Pub Date : 2023-01-01DOI: 10.15826/jtr.2023.9.1.129
Salah Salimian, M. M. Beknazar, Sattar Salimian
Tax as one of the main levers in the micro and macro sectors of the economy it has greatly accelerated the growth of the economy, and today there are fewer countries that use it as a pillar Economic stability does not accept. On the other hand time receipt of taxes for countries is very vital and the basis of government planning for all projects and especially their budgeting. Governments are looking for ways to collect their target tax from taxpayers at the lowest possible cost. Thus, the most important step to achieve this goal is for taxpayers to declare the actual amount of tax they have paid in tax return. This paper deals with modeling the game between taxpayers and National Tax Administration. The results showed that the equilibrium declared tax of taxpayers is a function of assessed due tax, the quality of assessment groups, the number of assessments and the parameter of taxpayers’ dishonesty. The taxpayers’ equilibrium declared tax is increasing relative to the quality of their assessment groups and decreasing relative to other assessment groups. With increase in the likelihood of dishonesty, the declared tax of larger taxpayers will increase and the declared tax of smaller taxpayers will decrease and vice versa. Furthermore, if the quality difference of two assessment groups is only vertical, then assessed due tax and the equilibrium declared taxes will be equal. Finally, increase in the number of assessment leads to increase in the declared tax of larger taxpayers and decrease in the declared tax of smaller taxpayers and vice versa.
{"title":"Modeling Tax Declaration Behavior and Quality of Tax Processing: A Game Theory Approach","authors":"Salah Salimian, M. M. Beknazar, Sattar Salimian","doi":"10.15826/jtr.2023.9.1.129","DOIUrl":"https://doi.org/10.15826/jtr.2023.9.1.129","url":null,"abstract":"Tax as one of the main levers in the micro and macro sectors of the economy it has greatly accelerated the growth of the economy, and today there are fewer countries that use it as a pillar Economic stability does not accept. On the other hand time receipt of taxes for countries is very vital and the basis of government planning for all projects and especially their budgeting. Governments are looking for ways to collect their target tax from taxpayers at the lowest possible cost. Thus, the most important step to achieve this goal is for taxpayers to declare the actual amount of tax they have paid in tax return. This paper deals with modeling the game between taxpayers and National Tax Administration. The results showed that the equilibrium declared tax of taxpayers is a function of assessed due tax, the quality of assessment groups, the number of assessments and the parameter of taxpayers’ dishonesty. The taxpayers’ equilibrium declared tax is increasing relative to the quality of their assessment groups and decreasing relative to other assessment groups. With increase in the likelihood of dishonesty, the declared tax of larger taxpayers will increase and the declared tax of smaller taxpayers will decrease and vice versa. Furthermore, if the quality difference of two assessment groups is only vertical, then assessed due tax and the equilibrium declared taxes will be equal. Finally, increase in the number of assessment leads to increase in the declared tax of larger taxpayers and decrease in the declared tax of smaller taxpayers and vice versa.","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":"1 1","pages":""},"PeriodicalIF":0.4,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67260287","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Indonesia is a country with a relatively large level of MSMEs development. The Micro, Small, and Medium Enterprises (MSMEs) sector itself has a crucial role and is the main pillar of a country’s progress. Ironically, this rapid development is not followed by the compliance of MSMEs taxpayer. Based on the survey results by the Directorate General of Taxes of the Indonesian Ministry of Finance in 2019, the contribution of MSMEs final income tax was only IDR 7.5 trillion or only around 1.1% of the total income tax revenue in the same year 711.2 trillion. Thus, it is important to explore the main factors causing (non)compliance of MSMEs in paying their taxes. This research examined the effect of perceptions of corruption and trust in the government on MSMEs’ taxpayer compliance with perceived justice as a moderating variable. This study used a questionnaire survey design with hypothesis testing. The samples included MSMEs actors who had been operating for more than one year and MSMEs actors who already had a taxpayer identification number. The results uncovered that the perceptions of corruption negatively affected MSMEs’ taxpayer compliance, while trust in the government positively affected MSMEs’ taxpayer compliance. The perceived justice could not moderate the effect of perceptions of corruption on MSMEs’ taxpayer compliance. However, the perceived justice strengthened the influence of trust in the government on MSMEs’ taxpayer compliance. This study’s results are additional discussion toward theory and literature related to taxpayer compliance. Specifically, this study proposes a tax compliance model by testing perceived justice as a moderation variable.
