Taxation In Countries Research Articles

The electoral consequences of taxation in OECD countries

Researchers, politicians, and pundits commonly expect that voters retrospectively punish and reward government parties for tax policies, but there is surprisingly little cross-country evidence that backs this claim. This study provides comprehensive evidence from 30 OECD countries, 1970–2020. It analyzes the electoral fates of government parties that increased or cut taxes on personal incomes and consumption. Our findings confirm the prevalence of electoral consequences, but these depend on the type and direction of tax change. Government parties lose votes when they increase personal income taxes while there is only marginal evidence suggesting electoral reward for income tax increases and electoral consequences after value-added tax changes. The findings also indicate the distributive effects of reforms to matter. The most pronounced consequences arise when governments raise income taxes on the poor. The moderating role of conditional factors such as government partisanship and fiscal pressure are explored, but no consensus emerges from the findings.

The role of anti-tax avoidance in tax base flow and international tax competition

By constructing the profit shifting model for MNCs, this study uses transfer pricing rules and bilateral tax conventions to examine the impact of anti-avoidance system on a country's corporate income tax base. Based on the balanced panel data of 50 countries from 2000 to 2013, we use the SYS-GMM method and find that the transfer pricing rules of neighboring countries significantly reduces the tax base of a country, while the impact of bilateral tax agreements on a country's tax base is slight. During the sample period, the management level of international anti-avoidance is improved, while the degree of tax competition among countries becomes more intense. Moreover, we show that anti-avoidance measures can reduce the phenomenon of tax avoidance for intangible assets.

Analysis of The Impact of The Country's Tax Policies During The Outbreak of The Covid-19 On The Country's Employment Level: A Dynamic Stochastic General Equilibrium Approach

Analysis of The Impact of The Country's Tax Policies During The Outbreak of The Covid-19 On The Country's Employment Level: A Dynamic Stochastic General Equilibrium Approach

Research on the Historical Evolution and Development Trends of Property Tax in China

The reform of property tax, as a focal point of our country's tax reform, is closely intertwined with the development of the national economy and the well-being of the people. Based on the background and progress of property tax reform, this paper conducts an in-depth analysis of relevant literature and policy documents, studying the evolution of property tax in different historical periods. It also provides an evaluation of the current property tax system and suggestions for future development. The paper will further explore existing issues in the implementation of property tax, analyze potential solutions, and put forward recommendations and directions for property tax reform.

Turnover tax, sales tax and value added tax as different approaches to the application of universal excise tax

At the moment, it is possible to note the imperfection of the current fiscal system of the Russian Federation and its weak ability to implement its key functions. In order to identify growth points for the Russian tax system, it is necessary to evaluate the effectiveness of existing tax relations in the field of indirect taxation. To achieve this goal, it is necessary to carry out a comprehensive retrospective analysis of the use of various forms of universal excise, a comparative analysis of the theory and practice of using such forms. The subject of the work is turnover tax, sales tax and value added tax as different approaches to the application of universal excise tax; the purpose of the work is to explore the use of universal excise tax in evolutionary development, both in the Russian Federation and in the USSR. The main research method was a retrospective analysis, and research methods such as synthesis, comparison and forecasting were also used. The novelty of the work lies in the fact that, from the point of view of trends in the use of turnover tax, sales tax and value added tax in the Russian Federation, actual problems of the country's tax system were identified, as well as prospects for improving the tax system of the Russian Federation in terms of the application of universal excise tax. The result of the work was the identification of the strengths and weaknesses of these taxes. The scope of the work is the fiscal system of Russia. The main conclusions are to assess the relationship between the level of economic development and the applicable tax, as well as the forms and mechanisms of using universal excise tax in the tax system of the Russian Federation in the coming years. Based on the results of the work, it was concluded that, choosing between value added tax and sales tax as an alternative, most civilized countries prefer the former, which indicates its greater viability and compliance with the economic and social needs of the state.

