Taxation In Countries Research Articles

Tax Policy Formation in the Context of European Integration Processes

The article deals with the study of the process of tax policy formation in the context of European integration. The relationship and influence of European integration processes on the formation of tax policy is determined. The analysis of the impact of European integration on the country's tax policy and the main aspects that have an impact on the formation of tax policy were investigated. The article emphasizes the role of European standards and recommendations in construction an effective tax policy.Prospective directions of tax policy formation in connection with European integration processes are considered. The main problems of tax policy formation and aspects of the obligations defined by the Association Agreement between Ukraine and the European Union are described, including: harmonization of tax legislation, efforts against tax evasion and tax avoidance, ensuring transparency and efficiency of the tax system. In addition, the article mentions the positive impact of European integration on the development of the business environment and the creation of conditions for investment attraction. Measures to be implemented to ensure a fair and efficient tax policy, as well as to reduce tax barriers to attract investment and prevent tax evasion are also defined. The main changes in the norms of tax legislation, which must be made in accordance with the requirements of the European Union, are considered. It is noted that the development and adoption of certain norms of tax legislation are insufficient, since it is also necessary to form the administrative potential of the tax administration. The challenges facing the country in adapting to European standards in the field of taxation are considered and described.According to the draft Plan for the Recovery of Ukraine, the main goals of tax policy formation are reflected, taking into account the requirements of Ukraine's integration into the European Union. The main areas of tax reform have been determined, including: formation of a favorable tax policy for economic growth; adaptation of the norms of tax legislation in accordance with the Association Agreement to the requirements of the European Union; improvement of tax administration to increase investment activity.

The non-use of evidence in the adoption of a sugar-sweetened beverage tax in OECD countries.

Studies confirm the positive effect of sugar-sweetened beverage (SSB) taxation on public health. However, only a few countries in Europe adopt SSB taxes. From a public policy perspective, we investigate the conditions under which countries do or do not follow this evidence. Crisp-set Qualitative Comparative Analysis (QCA) of 26 European Organization of Economic Cooperation and Development countries with and without an SSB tax. We test which configurations of conditions (problem pressure, governmental composition, strategic planning, health care system, public health policies, inclusion of expert advice in policymaking) emerge as relevant in determining adoption and non-adoption between the years 1981 and 2021. Pathways that lead to the presence and absence of SSB taxes are identified separately. At least one of the following configurations of conditions is present in countries that introduced taxation: (i) high financial problem pressure, low regulatory impact assessment activity; (ii) high public health problem pressure, a contribution-financed health care system, no holistic strategy for combatting non-communicable diseases (NCDs); (iii) a tax-financed health care system, a holistic NCD strategy, high strategic and executive planning capacity. In countries that did not adopt SSB taxes, we find (i) high regulatory impact assessment activity, high levels of sugar export; (ii) no holistic NCD strategy, high spending on preventive care; (iii and iv) a lack of strategic planning capacity and either a high share of spending on preventive care or inclusion of expert advice. Evidence inclusion requires clear policy priorities in terms of strategy and resources to promote public health.