{"title":"The Impact of Perceptions of Corruption and Trust in Government on Indonesian Micro, Small and Medium Enterprises Compliance with Tax Laws","authors":"Afrizal Tahar, Andan Yunianto, Hafiez Sofyani, Panubut Simorangkir, Velisa Devina Remalya, Siti Fatimah Az-Zahro","doi":"10.15826/jtr.2023.9.2.142","DOIUrl":"https://doi.org/10.15826/jtr.2023.9.2.142","url":null,"abstract":"Indonesia is a country with a relatively large level of MSMEs development. The Micro, Small, and Medium Enterprises (MSMEs) sector itself has a crucial role and is the main pillar of a country’s progress. Ironically, this rapid development is not followed by the compliance of MSMEs taxpayer. Based on the survey results by the Directorate General of Taxes of the Indonesian Ministry of Finance in 2019, the contribution of MSMEs final income tax was only IDR 7.5 trillion or only around 1.1% of the total income tax revenue in the same year 711.2 trillion. Thus, it is important to explore the main factors causing (non)compliance of MSMEs in paying their taxes. This research examined the effect of perceptions of corruption and trust in the government on MSMEs’ taxpayer compliance with perceived justice as a moderating variable. This study used a questionnaire survey design with hypothesis testing. The samples included MSMEs actors who had been operating for more than one year and MSMEs actors who already had a taxpayer identification number. The results uncovered that the perceptions of corruption negatively affected MSMEs’ taxpayer compliance, while trust in the government positively affected MSMEs’ taxpayer compliance. The perceived justice could not moderate the effect of perceptions of corruption on MSMEs’ taxpayer compliance. However, the perceived justice strengthened the influence of trust in the government on MSMEs’ taxpayer compliance. This study’s results are additional discussion toward theory and literature related to taxpayer compliance. Specifically, this study proposes a tax compliance model by testing perceived justice as a moderation variable.","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":"72 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135550925","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-01-01DOI: 10.15826/jtr.2023.9.2.133
Akpobome Gregory Akpoyibo, Marvis Ndu Okolo
In both developed and developing nations, there are a number of empirical studies that had assessed the roles tax revenues play in augmenting economic growth; however, there is a literature gap on what is known about tax collection and utilization system and their effects on small and medium scale enterprises’ performance in developing country like Nigeria. In line with the above, this study was carried out with the view to assess the relationships between tax collection and utilization systems and the performance of small and medium scale enterprises in Nigeria. The theories of expediency and benefits received from tax revenues were employed as the theoretical underpinning and the descriptive survey design involving questionnaire was used. A sample of 190 employees and 50 owners of small and medium scale enterprises were employed, hence the study sample comprised of 240 respondents. The dependent variable is small and mediums scale performance (measured by quality of service, profitability and turnover) while the independent variables are tax collection and utilization systems. Data obtained in the survey were analyzed using descriptive statistics (mean, standard deviation, and Karl Pearson correlation); diagnostic statistics (variance inflation factor) and inferential statistics (multivariate regression). In specific, the multivariate regression result indicated that tax collection and utilization systems negatively and significantly affect SMEs performance in areas of quality of service, profitability, and turnover in Nigeria. It was recommended that Nigerian government should put stringent mechanisms aimed at enhancing the collection and utilization of tax revenues and more importantly, multiple tax collections that seek to frustrate small and medium scale enterprises’ performance should be adequately addressed.
