Transaction Tax Research Articles

Legal Regulation of Taxation of Cryptocurrency Turnover: A Comparative Legal Study of the Tax and Legal Regulation of the Republic of Malta and the Russian Federation

The author discusses the features of the tax and legal regulation of cryptocurrencies in the Republic of Malta and the Russian Federation. A study of legal regulation and a study of the positions of legal scholars of the Republic of Malta, in terms of regulating the turnover of cryptocurrencies, as well as the experience of legal regulation of the turnover of cryptocurrencies in the Russian Federation. As a result of the study, the author identified a gap in the legal regulation of taxation of cryptocurrencies in the Russian Federation, in comparison with the legal regulation of the Republic of Malta. Public relations arising in connection with the turnover of cryptocurrencies are not fully regulated in any country of the world at the moment, including in terms of taxation of transactions using cryptocurrencies. In this connection, it is necessary to take into account the foreign experience of legal regulation of taxation of cryptocurrency turnover, including the Republic of Malta. The problem lies in the fact that amendments to the Tax Code of the Russian Federation have not been adopted at the moment, which would regulate the taxation of cryptocurrency turnover in the Russian Federation. The goal of the study is to investigate the experience of legal regulation of taxation of cryptocurrencies of the Republic of Malta and to identify aspects that could be applied to form the legal regulation of taxation of turnover of cryptocurrencies in the Russian Federation. Previously, comparative legal research in this area has not been conducted.

Legal regulation of tax benefits in the taxation of income of individuals transactions with digital rights (cryptocurrencies)

The author discusses the features of the legal regulation of tax benefits in the taxation of transactions of individuals with digital rights in the Russian Federation. As a result of the study, the author identified a gap in the legal regulation of taxation of digital rights in the Russian Federation, when determining the system of tax benefits for transactions with digital rights. It is necessary to highlight the features of the legal regulation of taxation of income of individuals on transactions with digital rights and determine whether these features are applicable to the legal regulation of taxation of income of individuals on transactions with digital rights in the Russian Federation. The problem is that in the legislation of the Russian Federation there is no legal regulation of taxation of income of individuals on transactions with digital rights, in particular, tax benefits are not established when calculating the tax base of income on transactions with digital rights. The goal of the study is to investigate the experience of foreign legislation and regulatory legal regulation of the Russian Federation and to identify the problems of legal regulation of taxation of income of individuals on transactions of individuals with digital rights. Previously, research in the field of legal regulation of taxation of income of individuals on transactions with digital rights has not been conducted.

Value of qualification to buy a house: Evidence from the housing purchase restriction policy in China

China's housing purchase restriction (HPR) policy imposes administrative restrictions on households' home purchase eligibility to curb speculative demand. We quantify households' willingness to pay (WTP) to re-acquire such eligibility. The empirical results based on the staggered DID specification suggest that when local governments implement the HPR policy, the transaction prices of judicial housing auctions legally exempted from HPR increase by 18.91 %. This HPR-exempted qualification premium can be converted to an estimate of 22.48 % of the transaction price as buyers' WTP for home purchase eligibility. The heterogeneity analysis also suggests that the WTP significantly increases when speculative incentives are stronger in the housing market. If policymakers in mainland China consider replacing the HPR policy with an additional buyer transaction tax like that in Singapore and Hong Kong, China, the WTP estimates can serve as the benchmark in setting the tax rate.

СПЕЦИФИКА ДОЛГОСРОЧНОГО ИНВЕСТИРОВАНИЯ В ДРАГМЕТАЛЛЫ ФИЗИЧЕСКИМИ ЛИЦАМИ НА РЫНКЕ ФИНАНСОВЫХ УСЛУГ В СОВРЕМЕННЫХ УСЛОВИЯХ

Among the huge number of investment instruments that individuals use in the financial services market, currently, according to the authors, investments in various types of precious metals, primarily in investment instruments made of gold, are poorly studied, but very promising. This is especially true for long-term investment projects, because the whole world history and practice has shown that this type of investment instruments (precious metals, especially gold) is the most reliable and absolutely liquid investment tools used in the financial market by individuals. The most important aspect is that the above advantages can take place mainly in the process of long-term investments. Taking into account the fact that the range of investment instruments from precious metals is very wide (coins of various types, ingots from precious metals, impersonal metal accounts, etc.), it is necessary to take into account the peculiarities of their functioning in the market of investment financial instruments. Since there are significant differences in the mechanism of their turnover, accessibility for individuals, there are significant differences in the taxation of transactions and income received by individuals and other significant specifics. In modern conditions, according to the authors, the above-mentioned financial instruments are poorly studied and have not yet been widely used, although from the point of view of long-term investment for individuals in the financial services market they are very promising. We are talking mainly about investments in investment instruments made of gold in the long term.

