corporate tax management practices through an empirical analysis. It examines the influence of various factors, including profitability, leverage, capital intensity ratio, presence of independent commissioners, firm size, and access to tax facilities.Design/Methodology/Approach: Multiple linear regression analysis was employed as the research methodology. The study focused on manufacturing companies in the basic industrial and chemical sectors listed on the Indonesia Stock Exchange during the period from 2018 to 2021, utilizing a purposive sampling approach—the final sample comprised 18 companies that met the specified criteria.Research Findings: The results indicated that profitability and tax facilities exhibited a negative impact on tax management, while leverage had a positive influence. Conversely, the capital intensity ratio, presence of independent commissioners, and company size did not significantly affect tax management.Theoretical Contribution/Originality: Effective tax management can enhance company compliance with tax obligations and mitigate the likelihood of aggressive tax strategies.Practitioner/Policy Implications: This research provides a valuable benchmark for companies to implement sound tax management practices aligned with tax regulations. Additionally, it offers insights for policymakers to refine tax regulations accordingly.

Audit firm tenure and corporate tax avoidance: evidence spanning COVID-19 pandemic

Purpose This study aims to examine the effect of audit firm tenure (AFT) on corporate tax avoidance (CTA) and the moderating effect of the COVID-19 pandemic. Design/methodology/approach The sample comprises 41,074 firm-year observations from 32 countries from 2015 to 2020, for which data are collected from various sources: financial data from the Refinitiv database, country corporate tax rates from the Tax Foundation, and other country-level data from the World Bank database. The authors use the book tax difference to measure CTA and multiple proxies for AFT. Findings This study finds that a longer AFT is associated with higher CTA, confirming the notion that long AFT impairs auditor independence. The findings remain robust when considering various AFT proxies, incorporating Hofstede’s cultural factors, using weighted least-squares estimation and addressing endogeneity through propensity score matching. This study also finds a non-linear relationship between extended client and auditor relationships and CTA, supporting the mandatory audit firm rotation regulation and increasing investors’ caution regarding the consequences of extended client–auditor relationships on firm behaviour. Research limitations/implications This study offers new evidence on the effect of the COVID-19 pandemic on the link between AFT and CTA and documents a non-linear relationship between AFT, which has not been addressed in prior studies. Practical implications The findings of this study have several significant practical implications. First, governments and policymakers gain insights into the consequences of extended auditor–client relationships, hence calling for a review of auditing and taxation regulations. Second, the findings provide important insights into the issue of auditor independence, especially during long engagements and crises such as COVID-19. Finally, investors and tax authorities should be more cautious about the risks of aggressive tax avoidance during crisis periods. Originality/value To the best of the authors’ knowledge, this is the first study to use a global data set to investigate the effect of AFT on CTA during the COVID-19 pandemic.

Effect of Taxpayer Knowledge on Turnover Tax Compliance among Small and Medium Enterprises in Kariokor Market in Nairobi, Kenya

Turnover Tax (TOT) compliance among, small, and medium enterprises (SMEs) in Kenya has faced considerable challenges, with tax collection falling short of targets. This study investigates the effect of taxpayer knowledge on Turnover Tax compliance among small, and medium enterprises in the Kariokor market in Nairobi, Kenya. This study adopted an explanatory research design. The target population for the study was 1382 Turnover Tax registered SMEs in Kariokor Market in Nairobi. Data was analyzed using descriptive and inferential statistics. The findings revealed that taxpayer knowledge exhibited a positive influence on Turn Over Tax Compliance (β = 0.203, p = 0.007), indicating that as tax knowledge among taxpayers increases, their compliance with tax regulations also tends to increase. The research established that there is a positive connection between taxpayer knowledge and turnover tax compliance. When taxpayers possess greater knowledge of tax regulations and procedures, their compliance levels increase. KRA should invest in taxpayer education programs to improve knowledge and awareness among SMEs. This will empower business owners to navigate the tax system more effectively and ensure voluntary compliance.