{"title":"Tax Collection, Utilization Systems and the Performance of Small and Medium Scale Enterprises in Nigeria: A Multivariate Approach","authors":"Akpobome Gregory Akpoyibo, Marvis Ndu Okolo","doi":"10.15826/jtr.2023.9.2.133","DOIUrl":"https://doi.org/10.15826/jtr.2023.9.2.133","url":null,"abstract":"In both developed and developing nations, there are a number of empirical studies that had assessed the roles tax revenues play in augmenting economic growth; however, there is a literature gap on what is known about tax collection and utilization system and their effects on small and medium scale enterprises’ performance in developing country like Nigeria. In line with the above, this study was carried out with the view to assess the relationships between tax collection and utilization systems and the performance of small and medium scale enterprises in Nigeria. The theories of expediency and benefits received from tax revenues were employed as the theoretical underpinning and the descriptive survey design involving questionnaire was used. A sample of 190 employees and 50 owners of small and medium scale enterprises were employed, hence the study sample comprised of 240 respondents. The dependent variable is small and mediums scale performance (measured by quality of service, profitability and turnover) while the independent variables are tax collection and utilization systems. Data obtained in the survey were analyzed using descriptive statistics (mean, standard deviation, and Karl Pearson correlation); diagnostic statistics (variance inflation factor) and inferential statistics (multivariate regression). In specific, the multivariate regression result indicated that tax collection and utilization systems negatively and significantly affect SMEs performance in areas of quality of service, profitability, and turnover in Nigeria. It was recommended that Nigerian government should put stringent mechanisms aimed at enhancing the collection and utilization of tax revenues and more importantly, multiple tax collections that seek to frustrate small and medium scale enterprises’ performance should be adequately addressed.","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":"52 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135550931","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-01-01DOI: 10.15826/jtr.2023.9.2.138
Cordelia Onyinyechi Omodero
The purpose of this study is to verify the response of economic services to changes in value-added tax legislation. This research looked at all economic activities, including agriculture, transportation, communication, entertainment, construction, manufacturing, and financial services, among others. Nonetheless, the VAT policy amendment is intended to improve economic activity and provide funds for the government to carry out social obligations. However, it is critical to provide the government with empirical data to help guide these amendments as needed. The study employs ARDL and ECM to investigate both the long- and short-term effects of VAT reform on economic productivity enhancement. The data used in this study ranges from 1994, when VAT was fully implemented in Nigeria, to 2022. The use of these data allows for a thorough examination of the economic impact of VAT reform. The findings indicate that in the long run, VAT has a positive and significant impact on economic services, but in the short run, the findings show that VAT has an intangible impact on economic activities. The implication is that the economic service response to VAT reformation can only be tangible and positive in the long run when businesses are able to adjust to policy changes. The study also reveals that inflation is harmful to the economy in both the long and short run. As a result, the study suggests that policymakers keep an eye on inflation before raising or lowering the VAT rate in order to avoid a massive economic collapse.