THREATS TO THE TAX SECURITY OF TAXPAYERS IN THE MODERN ECONOMIC CONDITIONS

Taxes are the main source of filling the state budget. Considerable attention is paid to the fiscal security of the state in the conditions of martial law. Ensuring the country's tax security is impossible without compliance with tax security by the taxpayers themselves. Scientists consider tax security at different levels: tax security of taxpayers, the region, the state, international tax security. Tax security consists of such elements as threats, risks, level, indicators of tax security. The article substantiates the concept of tax security of taxpayers and tax security management as a set of measures to ensure the optimal level of tax security. The tasks of tax security management include identifying threats to tax security, determining the actual and optimal level of tax security, substantiating and implementing measures to ensure the optimal level of tax security, determining the effectiveness of measures to adjust management decisions. Threats to the tax security of taxpayers are divided into managed and unmanaged by the possibility of influencing and managing them. The managed types of threats include the company's management system, the qualifications of accounting staff, the level of tax culture, accounting policy, and the taxpayer's financial condition; to the unmanaged -the system of administration of taxes and fees, changes in tax legislation and the structure of control bodies, a high level of tax burden, force majeure, circumstances of force majeure. Blocking the registration of tax invoices in the Unified register of tax invoices as a tool for electronic administration of value added tax poses a threat to VAT payers, leads to the impossibility of recognizing the tax liability and VAT tax credit. The introduced changes in taxation had a positive effect on taxpayers and the country's budget during martial law.Keywords:tax security, tax security management, threats to tax security, administration of taxes and fees.

Environmental-economic efficiency for carbon neutrality: the role of eco-innovation, taxation, and globalization in OECD countries

ABSTRACT The aim of this paper is to examine the relationship between three determinants – environmental patents, environmental taxation and trade globalization – and the environmental-economic efficiency of 29 OECD countries between 2005 and 2020. Using the Global Malmquist-Luenberger index, this research computes the environmental productivity growth and its main drivers – the catch-up and the frontier shift terms. Besides, dynamic panel linear models are applied to investigate how the three institutional variables affect the dynamics of the computed efficiency indices. Results are as follows: firstly, eco-innovation is the most relevant factor in boosting the environmental productivity growth, pushing forward the technological frontier, and spurring the catch-up term. Secondly, environmental taxation is an ineffective policy instrument in promoting the sustainable growth and technological frontier advancements, having positive impacts only on the catch-up term. Thirdly, trade globalization reveals to hinder the sustainable growth and its two main drivers.

ROLE OF TAXES IN OVERCOMING POVERTY

For the economic growth of Georgia, it is necessary for the tax system to be in accordance with the existing reality and long-term strategic goals of the country. The country's tax policy needs to be based on scientific foundations and practical examples existing in the history. The social problems existing in the country create additional challenges for determining the tax policy. Expenditures that are necessary to run social programs and at the same time to create in the country a strong economy, which has the ability to function effectively in a healthy environment, depends exactly on the proper functioning of the tax system. In order to overcome the poverty, it is necessary to have a tax policy consistent with the country's strategic goals. Such policy allows, along with other economic instruments, to reduce the poverty levels and create a more equitable way of redistributing income among the population.

The Tax Side of the Pandemic: Shifts in Compliance Attitudes and Perceptions in Rwanda

While much knowledge is being generated on the impact of the pandemic, we still know very little on its implications on taxation in lower-income countries. Yet, tax is crucial to fund crisis response and recovery, in addition to broader development plans and expanded government expenditure. This paper starts addressing this gap using an unique dataset of survey data from Rwanda. We document two significant shifts in taxpayers’ views during the pandemic: perceptions about the fairness of the tax system improve by 40 per cent, and their attitudes to compliance become more conditional on the provision of public services of sufficiently good quality. We put these results in the broader context of crisis response. We show that they are not simply linked to individual experiences of the crisis or access to relief, but they are more likely linked to generalised improvements in solidarity and patriotism.

Effects of home country tax reform on FDI inflows to South Korea: A synthetic control method approach

To encourage the repatriation of foreign subsidiaries’ profits, Japan and the UK switched from a worldwide tax system to a territorial one in 2009. These home country tax reforms could cause the unintended result of allowing multinational corporations (MNCs) to invest more in low-tax countries due to the possibility of profit shifting. Using the dataset of South Korea and the synthetic control method, we find that the transition to a territorial tax system causes Japan, a country with a relatively high corporate tax, to increase its investment in South Korea.

