WorldWideScience

Sample records for profit tax purposes

  1. Tax Evasion, Monopoly, and Nonneutral Profit Taxes

    OpenAIRE

    Lee, Kangoh

    1998-01-01

    It is known in the literature that tax evasion does not influence the monopolist's output decision, and hence, profit taxes are neutral, even in the presence of tax evasion. This result is based on the assumption that the audit probability and the penalty rate are fixed or depend on the understatement or overstatement of relevant economic indicators. However, under alternative and perhaps more reasonable formulations of the audit probability, the neutrality of profit taxes may not be preserve...

  2. Combining Purpose With Profits

    DEFF Research Database (Denmark)

    Julian Birkinshaw, Julian; Foss, Nicolai Juul; Lindenberg, Siegwart

    2014-01-01

    A sense of purpose that transcends making money can motivate employees. But to sustain both a sense of purpose and a solid level of profitability over time, companies need to pay attention to several fundamental organizing principles.......A sense of purpose that transcends making money can motivate employees. But to sustain both a sense of purpose and a solid level of profitability over time, companies need to pay attention to several fundamental organizing principles....

  3. Profit vs. Purpose

    DEFF Research Database (Denmark)

    Strand, Robert

    2017-01-01

    Money helps us meet our basic needs, but what about our need for meaning? Businesses will profit — not just financially — by finding their souls.......Money helps us meet our basic needs, but what about our need for meaning? Businesses will profit — not just financially — by finding their souls....

  4. 26 CFR 1.901-2T - Income, war profits, or excess profits tax paid or accrued (temporary).

    Science.gov (United States)

    2010-04-01

    ... subject to tax on the basis of place of management, place of incorporation or similar criterion or... loss recognized by FC for country Z tax purposes, and pursuant to a group relief regime in country Z FC... 26 Internal Revenue 9 2010-04-01 2010-04-01 false Income, war profits, or excess profits tax paid...

  5. Deferred Tax Assets and Deferred Tax Expense Against Tax Planning Profit Management

    Directory of Open Access Journals (Sweden)

    Warsono

    2017-09-01

    Full Text Available The purpose of this study is to examine the probability of earnings management performed by Property and Real Estate companies listed in Indonesia Stock Exchange (BEI in the period 2011-2015. How to do the management to influence the accounting numbers can be either profit management through deferred tax assets, deferred tax expense and tax planning in the financial statements. This paper examines the effect of deferred tax assets deferred tax burden, and tax planning to earnings management conducted by the company. Data of the research is to use secondary data from company financial statements that were downloaded from the official website of Indonesia Stock Exchange. Using sampling technique is performed by purposive sampling. The study population is the Property and Real Estate companies listed in Indonesia Stock Exchange in the period 2011-2015. The study take sample as many as 34 companies Property and Real Estate in the Stock Exchange in 2011-2015. Hypothesis testing uses multiple regressions with SPSS software version 22. The result shows that the Deferred Tax Assets positive and significant effect on earnings management; while deferred tax expense and tax planning significant negative effect on earnings management.

  6. Imperfect tax competition for profits, asymmetric equilibrium and beneficial tax havens

    DEFF Research Database (Denmark)

    Johannesen, Niels

    2010-01-01

    We present a model of tax competition for real investment and profits and show that the presence of tax havens in some cases increases the tax revenue of countries. In the first part of the paper, we argue that tax competition for profits is likely to be imperfect in the sense that the jurisdiction...... countries. In the second part of the paper, we introduce tax havens. Starting from a symmetric equilibrium, tax havens unambiguously reduce the tax revenue of countries due to a ‘leakage effect' - tax havens attract tax base from countries - and a 'competition effect' - the optimal response to the increased...... tax sensitivity of tax bases involves a reduction of tax rates. Starting from an asymmetric equilibrium, however, tax havens also raise the tax revenue of countries through a 'crowding effect' - tax havens make it less attractive to compete for profits and thus induce low-tax countries to become high-tax...

  7. Taxing across Borders: Tracking Personal Wealth and Corporate Profits

    National Research Council Canada - National Science Library

    Gabriel Zucman

    2014-01-01

    ... that UScompanies are shifting profits to Bermuda, Luxembourg, and similar countries on a large and growing scale. About 20percent of all US corporate profits are now booked in such havens, a tenfoldincrease since the 1980s. This profit-shifting is typically done within the letter of the law and thus would be best described as tax avoidance rather than fraud. ...

  8. The Relation between Accounting Result and Tax Result in the Case of the Profit Tax

    Directory of Open Access Journals (Sweden)

    Băcanu Mihaela-Nicoleta

    2017-01-01

    Full Text Available Accounting and taxation are two connected domains in Romania. The proof that these areconnected is the computation of the profit tax, for which the tax result is computed based on theaccounting result. The scope of the paper is to present what is the relation between accountingresult and tax result. There is a direct relation but also an indirect relation between the two results,taking into consideration the way of computing the tax result, but also the professional judgment,when the revenues and the expenses are recorded in the accounting register. The paper alsoanalyzes which one of the two results influences the other result.

  9. Estimating profit shifting in South Africa using firm-level tax returns

    DEFF Research Database (Denmark)

    Wier, Ludvig

    2016-01-01

    Using the universe of South African corporate tax returns for 2009–14, we estimate profit- and debt-shifting responses in South Africa. We find evidence that South African subsidiaries engage in profit shifting and that profit-shifting responses to tax incentives across all channels...

  10. Profit shifting and 'aggressive' tax planning by multinational firms: Issues and options for reform

    OpenAIRE

    Fuest, Clemens; Spengel, Christoph; Finke, Katharina; Heckemeyer, Jost H.; Nusser, Hannah

    2013-01-01

    This paper discusses the issue of profit shifting and 'aggressive' tax planning by multinational firms. The paper makes two contributions. Firstly, we provide some background information to the debate by giving a brief overview over existing empirical studies on profit shifting and by describing arrangements for IP-based profit shifting which are used by the companies currently accused of avoiding taxes. We then show that preventing this type of tax avoidance is, in principle, straightforward...

  11. 26 CFR 1.960-4 - Additional foreign tax credit in year of receipt of previously taxed earnings and profits.

    Science.gov (United States)

    2010-04-01

    ... controlled foreign corporation B. All corporations use the calendar years as the taxable year. Corporation B... foreign income taxes of $5 on such dividend from B Corporation, has total earnings and profits of $30, all... therefrom. (b) For 1979, B Corporation has no earnings and profits, but distributes in such year to A...

  12. Effect of Solvency, Sales Growth, and Institutional Ownership on Tax Avoidance with Profitability as Moderating Variables in Indonesian Property and Real Estate Companies

    Directory of Open Access Journals (Sweden)

    Rusna Oktaviyani

    2017-11-01

    Full Text Available This research aimed to examine the effect of solvency, sales growth, and institutional ownership towards tax avoidance with profitability as a moderating variable. The sample was real estate and property companies listed on the Indonesia Stock Exchange in 2011-2015. The sample was selected using purposive sampling method to get sample about 31 companies. The data used moderated regression analysis. The results indicate that the solvency has significant and positive effect on tax avoidance. Meanwhile, sales growth and institutional ownership do not affect tax avoidance. Then, profitability can moderate the relationship between institutional ownership and tax avoidance.

  13. 78 FR 54391 - Determining the Amount of Taxes Paid for Purposes of the Foreign Tax Credit

    Science.gov (United States)

    2013-09-04

    ... Internal Revenue Service 26 CFR Part 1 RIN 1545-BK41 Determining the Amount of Taxes Paid for Purposes of the Foreign Tax Credit AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Final regulations and... relating to the determination of the amount of taxes paid for purposes of the foreign tax credit. These...

  14. 76 FR 42036 - Determining the Amount of Taxes Paid for Purposes of the Foreign Tax Credit

    Science.gov (United States)

    2011-07-18

    ... Internal Revenue Service 26 CFR Part 1 RIN 1545-BK40 Determining the Amount of Taxes Paid for Purposes of the Foreign Tax Credit AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Final and temporary... the determination of the amount of taxes paid for purposes of the foreign tax credit. These...

  15. 76 FR 53818 - Determining the Amount of Taxes Paid for Purposes of the Foreign Tax Credit

    Science.gov (United States)

    2011-08-30

    ... Internal Revenue Service 26 CFR Part 1 RIN 1545-BK40 Determining the Amount of Taxes Paid for Purposes of the Foreign Tax Credit AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Correction to final... guidance relating to the determination of the amount of taxes paid for purposes of the foreign tax credit...