{"title":"Modeling the Economic Impact of Value Added Tax Reforms in Nigeria","authors":"Cordelia Onyinyechi Omodero","doi":"10.15826/jtr.2023.9.2.138","DOIUrl":"https://doi.org/10.15826/jtr.2023.9.2.138","url":null,"abstract":"The purpose of this study is to verify the response of economic services to changes in value-added tax legislation. This research looked at all economic activities, including agriculture, transportation, communication, entertainment, construction, manufacturing, and financial services, among others. Nonetheless, the VAT policy amendment is intended to improve economic activity and provide funds for the government to carry out social obligations. However, it is critical to provide the government with empirical data to help guide these amendments as needed. The study employs ARDL and ECM to investigate both the long- and short-term effects of VAT reform on economic productivity enhancement. The data used in this study ranges from 1994, when VAT was fully implemented in Nigeria, to 2022. The use of these data allows for a thorough examination of the economic impact of VAT reform. The findings indicate that in the long run, VAT has a positive and significant impact on economic services, but in the short run, the findings show that VAT has an intangible impact on economic activities. The implication is that the economic service response to VAT reformation can only be tangible and positive in the long run when businesses are able to adjust to policy changes. The study also reveals that inflation is harmful to the economy in both the long and short run. As a result, the study suggests that policymakers keep an eye on inflation before raising or lowering the VAT rate in order to avoid a massive economic collapse.","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135551258","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-01-01DOI: 10.15826/jtr.2023.9.1.127
M. Krajňák
The article evaluates the development of the tax burden and its influence on fuel consumption in the Czech Republic in the years 2001–2022. Petrol and diesel are subject to universal and selective indirect taxation. Using the methods of analysis, description, comparison, synthesis and regression and correlation analysis, it is analysed whether the tax burden of these products is constant despite minimal tax reforms or whether it is changing. To assess the real tax burden, the effective tax rate indicator is calculated. Input data for the analysis consists of average fuel prices and tax rates in the analysed period. Compared to the first analysed year– 2001 and the last analysed year 2022, the value-added tax rate increased by one percentage point. Selective excise duty rates also increased by about 1 CZK., The results of the analysis examining the development of the tax burden using the effective tax rate show that the tax burden on fuel is constantly changing. However, this is not due to many tax reforms in this area of taxation. The reason is mainly the unit type of tax rate for excise duties. This fact causes the increase in the price of fuel leads to decrease the percentage of tax to the total price of fuel, and the tax burden thus develops regressively. Excise duties and value-added tax have a negative effect on consumption. In the context of tax theories, one of the reasons for the higher tax burden on fuels is the limitation of their consumption. It can thus be concluded that in the Czech Republic, these taxes are fulfilled. At the same time, the high tax burden creates relatively stable revenues for the state budget. This fact confirms the importance of excise duties.
{"title":"Fuels Taxation in the Context of Tax Reforms in the Czech Republic","authors":"M. Krajňák","doi":"10.15826/jtr.2023.9.1.127","DOIUrl":"https://doi.org/10.15826/jtr.2023.9.1.127","url":null,"abstract":"The article evaluates the development of the tax burden and its influence on fuel consumption in the Czech Republic in the years 2001–2022. Petrol and diesel are subject to universal and selective indirect taxation. Using the methods of analysis, description, comparison, synthesis and regression and correlation analysis, it is analysed whether the tax burden of these products is constant despite minimal tax reforms or whether it is changing. To assess the real tax burden, the effective tax rate indicator is calculated. Input data for the analysis consists of average fuel prices and tax rates in the analysed period. Compared to the first analysed year– 2001 and the last analysed year 2022, the value-added tax rate increased by one percentage point. Selective excise duty rates also increased by about 1 CZK., The results of the analysis examining the development of the tax burden using the effective tax rate show that the tax burden on fuel is constantly changing. However, this is not due to many tax reforms in this area of taxation. The reason is mainly the unit type of tax rate for excise duties. This fact causes the increase in the price of fuel leads to decrease the percentage of tax to the total price of fuel, and the tax burden thus develops regressively. Excise duties and value-added tax have a negative effect on consumption. In the context of tax theories, one of the reasons for the higher tax burden on fuels is the limitation of their consumption. It can thus be concluded that in the Czech Republic, these taxes are fulfilled. At the same time, the high tax burden creates relatively stable revenues for the state budget. This fact confirms the importance of excise duties.","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":"1 1","pages":""},"PeriodicalIF":0.4,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67260408","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-01-01DOI: 10.15826/jtr.2023.9.1.128
Islombek M. Niyazmetov, A. S. Rakhmonov, Otajon Otabekov
Taxes have always been the largest contributor to the government budget revenue, so it is critical to collect maximum amount of tax revenue to meet policy objectives. The revenue performance of the countries, in turn, depends primarily on optimality of tax burden in an economy and capacity of revenue agencies to levy taxes set by the law. These factors have been major issues for all countries around the world, particularly for transition economies which are on the verge of major economic transformation. Uzbekistan as one of such countries, since 2017 has implemented multiple fiscal reforms to improve the fiscal capacity of the tax system, thereby increasing economic growth. To assess to what extend current tax policies are efficient, we put forward aim of the article as to elaborate the efficiency of Uzbekistan’s tax system using tax effort index to measure collection capability of potential tax revenue and optimal tax burden to maximize economic growth. In this study, we first using mathematical model identified tax effort index for Uzbekistan, which appeared to be approximately 45%. This implies that revenue agencies of Uzbekistan failed to collect on average half of the potential tax revenue over the period 2010–2020. Furthermore, we attempted to determine the optimal tax burden using the Ordinary Least Squares (OLS) method. According to the results of the econometric analysis, the optimal level of tax burden in Uzbekistan for the years 2000–2019 is estimated to be around 19%. Targeting tax burden to this level could reduce GDP gap by 1%.
