Tax Resources Research Articles

Analysis of Contribution and Effectiveness of Local Taxes and Levies on Southeast Sulawesi Revenue

The research aims to assess the contribution of local taxes and levies to Southeast Sulawesi Province's original income and evaluate their effectiveness. Utilizing quantitative descriptive research, findings indicate a consistent high contribution of local taxes from 2018 to 2022, ranging between 98.99% to 99.25%. This demonstrates their significant role in surpassing the 90% mark, thus positively impacting the province's Original Income. Conversely, levies exhibit unsatisfactory performance during this period, with contributions declining notably, hitting a low of 0.01% in 2022. In terms of effectiveness, local taxes consistently surpassed the 100% mark from 2018 to 2021, showcasing successful revenue targets attainment. Although a slight dip occurred in 2022 to 95.81%, local taxes remained effective. Conversely, levies demonstrated exceptional effectiveness in 2018 and 2019, exceeding 120%, indicating proficient management and surpassing revenue targets. The reciprocal relationship between the government and the people, as per stakeholder theory, underscores how effective tax management influences the province's welfare. The positive correlation between local taxes, levies, and regional income stems from improved tax collection principles enforced by stakeholders. In conclusion, while local taxes significantly contribute to regional income, effective levy management is crucial. This study underscores the importance of leveraging tax resources for societal welfare, highlighting the need for continuous evaluation and improvement in tax management strategies.

New Challenges Affecting the Tax Security of Russia

Taxes and other obligatory payments are the main source of budgetary income, their establishment and collection — a manifestation of one of the system-forming, sovereign rights of the State. This makes tax revenues essential for the stable development of the economy and national security. This makes tax revenues essential for the stable development of the economy and national security. The adequacy of tax resources makes it possible for the State to realize such basic legal values as the protection of mothers and children, social security for vulnerable categories of citizens, medical care, the right to education and others. The study considers the essence and types of new challenges affecting the tax security of Russia and the economic effects of the identified challenges to the fiscal base of the state.

Municipal Territoriality: The Impact of Centralized Mechanisms and Political and Structural Factors on Reducing Spatial Inequality

We explore two complementary mechanisms that are designed to work together to reduce spatial inequality—redrawing municipal borders and the redistribution of tax resources. This study’s methodology is based on the empirical analysis of 376 decisions of boundary commissions and permanent geographic commissions that resulted in land transfers and redistributed tax resources in Israel. Our findings indicate that the impact on spatial inequality is mixed. Over time, the amount of land transferred to low socio-economic municipalities has increased, provided that these municipalities are located in the center of the country, or have a Jewish ethnic majority, are politically affiliated with the Minister of the Interior and the ultra-Orthodox right, are financially sound, and have a large population and a large area. In contrast, the redistribution of tax resources provides revenue increases for low socio-economic municipalities that are in the periphery, largely populated by Arabs, are unaffiliated with powerful politicians, are financially weak and small in size and population.

Income Tax “Need to Knows” for Military Families

This publication discusses general information about income tax terminology, general information about income tax rules, rates, and refunds, military-specific income tax challenges, military-specific income tax regulations, five income tax planning tips for military families, and income tax resources. Written by Barbara O’Neill, Martie Gillen, and Kristen Jowers, and published by the UF/IFAS Department of Family, Youth and Community Sciences, January 2024.

Financial autonomy in Spanish local governments: Empirical evidence of beta and sigma convergence

