Taxation Research Articles

The Global Minimum Tax and Its Potential Impact on the Competitiveness of the Hungarian Corporate Tax System

The Global Minimum Tax and Its Potential Impact on the Competitiveness of the Hungarian Corporate Tax System

Research on Tax Collection and Administration Efficiency in the Context of “Governing Taxation by Numbers”

In modern national governance systems, tax collection and administration efficiency is a key indicator to measure the performance of the tax system. With the proposal and implementation of the concept of “governing taxation through numbers”, how to use digital technology to improve tax collection and administration efficiency has become an important issue. Focusing on the background of the policy of “governing taxation by numbers”, this article selects Anhui Province as a case area to conduct an in-depth analysis of the impact of the policy of “governing taxation by numbers” on the efficiency of tax collection and administration in practical applications, and explores strategies to improve tax collection and administration efficiency, aiming to optimize Provide theoretical and practical reference for tax management, improving tax compliance and reducing collection costs.

Political Economy of Tax and Digital Transformations in Pakistan (Special Invited Lecture)

1. THE NEED FOR A COORDINATED TAX AND SUSTAINABLE GROWTH STRATEGY I The 1985 National Tax Reform Commission (NTC) recommended a coordinated set of policies on tax policy, administration, and digital transformation to take the tax/GDP ratio from around 14 percent as it was then, to 20 percent by 1990, to underpin a sustainable growth path. The interim report of the NTC called the CBR “the most corrupt of Pakistani institutions.” The final report paid a great deal of attention to the interrelationships between tax evasion, smuggling and corruption. 1 The report emphasised a coordinated approach to reforming all taxes and administration, and that a tax-by-tax approach with tax administration determined separately would not do. Unfortunately, the report was shelved as Pakistan extracted geographic rents from the war against the Soviets in Afghanistan. While the NTC could not have imagined that the tax/GDP ratio would decline after three decades of interactions and support from the IFIs, that the country would find itself on the brink of default consequently, or the depths to which rent-seeking and corruption might plumb. A coordinated approach to multilevel tax policy and administration should also address key political economy challenges if Pakistan is to overcome the current economic crisis and move towards resilient and sustainable growth in the medium term. This is especially critical given the unprecedented “perfect storm” of the pandemic, climate shocks and once in a century floods, and ongoing disruptions in global value chains. The contrast with India is striking. With a general government tax/GDP ratio well above “the tipping point” of around 15 percent, India has been able to run a greater general deficit and much higher overall debt level than Pakistan (see Table 1 and Chart 1), without running into a potential debt crisis. It is important to stress that India by a Constitutional Amendment to harmonise the VAT across subnational jurisdictions has begun to address faults inherited from the pernicious 1935 Government of India Act, that still influences revenue assignments in Pakistan. The increasing geo-political importance of India, and the country’s greater resilience and attractiveness for FDI provide important contrasts and lessons for policy makers in Pakistan.

Tax Culture in the Tax Evasion of Micro-Enterprises During the Post-COVID-19 Period, in Southern Peru

Purpose: This research aimed to analyze the effect of tax culture on tax evasion by microentrepreneurs of the trade associations of the department of Tacna, southern Peru, during the post-COVID-19 period. Method: The research is basic, descriptive, and relational. The survey technique was applied through the questionnaire instrument to 167 microentrepreneurs affiliated with the trade associations of the commercial area of the city of Tacna. The quantitative data analyzed by reports of the National Superintendence of Tax Administration (SUNAT) and Micro and Small Business (REMYPE), and the data processed in SPSS v.26. Results and conclusion: The findings of this study are significant, revealing that forms of tax evasion are primarily related to hidden income and the issuance of payment vouchers. Notably, 68% of microentrepreneurs meet their obligations on time, while 22% submit their tax affidavits late. These results underscore the deficiency in the tax culture of the microenterprise sector, which is mainly due to the lack of interest in the training and advice of accounting professionals. Research implications: It is evident that some taxpayers need to comply with their tax obligations, a crucial issue that needs to be addressed. The study highlights that the poor tax culture is associated with morals and ethics. Originality/value: Good tax practices of microentrepreneurs contribute to the fulfillment of fiscal obligations in southern Peru.