{"title":"Economic Growth and Optimal Tax Burden: A Case of Uzbekistan’s Economy","authors":"Islombek M. Niyazmetov, A. S. Rakhmonov, Otajon Otabekov","doi":"10.15826/jtr.2023.9.1.128","DOIUrl":"https://doi.org/10.15826/jtr.2023.9.1.128","url":null,"abstract":"Taxes have always been the largest contributor to the government budget revenue, so it is critical to collect maximum amount of tax revenue to meet policy objectives. The revenue performance of the countries, in turn, depends primarily on optimality of tax burden in an economy and capacity of revenue agencies to levy taxes set by the law. These factors have been major issues for all countries around the world, particularly for transition economies which are on the verge of major economic transformation. Uzbekistan as one of such countries, since 2017 has implemented multiple fiscal reforms to improve the fiscal capacity of the tax system, thereby increasing economic growth. To assess to what extend current tax policies are efficient, we put forward aim of the article as to elaborate the efficiency of Uzbekistan’s tax system using tax effort index to measure collection capability of potential tax revenue and optimal tax burden to maximize economic growth. In this study, we first using mathematical model identified tax effort index for Uzbekistan, which appeared to be approximately 45%. This implies that revenue agencies of Uzbekistan failed to collect on average half of the potential tax revenue over the period 2010–2020. Furthermore, we attempted to determine the optimal tax burden using the Ordinary Least Squares (OLS) method. According to the results of the econometric analysis, the optimal level of tax burden in Uzbekistan for the years 2000–2019 is estimated to be around 19%. Targeting tax burden to this level could reduce GDP gap by 1%.","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":"1 1","pages":""},"PeriodicalIF":0.4,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67260191","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-01-01DOI: 10.15826/jtr.2023.9.1.130
Nivakan Srithara, S. Sahari, Cheuk Choy Sheung Sharon, Mohamed Ahmad Syubaili
This study limns the moderating impact of religiosity made on the in-house tax professionals who deal with tax affairs in the corporate sectors in Malaysia. Therefore, we intend to produce a seminal article, wherein religiosity is tested for its moderating effect between the determinants such as peers’ tax compliance, tax audit, service quality of tax authority, satisfaction with government spending, and the level of tax compliance among the tax affairs officers. Purposive and snowball sampling techniques have been chosen to collect data from the tax professionals of the Malaysian businesses. A total of 392 respondents have managed to participate in this survey questionnaire to disclose their opinion. “SmartPLS’ is used to analyse the data. The finding reveals that religiosity does not moderate the relationship between the determinants and the level of tax compliance among the Malaysian tax professionals. The interpretation of the relationship between the “Factors of Personal tax compliance’ (Independent variables) among the tax affairs officers of the Malaysian businesses and the “Personal tax compliance behaviour’ (Dependent variable) can be explained by 83.9 percent by the variance studied. To produce an extensive and expeditious report of exploration on the said nexus of personal tax compliance and the taxpayers’ decision on the corporate tax compliance, the selection of one type of data collection approach is not sufficient. Therefore, the future researchers are advised to make research with the collection of supplementary data, such as interviews, as their primary data collection so that the robustness of their findings could be strengthened.