  16. 76 FR 42076 - Determining the Amount of Taxes Paid for Purposes of the Foreign Tax Credit

    Science.gov (United States)

    2011-07-18

    ... Internal Revenue Service 26 CFR Part 1 RIN 1545-BK41 Determining the Amount of Taxes Paid for Purposes of the Foreign Tax Credit AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Notice of proposed... to the determination of the amount of taxes paid for purposes of the foreign tax credit. These...

  17. 76 FR 53819 - Determining the Amount of Taxes Paid for Purposes of the Foreign Tax Credit

    Science.gov (United States)

    2011-08-30

    ... Internal Revenue Service 26 CFR Part 1 RIN 1545-BK40 Determining the Amount of Taxes Paid for Purposes of the Foreign Tax Credit AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Correcting amendment... the determination of the amount of taxes paid for purposes of the foreign tax credit. These...

  18. Can Universities Profit from General Purpose Inventions?

    DEFF Research Database (Denmark)

    Barirani, Ahmad; Beaudry, Catherine; Agard, Bruno

    2017-01-01

    The lack of control over downstream assets can hinder universities’ ability to extract rents from their inventive activities. We explore this possibility by assessing the relationship between invention generality and renewal decisions for a sample of Canadian nanotechnology patents. Our results...... show that general purpose inventions enjoy a longer legal life. Although private sector organizations renew their patents at a higher rate than universities, the gap between the two sectors decreases as invention generality increases. However, there is little indication that the most general purpose...... inventions owned by universities survive for longer than the ones owned by private sector organizations....

  19. A LONGITUDINAL ANALYSIS REGARDING THE EVOLUTION OF PROFIT TAX REGULATIONS IN ROMANIA AN EMPIRICAL VIEW

    Directory of Open Access Journals (Sweden)

    Albu Nadia

    2011-07-01

    Full Text Available The study conducted a longitudinal analysis regarding Romanian profit tax regulations. Beginning with the first profit tax regulation implemented in 1991 and until now, we analyzed based on a empirical approach all changes that have occurred over time in the Romanian accounting environment. The motivation of the study conducted was based on the strong relationship between accounting and taxation in the Romanian accounting environment over time, the profit tax being one of the main items of this relation. This particular study is divided into five sections. After a short introduction and presenting the motivation of the study (section 1, in section 2 we conducted the literature review based on international and national studies regarding the profit tax regulations through the relationship between accounting and taxation. Section 3 presents a brief review of the main Romanian regulations that concerned the profit tax and the most important changes that have occurred over time. In section 4 we conducted the empirical analysis. In this section is realized a series of analysis, aiming the following: (1 the total number of regulations that have amend the main regulations presented in the previous section; (2 the type of amendments implemented over regulations (abolishment, text amendment, adding new articles or alignments; (3 the total number of amendments approved by law without modifications, respectively the total number of amendments approved on the Official Journal through Government Ordinance or Emergency Ordinance and unapproved by law. The empirical analysis conducted documented that the main shortcoming associated with the profit tax regulation is due by the multiple changes which have been subject of the 5 main profit tax regulations. The last section (section 5 consists in presenting the conclusions of the study. As main conclusion, the profit tax regulation is stable only in terms of the small number of main regulations, the large number

  20. Top income shares, business profits, and effective tax rates in contemporary Chile

    OpenAIRE

    Tasha Fairfield; Michel Jorratt

    2014-01-01

    This paper contributes to the burgeoning research on inequality and top incomes around the globe by presenting the first available estimates of top income shares and effective income tax rates in contemporary Chile based on analysis of anonymous income tax return microdata. We pay special attention to business income, which dominates at the top of the distribution. Our analysis includes not only distributed profits, but also the large proportion of accrued profits retained by firms. Our most ...

  1. Does it pay firms to register for taxes ? the impact of formality on firm profitability

    OpenAIRE

    McKenzie, David; Sakho, Yaye Seynabou

    2007-01-01

    This paper estimates the impact of registering for taxes on firm profits in Bolivia, the country with the highest levels of informality in Latin America. A new survey of micro and small firms enables the authors to control for a rich set of measures of owner ability and business motivations that can affect both profits and the decision to formalize. The paper identifies the impact of tax r...

  2. The influence of temporary differences between accounting and tax revenues, proprietary costs and liquidity on profit growth

    Directory of Open Access Journals (Sweden)

    NURAMALIA HASANAH

    2017-07-01

    Full Text Available This study aimed to examine the influence of temporary differences between accounting profit and tax, proprietary costs, and Liquidity toward earnings growth of the companies listed in Indonesia Stock Exchange (IDX 2011-2012. The factors examined in this study are temporary differences between accounting profit and tax, proprietary costs, and liquidity as an independent variable, while earnings growth has the dependent variable. This study used a descriptive quantitative method using secondary data and the number of samples collected was thirty- eight (38 that have met the criteria the researchers used purposive sampling. From the data that has been collected and then processed and analyzed using multiple regression analysis with a significance level of 0.05. This research proves temporary differences between accounting profit and tax has no significant influence on earnings growth, proprietary cost has no significant influence on earnings growth, and liquidity has negatively significant influence earnings growth. Temporary differences between accounting profit and tax, proprietary costs, and liquidity together or simultaneously significant influence toward the earnings growth.

  3. Transfer pricing manipulation, tax penalty cost and the impact of foreign profit taxation

    OpenAIRE

    Rathke, Alex

    2015-01-01

    This paper analyzes the optimal level of transfer pricing manipulation when the expected tax penalty is a function of the tax enforcement and the market price parameter, and the multinational enterprise is subjected to distinct rules of foreign profit taxation. The application of the arm’s length principle implies the existence of a range of acceptable prices shaped by market, which influences the probability of tax penalization. It suggests that firms are able to manipulate transfer prices m...

  4. Taxing Foreign Profits with International Mergers and Acquisitions

    OpenAIRE

    Johannes Becker; Clemens Fuest

    2007-01-01

    A large part of border crossing investment takes the form of international mergers and acquisitions. In this paper, we ask how optimal repatriation tax systems look like in a world where investment involves a change of ownership, rather than a reallocation of real capital. We find that the standard results of international taxation do not carry over to the case of international mergers and acquisitions. The deduction system is no longer optimal from a national perspective and the foreign tax ...

  5. Information sharing for consumption tax purposes : An empirical analysis

    NARCIS (Netherlands)

    Ligthart, Jenny E.

    The paper studies the determinants of information sharing between Swedish tax authorities and 14 EU tax authorities for value-added tax (VAT) purposes. It is shown that trade-related variables (such as the partner country's net trade position and population size), reciprocity, and legal arrangements

  6. Study of interconnection of financial and tax accounting of profit in Russia and abroad

    Directory of Open Access Journals (Sweden)

    Labyntsev Mykola T.

    2013-03-01

    Full Text Available The article analyses the degree of interconnection of financial and tax accounting of profit in Russia and some foreign countries – USA, France and Germany. The legal principle – common law or unified law – is taken as a criterion. The article shows that existence of the system of tax accounting by one tax (organisation profit tax separately from the financial accounting in Russia from 2002 is not rational. At present Russia actively develops a variant of making financial accounting and tax accounting closer without a principal reconstruction of norms of tax legislation. Low level of interconnection of tax accounting and financial accounting is characteristic for the USA, which is one of the founders of the British-American (British-American-Dutch in interpretation of some authors accounting model. The level of interconnection of norms of financial and tax accounting is rather high in France and Germany and the taxation policy of the theoretical base of the accounting system, which allows speaking about the French-German accounting model.

  7. 26 CFR 1.884-1 - Branch profits tax.

    Science.gov (United States)

    2010-04-01

    ... that are residents of countries with which the United States has an income tax treaty, and § 1.884-2T...) (without regard to the second sentence thereof) that uses the reserve method of accounting for bad debts... foreign corporation may elect to use either the asset method described in paragraph (d)(3)(ii) of this...