Edukasi Dan Pendampingan Wajib Pajak Masyarakat Pedesaan

The role of education and assistance to taxpayers in the context of Lontos Village. Through a scientific approach, this research highlights the importance of education and assistance as an effort to increase taxpayers' understanding and awareness of tax obligations. The implementation of this service aims to provide education and assistance as well as provide understanding and awareness to the public as taxpayers regarding the importance of paying taxes in Lontos Village, East Luwuk District. The methods used in implementing the service are direct observation, interviews, and carrying out service activities related to tax education in Lontos Village. The results of the service implementation are that structured and targeted education and assistance can make a positive contribution in increasing taxpayer compliance and strengthening the relationship between taxpayers and the village government as the authority in tax collection. The implication of these findings is the need to increase education and mentoring programs on an ongoing basis to support tax awareness and strengthen the tax system at the local level. The service carried out provides valuable insight for related parties in designing effective strategies to support tax compliance in Lontos Village, East Luwuk District, Banggai Regency and may also be applied in a broader taxation context.

The Impact of Tax Legislative Disruptions on the Increase of Informal Economic Activities in Egypt

The study examines how legislative instability in tax laws affects the growth of informal economic activities in Egypt. It suggests that unclear or unsustainable tax regulations drive a shift towards the informal sector, fueled by benefits like tax evasion and reduced compliance costs. To encourage voluntary integration, the study proposes measures such as transparent tax laws, awareness campaigns on tax compliance benefits, and simplification of procedures. It advocates for policymakers to prioritize creating an environment conducive to integration over punitive measures. By fostering a fair tax system and addressing underlying factors driving informality, Egypt can boost tax revenue, ensure fairness, and promote sustainable growth. Employing a descriptive-analytical approach, the study analyzes secondary data from official reports, academic literature, and relevant publications. This method allows for a systematic examination of tax legislative disruptions' impact on informal economic activities. It facilitates understanding the dynamics of tax regulations and their effects on informality by analyzing diverse information sources. This approach ensures reliable insights into the relationship between tax laws and the informal economy in Egypt.

A Global Review Of Tax Morale: A Bibliometric Analysis For Future Research

This research aims to analyze the development and direction of research on tax morality globally, so that current and future publication trends can be identified. The issue of tax morale is interesting to study in more depth, because it supports increasing tax compliance and optimizing state revenues. This research uses a bibliometric approach, analysis via VOSviewer and Ms.excell, and is sourced from Scopus metadata from 2002 to 2024 with 248 publications. The results of the global analysis show that research on tax morality has increased significantly in the last four years in the form of English language journal articles, the subject area of which is mostly in the fields of economics and finance. This research is growing rapidly in Europe and America if we look at the composition of authors and their affiliations. Based on network analysis, the topic of tax morale is divided into five large clusters, namely: informal sector, tax compliance, tax system, tax evasion, and trust. Future research topics that can be further developed related to tax morality are related to social norms and tax reform. Meanwhile, keywords that researchers can link in the future are tax compliance with entrepreneurship and institutional theory, as well as tax avoidance with tax knowledge, social norms, corruption and trust. The limitation of this research is that it only comes from the Scopus database and the keywords are only focused on the word "tax morale".

Taxpayers' attitudes toward tax compliance in the Slovenian tax system: differences according to gender, income level and size of settlement

Taxpayers' attitudes toward tax compliance in the Slovenian tax system: differences according to gender, income level and size of settlement

Addressing Methodological Challenges in the Mass Real Estate Valuation Process, Specifically Within the Context of the Republic of Moldova

This research investigates the precision of mass real estate valuation models, particularly focusing on the methodology of mathematical value modeling. The discussed challenges are particularly relevant to nations employing an ad-valorem taxation system. The Republic of Moldova's mass appraisal system for real estate serves as an illustrative case. Through a comparative analysis of the performance metrics between existing models and those refined based on the proposed recommendations, the study illustrates the improved efficiency of the advocated methodology.