Territorially, Spanish public administrations are organized into State Administration, Autonomous Community Administration, and Local Administration. Local government has the closest contact with citizens and therefore the powers and decisions taken by local institutions have the greatest impact on the social welfare of citizens. To ensure this well-being, it is necessary to analyze and pay attention to the administrative and financial autonomy of local governments. Financial autonomy translates into the capacity of local entities to govern their respective finances, determining, within certain limits, the level of the volume of their own resources and organizing their expenditures. In this work, we study the Financial Autonomy Indicator, which aims to determine the tax resources available to the local entity. Taking into account that Spanish municipalities have, depending on their population size, different obligations when providing services to citizens, the convergence of financial autonomy is studied to detect whether there are common trends by applying the techniques of β-convergence and σ-convergence. It is analyzed whether municipalities starting from lower indicators achieve higher growth over time ( β-convergence), and whether dispersion between municipalities is reduced ( σ-convergence). Points for practitioners Local autonomy grants local entities the freedom to manage their own interests within the State's legal framework. Greater economic diversity and the ability to raise more money on their own through taxes, fees, and other sources characterize larger communities. They have a wider tax base thanks to their higher economic diversification, which opens up more opportunities for revenue collection. The speed of convergence is highest in the smallest municipalities. Knowing whether there is convergence or divergence in financial autonomy can help policy makers.

Province Regional Tax Revenue Increase Model

This study aims to formulate a model of increasing local taxes in Jambi province. The model used in this study is the simultaneous equation model. The results showed that there was a positive and significant influence on regional investment, population, and economic growth, number of commercial business units, taxpayers and natural resources on local tax revenues. Meanwhile, tax resources have no significant effect on local tax revenues. Especially for regional investment, it is also significantly influenced by special allocation funds, while infrastructure does not have a significant effect on regional investment.

Is contributory health insurance indeed an addiction to a bad idea? A comment on its relevance for low- and middle-income countries

Financing of health systems is an enduring concern world wide. Yazbeck and colleagues in their paper make an important point that when there is a choice between financing in which contributions from citizens take place in the form of generalised taxes versus those in which they are in the form of insurance premiums, the overwhelming evidence suggests that tax-based financing is unambiguously superior even in low- and middle-income countries. Despite the strength of their case against contributory insurance, we suggest that the path forward may be more complex than they envisage for a number of reasons. The problem of a high proportion of informal sector workers that they argue impacts contributory approaches is also an issue with taxes because of the very low numbers of people who file returns. Taxes in most developing countries are in fact largely derived from highly regressive indirect taxes which the poor are forced to pay. Additionally, in most developing countries, including large ones like India and Nigeria, the only choice on offer is continued dependence on out-of-pocket expenditures. In such a situation exploring alternatives which are superior to out-of-pocket expenditures becomes imperative. Asking citizens to wait interminably for additional tax resources to be made available would be a grave disservice to them.

Revenue Leakages and Economic Growth in Nigeria: The Place of Forensic Accounting

In this study, the effect of revenue leaks on Nigeria's economic growth from 2011 to 2021 was examined. This was done in accordance with the metrics of Oil Revenue Leakage, Non-oil Revenue Leakage, and Total Revenue Leakage, as well as their effects on Nigeria's economy as measured by Real Gross Domestic Product. The World Bank Statistical Bulletin, the American National Bureau of Statistics and the websites of the Central Bank of Nigeria and the Federal Inland Revenue Service were used to create data for the years 2011–2021. The dataset for regression was defined using descriptive statistics, and the stationarity of the data was tested using the unit root method. Correlation analysis and a multiple regression analysis were employed to see how closely the independent variables moved in tandem with the relevant dependent variable. Findings revealed that non-oil revenue leakage had a beneficial impact on economic growth while oil revenue leakage had a negative impact but was not statistically significant. Accordingly, the study's findings on the connection between Nigeria's GDP growth and revenue leaks were inconclusive. The report suggests that to promote a high rate of tax compliance and reduce the twin problems of tax evasion and avoidance to a tolerable level, the government should generate job opportunities for everyone through the smart use of tax resources.