{"title":"Does Religiosity Moderate Personal Tax Compliance? A Study Involving In-House Tax Professionals of Malaysian Businesses","authors":"Nivakan Srithara, S. Sahari, Cheuk Choy Sheung Sharon, Mohamed Ahmad Syubaili","doi":"10.15826/jtr.2023.9.1.130","DOIUrl":"https://doi.org/10.15826/jtr.2023.9.1.130","url":null,"abstract":"This study limns the moderating impact of religiosity made on the in-house tax professionals who deal with tax affairs in the corporate sectors in Malaysia. Therefore, we intend to produce a seminal article, wherein religiosity is tested for its moderating effect between the determinants such as peers’ tax compliance, tax audit, service quality of tax authority, satisfaction with government spending, and the level of tax compliance among the tax affairs officers. Purposive and snowball sampling techniques have been chosen to collect data from the tax professionals of the Malaysian businesses. A total of 392 respondents have managed to participate in this survey questionnaire to disclose their opinion. “SmartPLS’ is used to analyse the data. The finding reveals that religiosity does not moderate the relationship between the determinants and the level of tax compliance among the Malaysian tax professionals. The interpretation of the relationship between the “Factors of Personal tax compliance’ (Independent variables) among the tax affairs officers of the Malaysian businesses and the “Personal tax compliance behaviour’ (Dependent variable) can be explained by 83.9 percent by the variance studied. To produce an extensive and expeditious report of exploration on the said nexus of personal tax compliance and the taxpayers’ decision on the corporate tax compliance, the selection of one type of data collection approach is not sufficient. Therefore, the future researchers are advised to make research with the collection of supplementary data, such as interviews, as their primary data collection so that the robustness of their findings could be strengthened.","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":"1 1","pages":""},"PeriodicalIF":0.4,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67260396","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-01-01DOI: 10.15826/jtr.2023.9.2.137
Feilei Li, Luhua Xie, Yexiang Ruan
This study explores the relationship between tax-cut policy, accounting conservatism, and corporate tax burden stickiness in Chinese listed companies from 2008 to 2019. The primary objective is to identify the underlying reasons for continued high levels of corporate tax burdens despite the introduction of tax-cut policies. An econometric model was developed to analyze the transmission mechanism of these policies affecting corporate tax burden stickiness to achieve this goal. The tax burden stickiness refers to the mismatch between the objective and subjective tax burdens. Results reveal four primary findings: Firstly, macro tax-cut policies induced micro-enterprises to soften their accounting conservatism, leading to increased corporate tax burden stickiness. Secondly, the reduced quality of corporate accounting reports, influenced by tax-cut policies, contributes to corporate income tax burden stickiness. In contrast, the VAT tax burden remains unaffected. Thirdly, compared to state-owned enterprises, private enterprises responded more sensitively to tax reduction policies by significantly decreasing their accounting conservatism level and increasing corporate tax burden stickiness. Finally, high-tech manufacturing enterprises recorded the highest increase in corporate tax burden stickiness, suggesting that different robust accounting policies exist across various industries and may be critical factors determining corporate tax burden stickiness. In practical terms, this study provides important insights into improving businesses’ understanding of tax burden patterns, enabling improved resource allocation of taxes accordingly. Additionally, it focuses on enhancing accounting conservatism to alleviate the pain of high tax burdens on such businesses. Ultimately, minimizing the stickiness of tax burdens will allow fiscal and taxation policies to better flex their regulatory muscles toward achieving effective and stable economic growth.