The mechanism of high carbon economy, local tax system and urban environmental pollution: Insights from China

The phenomenon of ‘pollution for promotion’ has been addressed in the literature from the perspective of tax competition or local protection, but the underlying institutional causes have not been thoroughly discussed. In this study, we put forward the theoretical hypothesis of ‘industrial pollution as a last resort due to reliance on commodity taxes’ and empirically tested this hypothesis using data on commodity taxes and industrial pollution in prefecture-level cities from 2003 to 2019. Our findings indicate that a 1% increase in the share of GST (Goods and Services Tax) is associated with a significant average increase of approximately 0.51% in industrial pollution. The primary channels through which GST affects industrial pollution include the expansion of production scale amongst heavy polluters, reduced environmental requirements for large taxpayers and increased land development. Commodity tax dependence creates a barrier for local governments to adopt more sustainable economic development models, leading to increased industrial pollution. The findings of this study contribute to a better understanding of the institutional barriers during China’s economic transformation, shed light on the responses of firms and governments within existing institutional frameworks, and provide policy insights for transitioning towards high-quality economic development.

The effect of enterprise quality management on innovation incentives in enterprises —— based on the reform of China's value-added tax system

This article will analyze the incentive effect of the value-added tax rate reduction policy on enterprise innovation from the perspective of enterprise quality management. The research results indicate that: (1) the reduction of value-added tax rate has an incentive effect on the innovation activities of enterprises; (2) There is a positive moderating effect of enterprise quality management on the reduction of value-added tax rate and the innovation and research and development activities of enterprises; (3) The reduction of value-added tax rate has a more significant incentive effect on innovation in the eastern region of China, state-owned enterprises, and relatively larger enterprises.

Wells or Welfare? Macroeconomic implications of the Canadian oil subsidy

The study constructs a general equilibrium model to investigate the macroeconomic effects of oil production and investment subsidies. To make the model reflect real-life situations, the study incorporates Canadian economic data and uses a Bayesian method to fine-tune the model. Although subsidies boost the short-term economic effects of oil price shocks, they lead to overall losses in economic welfare over time, regardless of the channel through which they are provided. The study shows that a less aggressive headline inflation-targeting monetary policy combined with an efficient tax system is more beneficial in terms of welfare maximisation. The findings suggest three essential and complementary policies: a gradual phase-out of oil subsidies, starting with investment subsidies due to their relatively high welfare cost; increased investment in the green energy sector to reduce carbon footprints and offset the decline in oil and gas sectors; and improved coordination between fiscal and monetary policies.

The Power of Boilerplate: Bilateralism, Plurilateralism, and the International Tax System

How do states exercise power in complex, decentralized governance regimes? This article sheds light on this question by analyzing one of the pillars of the post-war economic order: the international tax regime. The taxation of multinational enterprises is governed by a system composed of thousands of Bilateral Tax Treaties signed between pairs of national governments. We argue that despite the bilateral nature of these treaties, their legal content is largely controlled by a small group of economically powerful governments. By drafting and promoting “boilerplate” legal language, and by leveraging network effects, OECD countries were able to build a coherent, encompassing, quasi-multilateral regime to govern the taxation of multinationals in most of the world. We test and find support for our arguments about the role of network effects and the power of boilerplate using inferential network analysis and an automated text analysis of a corpus of 3200 treaty texts.

Formation of a new institution of land management

Independent land management by landowners in Ukraine is significant. As a rule, such management is shadowy, with higher costs and lower revenues compared to public land management. Landowners and the country’s economy lose from this state of independent land management. Moreover, shadowing in the agricultural sector affects other related industries, which increases the size of the shadow economy. The article examines the organizational and legal and organizational and production forms of land management. The existing forms of agricultural cooperation are analyzed. The factors influencing agricultural cooperation are identified. It is concluded that the problem of public organized independent land management can be solved through legal, institutional and organizational mechanisms which will ensure cooperation of landowners with a view to reducing the financial and organizational costs required to ensure publicity of land management. To solve the problem of public organized independent management of land resources, the author proposes a new institution of land management which operates on a unifying basis and provides land management entities with a reduction of costs and an increase. The author proposes a certain organizational and production platform as a model of the new institution of land management. The platform has centralized accounting, unified tax administration, unified statistical reporting, and is managed by organizers with outstanding knowledge and experience, which ensures a reduction in production costs and an increase in profits for the platform participants — land owners. To formalize the relations between the landowner and the organizational and production platform, a land use agreement and a unification agreement are concluded, which regulates the relations between the landowner and the organizational and production platform.

