Role Of Taxes Research Articles

The Green Deal Consultations: Well-Being Aims and Tax Related Reforms

On 23 July 2020, the European Commission launched public consultations on two tax related proposals, namely a revision of the Energy Taxation Directive and the creation of a Carbon Border Adjustment Mechanism. These proposals are part of the European Green Deal, a strategy that aims, amongst other things, to put the well-being of citizens at the centre of economic policy. In this article, the well-being aims put forward in the Green Deal are considered in connection with the Commission’s tax related proposals in that regard as included in the public consultations of July 2020. It is concluded that, while taking on board well-being aims may be valuable in that it obliges to consider in a broad way what is good for people, the current references to well-being by the Commission in the Green Deal lack clarity and raise a number of important questions. Recommendations are provided, also with respect to the envisaged role of taxation in tackling environmental issues.

Tax Policy and the COVID-19 Crisis

This article provides some preliminary thoughts on tax policy and the COVID-19 crisis. In the first part, it discusses fiscal measures available to policymakers in response to the COVID-19 crisis. The role of taxation will evolve over the different phases of the pandemic: measures have already been adopted to respond to the crisis in the short-term, but questions remain as to the types of measures that should be adopted in the medium and longer-term. In the second part, this article discusses the current and possible future effects of the pandemic on international tax policy.

Rethinking international taxation and energy policy post COVID-19 and the financial crisis for developing countries

There is a key role for taxation in energy and public policy following the 2020 COVID-19 and resulting financial crisis. Taxation was already under the microscope at national, regional and international levels prior to 2020, and the potential for reform may slow down. Developing countries in particular are utilising their tax systems to mitigate the impacts of the 2020 crisis. This article highlights the race to the bottom in terms of taxation as governments seek foreign direct investment (FDI). It also highlights the issues in an influential sector of the economy – that of energy – and the impact on human rights as a result of tax abuse. It is advanced here that a ‘race to the bottom’ in international taxation will result in further erosion of human rights. In thinking of the future and after the 2020 crisis, developing countries need to develop sustainable and resilient economic growth, and consequently they need clear and strategic taxation policy. It can be acknowledged that there is a role for FDI in a crisis-hit economy, but for taxation policy not to have negative consequences more international action is needed in this area. Aggressive tax planning and erosion of the potential to raise tax revenue cannot inhibit the progress made over the last decade on all areas of international taxation.

COVID-19 and Fiscal Policies: Tax Policy and the COVID-19 Crisis

This article provides some preliminary thoughts on tax policy and the COVID-19 crisis. In the first part, it discusses fiscal measures available to policymakers in response to the COVID-19 crisis. The role of taxation will evolve over the different phases of the pandemic: measures have already been adopted to respond to the crisis in the short-term, but questions remain as to the types of measures that should be adopted in the medium and longer-term. In the second part, this article discusses the current and possible future effects of the pandemic on international tax policy. COVID-19, tax policy, international tax reform, transfer pricing, profit shifting, tax and the digital economy.

Does tax reduction spur innovation? Firm-level evidence from China

The role of taxation in firms’ innovation is far from a clear answer. We estimate the effect of tax reduction on firms’ innovation. By using a novel matched dataset with rich information on innovative activities and taxation reduction, we find the significant promotion effect of tax reduction In addition, by taking heterogeneity into account, we find the promotion effect is larger in service industry than manufacturing sector. Furthermore, we employ alternative innovation indicators and estimation models to take robust checks. The policy implication is that more tax reduction policies should be introduced to small and medium- size firms.

Renewable Electricity and Tax Expenditures: Lessons from Two Countries

Both the United States (US) and Spain have offered tax expenditures to support use of wind and solar power to generate electricity at the utility scale. These tax expenditures provide an opportunity to consider design issues, the relationship between tax expenditures and other non-fiscal policy instruments and the influence of legal frameworks. The article explores tax expenditures that have been in effect in the US and Spain. In the US, the federal government since 1992 has provided an income tax credit for the production of electricity from renewable sources, and more recently the alternative of an investment tax credit. In Spain, since the 1990s there has been an important debate on the best way to promote renewable energies; different tax incentives, subsidies, and regulated prices have been used in one way or another over time. Drawing on these two case studies, the comparative analysis highlights lessons that emerge about the role of taxation as a regulatory instrument and its consistency with other policies in shifting from fossil fuels to renewable energy in order to reduce greenhouse gas emissions that contribute to climate change. These lessons can transcend national boundaries and contribute to an understanding of tax expenditures more generally. renewable energy, wind, solar, tax expenditures, incentives, feed-in tariffs, market-based instruments, environmental protection, environmental taxation