Reducing complexity and compliance costs: a simplification safe harbour for the global minimum tax

AbstractI present a simplification safe harbour based on tax administrative guidance for Pillar Two, the global minimum tax, developed together with Cedric Döllefeld, Joachim Englisch, Simon Harst and Felix Siegel. It aims at reducing unnecessary compliance costs by avoiding effective tax rate (ETR) calculations if a minimum tax of 15 per cent has already been paid. The simplification safe harbour consists of a two‐level test to determine if a full GloBE ETR calculation is required from a multinational enterprise (MNE) or if a simplified ETR calculation or no calculation at all is sufficient. The test consists of a country‐level test and – only if necessary – an MNE‐level test. The country‐level test assesses a country's tax system. It seeks to determine whether the national tax system's nominal tax rates are (too) low and whether significant deviations between a country's tax base and the GloBE income exist. The second level, the MNE‐level test, is only carried out if the country‐level test has identified potential ‘red flags’. Even if this second test is required, the simplification safe harbour offers a significant reduction in compliance costs. This reduction is achieved by relying on national tax data, which are readily available in firms, instead of highly adjusted accounting data.

Foreign experience in legal regulation of cryptocurrency taxation

The active development and distribution of cryptocurrencies around the world raises a natural question about the need to determine the procedure for legal regulation of taxation of transactions with cryptocurrencies. In this article, on the basis of the comparative legal method, the author examines the experience of legal regulation of cryptocurrencies and the procedure for their taxation in foreign countries. As part of the study, the experience of the United States of America, Singapore, New Zealand, Iran in terms of the legal regulation of cryptocurrencies and the procedure for their taxation is analyzed. It has been established that each of the above-mentioned states adheres to its own special approach in terms of regulation and taxation of cryptocurrencies. As a result of the study, three main models of legal regulation and taxation of cryptocurrencies in foreign jurisdictions were identified: the first approach is based on the recognition of cryptocurrencies as a type of convertible virtual currency that can be used as a means of payment. At the same time, in this approach, for tax purposes, cryptocurrencies are considered as property; under the second approach, cryptocurrencies are not recognized as legal tender. In the second approach, cryptocurrencies are treated as property for tax purposes; the third approach is based on a complete ban on the use of cryptocurrencies in the state, taxation of transactions with cryptocurrencies is not established.

Proposed novations in global taxation

Subject. Tax competition between jurisdictions, contributing to profit removal of multinational enterprises (MNEs) from taxation is a serious problem in the global economy. To solve it, an international agreement was concluded in 2021 with a wide range of participating countries, which contains important novations for the entire system of global taxation. However, its implementation is an open question. Objectives. The aim is to provide a unique study of the content of the proposed novations in global taxation, and possibilities and prospects for their implementation in national legislation. Methods. The study employs general scientific methods, like abstraction, induction, deduction, synthesis, comparative analysis. Results. The paper describes the content of two components of the said agreement, gives a forecast of possible consequences of their application for MNEs’ profit taxation, substantiates the position that in the modern terms of world economy, the implementation of these novations will be postponed. Conclusions. The novations contained in the international agreement of 2021 specify the application of the territorial principle of taxation for MNEs’ income (pillar 1) and introduce the minimum allowable level of tax on their corporate profits (pillar 2). The implementation of the novations will influence the overall level of corporate taxation in separate countries, especially in low-tax jurisdictions, limit the possibilities of international corporate tax planning and removal of profits from taxation, and modify the practice of granting tax preferences to businesses. However, under current economic and political turbulence in the world economy, one should not expect imminent implementation of the novations into national legislation.

Digital Tax Arithmetic

More than 20 countries recently adopted digital services taxes, with many others threatening to do so. The Organisation for Economic Co-operation and Development (OECD) is attempting to convince countries to withdraw their digital taxes in return for an international agreement to implement its Pillar One proposal that would let countries tax prorated shares of the profits of foreign firms with local sales. This paper identifies incentives that countries have to impose inefficiently high rates of digital taxes and calls attention to shortcomings of the OECD’s formulary apportionment alternative. Diverging interests and the inflexible nature of the multilateral bargaining process make prospects for global agreement highly uncertain.