ЦИФРОВІ ІНСТРУМЕНТИ В БОРОТЬБІ З ВІДМИВАННЯМ КОШТІВ ТА ФІНАНСУВАННЯМ МІЖНАРОДНОГО ТЕРОРИЗМУ: МОЖЛИВОСТІ ТА ЗАГРОЗИ

At the current stage, the consequences of the use of digital technologies cannot be fully predicted. Their role in combating money laundering and terrorist financing is defined in two ways: 1) facilitate the transfer and accumulation of illegally obtained funds in offshore accounts; 2) act as a source of empowerment, can be used in investigations, detection and termination of illegal money transfers. The purpose of the article is a critical analysis of approaches to assessing the relationship between the level of risk of money laundering and terrorist financing and the implementation of digital technologies in countries, as well as the identification of opportunities and threats from their application in the researched field. To achieve the goal, the following methods were used: analysis and synthesis, logical generalization, comparison. The article systematizes the approaches of scientists to establishing the relationship between the level of digital development of the country and the risk of legalization of criminal funds. Based on a critical analysis of scientific works, this connection was confirmed, taking into account the value of the Basel АML Index. The problems of using rating indices of digitization for the quantitative assessment of this connection are identified. The ambiguity of the conclusions and the complexity of the real assessment are related to the different positions of the countries for different indicators. The benefits created by digital technologies in the field of combating money laundering and terrorist financing are systematized, in terms of KYC and TM components. They are used by most banks to assess, analyze and measure the risk of financial crimes. Situations that signal potential suspicious activity and require additional attention from banks are summarized. On the example of cryptocurrency, an assessment of the characteristic features of digital technologies (the underlying blockchain technology; anonymity; regulation and taxation of transactions with cryptocurrency) was carried out regarding the possibility of their use for money laundering and terrorist financing.

Legal Regulation of Taxation of Cryptocurrency Turnover: A Comparative Legal Study of the Tax and Legal Regulation of the Republic of India and the Russian Federation

The article discusses the features of the tax and legal regulation of cryptocurrencies in the Republic of India and the Russian Federation. A study of legal regulation and a study of the positions of legal scholars of the Republic of India, in terms of regulating the turnover of cryptocurrencies, as well as the experience of regulatory regulation of the turnover of cryptocurrencies in the Russian Federation. As a result of the study, the author identified a gap in the legal regulation of taxation of cryptocurrencies in the Russian Federation, in comparison with the legal regulation of the Republic of India. Public relations arising in connection with the turnover of cryptocurrencies are not regulated in any country of the world at the moment, including in terms of taxation of transactions using cryptocurrencies. In this connection, it is necessary to take into account the foreign experience of legal regulation of taxation of cryptocurrency turnover, including the Republic of India. The problem lies in the fact that amendments to the Tax Code of the Russian Federation have not been adopted at the moment, which would regulate the taxation of cryptocurrency turnover in the Russian Federation. To investigate the experience of legal regulation of taxation of cryptocurrencies of the Republic of India and to identify aspects that could be applied to form the legal regulation of taxation of turnover of cryptocurrencies in the Russian Federation. Previously, comparative legal research in this area has not been conducted.

Особливості обліку розрахунків у сфері е-комерції віртуальними активами (криптовалютою): міжнародний та вітчизняний досвід

Over the past few years, the term «cryptocurrency» has firmly entered the public consciousness. Virtual assets are gaining popularity because of their main advantages: availability, anonymity, the ability to make quick money, etc. Cryptocurrency is a code in a large book called «blockchain». Owing to the fact that the technology of «blockchain» is inherently similar to an accounting book, the world’s leading scientists are studying the issue of its implementation in the accounting system. This would allow to record each transaction automatically, reduce the cost and increase the speed of transactions. The article discusses the issue of accounting for settlements in the field of e-commerce using speculative assets. The regulatory framework for taxation of transactions with cryptocurrencies in Ukraine is analyzed. Several approaches to accounting for transactions with risky assets in Ukraine are proposed. The results of the study provide a detailed assessment of the situation in the international trade market and the state of development of settlements using cryptocurrencies, highlights the problematic aspects of normative regulation and accounting for transactions with risky assets in Ukraine and over the world. The field of e-commerce includes all transactions carried out via the Internet. This is indeed doing business online, i. e., by means of websites, social networks or mobile applications. The introduction of a method of making payments with cryptocurrency will greatly simplify the processing of transactions. This payment in digital currency is delivered anywhere in the world, regardless of the place of departure without intermediaries. At this, the cost of the transaction, or the payment fee, is much lower than with a regular bank transfer. The cryptocurrency market is currently quite volatile, classifying transactions with digital assets as «high-risk». The introduction of cryptocurrencies as a full-fledged means of payment is impossible without market regulation by financial institutions. Until that happens, commodity prices in cryptocurrency can fluctuate up to 25% compared to the previous day. Trading under such price conditions is impossible. However, a type of cryptocurrency such as «stablecoins» is protected from market fluctuations, since their pricing principle is based on the exchange rate of the real currency. For example, the USDT stablecoin is pegged to the US dollar, so its value changes along with the value of the real currency. In this case, an electronic currency such as USDT can be considered a means of payment and used in e-commerce.