The Legitimacy of Tax Law in Europe and the United States: Comparing Decision-Making Processes in Domestic Tax Law

This article examines the tax legislation decision-making processes in European countries and the United States, noting similarities and differences in legislative initiative, constitutional review and citizen participation. These aspects of the legislative processes and other characteristics are analysed to assess their effect on the legitimacy of the tax system.

Constructing and implementing a green taxation system in China under the dual-carbon target

Reducing carbon dioxide emissions and achieving carbon neutrality have become hot topics of global concern. China has elevated its response to climate change to a national strategic level, where the green tax system plays a crucial role in implementing the dual-carbon strategy. This paper systematically analyzes the green tax systems of the Organisation for Economic Co-operation and Development (OECD)—encompassing environmental pollution taxes, energy taxes, vehicle and transportation taxes, and resource taxes. Based on this analysis, it proposes that China should establish a multifaceted green tax system including environmental protection tax, resource tax, and farmland occupation tax. Furthermore, it suggests an integrated approach combining systematic tax incentives such as corporate income tax, value-added tax, consumption tax, and vehicle purchase tax. This comprehensive green taxation framework, covering development, production, consumption, and emission stages, aims to drive high-quality green economic and social development through both tax incentives and restrictions, implementing a “dual-driving” mechanism. This study provides a basic framework and practical path for building a green tax system in China, especially studying the sources of different green taxes and their interrelationships, which enriches the theoretical and practical values related to taxation.

Does Tax Sharing Matter for Export Quality Upgrading? Evidence from China

Tax policy is critical for business operations and export decisions. However, the relationship between tax sharing and export has been less frequently discussed. This paper explicitly examines the underexplored tax-sharing system’s effect on manufacturing exporters’ export quality and develops four hypotheses. We use data on Chinese manufacturing exporters and prefecture-level tax-sharing from 2008 to 2013 and employ an instrumental variable approach to alleviate the endogeneity problem. The empirical evidence supports our hypotheses. We find that an increase in the prefecture-level government tax-sharing ratio significantly reduces export product quality of firms. This quality effect can occur through channels, including tax burden effect, production scale effect, and innovation effect. Moreover, more productive firms and those operated in cities with stronger intellectual property protection can face a smaller quality-reducing effect. Our findings offer policy implications for improving China’s modernized tax system and trade upgrading. Policymakers should recalibrate the tax-sharing system to reduce the tax burden on manufacturing exporters, particularly for innovative and high-productivity firms, and bolster intellectual property rights to enhance export quality and support China’s trade and economic modernization.

The role of artificial intelligence in the tax administration of bankruptcy proceedings of insolvent organizations