Personal income tax: development prospects

The article is devoted to personal income tax. During the analysis of scientific publications, the practice of income taxation in foreign countries, the approaches to the establishment of differentiated tax rates depending on the income received are revealed. The author's vision on the application of tax incentives for individuals is presented, and measures to improve the taxation of personal income are proposed.

Democracy and Taxation: Evidence from African Countries

ABSTRACT Using a database on fiscal performance from the African Economic Outlook (AEO) for 51 African countries, this article examines the link between regime type and taxation. The existing theoretical and empirical literature on this issue has thus far yielded very contradictory results, and the relationship between regime type and taxation in the African case has not been studied as much, largely because of insufficient data. Yet, the African case is interesting for several reasons. First, many African countries have democratized in the past two decades. At the same time, tax revenue as a percentage of gross domestic product (GDP) has increased, in part due to resource-related tax revenues, and several African countries are already making significant tax effort. There has also been much emphasis in recent years about the need for African countries to mobilize more resources domestically in order to reduce their reliance on external sources. Examining the determinants of taxation and tax structure is thus an important question, which this article attempts to answer. Controlling for various socioeconomic factors, the authors find some evidence of a positive relationship between regime type and taxation, as well as some support for the idea that this relationship varies according to the type of taxes that are considered. Based on the authors’ findings, this article presents some policy recommendations that can strengthen the link between democracy and taxation in African countries.

Article: May a Country Tax a Subsequent Restructuring Under the Merger Directive?

The article concerns the compatibility with the merger directive of Polish regulations introduced as of 1 January 2022, according to which a restructuring (merger, demerger or exchange of shares) is not tax neutral for a given shareholder if it involves allotment of shares in exchange of shares which were obtained as a result of a prior restructuring. For the purpose of this analysis, the authors take a deep look at the nature of deferral provided in Article 8 of the merger directive and summarize the case law and the doctrine views. While they acknowledge many areas of dispute around the concept of the deferral, they conclude that irrespective of the approach adopted, taxation of shareholders solely because they exchange shares granted to them as a result of a previous restructuring is not in line with the directive. Regardless of the above, the authors also discuss whether Article 8(6) of the directive provides for a right of a Member State to tax gain which arose until the moment of the restructuring if, as a result of the restructuring, the taxing right under a double taxation treaty (DTT) is transferred to another Member State. Merger directive, 2009/133/EC, 90/434/EEC, shareholder, allotment of shares, merger, demerger, exchange of shares

Empirical Studies of Taxation in BRICS Countries: Literature Review

The cross-country studies in taxation could provide a number of unique advantages over national studies The paper aims to analyze existing empirical research devoted to tax issues in BRICS countries to classify them according to their aim and empirical base and answer the question: could BRICS countries really be compared in tax frame, and for what extend. The sample for this study includes all papers available in Science Direct, Google Scholar and E-Library databases, which include pair of words “tax” and “BRIC(S)” or “налог” and “БРИКС” simultaneously in the title, abstract, keywords. Literature sources were sorted by relevance and search depth was not limited. The literature review showed that studies devoted to taxation in BRICS countries have different approaches based on their aim and data. The most part of research is based on tradition approach (tax rates and tax legislation) only few research of taxes and related topics in BRICS are based on indices. We also separated several directions in studies related to taxation in BRICS countries: comparative description of taxation; tax avoidance and tax evasion and their determinants; examination of the particular tax or particular industry to find relevant experience to apply; examination the interaction between taxes and other variables (taxes and economic development; taxes and economic inequality; taxes and environment). The majority of articles do not aim to find some regularities for BRICS countries they only use these countries as random sample comparing them with G7 or MINT or other groups of countries. While almost the BRICS member countries are rapidly developing, they are diverse in culture, economic conditions and social and political structures. From this perspective we could not address to BRICS countries as a homogeneous group that could be used for observation in tax frame.