Legal Regulation of Taxation of Cryptocurrency Turnover: a Comparative Legal Study of the Tax and Legal Regulation of the Republic of Turkey and the Russian Federation

The article discusses the features of the tax and legal regulation of cryptocurrencies in the Republic of Turkey and the Russian Federation. A study of regulatory regulation and a study of the positions of legal scholars of the Republic of Turkey, in terms of regulating the turnover of cryptocurrencies, as well as the experience of regulatory regulation of the turnover of cryptocurrencies in the Russian Federation. As a result of the study, the author identified a gap in the legal regulation of taxation of cryptocurrencies in the Russian Federation, in comparison with the legal regulation of the Republic of Turkey. Public relations arising in connection with the turnover of cryptocurrencies are not regulated in all countries of the world at the moment, including in terms of taxation of transactions using cryptocurrencies. In this connection, it is necessary to take into account the foreign experience of legal regulation of taxation of cryptocurrency turnover, including the Republic of Turkey. The problem lies in the fact that amendments to the Tax Code of the Russian Federation have not been adopted at the moment, which would regulate the taxation of cryptocurrency turnover in the Russian Federation. The aim of the study is to investigate the experience of legal regulation of taxation of cryptocurrencies of the Republic of Turkey and to identify aspects that could be applied to form the legal regulation of taxation of turnover of cryptocurrencies in the Russian Federation.

Actual problems of the land market – analysis and solutions

The introduction of the land market is one of the key and final stages of the land reform in Ukraine, which has been ongoing almost since independence. This reform is designed to introduce effective land use and positively affect the agricultural sector. Over the years, the issue of the introduction of the land market has been controversial and politicized, and has caused numerous disputes. However, both legal and economic negative effects of the moratorium on the sale of agricultural products grew and harmed the Ukrainian economy. The main tasks of the land market are: сreating a positive investment climate in the agricultural sector ; і ncreasing the competitiveness of the economy both domestically and in external markets ; achieving a positive socio-economic effect for economic growth ; legalizing and bringing the land market out of the « shadow ». The fulfillment of these tasks is impossible without high-quality legal regulation. The article analyzes a number of legal problems related to the land market and offers options for their solution. It is noted that legal restrictions on access to the land market for legal entities and foreign investors do not allow to achieve positive economic effects in full. The problems that arise in the implementation of the preemptive right to purchase agricultural land plots are revealed and options for their solution are proposed. The need to change the approach to taxation of transactions with agricultural land is substantiated. The issue of pricing is revealed and the experience of the Czech Republic in this field is analyzed.

To Rent or To Own? The Effect of Additional Transaction Tax on Buy-to-Let Housing Market

To Rent or To Own? The Effect of Additional Transaction Tax on Buy-to-Let Housing Market

Analysis of the Implementation of the Spanish Financial Transaction Tax in Equity Markets

Analysis of the Implementation of the Spanish Financial Transaction Tax in Equity Markets