The Effects of Corporate and Individual Income Taxes on A gricultural Development in Nigeria

Abstract Research background: The contribution of Nigerian companies and personal income taxes to agricultural development must be assessed. Throughout the years, comparable studies have focused on general economic growth rather than a specific facet of the national economy. Agriculture ensures food safety, job creation, and industrialization, which is why government revenue should be reassigned to improve agricultural production. Purpose: The particular goal of this study is to investigate the extent to which corporate and individual income taxes influence agricultural growth in Nigeria. Research methodology: The data set for dependent and independent variables are collected from the Central Bank of Nigeria Statistical Bulletin and OECD accordingly. The reliant variable in the study is government investment in agriculture, while the independent variables are companies and individual income taxes. The data collected for this study is analyzed using a multiple regression analytical approach. Result: At the 1% level of significance, the results of the multiple regression analysis show that personal income tax has a significant and positive influence on agricultural development. Corporate tax does not have a significant impact on agriculture. This outcome could be attributed to the lack of government attention to agriculture as well as other Nigerian factors such as corruption and tax evasion. The research suggests that tax revenue should be collected more effectively and efficiently, and that tax resources be directed more toward sustainable agriculture. Novelty: This study is unique in that it is the first to examine the usefulness and application of corporation and individual income taxes to agricultural finance.

Public financial resources: The role of territories (The case of Russia)

The article aims to identify the role of individual territories in the formation of gross and net tax revenues to the federal budget. The peculiarity of the approach will allow, to a certain extent, to assess the nature of spatial (horizontal) redistribution of the federal part of tax transfers administered by the Federal Tax Service. During 2006—2020, the values of net revenues to the federal budget turned out to be negative only in the North Caucasian and Far Eastern districts. In the context of the proposed approach, they are recipients of the federal budget; some of the federal support is, under certain assumptions, financed by tax revenues from other territories. As a rule, 40—50% of all subjects of the Russian Federation have negative net revenues. However, in most cases their values are insignificant, sometimes changing sign. The number of recipients of the federal budget, indicating a change in government priorities in the distribution of tax resources along the budget vertical, consistently increased until the crisis of 2008—2009 and decreased after it (with the exception of 2018—2020).

Planning Strategies and Barriers to Achieving Local Drought Preparedness

Problem, research strategy, and findings Here we describe a critical link between drought risk management and planning at the local level, the traditional lack of overlap between these fields, and current and future opportunities for addressing drought within local drought planning. We used a national survey of American Planning Association members (n = 537) to examine local planners’ perceptions of drought planning strategies and barriers, as well as their jurisdictions’ current and future drought-addressing plans. Explanatory factors included planner experience, communication with water managers and hazard planners, and factors characterizing the drought threat and capacity of their jurisdictions. We found planners most amenable to collaboration with water conservation and hazard mitigation planning processes, somewhat amenable toward integrating drought into local land use plans and day-to-day policies, and less interested in undertaking standalone drought plans. Current and future drought planning endeavors were largely driven by the threat of drought and less so by the resources found within planners’ jurisdictions. State plans and mandates played a role by requiring plans and/or providing capacity for the process. Future planning efforts may be limited by the barriers planners perceive. Funding, in terms of local tax resources, does not appear to restrict where drought planning has taken place to date. Planners’ perceptions of leadership, political will, data, and coordination across jurisdictions as barriers are lessened through experience, communication with water managers and/or hazard planners, and state mitigation plans. Takeaway for practice Preparing for future drought impacts may require communities to adopt mitigation actions through local planning processes. Local planners may prefer to address drought through water and hazard plans, but land use plans and standalone plans may also be important tools for effective mitigation where drought poses a threat. Some of the barriers that planners face may be reduced through experience and communication with water and hazard planners, as well as their states’ engagement in statewide drought mitigation plans.