Identifying the Status of Continuous Education in the Country's Tax Administration

Identifying the Status of Continuous Education in the Country's Tax Administration

Analysis of International Disputes over Digital Services Tax and Exploration of China’s Approach

With the continuous emergence of emerging information technologies, the digital economy is developing rapidly around the world. The global operations of multinational digital enterprises no longer rely on physical presence. The effectiveness of permanent establishment rules based on the traditional real economy settings has been questioned by market countries, which actively participate in Market countries where digital business value is created do not receive corresponding taxation rights. Multinational digital companies take advantage of loopholes in digital platforms and current tax rules to actively carry out tax planning, resulting in digital companies’ global tax burden being much lower than that of traditional companies. Tax sources cannot be fairly and reasonably distributed in the places where value is created and profits are taxed, which harms the tax interests of market countries. Against the background of slow progress in the OECD global unified solution, as a temporary unilateral measure to address the challenges of the digital economy, some countries have taken the lead in imposing digital service taxes on specific digital businesses of digital enterprises. On the basis of discussing the relevant concepts and theories of digital service tax, this article discusses the relevant concepts and theories of digital service tax, and analyzes the international development of digital service tax and the positions of various countries around the world. Further analyze the impact of digital service tax collection from three aspects: national fiscal revenue, tax trade disputes and international tax order coordination, and analyze the impact of digital service tax on digital enterprises. Then the perspective is focused on my country, sorting out and summarizing my country's relevant digital economy tax policies, and analyzing the impact of digital service tax on my country in the near term and long term based on the development of my country's digital economy. Finally, based on the previous comparative analysis and impact analysis, my country's tax system for promoting the development of the digital economy has gradually improved and actively participated in the reshaping of international tax rules, and my country's response strategies under the digital service tax have been proposed. The different levels of digital economic development between China and countries that have levied digital service taxes will inevitably lead to disharmony in the international tax order. The study found that the fiscal revenue brought by digital service tax is limited and has a certain degree of distortion effect. It is necessary to actively participate in international cooperation and make China's voice heard before reaching a consensus on international tax rules. In the long term, we should focus on the connection between the two-pillar plan and the domestic tax system, strengthen tax information exchange, improve the domestic digital tax rule system, and promote the healthy and sustainable development of my country's digital economy.

GEORGIAN TAX POLICY AND INTERNATIONAL EXPERIENCE

The tax system and the country's tax policy are one of the strong guarantees of Georgia's economic and financial security. Taxes and the country's tax policy are an organic part of the state's economic policy and economic relations and ensure the country's economic and financial success. Sound tax policy and sharing of international experience of leading countries determine the country's economic and financial balance and stability.
 The main goal of the work is to study and analyze the formation of a perfect tax system and tax policy, taking into account the best international experience.
 World practice confirms that the formation of a perfect tax system and tax policy is a continuous and constantly changing and renewing process. The tax policy is shaped not only by the changing challenges and tasks facing the country, but also in accordance with the various events taking place in the world economy and politics. The main challenge of the state in the field of taxation is to select such a golden middle of tax policy, tax rates and tax administration, which ensures, on the one hand, the regulation of the challenges facing the country's tax policy, as well as the realization of various tasks facing the state finances, stimulation of economic growth and harmonization with the best international experience.

Carbon taxation in Europe

The subject of the study is the carbon tax legislations of European countries.The purpose of the article is to identify the general consistent patterns of carbon taxation in a number of European countries: the United Kingdom, the Netherlands, Norway, France, Sweden and Switzerland.The methodology of the research includes the analysis of the provisions of the carbon taxing legislation of these countries.The main results, scope of application. The analysis shows that the structure of the carbon tax in European countries has differences, but the predominant form of taxation is an excise tax on fuel. In Sweden and Switzerland the excise rate is in direct proportion to the carbon content of the fuel, however in the UK, Norway and France excise rates are set more voluntary. Each country countries grant exemptions for specific fuel uses and industries that they deem essential to protect from the exceeding tax burden. In the Netherlands, Norway and France, carbon/energy taxation is applied in addition to the emissions trading system. In all these countries, this is motivated by the evaluation of the latter as insufficient to attain the objectives of diminishing CO2 emissions. Based on the experience of these countries, there is no prevalent model for the arrangement of carbon / energy taxation. For instance, France imposes an energy tax as an excise tax, that is, a consumption tax. The UK levies excise taxes on the consumption of natural gas, LNG, coal and electricity, correlated to the amount of energy contained in these fuel products. Norway applies both an excise and an indirect output tax in the oil sector. In the Netherlands, a carbon tax is levied on actual CO2 emissions (as far as they are accounted for under the EU ETS), but this tax only applies to ETS participants and only if the ETS prices are below the established level. Despite the high tax rates (up to 120 euros per ton of CO2 in Sweden and Switzerland), the significance of the carbon tax for the economies of the considered countries is low due to both low energy consumption and the high proportion of carbon-neutral energy sources such as hydroelectric, nuclear and biofuel.Conclusions. An analysis of the provisions of the carbon taxing legislations of various European countries revealed that these countries adopt such carbon tax schemes that optimize their administrative feasibility, public acceptability, and economic impact mitigation for vital sectors. At the same time, in the majority of countries, the carbon tax is implemented as an excise tax on fuel.