SYSTEM ANALYSIS OF SUBJECTS CRYPTOCURRENCIES OPERATIONS IN THE CONDITIONS OF GLOBAL CHALLENGES

The article considers cryptocurrency as a new type of intangible assets and the regulatory and legal support for its implementation. Particular attention is paid to defining the content, legal status, features of accounting, and taxation of transactions with such assets. The market capitalization and bitcoin forecast are analyzed. The interdependence between the exchange rate of bitcoin and pairs of the most influential world currencies, world prices for precious metals, and securities rates on the largest stock exchanges is determined. The most significant influencing factors on the bitcoin price are determined using correlation and regression analysis. The advantages of using cryptocurrencies have been identified, including high speed of transactions, reduction of the intermediaries number, and low fees. The threatening nature of the crypto-industry development for the economic potential of the state is also determined, taking into account available with current global challenges such as cyberattacks and fraud and data theft. Real fraud schemes in the field of crypto-circulation are considered. It is noted that without determining the clear legal status of cryptocurrencies in the country, it is impossible to resolve the legal, accounting and tax consequences of these transactions. It was determined that for the legal circulation of cryptocurrencies, the creation of a financial institution or a special state body, which should exercise control over the cryptocurrencies circulation, must be ensured as a minimum; introduction of taxation for companies whose activities are related to the crypto industry; establishing the obligation of users to declare their income and profits from crypto-assets, etc. Because of this, the functions of state authorities in regulating operations with cryptocurrencies are characterized, and the changes that will be introduced to the Tax Code of Ukraine are analyzed, regarding the taxation of transactions with cryptocurrencies, which in the future will make it possible to increase budget revenues, regulate and facilitate accounting and taxation of transactions with cryptocurrencies, use legal remedies for virtual assets, reduce possible tax evasion, etc.

Personal data protection: the new paradigm of the tax secret or tax reserve in Chile

Handling personal data is increasingly important for both business development and the affairs of state. In fact, data are often referred to as the new ‘oil’1 of the information society. The State requires this information to regulate tax compliance, prosecute tax evasion, deter tax avoidance, and provide services to taxpayers.2 Taxpayers finance public expenditures through tax payments by reporting taxable transactions, receipt of income, payment of deductible expenses, and self-reporting the resultant taxes due. Tax authorities review filed tax declarations to ensure that tax liabilities are properly quantified and that payment, where applicable, has been timely made. Tax authorities require taxpayers’ tax information and personal data to ensure that the correct amounts of taxes are collected and that any overpayments of taxes are refunded. Taxpayers are therefore obligated both to pay taxes to finance public expenditures and communicate necessary information to the taxing authority, an obligation that ‘encompasses the [taxing authority’s] duty to inform third parties and the taxpayer’s own duty to collaborate’.3 Consequently, tax administrators possess large amounts of personal data of a tax, financial and commercial nature. Such data could be used to build profiles of individual taxpayers’ purchasing and payment habits.

Don’t tax you, Don’t tax me, tax the corporations across the sea’: examining the European Financial Transaction Tax as a model for tax multilateralism

In light of the COVID-19 crisis, enthusiasm for a European Financial Transaction Tax (FTT) has been revitalised, driven by similar economic factors as the decade before. As such, this essay offers a timely exposition of the failures of the original FTT proposals by bringing together academic literature on the European FTT with that of FTTs in general within the larger framework of international tax cooperation. By dissecting the reasons for the failure of the European FTT, this essay will make two key arguments. The first is that the significant design flaws of the FTT played the most significant role in its failure. The second key argument is that the experience of the FTT highlights exactly why tax multilateralism is increasingly important in the international tax order and that despite the eventual failure of the proposals, the EU remains the most accessible international forum in which to foster multilateral tax cooperation.

부동산 관련 지방세제의 문제점과 개선방안

A local tax system is established as a taxation system that takes into account the price function for local government work and public services and the revitalization of the local economy. To strengthen the financial independence of local governments, there is a need to expand the fiscal decentralization and the size of local governments' own financial resources.
 The tax revenue from local government finances is composed mainly of local taxes, local nontax revenue, state subsidies, local grants, and local grant tax and other income. Much of the local tax is centered on property transaction tax, thereby being characterized by being closely related to the real estate business.
 A flow of real estate taxation imposes a heavy tax on multiple homeowners, thereby leading to pressuring selling as a measure to prevent a price from rising due to the lack of supply. This tax policy is functioning as a means of stabilizing the property prices and transactions by regulating real estate speculation, not the financing method that is the original purpose of the tax.
 Owing to a difference in economic conditions between regions, the inequality of local government's fiscal power poses another level of a problem. The problem of income disparity between regions makes it a rule to be dealt with at the level of national redistribution policy with the support from the central government. However, the income gap between regions can be resolved through the industrial policy or the balanced national development.