{"title":"Tax-Cut Policies, Accounting Conservatism, and Corporate Tax Burden Stickiness: Empirical Analysis from China","authors":"Feilei Li, Luhua Xie, Yexiang Ruan","doi":"10.15826/jtr.2023.9.2.137","DOIUrl":"https://doi.org/10.15826/jtr.2023.9.2.137","url":null,"abstract":"This study explores the relationship between tax-cut policy, accounting conservatism, and corporate tax burden stickiness in Chinese listed companies from 2008 to 2019. The primary objective is to identify the underlying reasons for continued high levels of corporate tax burdens despite the introduction of tax-cut policies. An econometric model was developed to analyze the transmission mechanism of these policies affecting corporate tax burden stickiness to achieve this goal. The tax burden stickiness refers to the mismatch between the objective and subjective tax burdens. Results reveal four primary findings: Firstly, macro tax-cut policies induced micro-enterprises to soften their accounting conservatism, leading to increased corporate tax burden stickiness. Secondly, the reduced quality of corporate accounting reports, influenced by tax-cut policies, contributes to corporate income tax burden stickiness. In contrast, the VAT tax burden remains unaffected. Thirdly, compared to state-owned enterprises, private enterprises responded more sensitively to tax reduction policies by significantly decreasing their accounting conservatism level and increasing corporate tax burden stickiness. Finally, high-tech manufacturing enterprises recorded the highest increase in corporate tax burden stickiness, suggesting that different robust accounting policies exist across various industries and may be critical factors determining corporate tax burden stickiness. In practical terms, this study provides important insights into improving businesses’ understanding of tax burden patterns, enabling improved resource allocation of taxes accordingly. Additionally, it focuses on enhancing accounting conservatism to alleviate the pain of high tax burdens on such businesses. Ultimately, minimizing the stickiness of tax burdens will allow fiscal and taxation policies to better flex their regulatory muscles toward achieving effective and stable economic growth.","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":"59 2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135551276","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-01-01DOI: 10.15826/jtr.2022.8.2.111
J. Đurović Todorović, M. Đorđević, M. Ristić Cakić
The aim of this paper is to examine the impact of tax incentives as determinants of economic development on revenues from corporate income tax in Serbia. The study uses data from secondary resources of the Ministry of Finance for the period 2007–2018 by employing regression and factor analysis. The research includes 10 tax incentives that were used in Serbia in the analyzed period. The methodology of empirical verification involves the implementation of correlation analysis, regression analysis and factor analysis. We opted for the application of Principal Component Analysis (PCA) because this method extracts the important data in order to present a set of new variables called main components. The model obtained in this way formed the determined components of tax incentives as independent variables. The model considers tax incentives grouped into four components. The results of empirical research indicate that there is a positive impact of certain tax incentives on revenues from corporate income tax and proved the paradox of tax collection initiated by tax incentives. The model proved that tax incentives explaining the first component had a positive effect on revenues from corporate income tax. Namely, the incentives for investments, incentives exempting the taxpayer from paying corporate income tax for work training, professional rehabilitation and employment of disabled persons, as well as a reduction based on the elimination of double taxation have a positive effect on revenues from corporate income tax. The positive impact of tax incentives can be explained by their effectiveness. The results show that tax incentives policy must be defined in detail for the purpose of achieving the economic and social goals.
{"title":"Do the Effective Tax Incentives Reduce Tax Revenues? Investigating the Paradox of Corporate Income Tax in Serbia","authors":"J. Đurović Todorović, M. Đorđević, M. Ristić Cakić","doi":"10.15826/jtr.2022.8.2.111","DOIUrl":"https://doi.org/10.15826/jtr.2022.8.2.111","url":null,"abstract":"The aim of this paper is to examine the impact of tax incentives as determinants of economic development on revenues from corporate income tax in Serbia. The study uses data from secondary resources of the Ministry of Finance for the period 2007–2018 by employing regression and factor analysis. The research includes 10 tax incentives that were used in Serbia in the analyzed period. The methodology of empirical verification involves the implementation of correlation analysis, regression analysis and factor analysis. We opted for the application of Principal Component Analysis (PCA) because this method extracts the important data in order to present a set of new variables called main components. The model obtained in this way formed the determined components of tax incentives as