In the era of digital transformation, artificial intelligence (hereinafter – AI) is becoming a key tool in tax administration. This article is a study of the possibilities of using AI in the tax administration of insolvent organizations (bankrupt), as well as the mechanics of introducing AI technologies into the work of structural divisions of tax authorities responsible for ensuring bankruptcy procedures for insolvent organizations and the prospects for their adaptation in the Russian tax administration system. Currently, bankruptcy is a macroeconomic factor and the need to apply AI in Russian practice, including to ensure bankruptcy procedures, is possible through the introduction of algorithms for monitoring and analyzing financial statements of enterprises. The article analyzes the international experience of using AI in the work of judicial and fiscal authorities, in order to adapt the selected approaches within the Russian system, which will contribute to increasing transparency and efficiency of tax administration. The basis of the research methodology is formed on the basis of general scientific and special research methods, including methods of comparative analysis, a method of generalizing results when formulating conclusions and presenting priority areas, a method of system analysis and expert assessment. The novelty of this study lies in the adaptation of tools and the introduction of AI mechanics into the tax administration of insolvent organizations (bankrupt). Conclusion. The introduction of AI into the work of the Federal Tax Service of Russia, in terms of tax administration of insolvent organizations, is a major vector towards improving the effectiveness of bankruptcy procedures for insolvent organizations. At the same time, the development of the institute of bankruptcy with the gradual introduction of AI contributes to: the development of predictive analytics, the construction of models for predicting the outcome of cases, the identification of distortions in the debtor's statements and balance sheet, reducing the cost of administering bankruptcy procedures, reducing the time spent on data processing. International experience demonstrates the high effectiveness of such technologies. The adaptation of the analyzed tools for Russian practice will open up new opportunities for digitalization, increase the transparency of tax administration, and also contribute to the development of international interdepartmental electronic interaction.

Обзор подходов к оценке влияния новых вызовов на экономику и отдельные аспекты налогообложения

The article presents a review of publications devoted to the approaches to assessing the impact of external shocks on the economy in general and on certain aspects of taxation in particular. It considers both studies that assess this impact by analyzing macroeconomic indicators (less often — budget indicators) and building econometric models (mainly SVAR and VAR models are used in this case), and studies in which various authors propose their own indicators to assess this impact (most often they are either sustainability indicators or stress indicators). Special attention is paid to publications the subject of which is the impact of new challenges on the tax system. A separate block includes publications in which the above issues are considered in relation to the Russian tax system. These are not only scientific articles on the topic, but also documents of international organizations, such as the International Monetary Fund, OECD, World Bank, etc. In addition, the article provides an overview of publications of foreign scientific institutes and research centers. Sanctions imposed on the economy of the Russian Federation are a particular case of an external shock. Thus, a review of publications assessing the impact of new challenges (by the example of sanctions) on the tax system of the Russian Federation is presented. The authors conclude that to assess the impact of new challenges on the tax system it is more advisable to use indicators based on statistical tax reporting.

Digitalization of universal excise tax administration in the EAEU countries: innovative approaches and harmonization problems

The subject of this study is the administration of universal excise taxes, specifically one of its forms—value-added tax (VAT)—in the countries of the Eurasian Economic Union (EAEU). The study examines VAT within the context of tax system harmonization, digitalization of administration, and taxation of cross-border transactions. The focus is on differences in VAT rates, levels of process automation, and approaches to tax administration, which create barriers to integration and reduce the efficiency of tax systems. Special attention is given to the impact of digitalization on improving VAT collection, reducing the tax gap, and increasing the transparency of tax accounting. Additionally, the study explores the experiences of international integration organizations, such as the European Union, in tax unification and the implementation of digital platforms for taxpayer accounting and the administration of cross-border transactions. The methodological basis of the study includes the analysis of statistical data on VAT receipts, a comparative analysis of the tax systems of EAEU countries, and an examination of international experience, particularly the practices of the European Union. Methods such as generalization, modeling, and economic and mathematical analysis were applied to assess the effectiveness of current and prospective VAT administration mechanisms. The results demonstrate a strong dependence of tax revenue growth on the level of digitalization in administrative systems. It has been established that creating a unified digital VAT accounting platform can minimize the tax gap, improve tax collection, and reduce administrative costs. Key barriers to harmonization have been identified, including differences in VAT rates and the absence of a unified approach to the taxation of digital services. The practical significance of the results lies in their potential application to the development of joint programs among EAEU member states in the field of tax policy coordination, as well as the creation of a common supranational tax policy for the EAEU. Recommendations have been developed to adapt international best practices, including the introduction of automated taxpayer accounting systems, and specific steps have been proposed to unify the taxation of cross-border trade. The article concludes by emphasizing the need for coordinated efforts among EAEU countries to create a unified tax strategy. Such a strategy would enhance VAT collection, strengthen economic integration, and foster more transparent interactions between market participants.