  8. Health care joint ventures between tax-exempt organizations and for-profit entities.

    Science.gov (United States)

    Sanders, Michael I

    2005-01-01

    Health care exempt organizations have many options regarding their structure and affiliations with for-profit entities. As long as any joint ventures are carefully structured and the nonprofit retains control over the exempt health care activities, the Internal Revenue Service should not question the structure. However, as outlined above, if the for-profit entity effectively gains control over the activities of the venture, the structure is not likely to be upheld by the IRS or the courts, and either the exempt status of the nonprofit will be denied or revoked, or health care income will be subject to the unrelated business income tax. In summary, the health care industry has been severely impacted by many economic forces, including uncertainty in the area of joint ventures between nonprofits and for-profit health care systems. The uncertainty as to whether the joint venture would negatively impact the nonprofit's tax-exempt status undoubtedly caused many nonprofits to form for-profit subsidiaries and otherwise expanded operations in a for-profit marketplace. Fortunately, with the guidance that is currently available in the form of Revenue Ruling 98-15, Redlands, St. David's, and now Revenue Ruling 2004-51, health care institutions can move forward with properly structured joint ventures with greater confidence that the joint venture will not endanger the tax-exempt status of the nonprofit.

  9. 26 CFR 1.901-2 - Income, war profits, or excess profits tax paid or accrued.

    Science.gov (United States)

    2010-04-01

    ... on individuals to finance retirement, old-age, death, survivor, unemployment, illness, or disability... on the realized net income of corporations that do business in country X (the “country X corporate... shareholder's pro rata share of the corporation's country X corporate tax for that year, less (C) actual...

  10. PROFIT TAX OR INCOME TAX? OPTIONS FOR FISCAL OPTIMIZATION OF ROMANIAN SMALL COMPANIES

    Directory of Open Access Journals (Sweden)

    Doina Pacurari

    2014-01-01

    Full Text Available Entrepreneurs usually seek for solutions to reduce their tax burden. We can speak about tax optimization as long as these solutions are in accordance with the law; if they are not, they obviously fall into the area of fiscal fraud. This paper addresses the issue of taxation applicable to the Romanian micro-enterprises. These are small entities that fulfil certain conditions regarding total turnover, equity and domain of activity. Although the provisions applying to micro-enterprise taxation were elaborated, among others, with the intention to reduce tax evasion, they also allow the micro-enterprises with losses to avoid tax payment. In a country with low purchasing power and a great number of taxes and fees like Romania, the entrepreneurs are tempted to use any kind of method to reduce the payments due to the state budget. The micro-enterprise owners make no exception in this matter.

  11. The nature of the purpose requirement of an impermissible tax ...

    African Journals Online (AJOL)

    The nature of an inquiry into the purpose requirement of an impermissible tax avoidance arrangement can either be objective or subjective. In essence, an objective inquiry has regard to the 'effect' of an arrangement, as opposed to a subjective inquiry which has regard to the taxpayer's ipse dixit. Although the purpose ...

  12. THE INFLUENCE OF THE CONNECTIONS OF ROMANIAN NON-LISTED FIRMS TO TAX HAVENS ON THEIR PROFITABILITY

    Directory of Open Access Journals (Sweden)

    Mihai-Bogdan AFRASINEI

    2016-12-01

    Full Text Available The offshore entities have become one of the most efficient solutions for tax avoidance and are used by taxpayers almost all around the world. This paper investigates the influence of the connections (via subsidiaries or shareholders of Romanian non-listed firms to tax havens on their profitability and effective tax rate. In this regard, we used a sample of 7,167 Romanian firms (3,370 with connections to tax havens and 3,797 without tax havens connections. For statistical analysis, we used the simple and multiple linear regression methods with dummy variables. Results have shown that the presence of Romanian non-listed firms in tax havens significantly influences their profitability and effective tax rate. The firms with connections to tax havens have a return on equity ratio higher, a return on assets ratio lower, a gross profit margin ratio lower, a total assets turnover ratio higher and an effective tax rate lower than companies without connections to such jurisdictions.

  13. Dynamic tax depreciation strategies

    NARCIS (Netherlands)

    de Waegenaere, A.; Wielhouwer, J.L.

    2011-01-01

    The tax depreciation decision potentially has significant impact on the profitability of firms and projects. Indeed, the depreciation method chosen for tax purposes affects the timing of tax payments, and, as a consequence, it also affects the after-tax net present value of investment projects.

  14. Range data reported to the requirements of the IAS 12 and impact of the IFRS adoption for tax purposes in the tax collection of the Czech Republic

    Directory of Open Access Journals (Sweden)

    Simona Jirásková

    2013-01-01

    Full Text Available An issue of relationship between corporate income tax and accounting is one of the most discussed at present. Until recently the tax base was derived from the accounting profit defined in the Czech accounting law. But from 2004 there are companies which have to use IFRS in bookkeeping and financial reporting and from the perspective of the Czech accounting law they do not care about Czech accounting regulation. On the other hand Czech tax regulation has not accepted this change in the field of European accounting harmonization and still directs to pay tax on the basis of Czech accounting regulation for all entities. Fear of adverse change in tax collection is one of the main reasons why the Czech Tax Administration does not allow to pay income tax under profit or loss patterned on IFRS. The most important goal of this work is to characterize the relationship between accounting profit or loss under IFRS and the tax base of income and to find out the impact of taxation under profit in accordance with IFRS in total tax collection. Basic sample of all analyses consists of 35 accounting entities which mandatorily use IFRS and this sample was also confronted with a list of 106 major payers of income tax published yearly by the Ministry of Finance of the Czech Republic for the needs characterization of the relationship of profit under IFRS and the tax base of income.

  15. 26 CFR 301.7701-1 - Classification of organizations for federal tax purposes.

    Science.gov (United States)

    2010-04-01

    ... 26 Internal Revenue 18 2010-04-01 2010-04-01 false Classification of organizations for federal tax... Classification of organizations for federal tax purposes. (a) Organizations for federal tax purposes—(1) In general. The Internal Revenue Code prescribes the classification of various organizations for federal tax...

  16. Multiple purpose electrical profit; Emprendimiento electrico de prestacion multiple

    Energy Technology Data Exchange (ETDEWEB)

    Assennato, H. [Electrica de Azul Ltda., Buenos Aires (Argentina)

    1986-12-31

    This paper shows the multiple purpose aspects of electrification projects in rural and isolated areas. The multiple aspects involved in the electrification process may include, over electric power supply: improvement of life quality, irrigation and rural mechanization. 4 figs., 6 tabs., 4 refs.

  17. Impact of payroll taxes for small shoe manufacturing enterprises profit generation in Bogota city 15th district

    Directory of Open Access Journals (Sweden)

    José Armando Hernández Bernal

    2016-04-01

    Full Text Available In this paper we illustrate the financial difficulties that payroll taxes would impose on small shoe manufacturing enterprises in Bogota City 15th district and how this would impose some restrictions for firms profit generation, when such contributions turns out to be a fixed cost. We present a brief on the legal framework as well as an econometric exercise that shows the relations between labor costs and profit generation for the footwear industry in the 15th urban district of Bogotá city.

  18. BUSINESS MODELS FOR TAX AND TRANSFER PRICING PURPOSES

    Directory of Open Access Journals (Sweden)

    Corlaciu Alexandra

    2013-07-01

    Full Text Available In order to remain competitive, the multinational enterprises (MNEs are forced by the globalization phenomenon (which manifestation has became more and more stringent to analyze continuously its effectiveness. In this respect, the structure of the business represents an element which might have an important impact for the enterprise’s overall results. This is why, in the last decades, the MNEs granted special attention to business structures and put significant efforts in business restructurings, where the case, with the scope to keep the efficiency and to remain on the market. Generally, the operational business restructuring process follows one of the business model globally developed, namely manufacturer or sales business models. Thus, according to the functions performed, assets used and risks assumed, the entities within the group are labeled into limited risk units (such as toll manufacturer or commission agent, medium risk (contract manufacturer, commissionaire, stripped distributor or high risk units (fully fledged manufacturer, fully fledged distributor. Notwithstanding the above, there should be emphasized that the operational business restructuring has to be undertaken with maximal care, as it might have important fiscal impact. Having this regard, the purpose of the present investigation is to provide, from a tax and transfer pricing point of view, a systematic and structured analysis of the generally characteristics of business models (manufacturer and sales business models used by multinational enterprises in the process of business reorganization, with the scope to increase their performance and the sustainable competitive advantages. Thus, by using the fundamental (theoretical and qualitative research type, this paper is aiming to present the most important characteristics of each business model (general overview of each model, the principal risk assumed, the usual transfer pricing method used for the remuneration of intra

  19. Earmarking Tobacco Taxes for Health Purposes via Median Entities

    Directory of Open Access Journals (Sweden)

    Michael Igoumenidis

    2014-08-01

    Full Text Available Fiscal policies are an especially promising lever for reducing the burden of non-communicable diseases and injuries (1. On World No Tobacco Day 2014, World Health Organization (WHO repeated with greater intensity its well-known proposal (2 on raising tobacco taxes to encourage users to stop or reduce consumption, and to prevent potential users from taking up smoking. Evidence as to why this is an effective strategy abounds (3. Despite concerns over manufacturers’ political influence, technical problems such as tax manipulation, and increased smuggling considerations, it is hoped that governments shall be scaling their efforts toward this direction in the next few years, by enforcing increases in specific excise taxes. A 2011 review of more than 100 econometric studies estimates that doubling inflation-adjusted prices should reduce consumption by about one third (4. In terms of revenue, WHO estimates that raising specific excise taxes on tobacco to double prices would raise about 100 billion US dollars per year worldwide, in addition to the approximately 300 billion US dollars that governments already collect on tobacco (5. Each country enforcing such taxes must decide how to allocate their share of this prospective additional revenue in advance. Careful consideration is particularly important; this is a chance for tobacco to atone, partly at least, for the damage it has inflicted throughout the years of its uncontrollable use.