The effect of waste incineration taxation on industrial plastic waste generation: A panel analysis

Waste treatment taxation is a popular policy instrument in many European countries and regions. Its impact on household waste has extensively been researched. However, only little research exists which looks into the impact of waste treatment taxation on industrial waste generation. Nevertheless, industrial waste constitutes more than ninety percent of waste generated in the European Union. This study assesses the impact of an incineration tax on the generation of industrial plastic waste in Flanders, Belgium. We conduct different types of econometrical panel analyzes and provide statistical evidence that firms show lagged behavior, which means that the previous year’s waste generation partly determines the current year’s. The dynamic panel estimations show robust results, indicating that a growth of incineration taxes exert significant negative effects on the growth of industrial plastic waste generation. This result offers no argument to iteratively raise incineration taxes. We conclude that incineration taxation is meaningful if tax rates are set according to the prevailing market conditions, i.e. taking into account the marginal costs of alternatives for incineration. In the short run, the effectiveness of taxation will quickly diminish due to the rapidly rising marginal costs of waste reduction. In the long run, extra recycling capacity is needed to recycle the minimized waste fraction. The role of taxation in the long run is to maintain an equilibrium in which recycling is preferred by the market.

Urban subjects: Somali claims to recognition and urban belonging in Eastleigh, Nairobi

ABSTRACT After more than a century of mutually constructed strangerhood, relations between the Somali community and the Kenyan state are strained. Following the concomitant developments of the devolution of power, an influx of refugees and a growing securitisation discourse, Somalis in Kenya today take up an ambiguous position between marginalisation and increasing political and economic visibility (Carrier & Lochery 2013; Scharrer 2018; Weitzberg 2017). Based on eight months of ethnographic fieldwork in Eastleigh, Nairobi, I will show how contemporary narratives of belonging and contribution are being presented by the Somali community on a variety of platforms. I will discuss the role of taxation in historical as well as contemporary claims to recognition and the significance of taking claims to formal Kenyan courts. I argue that these diverse practices all serve to create an urban Somali subjectivity in Kenya, as they seek to constitute Eastleigh as a central urban space from where the Somalis can make claims on the Kenyan state.

Economics and Tobacco Regulation

Taxation is a crucial tool in the effort to attain a tobacco-free world. According research, increases in tobacco taxes have a positive correlation with the reduction of tobacco consumption. Even though the tobacco industry is among the successful industries, tobacco consumption kills more people than any other product. This paper through the lens of economics discusses the role of taxation in tobacco consumption. It discusses tobacco taxation as a tool to discourage smoking. Increasing tobacco taxes passed on to consumers in the form of higher tobacco product prices, is one of the most effective ways to prevent and reduce tobacco use. Placing higher prices on tobacco products encourage tobacco users to quit, helps sustain cessation and reduce consumption of tobacco among those who use tobacco. Keywords: Economics, Tobacco regulation, taxation, cessation DOI : 10.7176/JESD/11-2-13 Publication date: January 31 st 2020

Collagen IV (COL4A1, COL4A2), a Component of the Viral Biofilm, Is Induced by the HTLV-1 Oncoprotein Tax and Impacts Virus Transmission.