A Study on Goods and Services Tax (GST)

The Goods and Services Tax (GST) is a type of indirect tax that has replaced various other indirect taxes in many countries, including India. It is designed to simplify the tax structure and make it more transparent. Instead of multiple taxes at different stages of production and distribution, GST consolidates them into a single tax at the point of consumption Goods and Services Tax is an indirect tax to support and enhance the economic growth of the country. Most of the Developed countries have implemented Goods and Services Tax Bill (GST). However, in India, GST was established in 1999. A committee was set up to design the model of GST. But GST was re-launched on 1 July 2017 by the Indian government. There was a big hue and cry for its implementation. The GST replaced all the multiple taxes which were taken by state and central government. That is why it is said One Nation One Tax which means there is no need to pay any other tax in all over the country. The study systematically reviews the impact of GST in India. The study provides the bibliometric visualization and sentiment analysis of Goods and Services Tax (GST). It was found that the government’s motive of GST was to bring all the citizens of the nation under the tax and to prevent the flow of black money. But it was observed that lots of Indian citizens’ sentiments were in a dilemma. So it is recommended to revisit the structure and keep a scope of continuous improvement Key Words: GST, Goods and Services Tax (GST), Tax, Goods and Services Tax Bill, Sentiment Analysis

Digital Tax Regulation in Facing Society 5.0 Era to Realize Indonesian Tax Sovereignty

Technological advancements have catalyzed the emergence of the digital economy, where digital platforms, leveraging internet access, can penetrate multiple regions and accrue substantial profits unrestricted by national jurisdictions. This scenario presents advantages and convenience but simultaneously challenges a country's tax sovereignty. The traditional tax system, predicated on a company's physical presence for tax liability, finds itself ill-equipped to handle the digital domain's nuances. This research seeks to explore the potential and hurdles in implementing digital taxes in Indonesia, delving into the government's regulatory efforts within the framework of Society 5.0. From an academic standpoint, digital taxes illustrate the disruption in tax collection due to the absence of a tangible company presence. Thus, this study also aims to investigate the determination of tax sovereignty in the context of digital taxation, aspiring to enrich scholarly discourse. Employing a normative juridical approach, this study scrutinizes legal norms and rules while considering empirical facts from the field. The findings indicate that while the introduction of digital taxes in Indonesia holds significant promise and faces considerable challenges, governmental action to update and streamline digital tax regulations is imperative. Furthermore, the principles underlying digital tax proposals, such as Pillar One, require reinforcement to enhance their effective implementation.