  20. 31 CFR 363.42 - How will my interest income be reported for tax purposes?

    Science.gov (United States)

    2010-07-01

    ... 31 Money and Finance: Treasury 2 2010-07-01 2010-07-01 false How will my interest income be reported for tax purposes? 363.42 Section 363.42 Money and Finance: Treasury Regulations Relating to Money... TreasuryDirect ® account, you consent to receive the appropriate tax reporting forms by electronic means...

  1. 76 FR 42038 - Determining the Amount of Taxes Paid for Purposes of the Foreign Tax Credit

    Science.gov (United States)

    2011-07-18

    ... exception to fact patterns involving multiple counterparties or multiple U.S. parties. In response to the... net basis taxation and excludes assets that produce income subject to gross basis withholding tax. One... the otherwise creditable foreign payment, irrespective of whether the arrangement involves multiple U...

  2. 26 CFR 1.960-1 - Foreign tax credit with respect to taxes paid on earnings and profits of controlled foreign...

    Science.gov (United States)

    2010-04-01

    ... domestic corporation received the benefits of the foreign tax credit for such previous taxable year of...) (as amended by section 338 of the Tax Equity and Fiscal Responsibility Act of 1982) and the... 26 Internal Revenue 10 2010-04-01 2010-04-01 false Foreign tax credit with respect to taxes paid...

  3. 26 CFR 1.907(a)-1 - Reduction in taxes paid on FOGEI (for taxable years beginning after December 31, 1982).

    Science.gov (United States)

    2010-04-01

    ... REVENUE SERVICE, DEPARTMENT OF THE TREASURY (CONTINUED) INCOME TAX (CONTINUED) INCOME TAXES Income from... accrued. For purposes of the regulations under section 907— (1) Foreign taxes. The term “foreign taxes” means income, war profits, or excess profits taxes of foreign countries or possessions of the United...

  4. The effect of acquisition moves on income, pre-tax profits and future strategy of logistics firms

    Directory of Open Access Journals (Sweden)

    Judit Oláh

    2017-12-01

    Full Text Available Our research deals with a comprehensive study of the management success factors of logistics service providers using a new approach, and examines the life of logistics service companies. The data were collected from 51 logistics service providers in Hungary. We searched for the proper enterprise scale – acquisitions – strategies (including the method of looking for the economies of scale in the LSP segment to be examined, and the role of strategy choice. Our research has found that among logistics companies those firms which followed the growth pattern has significantly higher sales revenue than the companies growing organically. Additionally, logistics companies – considering their pre-tax profits - work more efficiently when they have a growth strategy (regardless of its time lag. However, this claim is true only for those companies that did not have any (revenue growth over the previous period. The results of our research can effectively help logistics service providers find their business success factors, which will enable them fulfil the expectations of their customers in the supply chain better.

  5. Corporate tax regime and international allocation of ownership

    OpenAIRE

    Runkel, Marco; Becker, Johannes

    2010-01-01

    Would the introduction of a corporate tax system with consolidated tax base and formula apportionment lead to socially wasteful mergers and acquisitions across borders? This paper analyzes a two-country model with an international investor considering acquisitions of already existing target firms in a high-tax country and a low-tax country. The investor is able to shift profits from one location to another for tax saving purposes. Two systems of corporate taxation are compared, a system with ...

  6. Special report on taxation. Court of Appeals denies tax exemption based on "substantial commercial purpose".

    Science.gov (United States)

    Schieble, M T

    1992-05-01

    When viewed against the background of continuing state and federal legislative efforts to limit the availability of tax-exempt status, the Living Faith case could be seen as yet another indication of difficult times ahead for nonprofit providers. Although it is too early to tell whether this will in fact be the case, tax-exempt providers should be aware of the Living Faith case as perhaps the clearest statement from a federal appeals court in recent years that the operation of an enterprise in too businesslike a manner may make it a taxable activity. Tax-exempt providers that now operate or plan to operate ancillary businesses, whether through joint ventures, wholly-owned subsidiaries, or otherwise, should carefully evaluate such activities against the criteria articulated in Living Faith. This analysis is important not only for purposes of determining whether such activities can qualify for tax-exempt status in and of themselves, but also as an indicator of how such activities might affect the tax-exempt status of the provider.

  7. The Tax Sensitivity of Debt in Multinationals: A Review

    OpenAIRE

    Schjelderup, Guttorm

    2015-01-01

    The OECD in its BEPS action plan 4 addresses tax base erosion by profit shifting through the use of tax deductible interest payments. Their main concern is interest deductions between outbound and inbound investment by groups. Studies of multinational firms show that the tax sensitivity of debt is more modest than what one would expect given the incentives for profit shifting. The purpose of this paper is to review existing literature and to add new knowledge on multinational firm behavior th...

  8. ANALYSIS ON THE RELATIONSHIP BETWEEN THE PROFIT TAX AND INVESTMENTS IN THE CONTEXT OF A GLOBALISED WORLD. CASE STUDY – ROMANIA

    Directory of Open Access Journals (Sweden)

    Dumitru-Cristian Oanea

    2010-09-01

    Full Text Available Although it is a relative old concept, having ruts in the writings of the late „60s, globalization has become in current times a cliché, being used in many parts of the world and in many languages but not having a specific definition. Financial globalization is considered to be the core element of the process of globalization and consists in a complex integration of financial markets through exchange and financial flows. In this context, the economic agents are considered to be important players, given the fact that fortheir investments they appeal to financial recourses wherever they may be. However there investment behavior is greatly influenced by the state, through the fiscal policy, especially through a very important instrument at its disposal, the profit tax rate.The aim of this paper is to emphasize the evolution of the relationship between the profit tax and investments, in the case of Romania from 1990 until 2008, trying to show particular developments of each of this two variables studied and the relations between them, the amplitude of influence exercised by them. The paper also focuses upon a better understanding of how the variables analyzed influence the real economy in this globalized environment.

  9. Multinational Firm Tax Avoidance and Tax Policy

    OpenAIRE

    Clausing, Kimberly A.

    2009-01-01

    This paper considers the tax policy consequences of both real and financial types of international tax avoidance, focusing on U.S. multinational firms over the period 1982–2004. First, income shifting is examined by estimating the relationship between U.S. affiliate profit rates and foreign country tax rates. Second, the effects of taxes on multinational firms’ real operations across countries are considered. Estimates of both financial and real responsiveness to tax rate differences among co...

  10. 76 FR 55255 - Definition of Solid Waste Disposal Facilities for Tax-Exempt Bond Purposes; Correction

    Science.gov (United States)

    2011-09-07

    ... Internal Revenue Service 26 CFR Part 1 RIN 1545-BD04 Definition of Solid Waste Disposal Facilities for Tax... the Federal Register on Friday, August 19, 2011, on the definition of solid waste disposal facilities... regulations provide guidance to State and local governments that issue tax-exempt bonds to finance solid waste...

  11. Tax Evasion and Quality

    OpenAIRE

    渡辺, 茂; Watanabe, Shigeru

    1990-01-01

    Unless we take the tax evasion (by overstating costs or understating total revenue) into consideration, it would be easily shown that raising the profit tax rate could not raise the product quality and the output level of the monopoly. When the tax evasion is taken into consideration, however, raising the profit tax rate will raise the product quality and the output level. On the other hand, raising the profit tax rate could not decrease the rate of the overstated costs or the rate of the hid...