The Impacts of Value-Added Tax Audit on Tax Revenue Performance: The Mediating Role of Electronics Tax System, Evidence from the Amhara Region, Ethiopia

Governments worldwide cannot collect the required tax revenue for their planned activities. This study aims to assess how inefficient VAT audit function and related factors affect tax revenue performance in Amhara Region, Ethiopia. The study used primary data sources from 377 VAT registered taxpayers in Amhara Region. It also used the Ability to Pay theory of taxation, structural equation model, path diagram, and multiple regression with SPSS/AMOS software for data analysis to identify the relationship between VAT audit and tax revenue performance. Even though the Amhara Region has revenue potential to cover its expenditures, because of inefficient VAT audit functions, poor system of tax education, lack of tax resources, and long time served tax rate, the tax revenue performance is inefficient. The study assured that VAT audit and tax education significantly affect tax revenue performance. The scarcity of resources for the VAT audit function is a critical problem. Even if the existed technology networked up to woreda levels, tax auditors did not use this system appropriately. Long-time-served tax rates also greatly influence tax revenue performance. The study recommended that there should be a chain mentor relationship between experienced auditors to new and ineffective auditors. The government should supply appropriate technology that is simple to use and quickly detect tax evasion. The existed tax rate and the system of tax education should be revised. The above findings are essential for taxpayers, policymakers, and tax authorities to understand, analyze, and use the main causes of VAT audit problems on tax revenue performance.

The Identification of Factors Influencing Value-Added Tax Revenue Performance in Cambodia

ABSTRACT This research investigated the direct effect of a VAT audit, tax education, tax resource, and tax rate on tax revenue performance, including the indirect impact of tax resources on tax revenue performance through VAT audit or tax education. In this study, five latent variables were predicted by twenty reliable manifest variables as referring to confirmatory factor analysis. We analyzed causal relationships among latent constructs based on the structural equation model. The estimation of sample parameters and statistical tests for hypotheses testing of the direct effect of all latent variables on tax resource performance were performed under the maximum likelihood estimation method. From this method, the estimated sample parameters were 0.103 for VAT audit, 0.161 for tax education, 0.014 for tax rate, and 0.583 for tax resource. These variables had a direct statistically significant effect on tax resource performance. The estimation standard errors for the indirect effect hypotheses testing were developed under the maximum likelihood method and bootstrapping technique. The test results indicated that tax resources positively affected tax revenue performance through the mediation of VAT audit or tax education. Tax resources played the most critical latent variable in explaining tax revenue performance. Keywords: Tax resource performance; CFA; SEM; Maximum likelihood; Bootstrapping

ПОДАТКОВИЙ РОЗРИВ З ПОДАТКУ НА ПРИБУТОК ПІДПРИЄМСТВ: ЧИННИКИ ТА ОЦІНКА

Control over compliance with tax legislation is mainly entrusted to the governments of countries, which can use various instruments to monitor payment of main budget-forming taxes, including corporate income tax. There are many uncertainties and threats to corporate tax revenue, given recent technological advances and current abilities of international companies to do business around the world.Therefore, it is within countries that there are the greatest opportunities for mobilizing tax resources by increasing the level of compliance with tax legislation and eliminating or reducing the tax gap. Based on the results of the analysis of tax gaps in the income tax, it is possible to develop new relevant directions for improving tax policy and tax administration within the country. The article examines the prerequisites and factors that lead to the emergence of a tax gap, substantiates the importance of control and assessment of tax gaps. The meaning and difference between gross and net tax gap is specified. The main approaches to assessing tax gaps are considered - bottom-up approach and top-down approach. The main approaches to assessing tax gaps are considered - bottom-up approach and top-down approach. The differences, features of application and shortcomings of these methods, necessary conditions and elements for applying the chosen approach and sources of information, such as requests, information about taxpayers, data comparison, data of tax audits, are analyzed. The two main goals of the tax gap assessment were considered, namely, the improvement of tax policy, which is related to the "top-down" method, and the improvement of administration of the corporate income tax. At the same time, the use of the results of the assessment of the tax gap depends on the approach used to calculate the corporate income tax. International experience in assessing the size and structure of the tax gap from the corporate income tax is summarized based on the examples of such countries as Great Britain, Canada and the USA, which conduct tax gap analysis to improve fiscal legislation and reduce the level of the tax gap.