ОБЛІКОВО-АНАЛІТИЧНІ АСПЕКТИ ФІСКАЛЬНИХ МЕХАНІЗМІВ ЄВРОІНТЕГРАЦІЇ НАЦІОНАЛЬНИХ ЕКОНОМІК

The article examines the specifics and peculiarities of the functioning of various types of taxes in the European taxation system of the European Union and OECD countries and substantiates the practice of their application in Ukraine. It is well known that the economic development of the country directly depends on the formed tax policy in the state. Under the conditions of dynamic changes in economic relations and a competitive market environment, tax legislation also changes, which varies a lot in different countries, depending on their geographical location, organization and conditions of conducting business activities. Based on the generalizations of various scientific works and current practice, various ways of taxation in European countries have been researched and analyzed and their comparative advantages have been assessed, taking into account factors of competitiveness (maintaining low marginal tax rates, which will contribute to the inflow of investments into the country – economic growth – obtaining the maximum profits, and this will lead to the payment of appropriate taxes and the filling of the country's budget) and neutrality.The ranking of the system of indicators of the European tax policy of the countries of the European Union and OECD countries (such as Switzerland, Turkey, Norway, Great Britain, Iceland) is summarized and determined. To understand why each country has such positions in the European taxation system, each tax and its impact on the country's economy is analyzed.The need for further development and improvement of the taxation system in the context of the restructuring of the Ukrainian economy, when major transformations are taking place in the country in the socio-economic and political spheres, as well as the desire of our country to integrate into the European Community is substantiated.At the end of the article, conclusions are made about the need to use the experience of the European Union and OECD countries in tax administration, which will create prerequisites for the proper reform of the tax system in the realities of Ukraine. The state can introduce certain reductions in tax rates for certain groups of goods, following the example of EU countries. Such measures will stimulate Ukrainian enterprises to focus more attention on the quality and usefulness of the offered products.

THE ESSENCE OF DOUBLE TAXATION IN TRANSFER PRICING

The article is devoted to the study of the essence and nature of double taxation in the conditions of transfer pricing. The crux of the problem is that profits from transfer transactions may be subject to taxation in both countries where the related parties are located. This can create complications and misunderstandings between countries, as well as cause conflicts between businesses and tax authorities. The main goal of solving the problem of double taxation in transfer pricing is to create a stable and transparent system that satisfies the interests of all parties. International standards and dispute resolution mechanisms play a key role in achieving this goal, ensuring a fair and clear playing field for all participants. In the further development of transfer pricing and the fight against double taxation, it is important to continue the development and implementation of effective international standards, as well as to strengthen cooperation between countries and enterprises. Only in conditions of mutual understanding and cooperation will it be possible to ensure an effective and fair transfer pricing system that considers the interests of all parties.

ОСОБЛИВОСТІ ОПОДАТКУВАННЯ КРИПТОВАЛЮТИ В РІЗНИХ КРАЇНАХ СВІТУ

Every year, cryptocurrency is slowly but surely conquering the whole world. Thanks to this trend, its acceptance is increasing, and more and more options for its application are appearing. Large global companies are showing interest in blockchain and cryptocurrency, investing in them. It is quite obvious that these events will contribute to the rapid expansion of the market. Crypto assets continue to gain popularity and their adoption has become something more important and real. The number of stores accepting cryptocurrency as a payment method is increasing, crypto assets are being used as a form of fundraising, and you can even travel the world with cryptocurrency. In addition, the expansion of the use of cryptocurrency in world markets is explained by the rapidly growing interest in it on the part of the population of various countries of the world in the desire to earn or at least protect their income from the devaluation of national currencies. A direct analysis of the current rules of cryptocurrency taxation in foreign countries showed the existence of a number of differences in the implementation of tax regulation of transactions with cryptocurrency, because different approaches to the definition of cryptocurrency in foreign countries cause different methods of its taxation. That is, the fiscal policy regarding taxes on cryptocurrency in the countries of the world depends on how their legislation interprets the concept of virtual money: in the USA it is property, in Britain it is a capital asset, Italy considers it as a foreign currency. In Malta, El Salvador, Malaysia and Singapore, cryptocurrency taxation is absent or can be avoided if certain conditions are met. The global cryptocurrency market is at the stage of formation, therefore the regulatory and legal framework in various countries of the world is actively developing, adapting to the rapidly changing reality. Gradually, the cryptocurrency receives a final determination of its status with the further development of effective mechanisms of tax administration to ensure transparency and fairness of taxation, that is, the creation of tax legislation in this area.