  12. Avoidance of international double taxation. Taxation of business profits in Romania

    Directory of Open Access Journals (Sweden)

    Florin Dumiter

    2017-12-01

    Full Text Available In this article we wanted to achieve a comprehensive analysis of corporate profit tax for non-residents, from the standpoint of the issues that it creates on the double taxation of income and capital. Taxing the corporate profits of non-residents is a particularly important aspect in terms of revenue growth, encouraging foreign investment, and strengthening cross-border trade. The “source” state will decide the legitimate right to tax the profits of businesses that operate within its jurisdiction. Tax treaties do not impose limits on these types of taxing rights, other than those stemming from the obligation to impose profits, since the issue of taxation is “satisfied”. Moreover, the source of tax revenue belongs to the source state. Thus, we can see that it is unlikely that the state of residence of a non-resident taxpayer should want to “share” such tax revenue. It can be observed that the state of residence also has the right to tax the profits, but in general it gives credit in respect of taxes of the source state or deducts them for the purpose of preventing the occurrence of double taxation. If the state of residence provides a credit for taxes paid within the source state, taxes which have not been collected and owed to the source state will constitute a tax transfer to the state of residence, from which the taxpayer will not have any benefit. As regards Romania, in terms of the treatment of enterprises, this article represents a real quid pro quo, as it tackles both the international and national taxation of corporate profits, through the provisions found in the new Fiscal Code and the Code of Fiscal Procedure, as well as the new proposals on the taxation of turnover in companies, all of this extrapolated with the new proposals for turnover tax from IT giants. The article ends with the presentation, comment and analysis of a case of international double taxation, more specifically the taxation of corporate profits, a topic of

  13. 76 FR 55256 - Definition of Solid Waste Disposal Facilities for Tax-Exempt Bond Purposes; Correction

    Science.gov (United States)

    2011-09-07

    ... Internal Revenue Service 26 CFR Part 1 RIN 1545-BD04 Definition of Solid Waste Disposal Facilities for Tax... published in the Federal Register on Friday, August 19, 2011, on the definition of solid waste disposal... solid waste disposal facilities and to taxpayers that use those facilities. DATES: This correction is...

  14. Pengaruh Profitabilitas, Tangibility, Ukuran Perusahaan, Risiko, Nondebt Tax Shield, dan Pertumbuhan Perusahaan terhadap Struktur Modal pada Perusahaan Manufaktur yang terdaftar di Bursa Efek Indonesia

    OpenAIRE

    Simbolon, Yossi Gemiarsi

    2015-01-01

    Formulation of the problem in this study is to what extend the influence of profitability, tangibility, firm size, risk, nondebt tax shield, and company’s growth to capital structure on manufacturing companies listed in Indonesia Stock Exchange. The purpose of this study was to determine and analyse the influence of profitability, tangibility, firm size, risk, nondebt tax shield, and company’s growth on the company’s capital structure. Hyphotesis in this study is the profitability, tangib...

  15. Tax optimization methods of international companies

    OpenAIRE

    Černá, Kateřina

    2015-01-01

    This thesis is focusing on methods of tax optimization of international companies. These international concerns are endeavoring tax minimization. The disparity of the tax systems gives to these companies a possibility of profit and tax base shifting. At first this thesis compares the differences of tax optimization, aggressive tax planning and tax evasion. Among the areas of the optimization methods, which are described in this thesis, belongs tax residention, dividends, royalty payments, tra...

  16. Integrating ICT Skills and Tax Software in Tax Education: A Survey of Malaysian Tax Practitioners' Perspectives

    Science.gov (United States)

    Ling, Lai Ming; Nawawi, Nurul Hidayah Ahamad

    2010-01-01

    Purpose: This study aims to examine the ICT skills needed by a fresh accounting graduate when first joining a tax firm; to find out usage of electronic tax (e-tax) applications in tax practice; to assess the rating of senior tax practitioners on fresh graduates' ICT and e-tax applications skills; and to solicit tax practitioners' opinion regarding…

  17. 26 CFR 301.7477-1 - Declaratory judgments relating to the value of certain gifts for gift tax purposes.

    Science.gov (United States)

    2010-04-01

    ... issues involving the interpretation and application of the gift tax law. (d) Requirements for declaratory... of tax imposed by chapter 12 means the last gift tax return (Form 709, “United States Gift (and... reported in a manner that constitutes adequate disclosure within the meaning of § 301.6501(c)-1(e) or (f...

  18. Tax Transparency and BEPS

    OpenAIRE

    Owens, Jeffrey

    2015-01-01

    We are moving into a new era where the traditional relationships between tax administrations, tax advisors and companies are changing: moving away from confrontation to cooperation. At the same time, there remains some hope that a new consensus will emerge from the OECD's Base Erosion and Profit Shifting (BEPS) project on a revision to the international rules of the tax game. This paper explores these issues. (author's abstract)

  19. Dynamic Tax Depreciation Strategies

    NARCIS (Netherlands)

    De Waegenaere, A.M.B.; Wielhouwer, J.L.

    2008-01-01

    The tax depreciation decision potentially has significant impact on the prof- itability of firms and projects. Indeed, the depreciation method chosen for tax purposes affects the timing of tax payments, and, as a consequence, it also affects the after-tax net present value of investment projects.

  20. The Peer Review Process of the Global Forum on Transparency and Exchange of Information for Tax Purposes : A Critical Assessment on Authority and Legitimacy

    NARCIS (Netherlands)

    L.E.C. Neve (Leo)

    2017-01-01

    textabstractThe Global Forum on transparency and exchange of information for tax purposes has undertaken peer reviews on the implementation of the global standard of exchange of information on request, both from the perspective of formalities available and from the perspective of actual

  1. Taxation of Controlled Foreign Companies in Context of the OECD/G20 Project on Base Erosion and Profit Shifting as well as the EU Proposal for the Anti-Tax Avoidance Directive – An Interim Nordic Assessment

    Directory of Open Access Journals (Sweden)

    Schmidt Peter Koerver

    2016-11-01

    Full Text Available Recently, the controlled foreign company (CFC rules have gained increased attention; as such, rules play an important role in the ongoing efforts of the OECD/G20 and the European Commission with respect to addressing base erosion and profit shifting (BEPS. In this context, the article revisits the CFC regimes of the Nordic countries in order to assess whether these regimes are in line with the recommendations from the OECD/G20 and to determine whether Sweden, Finland, and Denmark, as EU member states, will have to make amendments if the commission’s proposal for an Anti-Tax Avoidance Directive is adopted in its current form. It is concluded that the Nordic CFC regimes in many ways already are in line with the recommendations as well as the directive, but also that certain amendments have to be made.

  2. Tax reforms - taxes without tax laws

    OpenAIRE

    Varma, Vijaya Krushna Varma

    2009-01-01

    All Direct and Indirect taxes accompanied by tax laws, accounting, auditing and tax returns, can be abolished if a new tax system called "TOP Tax system" is adopted and implemented by all nations. Ultimate economic reforms will relieve 7 billion people of the world from the cobweb of ambiguous and complex tax structures, plethora of tax laws, mandatory and cumbersome accounting, auditing, tax returns and consequent quagmire of all tax related cases. Taxation, tax collection, tax enforce...

  3. TRANSPARENCY IN ITALIAN NON PROFIT ORGANIZATIONS

    Directory of Open Access Journals (Sweden)

    Patrizia Gazzola

    2014-07-01

    Full Text Available The aim of the paper is to evaluate the accountability and transparency of Italian non profits organizations. The main goal is to understand if a general accountability or transparency problem, or a systematic publicity deficit, exist in the third sector in Italy. Non profit organizations have an ethical obligation to their stakeholder and to the public to conduct their activities with accountability and transparency. Non profit organizations should regularly and openly convey information to the stakeholder about their vision, mission, objectives, activities, accomplishments, decision-making processes and organizational structure. Information from a non profit organization should be easily accessible to the stakeholder and should create external visibility, public understanding and trust in the organization, conditions necessary to find donors. Non profit organizations work with communities and community donors need to know how their money is used. In the first part the analysis of the definition of transparency and accountability is made and the sustainability report like an important instrument of communication is considered. In the second part an empirical research is presented. The Italian law allows taxpayers to devote 5 per thousand of their income tax to non profit organizations, choosing between charities, social promotion associations, recognized associations, entities dedicated to scientific research and health care, universities, municipal social services and other non profit organizations. The present study present a quantitative research and it’s based on an empirical analysis of non-profit organizations that receive this donation in Italy in the year 2010 and 2011. In the paper we analyze the transparency and the accountability of the top 100 non profit organizations that have received the contribution of 5 per thousand, checking whether they prepare their Sustainability Report or any other kind of report for communicate the use

  4. Tax havens or tax hells? A discussion of the historical roots and present consequences of tax havens

    National Research Council Canada - National Science Library

    Ana Margarida Raposo; Paulo Reis Mourão

    2013-01-01

      Tax havens are not recent phenomena. However, in contrast to historical precedents, tax havens in the age of mobile capital allow for non-consensual transfers and are not profitable for every citizen...