Human T-cell leukemia virus type 1 (HTLV-1) is the etiologic agent for Adult T-Cell Leukemia/Lymphoma (ATLL) and HTLV-1-Associated Myelopathy/Tropical Spastic Paraparesis (HAM/TSP). HTLV-1 infects CD4+ T-cells via cell-to-cell transmission requiring reorganization of the cytoskeleton and expression of the viral transactivator and oncoprotein Tax. Viruses spread at the virological synapse (VS), a virus-induced specialized cell-cell contact, by polarized budding into synaptic clefts, and by cell surface transfer of viral biofilms (VBs). Since little is known about Tax’s role in formation of the VB, we asked which component of the VB is regulated by Tax and important for HTLV-1 transmission. Collagens are not only structural proteins of the extracellular matrix and basal membrane but also represent an important component of the VB. Here, we report that among the collagens known to be present in VBs, COL4 is specifically upregulated in the presence of HTLV-1 infection. Further, we found that transient expression of Tax is sufficient to induce COL4A1 and COL4A2 transcripts in Jurkat and CCRF-CEM T-cells, while robust induction of COL4 protein requires continuous Tax expression as shown in Tax-transformed T-cell lines. Repression of Tax led to a significant reduction of COL4A1/A2 transcripts and COL4 protein. Mechanistically, luciferase-based promoter studies indicate that Tax activates the COL4A2 and, to a less extent, the COL4A1 promoter. Imaging showing partial co-localization of COL4 with the viral Gag protein in VBs at the VS and transfer of COL4 and Gag to target cells suggests a role of COL4 in VB formation. Strikingly, in chronically infected C91-PL cells, knockout of COL4A2 impaired Gag transfer between infected T-cells and acceptor T-cells, while release of virus-like particles was unaffected. Taken together, we identified COL4 (COL4A1, COL4A2) as a component of the VB and a novel cellular target of Tax with COL4A2 appearing to impact virus transmission. Thus, this study is the first to provide a link between Tax’s activity and VB formation by hijacking COL4 protein functions.

American Voices in a Changing Democracy: Women, Lobbying, and Tax, 1924-1936: Part 1 Introduction

This Part I introduces my book AMERICAN VOICES IN A CHANGING DEMOCRACY: WOMEN, LOBBYING, AND TAX 1924-1936. The book focuses on the intersection of three areas of change in a time of great change: the role of women, the role of lobbying (broadly defined), and the role of taxation. These areas are once again in flux today. Each area is important in itself and each underwent significant change during this time period that affected important aspects of American life. Combined, the three areas illuminate the interrelated nature of society, economics, government and politics. The book is not about lobbying, women, or taxation per se, but about the intersection of these three elements in a period of generally rapid change. Each element is important to democracy and each underwent great changes during the relevant years. Viewing the interaction of the three elements provides not just insight into each strand but expands our knowledge of democracy’s responses to change in an era similar to our current times in many ways: rapid technological change, demographic changes, economic stresses, and political change. Tax-phobic readers should rest easy. The book is not about substantive tax; rather it uses tax as a medium to examine women and lobbying. Consequently, readers need not know any tax—or even be all that interested in tax. The book contains no technical tax or substantive tax policy. Rather, it concerns one aspect of the social construction of tax policy: the influence of mid-level lobbying on public opinion regarding taxes as manifest from one perspective—women’s political action. All the reader needs to know by way of background about taxes, is found in Part D of Chapter I. Although the tax-aholic will be unable to satisfy a technical tax thirst, the tax-ophile will still find a satisfying feast of material about the central role taxation plays in America. This Introduction lays out the scope, purpose and organization of the book. It sets the stage by briefly describing the changing technology, culture and government that underlay the changes affecting women, tax and lobbying. It proceeds to explain the choice of the time period and concludes with a note about research techniques.

Green Alliances and the Role of Taxation

We examine two alternative strategies that an environmental group can embark when interacting with a firm. The first one which is already discussed in the literature is when the group campaigns against the firm. The second one which has not been modelled in the literature is when the group collaborates with the firm (green alliance) to reduce the cost of the cleaner technology. We look at the case of both options being available for the group in a setting with an environmental tax. One of the main results of the paper argues that for higher taxation the conflict scenario is more likely to happen, implying that collaboration and a more stringent environmental policy are substitutes. This identifies a previously unexamined and possibly adverse effect of public policy on environmental quality because it weakens the impact of the pollution tax on emission intensity. We also characterise the optimal tax that maximises social welfare and find that under pure conflict –when conflict is the only option for the environmentalists– optimal tax is higher than when the group can choose to act against or join forces with the firm, indicating that a less stringent environmental policy is needed in the latter scenario.