independent variables. The model considers tax incentives grouped into four components. The results of empirical research indicate that there is a positive impact of certain tax incentives on revenues from corporate income tax and proved the paradox of tax collection initiated by tax incentives. The model proved that tax incentives explaining the first component had a positive effect on revenues from corporate income tax. Namely, the incentives for investments, incentives exempting the taxpayer from paying corporate income tax for work training, professional rehabilitation and employment of disabled persons, as well as a reduction based on the elimination of double taxation have a positive effect on revenues from corporate income tax. The positive impact of tax incentives can be explained by their effectiveness. The results show that tax incentives policy must be defined in detail for the purpose of achieving the economic and social goals.","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":"28 1","pages":""},"PeriodicalIF":0.4,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67259009","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-01-01DOI: 10.15826/jtr.2022.8.2.113
O. Emudainohwo, O. M. Ndu
The paper aims to explore how the introduction of an electronic tax system impacts on economic growth in Nigeria. The neoclassical growth theory and Technology Acceptance Model (TAM) was used in the study. Based on diagnostic tests, Autoregressive Distributed Lag bounds test regression model was adequately created. The quarterly secondary data of Central Bank of Nigeria and tax statistics data were divided into two periods for analysis: from 2011q1 to 2015q3 pre-electronic tax period (pre-e-tax) and from 2015q4 to 2020q4 post-electronic tax period (post-e-tax). In pre-e-tax in the long-run, education trust fund revenue strongly enhances economic growth, company income tax and stamp duty are moderate revenue earners for economic growth, while petroleum profit tax revenue have moderate negative impact on economic growth. Value added tax and capital gain tax revenues insignificantly decreases in economic growth in the same period. In post-e-tax in the long run, value added tax, petroleum profit tax, and capital gin tax insignificantly decreases economic growth, while company income tax, education trust fund, and stamp duty insignificantly enhance it. For pre-e-tax revenue in the short-run, education trust fund strongly decreases economic growth, value added tax and petroleum profit tax had insignificant positive influence, while company income tax, capital gain tax, and stamp duty had no impact. For post-e-tax revenue in the short-run company income tax had no influence, value added tax had moderate negative impact, petroleum profit tax had a strong positive impact, education trust fund, capital gain tax, and stamp duty had strong negative impact on economic growth. To optimize the relationship between tax structure and economic growth, tax evasion, corruption, and tax avoidance should be checked.
{"title":"Tax Revenue Impact on Economic Growth in Nigeria: ARDL Bounds Test and Cointegration Approach","authors":"O. Emudainohwo, O. M. Ndu","doi":"10.15826/jtr.2022.8.2.113","DOIUrl":"https://doi.org/10.15826/jtr.2022.8.2.113","url":null,"abstract":"The paper aims to explore how the introduction of an electronic tax system impacts on economic growth in Nigeria. The neoclassical growth theory and Technology Acceptance Model (TAM) was used in the study. Based on diagnostic tests, Autoregressive Distributed Lag bounds test regression model was adequately created. The quarterly secondary data of Central Bank of Nigeria and tax statistics data were divided into two periods for analysis: from 2011q1 to 2015q3 pre-electronic tax period (pre-e-tax) and from 2015q4 to 2020q4 post-electronic tax period (post-e-tax). In pre-e-tax in the long-run, education trust fund revenue strongly enhances economic growth, company income tax and stamp duty are moderate revenue earners for economic growth, while petroleum profit tax revenue have moderate negative impact on economic growth. Value added tax and capital gain tax revenues insignificantly decreases in economic growth in the same period. In post-e-tax in the long run, value added tax, petroleum profit tax, and capital gin tax insignificantly decreases economic growth, while company income tax, education trust fund, and stamp duty insignificantly enhance it. For pre-e-tax revenue in the short-run, education trust fund strongly decreases economic growth, value added tax and petroleum profit tax had insignificant positive influence, while company income tax, capital gain tax, and stamp duty had no impact. For post-e-tax revenue in the short-run company income tax had no influence, value added tax had moderate negative impact, petroleum profit tax had a strong positive impact, education trust fund, capital gain tax, and stamp duty had strong negative impact on economic growth. To optimize the relationship between tax structure and economic growth, tax evasion, corruption, and tax avoidance should be checked.","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":"1 1","pages":""},"PeriodicalIF":0.4,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67259136","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：