  5. Optimal Tax Routing : Network Analysis of FDI Diversion

    NARCIS (Netherlands)

    van 't Riet, Maarten; Lejour, Arjen

    2017-01-01

    The international corporate tax system is considered as a network and, just like for transportation, ‘shortest’ paths are computed, minimizing tax payments for multinational enterprises when repatriating profits. We include corporate income tax rates, withholding taxes on dividends, double tax

  6. Management trends: Internationalization of non-profit organizations

    Directory of Open Access Journals (Sweden)

    Inić Branimir P.

    2015-01-01

    Full Text Available Non-profit organizations are increasingly gaining importance in the modern economy with their development and their numbers increasing day by day. It is very important to note that non-profit organizations are often subject to various benefits that the for-profit companies are not. Thus, for example, preferential tax status of non-profit organizations is manifested primarily in the form of exemption from corporate income tax. In addition, private non-profit organizations enjoy various other state, local and federal taxes exemptions. Under certain conditions, these organizations are exempt from taxes on donations and membership fees. A feature that differentiates various non-profit organizations and profit-oriented companies is their source of income. Profit oriented companies depend on their income, obtained from sales of their goods or services to customers, who usually cover the price and cost of goods and services plus the profit. In contrast, nonprofit organizations are very dependent on membership fees, tax exemptions, members donations or depend on funds of the sponsoring agency which covers most of their costs, for example a federal government agency. Those non-profit organizations that have substantial operating costs beyond national borders and do not identify themselves as purely domestic in their mandate are International non-profit organizations. Most non-profit organizations remain in their national boundaries, on the territory of the country in which they were created, but a large number of non-profit organizations rapidly internationalize, and some larger non-profits have grown into important global actors. The paper includes the following sections: (1 introduction, (2 why is the 'non-profit' important, (3 the internationalization of non-profit organizations, (4 sources of income of non-profit organizations (4.1. causality of impact and of strategic decisions in cases pertaining to universities, (5 the limits of strategic

  7. TAX RESEARCH Financial Accounting versus Tax Accounting - Tax Rules’ Impact on Investment Decisions

    Directory of Open Access Journals (Sweden)

    Dr.Sc. Skender Ahmeti

    2014-02-01

    Full Text Available This paper provides guidance for all those interested in research related to tax. In the study are included three main areas dealing with taxes and about taxes: (1 the role of information in corporation tax expenditures under the rules and laws of the country against financial statements according to international accounting standards, (2 case study PTK; how much effective tax and tax on extra profit has it paid (3 the impact of tax rules on investment decisions - the reasons and profits of the company and the host country. We will try to summarize here the three areas of study and come to some conclusions on how to deal with fiscal policy in Kosovo. In addition, we will offer our opinion on some interesting and important questions for future research.

  8. 26 CFR 509.105 - Industrial and commercial profits.

    Science.gov (United States)

    2010-04-01

    ... 26 Internal Revenue 19 2010-04-01 2010-04-01 false Industrial and commercial profits. 509.105...) REGULATIONS UNDER TAX CONVENTIONS SWITZERLAND General Income Tax § 509.105 Industrial and commercial profits... contracting States shall not be taxable by the other contracting State upon its industrial and commercial...

  9. Preference in Presentation or Impression Management: A Comparison Study between Chairmen’s Statements of the Most and Least Profitable Australian Companies

    Directory of Open Access Journals (Sweden)

    Zilan Cen

    2014-09-01

    Full Text Available The purpose of this study is to investigate the extent of impression management in corporate annual reports in an Australian context. To contribute to this topic, a research question is investigated: do the most profitable Australian companies, assessed by percentage change in profit before tax, organise the chairmen’s statements of their corporate annual reports and disclose information in a way that is significantly different from those least profitable companies? In terms of the methodology, this research has selected the top 50 most and least profitable companies in ASX 500 as at 30th June 2009 respectively. For reference and comparison purposes, another 50 companies were selected randomly from the rest of the population. Content analysis was applied. The results of this study were indicative that chairmen’s letters from profitable and non-profitable Australian companies do demonstrate significantly different presentational preferences.

  10. There's no profiting from a joint venture misadventure.

    Science.gov (United States)

    Herschman, Gary W

    2004-10-01

    In St. David's vs. IRS, a not-for-profit health system effectively challenged the IRS's determination that the system should be disqualified from tax exemption because it had entered a 50/50 joint venture with a for-profit system. The court decisions in St. David's, coupled with a recent IRS ruling, Revenue Ruling 2004-51, provide insight into how a not-for-profit hospital can structure such a joint venture to avoid jeopardizing its tax-exempt status.

  11. International Tax Competition and Coordination

    OpenAIRE

    Michael Keen; Konrad, Kai A.

    2012-01-01

    This paper aims to provide a comprehensive survey of the theory of international tax competition. Starting with the standard framework, it visits the non-cooperative equilibrium of tax competition, analyses aspects of partial and regional coordination, repeated interaction, stock-flow-effects, agglomeration effects and time consistency issues in dynamic models. We discuss profit shifting in the Keen-Kanbur model and then survey frameworks to analyze countries’ bidding for firms, tax rate diff...

  12. Tax Avoidance in Excise Tax

    OpenAIRE

    VARGOVÁ, Monika

    2007-01-01

    The taxes from consumption are an excise taxes and value adds tax. I will focus on an excise tax. The excise tax is one of the most important income to state budget. The excise taxes belong between indirect taxes and is divided into five selected products, such as cigarettes, bear, vine, alcohol and mineral oils.

  13. 26 CFR 1.1502-33 - Earnings and profits.

    Science.gov (United States)

    2010-04-01

    ... also lost in Year 1, P would have decreased its earnings and profits for Year 1 by the additional $50... 26 Internal Revenue 12 2010-04-01 2010-04-01 false Earnings and profits. 1.1502-33 Section 1.1502... (CONTINUED) INCOME TAXES Basis, Stock Ownership, and Earnings and Profits Rules § 1.1502-33 Earnings and...

  14. 26 CFR 1.312-6 - Earnings and profits.

    Science.gov (United States)

    2010-04-01

    ... 26 Internal Revenue 4 2010-04-01 2010-04-01 false Earnings and profits. 1.312-6 Section 1.312-6...) INCOME TAXES Effects on Corporation § 1.312-6 Earnings and profits. (a) In determining the amount of earnings and profits (whether of the taxable year, or accumulated since February 28, 1913, or accumulated...

  15. Cournot competition between a non-profit firm and a for-profit firm with uncertainty

    Science.gov (United States)

    Ferreira, Fernanda A.

    2010-03-01

    In this paper, we consider a Cournot competition between a nonprofit firm and a for-profit firm in a homogeneous goods market, with uncertain demand. Given an asymmetric tax schedule, we compute explicitly the Bayesian-Nash equilibrium. Furthermore, we analyze the effects of the tax rate and the degree of altruistic preference on market equilibrium outcomes.

  16. A Review of Factors for Tax Compliance

    Directory of Open Access Journals (Sweden)

    Nicoleta BARBUTA-MISU

    2011-03-01

    Full Text Available The aim of this paper is to identify the variables of tax compliance analysed by researchers from various countries and adapting them to the Romanian conditions to create a model to include factors that influence decision of tax compliance. Tax compliance has been studied in economics by analysing the individual decision of a representative person between paying taxes and evading taxes. In the research of tax compliance have been done many empirical studies that emphasized the impact of a wide variety of potential determinants of voluntary compliance with individual income/profit tax filing and reporting obligations. The most important determinants identified are: economic factors as the level of income, audit probabilities, tax audit, tax rate, tax benefits, penalties, fines and other non-economic factors as attitudes toward taxes, personal, social and national norms, perceived fairness etc.

  17. 26 CFR 1.401-1 - Qualified pension, profit-sharing, and stock bonus plans.

    Science.gov (United States)

    2010-04-01

    ... 26 Internal Revenue 5 2010-04-01 2010-04-01 false Qualified pension, profit-sharing, and stock... TREASURY (CONTINUED) INCOME TAX (CONTINUED) INCOME TAXES Pension, Profit-Sharing, Stock Bonus Plans, Etc. § 1.401-1 Qualified pension, profit-sharing, and stock bonus plans. (a) Introduction. (1) Sections 401...