TAX REVENUE AND ECONOMIC ACTIVITY: SEASONALITY, COINTEGRATION AND CAUSALITY ANALYSIS

The role of taxation is very important for the financing of development in Indonesia. However, the performance of tax revenue has not been optimally indicated by the low ratio of tax to Gross Domestic Product (GDP) which in 2015 the ratio is 10.7% of GDP. This tax ratio is still lower than the tax ratio of neighboring countries such as the Philippines (13.6%), Malaysia (14.3%) and Thailand (16.5%). Even in 2016 the tax ratio declined slightly to 10.3% of GDP.With the scope of the study limited to non-oil and gas income tax and value added tax which contributes more than 80 percent of total tax revenue, this study objective is to understand the relationship between tax revenue and economic activity that can provide insight into the effectiveness of tax policy.This study uses monthly realization of tax revenue both total and sectoral. For economic activity data, we use data derived from national account data or GDP based on expenditure and production approach (sectoral). Monthly tax revenue data is then aggregated into quarterly data to match the frequency of GDP data. Period of data being studied is Q1 2010 - Q4 2017. Tax revenue and economic activity data needs to be seasonal adjusted and then separated into trends and cycles. To examine the relationship between tax revenue and economic activity, we performed several tests such as unit root test, cointegration test and causality test.The main contribution of this study are the empirical testing on the lingkage between tax revenue collection and economic activity and the policy implication of this study which in order to increase the tax revenue collection, government should formulate policy to increase production, investment and consumption because production, investment and consumption will increase tax base.

EXPLORING THE NEXUS BETWEEN TAX REVENUE TRENDS AND SOCIAL CONTRIBUTIONS DEVELOPMENT IN EUROPEAN UNION COUNTRIES

The purpose of the research: to analyze the main tendencies of the tax revenue and social contributions in EU countries, to study the hypothesis concerning convergence of the annual growth rates of the total tax revenue (including social contributions) to the GDP in European Union countries during the last decade and to build the predicted values for the total tax revenue (including social contributions) as GDP percentage in EU countries. The research was conducted based on the time serious analysis) and forecasting method to predict data values of the total revenue to the GDP. The analysis presented in the research has shown that tax revenues in the main tax categories displayed a corresponding pattern, with a differing fiscal lag for direct taxes, indirect taxes and social contributions. Correlation analysis has shown that many countries of EU essentially correlate ratio of the total tax revenues to the GDP. Using the presented models for the time series of the total revenue to the GDP in Eiropenean Union counties, the predicted values were obtained. The research has shown that some countries have common characters of the total revenue, and some gruop of countries has varies. Regardless of the declaration of the common economic policy in EU, as well as levy system in EU, the research has noticed some differences in the total revenues concerning the GDP trends. The impact of possible convergence in tax burden policy in EU countries explains these differences.In order to harmonize tax policy and to increase the fiscal role of taxation in the EU countries, such measures are proposed: application of unified procedures and conditions of administration of taxes and other budget revenues; differentiation of tax rates and establishment of the upper limit of their size; introduction of a unified tax base; differentiation of objects of taxation with the purpose of increase of tax revenues to the budget and avoiding increase of tax burden for population and others.

Modeling of Multifactor Taxis in a Predator–Prey System

A model of predator–prey dynamics in a spatially heterogeneous range is considered using a system of two nonlinear equations of the diffusion–advection reaction. The pursuit–evasion activity because of the nonuniform distribution of the predator and the resource is taken into account. A numerical study of the effect of directed migration on the formation of population structures was carried out on the basis of the method of lines and staggered grids. The role of taxis in population growth in the area was analyzed, and migration parameters, which are used for the formation of stationary and oscillatory spatiotemporal patterns, were calculated.