Exploring Challenges Faced by Secondary School Students in Understanding Taxation: An Expert Perspective Using the Nominal Group Technique

Taxation is financial knowledge that all workers in various sectors worldwide need to know. The introduction of the subject of taxation in several countries is aimed at increasing the understanding of students who are future workers to increase awareness among young people. This study explores the challenges faced by secondary school students in understanding taxation concepts, using the Nominal Group Technique (NGT) to gather insights from expert mathematic teachers. Through learning, students tend to struggle to comprehend various important tax laws and procedures. Although tax education is vital for enhancing future tax obedience, a major difficulty arises from the fact that while the topics mentioned above are covered in the Malaysian secondary school curriculum, basic financial literacy is low, and tax content is rather abstract. Based on NGT sessions, five experienced teachers with more than fifteen years of teaching experience in mathematics at the tertiary level engaged themselves in finding out the issues and challenges of the students. The discoveries identified eight significant areas of challenge in regard to the concepts of tax, and these were due to the difficulty in understanding more conceptuality, inadequate focused curriculum and mode of delivery by lecturers/facilitators, and lack of adequate interactivity in the teaching process. Therefore, this research emphasizes the need to provide systematic financial literacy training and to supplement the curriculum with attention-grabbing examples that would make the students more interested in taxation.

GLOBAL EXPERIENCE IN CRYPTOCURRENCY TAXATION

Abstract. The article is devoted to the analysis of global experience in the taxation of cryptocurrencies and the development of effective tax administration mechanisms. The object of the research is the taxation mechanism of the countries of the world that have legalized cryptocurrency. The purpose of the work is to study and analyze the global experience of cryptocurrency taxation and the possibility of introducing effective tax administration mechanisms in Ukraine. The research method is a theoretical and analytical substantiation of the functioning of the cryptocurrency market in certain countries and their taxation mechanisms. The need to develop efficient and effective tax administration mechanisms and ensure the stability of tax legislation is an objective prerequisite for ensuring the transparency and fairness of taxation of cryptocurrencies. The scientific article examines the peculiarities of the global experience of taxation of cryptocurrencies, which play a significant role in the processes of international movement of capital, forming relevant financial flows, and contributing to the capitalization of resources. The issues of taxation of cryptocurrencies are relevant on the path of the country's integration into the world community, insufficiently considered in modern conditions and requiring in-depth research and improvement. In the course of the study, the experience of cryptocurrency taxation in certain countries was summarized and the opportunities opened up due to the introduction of various cryptocurrency taxation tools were highlighted. The issue of developing effective tax administration mechanisms in order to ensure the effectiveness of cryptocurrency taxation and the growth of budget revenues remains unresolved and relevant today. Conclusions – the development of effective tax administration mechanisms is an important task to ensure the transparency and fairness of cryptocurrency taxation. This may include the development of clear taxation rules, the creation of monitoring and reporting systems to track cryptocurrency transactions, as well as cooperation with international partners to address transitional aspects and harmonize tax policies. Keywords: cryptocurrency, taxation, financial market, cryptocurrency market, income tax, capital gains tax, mechanisms of tax administration.

Edukasi Konsep dan Penerapan Pajak Karbon bagi Mahasiswa

Climate change caused by carbon emissions has been felt in almost all countries, including Indonesia. The government has issued policy Law Number 7 of 2021 concerning Harmonization of Tax Regulations (UU HPP) which regulates the imposition of carbon tax. Apart from that, the Government has also issued Presidential Regulation Number 98 of 2021 concerning the Implementation of Carbon Economic Value. The aim of this regulation is to reduce carbon emissions in Indonesia by imposing taxes. Community service activities are carried out through seminars aimed at providing the public with an understanding of the concept and application of carbon tax as well as elaboration of practices carried out in other countries. The material presented in this seminar includes: the concept of carbon tax, the practice of imposing carbon tax in other countries, existing regulations in Indonesia, discussion and delivery of conclusions. The implementation of the seminar consists of three stages. First, presentation of material from the resource person. Second, question and answer session with participants. The number of seminar participants was around 100 people from academics, both students and lecturers from UPN Veteran Jakarta and other universities.