  18. Profit U

    Science.gov (United States)

    Weinstein, Margery

    2012-01-01

    Preparing employees for the immediate work in front of them is a challenge. While most companies are still mastering effectively training their own workforce, some, such as "Training" magazine Top 10 Hall of Famer The Ritz-Carlton Hotel Company, have set up for-profit academies open to the public. When Ritz-Carlton won the national Malcolm…

  19. Deciding on Tax Evasion

    DEFF Research Database (Denmark)

    Boll, Karen

    2015-01-01

    Purpose – The purpose of this paper is to analyse everyday reasoning in public administration. This is done by focusing on front line tax inspectors’ decisions about tax evasion. Design/methodology/approach – The paper presents ethnography of bureaucracy and field audits. The material stems from...... fieldwork conducted in the Central Customs and Tax Administration. Findings – The paper shows that the tax inspectors reason about tax evasion in a casuistic manner. They pay attention to similar cases and to particular circumstances of the individual cases. In deciding on tax evasion, the inspectors do...... not just administer the laws; they also enact a policy of fair-mindedness. Doing this they are constrained by time and man-powers, but also enabled by various organizational devices. Research limitations/implications – The tax inspectors that the author followed were carefully chosen and acted...

  20. BEPS Action Plan: Global Tax Cooperation

    OpenAIRE

    Andrei Shelepov

    2016-01-01

    Given the dynamics of economic and financial globalization, national tax authorities often do not have adequate tools to effectively combat tax avoidance practices that exploit gaps in the existing tax rules. To address the global problem of tax base erosion and profit shifting (BEPS), the Organisation for Economic Co-operation and Development (OECD) and the Group of 20 (G20) have consolidated their efforts on an equal footing. Their joint BEPS Action Plan allowed to involve more than 100 cou...

  1. Evolution of tax revenue in Romania

    Directory of Open Access Journals (Sweden)

    Nicoleta Mihaela Florea

    2014-11-01

    Full Text Available The study aims to analyze the dynamics of tax revenues in Romania in the period 2008 - 2013, following the installation of austerity caused by the global economic crisis. There are highlighted the earned revenues at the general consolidated budget by revenue category, according to the annual budget execution. The article deals mainly with the evolution of profit tax, income and salaries tax, value added tax and excise. .

  2. Tax havens or tax hells? A discussion of the historical roots and present consequences of tax havens

    Directory of Open Access Journals (Sweden)

    Ana Margarida Raposo

    2013-09-01

    Full Text Available Tax havens are not recent phenomena. However, in contrast to historical precedents, tax havens in the age of mobile capital allow for non-consensual transfers and are not profitable for every citizen. We discuss the four main groups of tax havens (former Western possessions, sovereign nations, countries controlled by cartels, and emerging economies. This article also synthesizes the history of tax havens and describes their current heterogeneity, discussing the main methods available to regulate tax haven flows. Some of the most efficient methods involve unilateral measures (such as the Fiscal Transparency of Outland Societies but also encompass multilateral measures (such as Tax Harmonization and the Request for Information.

  3. 2011 Tax credit: despite the decline, it is worth benefiting from it; Credit d'impot 2011: malgre la baisse, il reste interessant d'en profiter

    Energy Technology Data Exchange (ETDEWEB)

    Rigaud, Ch.

    2011-01-15

    The rates of the tax credit have been reduced for 2011 but for 6 years the measure has been helping people to finance the passage to renewable energies in their homes or the improvement of energy efficiency of their homes. This article details the conditions to benefit from this tax credit and the tax credit rates that vary according to the kind of renewable energies. The solar thermal solar installation gives the highest tax credit: up to 45% of all the spending. The article reviews also the conditions to get reduced-rate (even 0-rate) loans for the financing of works aimed at improving energy efficiency of homes. (A.C.)

  4. Tax Morale

    National Research Council Canada - National Science Library

    Erzo F. P. Luttmer; Monica Singhal

    2014-01-01

    ... literature on tax compliance and the administration of tax policy. While tax administrators are obviously concerned about enforcement, they also tend to place a great deal of emphasis on improving tax morale, by which they generally mean increasing voluntary compliance with tax laws and creating a social norm of compliance. The OECD (2001), f...

  5. IMPLICATIONS OF THE APPLICATION OF IFRS FOR SMES IN ROMANIA ON TAXABLE AND DISTRIBUTABLE PROFIT

    Directory of Open Access Journals (Sweden)

    Girbina Madalina

    2011-12-01

    Full Text Available On 9 July 2009, the International Accounting Standards Board (IASB issued the International Financial Reporting Standard for Small and Medium Sized Entities (IFRS for SMEs which aims to provide a financial reporting framework for SMEs falling within its scope. It is a matter for authorities in each jurisdiction to decide which entities are permitted or required to apply IFRS for SMEs. Because of the connection between accounting and taxation certain european countries had a reluctant position related to the application of IFRS for SMEs. Opponents focused on the incompatibility between IFRS for SMEs framework and the principles commonly accepted for tax purposes. As the individual financial statements drown up in compliance with IFRS for SMEs will serve for profit distribution under the 2nd European Directive the question arises weather the profits determined under these accounting rules can be considered as realized for distribution purposes. In order to mitigate the mismatch between accounting and distributable profits, Member States will need to reconsider the circumstances in which gains and losses arising from re-measurement at fair value through profit and loss should be considered as realized. In this scenario, two important questions arise: What are the potential tax effects of the application of IFRS for SMEs? Is the profit determined under IFRS for SMEs available for distribution or some adjustments are necessary? The paper addresses these issues in the context of the Romanian accounting and taxation systems. Romania represents a relevant case study, as it is one of the European countries with a close linkage between financial and tax, where the fiscal profit is dependent on the accounting profit (currently determined under domestic regulations. The methodology consists in a comparative analysis of the recognition and measurement rules between national accounting regulations and IFRS for SMEs in order to identify the differences with

  6. Transfer pricing and the Czech tax policy

    Directory of Open Access Journals (Sweden)

    Veronika Solilová

    2010-01-01

    Full Text Available The Czech Republic as a small open economy with an extensive network of the international tax treaties for the avoidance of the double taxation prevents from shifting the tax base of the associated enterprises to countries with preferential tax regime through transfer pricing rules. Transfer pricing as one of the important areas of international taxes determines how the profits of the multinational enterprises are split between the jurisdictions in which they operate and which countries get to tax those profits. This situation may affect the global budget of the multinational enterprises and the tax reve­nues of the jurisdictions. This paper is focused on the transfer pricing rules used in the Czech Republic and makes recommendations for the Czech tax policy in this area based on the analysis of the transfer pricing rules in the EU Member States.

  7. Tax Morale

    OpenAIRE

    Erzo F.P. Luttmer; Singhal, Monica

    2014-01-01

    There is an apparent disconnect between much of the academic literature on tax compliance and the administration of tax policy. In the benchmark economic model, the key policy parameters affecting tax evasion are the tax rate, the detection probability, and the penalty imposed conditional on the evasion being detected. Meanwhile, tax administrators also tend to place a great deal of emphasis on the importance of improving "tax morale," by which they generally mean increasing voluntary complia...

  8. 26 CFR 31.3402(r)-1 - Withholding on distributions of Indian gaming profits to tribal members.

    Science.gov (United States)

    2010-04-01

    ... profits to tribal members. 31.3402(r)-1 Section 31.3402(r)-1 Internal Revenue INTERNAL REVENUE SERVICE... TAXES AND COLLECTION OF INCOME TAX AT SOURCE Collection of Income Tax at Source § 31.3402(r)-1 Withholding on distributions of Indian gaming profits to tribal members. (a) (1) General rule. Section 3402(r...

  9. Tax Tips for Forest Landowners for the 2007 Tax Year

    Science.gov (United States)

    Linda Wang; John L. Greene

    2007-01-01

    This guide is designed to assist owners of forest land with timber tax information. It is current as of October 1, 2007, and supercedes Management Bulletin R8-MB 128. It is strictly for educational purposes; consult your legal and tax professionals for advice on a specific tax situation.