Reforms Effectiveness and Fiscal Performance in Car

The CAR is a landlocked country in the heart of Africa with enormous potential not yet exploited but economically poor. The breasts providing it with the revenue to finance its public expenses are made up of tax and customs revenue as well as external donations and loans. Tax and customs revenues are preponderant and decisive in its own resources but they bring in little compared to the total wealth of the country measured in terms of GDP. Several reforms whose main goal is to improve the yield of Central African tax revenues have led the country to review the legal (tax code, investment code, tax treaties), economic (tax provisions applicable to the sectors of economic activity) and tax (measures in terms of tax rates, tax base and basis, conditions of liability and exemptions). The ultimate objective was to achieve profitable and inexpensive taxation for the Central African taxpayer. The aim of this article is to analyze the effectiveness of these reforms in terms of performance with regard to the successive measures applied to modify the country's tax system.

ОСОБЕННОСТИ СОВРЕМЕННОЙ НАЛОГОВО-БЮДЖЕТНОЙ ПОЛИТИКИ РОССИИ С УЧЕТОМ ЦИФРОВИЗАЦИИ

This article aims to systematize the distinctive features of the modern fiscal policy of the Russian Federation, taking into account digitalization. The hypothesis of the study is as follows: the high dynamics of the penetration of information and communication technologies in social and economic processes, the lack of the need to modernize certain systems and the availability of the ability to build them anew in combination with the assignment of digitalization as a priority of state policy have allowed to make significant progress in improving the efficiency of fiscal policy. At the same time, the peculiarities of the state of the public administration system determine the digitalization emphasis on the fiscal component of fiscal policy and do not fully realize the potential of the controlling component in relation to public spending. The methodology of the study is based on general scientific methods of theoretical and methodological analysis of sources, abstract-logical approach, analysis and synthesis, formal-legal and method of content analysis. As a result of the study, the proposed hypothesis is proved and it is shown that the digitalization of taxes has great potential in the sphere of digital taxation of the tax system in modern Russia, allowing to comprehensively solve the problems of functioning and development of this system and overcoming its current crisis. It is shown that the digitalization of taxes is a priority area of digital taxation of the tax system in modern Russia. The author assesses the most significant problems facing the further digitalization of the country's tax and fiscal policy. These problems include: complication of tax evasion schemes (including — with the use of cryptocurrencies), technological dependence on imported software and hardware complexes, the risk of achieving excessive administrative burden on businesses and the self-employed.

Value-added tax in the GCC countries: evidence from UAE

Value-added tax in the GCC countries: evidence from UAE

Free Trade and Tax Efficiency in the West African Economic and Monetary Union: what can we learn for the AFCFTA?

The aim of this paper is to examine the effect of free trade on the tax efficiency of West African Economic and Monetary Union (WAEMU) countries. Specifically, the objective is, on the one hand, to determine the tax efficiency levels of the various taxes, and, on the other hand, to determine the influence of the common external tariff and trade openness on the tax efficiency of the various taxes in WAEMU countries. Using panel data over the period from 1980 to 2019, a stochastic tax frontier model is estimated to determine tax efficiency scores. A censored Tobit model is then used to assess the effect of free trade on the tax efficiency of countries. The results show respective average tax efficiency scores of 75.494%; 3.355%; 69.312% and 60.336% for total tax, direct tax, indirect tax and tax on foreign trade in WAEMU. In addition, the common external tariff and trade openness positively influence the tax efficiency of countries. However, the interaction between free trade and structural transformation, the quality of tax administration and income inequality reduce the tax efficiency of taxes. Decision-makers need to urgently take into consideration the structural transformation of economies, and the improvement of the efficiency of tax administrations in order to benefit from the application of the AfCFTA.

Value-added tax in the GCC countries: evidence from UAE

Value-added tax in the GCC countries: evidence from UAE