Tax Avoidance Audit Commite Firm Size: Profitability as Mediation

Aims: This study investigates tax avoidance strategies in Indonesia's property and real estate industry, considering firm size, profitability, and audit committee as variables. Study Design: A quantitative study is used to collect data that can be measured in numbers and analysed statistically. Place and Duration of Study: Engaging 15 businesses in the property and real estate industry that has maintained a presence on the Indonesia Stock Exchange for a decade. Methodology: In the study, an empirical analysis was conducted using data contained in the company's financial statements to test tax avoidance in Indonesia. This study used a sample of 150 selected through a purposive sampling approach. The sample was then analysed by testing the direct effects and indirect effects using Path Analysis. In this study, the analysis technique used was SPSS 24 software. Results: The results show a strong relationship between tax evasion, firm size, profitability, and the audit committee. Furthermore, it has been demonstrated that the audit committee, firm size, and tax avoidance can all be mediated by profitability. It is important to remember that when profitability is strong, there is a greater chance of tax avoidance. Conclusion: Further research is expected to expand the coverage by using more companies from different sectors, as well as adding additional variables as part of the analysis. This is important because the research focuses only on one sector and uses a limited number of samples. For investors, assessing the profitability of companies and compliance with tax regulations becomes crucial to identifying potential investment risks.

ОПОДАТКУВАННЯ ЦИФРОВИХ ПОСЛУГ В УКРАЇНІ ТА СВІТІ

Introduction. The article investigates modern approaches to the taxation of digital services both in Ukraine and in the world. A general overview of existing taxation of digital services, as well as an analysis of the components of digital service taxation in different countries, helps to identify important trends and better understand the directions of further improvements in this area in order to adapt the domestic system of digital service taxation to EU regulations. Problem Statement. To study current aspects of regulation of digital service taxation in the context of international cooperation and OECD initiatives, in particular within OECD/G20 Inclusive Framework on Tax Base Erosion and Profit Avoidance (G20/BEPS). The purpose is to generalize the international practice of digital service taxation in terms of studying the possibilities of its approbation in the conditions of Ukraine and evaluating the efficiency of Ukrainian value-added tax on the Services Electronically Supplied by Non-Residents. Methods: General scientific and special methods are used: analysis, synthesis, grouping, description, comparison, theoretical generalization and abstract-logical. Results. The authors examine the main principles underlying digital service taxation, and also compare the taxation systems of digital and traditional business in terms of their compliance with the main principles of taxation, in particular the principle of neutrality, efficiency, fairness, simplicity, flexibility and the principle of gained benefits. The efficiency of the Ukrainian value-added tax on the Services Electronically Supplied by Non-Residents for the period of 2022 was analysed based on the c-efficiency indicator and an assessment of the tax gap, the results of which revealed potential for increasing the volume of its revenues to the budget. Conclusions. The expediency of expanding the VAT base by lowering the VAT registration threshold for non-resident providers of digital services, as well as imposition of VAT on a wider range of services has been substantiated.

Russian regions in wartime: fiscal and economic effects of the Russo-Ukrainian war

ABSTRACT This article addresses the economic and fiscal consequences of Russia’s full-scale invasion of Ukraine for subnational governments in Russia. Using annual fiscal and economic data, we study how different groups of regions have been affected by the ongoing Russo-Ukrainian war. Despite the Russian economy being more resilient to a sanctions shock than initially predicted, we document several important negative tendencies at the regional level, sometimes overlooked in policy discussions and the literature on economic sanctions. In this article, we present new regional data and focus on the effects of the war on overall regional tax collections in 2022–2023, as well as the dynamics of different types of regional and federal taxes. We identify several groups of “winners” (oil- and gas-extracting regions, weapons-producing regions, and the largest city-regions) and “losers” (regions that share a border with Ukraine and regions with sanctions-prone industrial specializations) and discuss the prospects of their resilience.

PENGARUH PENERIMAAN PAJAK BUMI DAN BANGUNAN TERHADAP OPTIMALISASI PENCAPAIAN TARGET PENDAPATAN ASLI DAERAH KOTA BANDUNG TAHUN 2017-2021

This research aims to find out how much influence the Rural and Urban Land and Building Tax (PBB-P2) has on regional original income (PAD) in the City of Bandung. Based on target data and the realization of the effectiveness and contribution of regional taxes to Bandung City's original regional income, there is a decrease in the realization of achievements from year to year. This is influenced by less than optimal land and building tax collection in the urban and rural sectors. The data processing is based on the realization of land and building tax targets as well as regional original income data with an observation period from 2017 to 2021 and secondary data in the form of monthly data for 5 years. The results show that the average contribution of land and building tax to local revenue only produces a ratio of 16%. From the results of hypothesis testing, there is a significant influence between PBB-P2 and the Bandung City PAD

Implementation of the Responsibilities of Land Deed Making Officials in Requesting Proof of BPHTB Payment and Reporting BPHTB Taxes to the Regional Revenue Agency (Central Lombok District Study)