Taxation and Inflation in Nigeria: An Empirical Analysis

This study examines the role of taxation as a tool for addressing the challenges of inflation in Nigeria. Data for this study were gathered from Annual Abstract from the Office of National Bureau of Statistics and the office of the Federal Inland Revenue Service for a period of twenty years (1994 to 2014). The data gathered were thereafter analyzed using the error correction model (ECM) and from the analysis the paper revealed that all the variables (companies income tax, value added tax and custom and excise duties) had a positive and a non-significant relationship with inflation. However, from the conclusion the paper recommended that the government and policy makers should formulate an active tax policy to curb the issue of inflations in Nigeria and there should be a review of the periods where Nigeria witnessed lower inflation rates to see whether or not taxation (indirect taxes) played a role in ensuring the low inflation rate and then the successive introduction of the policies as it relates to taxation in the subsequent period. Keywords : companies income tax, value added tax, custom and excise duties, inflation DOI : 10.7176/RJFA/10-4-11

Tax Revenue and Economic Growth in Nigeria

<p>The study examined the relationship between tax revenue and economic growth in Nigeria. The study adopted a descriptive and historical research design; secondary data for twenty-two years (1994 -2015) were collected from various issues of the Central Bank of Nigeria (CBN) statistical bulletin and annual reports. Tax revenue as an independent variable was measured with Value Added Tax (VAT); Petroleum Profit Tax (PPT); Company Income Tax (CIT) and Custom and Excise Duties (CED) while the dependent variable was Economic Growth (EG) proxied by the Gross Domestic Product (GDP). Analysis was performed on data collected using Auto Regressive Distributed Lag (ARDL) Regression and other post estimations (Jarque-Bera test; Breusch-Godfrey LM and Ramsey Reset Test) to determine the existence of relationship between the variables. The results of the study showed that VAT and CED had a significant relationships with economic growth (p<0.05), while CIT has negative significant relationship with economic growth (P<0.05). However, PPT had no significant relationship with economic growth. The study concluded that the role of taxation in nation’s building is irreplaceable. Taxation remains a strong socio political and economic tool for economic prosperity. It is therefore recommended that government should engage in a complete re-organization of tax administrative machinery to reduce incidence of tax evasion and avoidance to the barest minimum in order to improve tax revenue and bring more people and establishments into the tax net. Also, tax revenue should be judiciously utilized to provide enabling environment for business survival and economic growth in Nigeria.</p>

An Examination into the Role of Taxation in FDI Inflows and Stock in High, Middle and Low Income Countries

Many countries of the world are redesigning their taxation policies to offer a conducive tax environment to the MNCs so as to increase the level of FDI in the country. Through changes in taxation policy, they intend to become more competitive internationally. Tax laws of all the countries are not same, they are different in terms of corporate tax rates, withholding tax rates, exemption, expenses, meaning of income and tax incentives. As tax laws are different in most of the countries, they creates problem for the multinationals in deciding which location of FDI is to be chosen to maximize their profits. Objective of study is to examine the impact of tax environment on the FDI inflows and stock into countries with different income level. Study found that tax environment is not significant for all. It may different behavior for high, middle and low income countries.

Tax Revenue Mobilization in Conflict‐affected Developing Countries

AbstractHow does conflict affect tax revenue mobilization? This paper uses a newly updated dataset to explore longitudinal trends of tax revenue mobilization prior to, during and after conflict periods in a selection of conflict‐affected states since 1980. This medium‐N trend analysis provides greater insight into the relationship between tax revenue performance over time and the characteristics of the conflicts in question. Offering detailed snapshots of tax experiences prior to, during and after conflict, this paper provides an empirical counterpoint to theories about the role of taxation in war making and state building. © 2018 UNU‐WIDER. Journal of International Development published by John Wiley & Sons, Ltd.

The role of taxation on resilient economy and development of Rwanda

The study entitled ‘the role of taxation on resilient economy and development of Rwanda was carried out under the period 2013-2016. The main objective of the study was to assess the role of taxation on economic development. The Methodology such as qualitative and quantitative was used in data collection where both primary and secondary data were collected. A questionnaire was designed to 90 sample sizes out of 920 total employees of RRA purposively selected and a documentary technique was used. After collection, data were analysed using SPSS where a correlation coefficient was determined to measure the relationship between variables. Based on the correlation coefficient r=0.790, we concluded that there is a significant relationship between taxation and Rwanda economic development. Thus 62% of Rwandan economic development should be addressed to taxation for enhancement purposes. It is in this regard RRA should develop goods description standards manual for verification purpose and data analysis and Carry out door to door field visits to identify potential traders to be registered.