Luxury tax perspectives: The evidence of the Republic of Belarus

The study is dedicated to the reasons for luxury tax implementation into the national taxation system. The purpose of the research is to study the emergence and experience of applying the luxury tax in various countries in order to determine the feasibility of introducing such a tax in the Republic of Belarus. Authors’ conclusions and findings have been presented against the background of the analysis of digitized texts on tax and bibliometric and scientometric analysis of the scientific field of taxation. As a testing ground for making our conclusions in terms of lessons learned from past historical experience and real economic background, the Republic of Belarus was chosen. Possible reasons for the introduction of such a tax were considered, as well as an analysis of the market for luxury goods in the Republic of Belarus and the demand for them was conducted. We have drawn some parallels between the Republic of Belarus and the Russian Federation to reach a reasonable conclusion. For this purpose, the Russian luxury goods market (premium car and real estate markets) was analyzed based on available statistics for the years 2020-2022. As the most politically controversial tax that can be not as efficient as income taxes and have unintended consequences, luxury tax was examined from the point of international experience and historical perspective. Examples of luxury goods throughout history and in real life together with historical references to the implementation of this tax were presented. The effectiveness of luxury tax and its impact that depends on a variety of factors (tax rate, types of goods and services being taxed, economic conditions, etc.) together with the modern concept of luxury tax with national specific was evaluated. Considering the situation in the Republic of Belarus, although during recent years there has been a budget deficit and there is a necessity to find new sources of state income, we didn’t find any reasons for the implementation of such a tax into the national taxation system. These types of taxes are mainly imposed in highly developed countries where people can afford “luxurious” goods and the variety of these goods is higher. In the case of the Republic of Belarus, there is a trend of decreasing the number of people whose purchasing power would allow them to buy luxury goods and the real disposable income of Belarusians has also declined, making it less likely that Belarusians will spend money on the consumption of luxury goods.

Financial Inclusion and Information Communication Technology on Tax Performance in Sub-Saharan Africa

Purpose: The main objective of this paper is to determine empirically the impact of financial inclusion and Information Communication Technology (ICT) on tax performance in Sub-Saharan African countries; determine the extent to which the elements of financial inclusion have influenced tax performance of countries in Sub-Saharan Africa; and examine the role technology plays in impacting the performance of taxes in Sub-Saharan African countries. Theoretical Framework: The existing theories that serve as a roadmap for the development of this study are Theory of Digital Diffusion and Theory of Margins. Digital transformation has an important impact on the operations and systems of every economy, which often triggers a positive effect on taxes. Diffusion innovation theory was initiated by Rogers in 1962. The Theory of Margin on the other hand, is a theoretical school that gives validity to the impact of financial development on product output. It suggests that more access to financial services and products is vital for high output and economic advancement. Design/Methodology/Approach: The population considered in this study was 48 sub-Saharan African Countries from the period of 1999 to 2019. The methods used for the analysis consists of the descriptive and correlation analysis on the identified variables and a creation of financial inclusion index using the Principal Component Analysis to deal with multiclonality challenge amongst the financial inclusion proxies, it also adopted the two-staged least square estimation technique for the empirical analysis. Findings: The study reveals inter alia that the variables for financial inclusion and ICT proxies are overwhelmingly positive and significantly impact on the tax performance (i.e., total tax revenue and the non-resource tax revenue as percentages of GDP), in sub-Saharan Africa and that the financial inclusion index has positive effect on tax performance in sub-Saharan Africa. We also observed that there is a positive relationship between technology and tax performance in sub-Saharan Africa. Research Practical & Social implications: Policies should be formulated to engender enhancement of technology and more investment should be allocated to technology as it is discovered to drive financial inclusion and promotes tax revenue mobilization. In general, the findings indicate that policies are needed to engender an enhancement of technology and more investment should be channeled to technology as it affects financial inclusion and by logical extension, the promotion of tax revenue mobilization. Originality/value: The challenge of tax implementation can be directly ascribed to an ineffective tax system. A tax management that is of high in superiority, helps to make the tax mobilization process more transparent and efficient, and also reduce the level of shadow economy, which main feature is non- remittance or payment of tax. This study reveals that a tax administration system can only operate effectively with the use of modern information technologies.

Designing a Model of Merit Governance to Promote the Administrative Health in the Country's Tax System

Designing a Model of Merit Governance to Promote the Administrative Health in the Country's Tax System