BPHTB is part of the tax payable in every transaction to acquire land and building rights. In Law Number 1/2022 concerning Regional Taxes and Regional Levies, Regencies/Cities are given the authority to collect 11 types of Regional Taxes, including BPHTB. The conditions for collecting these 11 types of Regional Tax are unique in practice, where in collecting BPHTB tax, BAPENDA chooses to hold a team meeting to determine the value of the tax object, while PPAT feels that it is ineffective and inefficient when determining the value of BPHTB tax (Land Rights Acquisition Fee). carried out through team meetings, therefore it is necessary to review the Articles and Regulations related to regional taxes and levies, so that the BPHTB tax value is no longer carried out based on team meetings, this is one of the causal factors If PPAT does not report BPHTB to BAPENDA, if PPAT does not report every 10th of every month, it will be considered as not reporting for a year, and BAPENDA as the regional government will impose sanctions on the PPAT in the form of administrative sanctions, namely paying a fine of Rp. 10,000,000, through empirical normative research and interpretation of primary, secondary and tertiary legal materials, it can be concluded that there is a misconception between the Notary/PPAT and BAPENDA Central Lombok, where this administrative sanction has been in effect since 16 July 2023 which is contained in article 60 PP 35/2023, which requires PPAT to carry out BPHTB tax reporting.

Regulation of the cryptocurrency market by legislation of Hungary

The article is devoted to the study of the regulation of the cryptocurrency market in Hungary, the regulatory consolidation of property rights to cryptocurrency values. A comparative analysis of the regulation of this issue under the legislation of the EU and directly of Hungary was also carried out. Because it is the regulatory framework and court precedents on the territory of the EU that form the basis for the formation of the domestic framework for the regulation of Hungary’s crypto market. It is also important to clearly define Bitcoin and Blockchain as a special kind of thing in Hungarian civil law. The authors paid special attention to the innovation in the tax sphere of Hungary. Virtual currencies, especially cryptocurrencies, and the technology behind them and their constant development pose a serious challenge to the legislator. The task is further complicated by the fact that cryptocurrencies have a number of unique characteristics that distinguish them from one another. The study focuses on issues related to taxation, mainly based on the norms of the current legislation of Hungary. A study of the appearance, concept and social acceptance of money, a presentation and a detailed analysis of each financial function lead to an analysis into the world of cryptocurrencies. The article also argues that each of the payment documents in the form of cryptocurrency can act as digital currencies or cannot perform monetary functions. When writing the article, special attention was paid to digital money of the central bank, which can revolutionize it, as a digital form of legal tender. Nowadays, most countries (for example, England) are experimenting with central bank digital money for its implementation. In theory, central bank digital money can replace traditional money and payment services (eg bank accounts, bank deposits). The advantage of the system is that it would reduce the cost of bank funding and it is also new for monetary policy. Central bank regulation of digital money will be one of the most important issues in the coming years. Due to the extreme volatility of the field under consideration, the authors consider it important to note that this article can only provide a brief and concise overview of the regulatory and tax regulation of the cryptocurrency market under Hungarian law. And this analysis has a positive foundation for further research and comparison with the domestic legal base of cryptocurrency market regulation under the legislation of Ukraine.

Cooperation of firms’ environmental innovation in a supply chain under government regulation

As climate pollution becomes more severe, there is a growing interest in reducing emissions across all industries. Motivated by the emerging popularity of inter-firm cooperation to reduce carbon emissions in the supply chain, this paper investigates the effect of the firms’ environmental innovation cooperation under government regulation. Specifically, we consider a supply chain with a manufacturer selling products through a retailer, where both firms have asymmetrical environmental innovation efficiencies. Based on whether to cooperate in environmental innovation, the manufacturer and retailer invest in environmental innovation separately or simultaneously. The findings suggest that corporate collaboration, especially environmental innovation cartels, can promote environmental innovation, reducing product emission intensity, further driving down wholesale price, and increasing sales volume. Notably, the more closely firms cooperate, the more beneficial it is for the entire supply chain and consumers, but not necessarily for the manufacturer and retailer simultaneously. In the case of environmental innovation cartels, a two-part tariff contract can coordinate the supply chain, increasing the manufacturer’s and retailer’s profits. Furthermore, cooperation is detrimental to the environment when the carbon tax rate is relatively high. The government should set the intensity of regulation reasonably, considering the environmental innovation mode of firms. As the emission quota grows, carbon tax regulation is more likely to result in fewer emissions and is favored by policymakers. We also extend the model to multiple situations to check the robustness of the results and find our main results remain valid.