Redistribution of tax resources: a cooperative game theory approach

We consider the problem of how to distribute public expenditure among the different regions of an economic entity after all taxes have been collected. Typical examples are: the regions that make up a country, the states of a federal country, or the countries of a confederation of countries. We model the problem as a cooperative game in coalitional form, called the tax game. This game estimates the fiscal resources collected in each region, or coalition of regions, by differentiating between what comes from economic activity within each region and what comes from trade with the other regions. This methodology provides a measure of the disagreement within a region, or coalitions of regions, with respect to the budget received. Similarly, the stability of a budget allocation can be inferred by its situation within the core of the corresponding tax game. We consider the Spanish case as an example and show that the current regional financial system has a moderate degree of instability. We introduce two budget allocation rules, both borrowed from the cooperative games literature: the balanced allocation, which coincides with the nucleolus and with the Shapley value of the tax game, and the weighted balanced allocation, which coincides with the weighted Shapley value. We compare both budget allocation rules with the current Spanish financial system.

ВНУТРЕННИЕ ФИНАНСОВЫЕ РЕСУРСЫ ГОСУДАРСТВЕННЫХ УЧРЕЖДЕНИЙ В СИСТЕМЕ ГОСУДАРСТВА ПРИ ВЗАИМОДЕЙСТВИИ НАЛОГОВЫХ ИНТЕРЕСОВ

The article discusses proposals for saving internal, tax resources in the state system for use for defense, which are sought from saving tax deductions, developing the customs service, from processing nuclear weapons, as well as optimizing the tax burden, expanding the list of tax benefits and exemptions for basic taxes. as well as the dependence of budgetary revenues on the current market of raw materials and energy carriers, a decrease in the amount of budgetary costs, the regulation of cost reductions for defense enterprises in the domestic energy market, an even distribution between the tax base and tax revenues by territorial characteristics at defense industry enterprises, enhanced control over tax administration, tax burden.

Local incentives and national tax evasion: The response of illegal mining to a tax reform in Colombia

Achieving a fair distribution of resources is one of the goals of fiscal policy. To this end, governments often transfer tax resources from richer to more marginalized areas. In the context of mining in Colombia, we study whether lower transfers to the locality where the taxed economic activity takes place dampen local authorities’ incentives to curb tax evasion. Using machine learning predictions on satellite imagery to identify mines allows us to overcome the challenge of measuring evasion. Employing difference-in-differences strategies, we find that reducing the share of revenue transferred back to mining municipalities leads to an increase in illegal mining. This result highlights the difficulties inherent in adequately redistributing tax revenues.

The Impact of Trade Openness on Trade and Tax Revenues in Nigeria (1981-2018)

The challenge to provide enough resources to fund infrastructure development has been the bane of most developing countries like Nigeria. The appropriate economic and trade policies to deploy to increase revenue generating capacity of the government become compelling. This study examined the impact of trade openness on trade and tax revenue in Nigeria between 1981 and 2018. The study employed Augmented Dickey Fuller and Phillip Peron tests to conduct the stationarity tests. Akaike Information Criterion and Final Predictor Error provided the best lag lengths. Johansen cointegration test was used to determine the long run relationship. The study employed Vector Error Correction Model for the regression analysis while T- test and F test were also done to confirm the statistical significance of the variables and the models. For autocorrelation problem, Breusch-Godfrey serial correlation LM test were conducted and other post- estimation tests were also used. The result of the study showed that trade openness was negatively related with total tax revenue and with trade tax revenue (CED). The results indicate that a unit increase in trade openness leads to 11.58% decrease in trade revenue from CED and 13.69% decrease in total revenue. Trade openness as a policy to increase tax revenue was not beneficial to the country. Trade openness should be adopted with manufacturing and productive sector orientation in mind. In addition, tariff rates should be reviewed, and the tax structure should be transparent, and judicious use of tax resources should be implemented by government.