Simplified taxation system in Ukraine in the conditions of digital transformation

In the conditions of the economic crisis that arose during the martial law in Ukraine, introduced by the Decree of the President of Ukraine dated February 24, 2022 № 64/2022, there is an urgent need to reformat the current domestic taxation system, aimed at the maximum simplification and minimization of administrative procedures, related to the calculation and payment of taxes, control over compliance with tax legislation, as well as the optimization of state expenditures for the specified purposes through the introduction of a real simplified system of taxation, accounting and reporting throughout the territory of Ukraine for all legal and physical entities.
 The authors of the article set a goal, based on the idea of a simple, understandable and effective in administration of a simplified taxation system, to propose further directions for the legal regulation of step-by-step actions of the state during the transition to a digital domestic taxation system in the conditions of the implementation of a real tax reform.
 Given the insignificant share of the single tax in the revenues of the consolidated budget of Ukraine (about 1.7-3%) there is no need to increase the tax burden on its payers, which has been observed in recent years in connection with the adoption of numerous legislative acts aimed at strengthening regulatory mechanisms of taxation of entities that have chosen a simplified system.
 The article proposes specific directions for the legal regulation of processes aimed at the legalization of income through tax amnesty, the gradual rejection of the circulation of cash and the transition exclusively to cashless electronic transactions, the prohibition of barter transactions - for implementation in the conditions of digital transformation throughout the country for everyone, both citizens and business entities of the simplified taxation system in the form of a transaction tax.
 According to the data presented in the article, the taxation of transactions at the rate of 1.6% would allow to ensure the annual volume of budget revenues planned for 2022 while minimizing administrative procedures and expenses for them. The adoption of the law on the transaction tax with the simultaneous repeal of a number of legislative and regulatory acts on taxation is an important step for the implementation of real tax reform.

Optimal Financial Transaction Taxes

ABSTRACTThis paper characterizes the optimal transaction tax in an equilibrium model of financial markets. If investors hold heterogeneous beliefs unrelated to their fundamental trading motives and the planner calculates welfare using any single belief, a positive tax is optimal, regardless of the magnitude of fundamental trading. Under some conditions, the optimal tax is independent of the planner's belief. The optimal tax can be implemented by adjusting its value until total volume equals fundamental volume. Knowledge of (i) the share of nonfundamental trading volume and (ii) the semielasticity of trading volume to tax changes is sufficient to quantify the optimal tax.

The Position of Municipal Economic Enterprises Against Stamp Duty

Günümüzde Türkiye’de özelleştirmeler ile kamu iktisadi teşebbüslerinin sayısı azalmış olsa da belediyeler tarafından kurulan iktisadi teşebbüsler sürekli artış göstermektedir. Belediyeler tarafından kurulan ve sermayeleri de belediyeler tarafından sağlanan bu kuruluşlar çok sayıda personel çalıştırmakta ve önemli bir iktisadi işlem hacmi gerçekleştirmektedir. Damga vergisi hukuki muameleler için düzenlenen kâğıtlar nedeniyle gündeme gelen bir hukuki muamele vergisidir. Damga Vergisi Kanunu’nda belediyelerin de içinde yer aldığı resmi daireler bu vergiden muaf kılınmış ve bunlar ile kişiler arasından düzenlenecek kâğıtların damga vergisinin işlemin diğer tarafı olan kişilerce ödeneceği düzenlenmiştir. Belediye iktisadi teşebbüslerinin de bu muafiyet kapsamında bulunup bulunmadığı ile bunların gerçekleştirdikleri iktisadi muamelelere dair kâğıtların damga vergisinin kim tarafından ödeneceği zaman zaman uygulamada ve yargı kararlarında tartışma konusu olmaktadır. Bu çalışma belediye iktisadi teşebbüslerinin damga vergisi karşısındaki konumunu açıklamaya çalışmaktadır.

The Impact of Financial Transaction Taxes on Stock Markets: Short-Run Effects, Long-Run Effects, and Reallocation of Trading Activity

We investigate the French 2012 financial transaction tax (FTT) and find robust evidence for anticipation effects before the implementation date. Controlling for short-run effects, we only find weak evidence for a long-run reduction in trading activity. Thus, the main impact of the French FTT on trading activity is short-run. In line with liquidity clientele effects, we find a more potent effect for low-liquidity stocks and a reallocation of trading to high-liquidity stocks from the Supplemental Liquidity Provider (SLP) program. Finally, we find weak evidence for a persistent volatility reduction but no indication of a significant FTT impact on price efficiency.

Tax Control

The subject of tax control is the tax authorities and the taxpayer. One of the peculiarities of tax control is that it must be highly organized, which is the basis for maximally summarizing SR 80 information on taxable transactions. Achieving this governance goal obliges the tax system to develop modern legal standards for the entire set of administration methodology, technical means, staff skills and other measures. Based on the principle of constitutional rank of equality of citizens before the law and the administrative body, the rule of law must be clearly defined, clear and unambiguous. The Court of Cassation clarified that the institution of distribution of the burden of proof has not only procedural but also material-legal significance, which lies in the fact that the unfavorable consequences of not proving the fact should be attributed to the party who was responsible for proving that fact. Key words: Tax, tax control, government, tax audit, law, administrative body, law, code.