Direct Taxes and Income Redistribution in Nigeria

Introduction - Income redistribution is central to the development of any nation. However, the issue of generating income and its redistribution in Nigeria has been challenging overtime, with the nation depending largely on oil with little consideration on other sources of income. Also, insufficient tax resources, tax collectors' illicit activities and a lack of awareness of the value of paying tax by taxpayers are some of the problems facing the country in terms of tax revenue generation. Objective - Our study therefore investigated the impact of direct taxes on income redistribution in the context of Nigeria, using company income tax, personal income tax, petroleum profit tax and education tax as direct tax variables. Methodology/Technique - The study covered the period 1990 to 2019 using annualized data set from Federal Inland Revenue Service (FIRS) and Central Bank of Nigeria Statistical Bulletin. The study employed the Fully Modified Least Squares (FMOLS) to analyze the data. Research Findings - Empirical results of our study revealed that, company income tax and education tax had insignificant negative effects on income redistribution, while personal income tax and petroleum profit tax had significant positive effects on income redistribution, thus reducing income inequality in the context of Nigeria. Recommendations - We thus recommended "inter alia" that, revenue generated from taxes should be effectively used by government in providing quality infrastructures like schools, railway, healthcare facilities and other business outfits across various states for the general wellbeing of the citizens as this is hoped to close the income distribution gap between the rich and the less privileged in the country. Type of Paper - Empirical. Keywords: Income redistribution; direct taxes; government expenditure on infrastructural goods; Fully Modified Least Squares (FMOLS), Nigeria; Income Inequality. JEL Classification: E21; E42; E62; O23 URI: http://gatrenterprise.com/GATRJournals/GJBSSR/vol9.2_8.html DOI: https://doi.org/10.35609/gjbssr.2021.9.2(8) Pages 182 – 196

THE ROLE OF COURT OF JUSTICE WITHIN THE EU TAXATION LAW

Key words: EU taxaion, functions Court of justice of EU, role of CJEU in EU taxation, creative jurisprudence Introduction The “European tax law” is a set of regulations issued by the EU institutions and designed to provide the control of tax matters over the tax legislations of the Member States. However, the existence of EU rules aimed to regulate the procedures for taxation in the European Member States is not enough to identify an area of an independent and autonomous law. In fact, if the tendency to profile the EU law is developing in the recent times, in order to valorize the regulatory provisions of specific areas of the legal system (giving a meaning to the definition of “European private law” or “European administrative law” or even “European trial law”), it must be considered that the identification of an autonomous sector of law requires the logic of a “legal system”; it basically implies the existence of principles and juridical values and the dynamic relationships between the norms. Therefore, the existence of a set of general rules by EU institutions cannot be considered sufficient to identify a “European tax law”; if these rules compose a mere aggregate without a functional meaning, the element of the systematic unity would be lacking and there should not be an autonomous order of law. In any case, there are several elements which lead to identify an independent and autonomous sector of law in the set of EU norms regarding the taxation law. On the other hand, it must be noted that the fiscal discipline drawn up by the EU sharply drifts away from the developmental lines of the modern tax law. In fact, the whole of the European fiscal regulations essentially meets the logic of the market integration on the basis of the principles of the trading free competetion regardless of the nationality or the residence. Therefore, the tax system is free of its potential load of “obstruction” regarding the free movement of capitals, people, goods or services (the four freedoms of European tradition), in order to show up as a system of “neutral” rules compared to the market and the economic forces of a “free system”. There is a complete lack of the tradition of the European constitutional values which characterize the basic skills of the taxation phenomenon. Particularly, it can be observed as a lack of the “fiscal interest”, intended as the general interest of the associates to the acquisition of tax resources in order to facilitate the social development, the institutional progress, the growth of the Welfare State and the essential equality of all the members of the civil community. Likewise, there is no trace of a reference to the ability to pay, an inescapable principle of distribution of tax burdens among the associates in order to ensure the concrete pursuit of a logic of the national wealth redistribution, which is at the same time a measure of guarantee and a safeguard of the individual sphere from the public administration excesses operated for the tax burden.