  10. INFLUENCE OF INTERNATIONALIZATION OF TAX LAW ON RUSSIAN TAX LAW ENFORCEMENT IN THE AREA OF CORPORATE TAXATION

    Directory of Open Access Journals (Sweden)

    Karina Ponomareva

    2017-01-01

    Full Text Available Subject. The influence of internationalization of tax law on Russian tax law enforcement in the area of corporate taxation is considered in the article.The purpose of the paper is to analyze influence of internationalization of tax law on Russian tax law enforcement in the area of corporate taxation.Methodology. The author uses methods of theoretical analysis, particularly the theory of integrative legal consciousness, as well as legal methods, including formal legal method and methods of comparative law.Results, scope of application. The development of Russian tax legislation is influenced by acts of international organizations, primarily the Action Plan aimed at combating base erosion and profit shifting (BEPS.Trends of regulation of corporate taxation in relationships with participation of a foreign element are considered in the article. The main issues of realization of norms in the area of corporate direct taxation are brought into light, and namely, taxation of royalties, intra-group expenses, thin capitalization rules and transfer pricing. Tax agreements concluded by the Russian Federation do not contain special rules aimed at combating abuses (in contrast, for example, from European anti-avoidance rules.In recent years Russian tax law introduced institutions that had been established and applied in the tax law of foreign countries. These processes are moving forward and are characterized by frequent changes of legislation, which indicates that the concept of deoffshorization and implementation of the BEPS plan is not always elaborated at the stage of adoption of bills.Conclusions. The author comes to the conclusion that the most relevant and most controversial issues are taxation of payment of royalties, debt financing and intra-group expenses. The practice of applying the CFC rules is just starts forming. In addition, there is a tendency to increase the quality and quantity of information sources used by tax authorities to collect

  11. The New View of the Property Tax: A Reformulation

    OpenAIRE

    Peter M. Mieszkowski; Zodrow, George R.

    1984-01-01

    The"new view" of the property tax is reformulated within the context of a model with interjurisdictional competition, endogenous local public services, individuals who are segregated into homogeneous communities according to tastes for local public services, a simple form of land use zoning, and a political or constitutional constraint on the use of head taxes by local governments. Expressions for the "profits tax" and"excise tax" effects of the property tax are derived. The effects of a "con...

  12. A Survey on the Tax Policy in EU

    Directory of Open Access Journals (Sweden)

    Adrian Mihai INCEU

    2007-10-01

    Full Text Available In this study we make an analysis of the major aspects concerning the tax policy in the EU countries. For revealing a global image on tax policy within the EU we have to consider in our analysis the overall tax burden, the structure of tax revenues (direct taxation, indirect taxation, social contributions and the main types of taxes: corporate tax, personal tax, consumption tax. This article is based on a dynamic analysis of taxation using as a main tools descriptive and empirical analysis. The empirical study tries to determinate the correlation between tax burden and the implicit tax rate on capital and business income, consumption and labor through the panel methodology. This analysis is based the data delivered by the EUROSTAT. The main results obtained from the empirical study is that there are major differences concerning the correlation between total taxes as percentage of GDP and the implicit tax rate of profit, consumption and labor.

  13. Typology of taxpayers and tax policy

    Directory of Open Access Journals (Sweden)

    Niesiobedzka Malgorzata

    2014-09-01

    Full Text Available The issue how to reduce of tax evasion is widely discussed in the literature. A public authority may affect the behavior of taxpayers, not only through economic factors, but also by strengthen fiscal discipline. In this process especially role play such issues as tax morale, tax mentality and perceived tax justice. The purpose of the study was to identify groups of taxpayers with similar attitudes towards taxes and similar tax behaviors. Cluster analysis elicited four types of tax payers: Intrinsic Tax Payer, External Tax Payer, Intrinsic Tax Evader, External Tax Evader. In the study the most common were the first two types of taxpayers. Elicited types correspond with motivational tax postures identified by Braithwaite(2001, 2003 and Torgler (2003. The conclusions sum up the key issues discussed, policy implications and the limitation of the analysis.

  14. 26 CFR 1.857-7 - Earnings and profits of a real estate investment trust.

    Science.gov (United States)

    2010-04-01

    ... 26 Internal Revenue 9 2010-04-01 2010-04-01 false Earnings and profits of a real estate investment... (CONTINUED) INCOME TAX (CONTINUED) INCOME TAXES Real Estate Investment Trusts § 1.857-7 Earnings and profits of a real estate investment trust. (a) Any real estate investment trust whether or not such trust...

  15. 26 CFR 1.852-5 - Earnings and profits of a regulated investment company.

    Science.gov (United States)

    2010-04-01

    ... (CONTINUED) INCOME TAX (CONTINUED) INCOME TAXES Regulated Investment Companies and Real Estate Investment Trusts § 1.852-5 Earnings and profits of a regulated investment company. (a) Any regulated investment... 26 Internal Revenue 9 2010-04-01 2010-04-01 false Earnings and profits of a regulated investment...

  16. 26 CFR 1.857-11 - Non-REIT earnings and profits.

    Science.gov (United States)

    2010-04-01

    ... TAX (CONTINUED) INCOME TAXES Real Estate Investment Trusts § 1.857-11 Non-REIT earnings and profits. (a) Applicability of section 857(a)(3)(A). A real estate investment trust does not satisfy section... profits of real estate investment trusts. (d) Effective date. This regulation is effective for taxable...

  17. 26 CFR 1.381(c)(2)-1 - Earnings and profits.

    Science.gov (United States)

    2010-04-01

    ... 26 Internal Revenue 4 2010-04-01 2010-04-01 false Earnings and profits. 1.381(c)(2)-1 Section 1.381(c)(2)-1 Internal Revenue INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY (CONTINUED) INCOME TAX (CONTINUED) INCOME TAXES Insolvency Reorganizations § 1.381(c)(2)-1 Earnings and profits. (a) In...

  18. 26 CFR 1.312-15 - Effect of depreciation on earnings and profits.

    Science.gov (United States)

    2010-04-01

    ... 26 Internal Revenue 4 2010-04-01 2010-04-01 false Effect of depreciation on earnings and profits... (CONTINUED) INCOME TAX (CONTINUED) INCOME TAXES Effects on Corporation § 1.312-15 Effect of depreciation on earnings and profits. (a) Depreciation for taxable years beginning after June 30, 1972—(1) In general...

  19. 26 CFR 1.1552-1 - Earnings and profits.

    Science.gov (United States)

    2010-04-01

    ... income, then for purposes of this subdivision such member's taxable income shall be zero. (2)(i) The tax... return tax liability shall be zero. (3)(i) The tax liability of the group (excluding the tax increases...) of this section shall be made not later than the time prescribed by law for filing the first...

  20. Tax competition for foreign direct investment

    OpenAIRE

    Haufler, Andreas; Wooton, Ian

    1997-01-01

    This paper analyses tax competition between two countries of unequal size trying to attract a foreign-owned monopolist. When regional governments have only a lump-sum profit tax (subsidy) at their disposal, but face exogenous and identical transport costs for imports, then both countries will always offer to subsidize the firm. Furthermore, the maximum subsidy is greater in the larger region. If countries are given an additional instrument (either a tariff or a consumption tax), however, then...

  1. Measuring Customer Profitability in Complex Environments

    DEFF Research Database (Denmark)

    Holm, Morten; Kumar, V.; Rohde, Carsten

    2012-01-01

    that the degree of sophistication deployed when implementing customer profitability measurement models is determined by the type of complexity encountered in firms’ customer environments. This gives rise to a contingency framework for customer profitability measurement model selection and five research......Customer profitability measurement is an important element in customer relationship management and a lever for enhanced marketing accountability. Two distinct measurement approaches have emerged in the marketing literature: Customer Lifetime Value (CLV) and Customer Profitability Analysis (CPA...... propositions. Additionally, the framework provides design and implementation guidance for managers seeking to implement customer profitability measurement models for resource allocation purposes....

  2. Understanding tax morale and tax compliance of owner-managers of small companies

    OpenAIRE

    Yucedogru, Recep

    2016-01-01

    Owner managers of small companies (OMSCs) present an important group for tax research, as they constitute a majority of taxpayers, although little is known about their tax compliance behaviour. Hence, the key purpose of this study is to understand how OMSCs’ tax compliance and tax morale, intrinsic motivation to pay taxes, are shaped through their social roles: as an individual and as a manager. Moreover, the study explores the influential factors on OMSCs’ tax morale such as religiosity. Thi...

  3. Optimal fiscal barriers to international economic integration in the presence of tax havens

    DEFF Research Database (Denmark)

    Johannesen, Niels

    2012-01-01

    This paper develops a model where firms can shift profits to tax havens by means of intra-firm loans and countries can protect themselves against profit shifting by taxing cross-border interest flows. The model considers two countries with a scope for welfare improving economic integration....... The first-best tax system has two important characteristics: (i) the tax rate on interest flows to the other country is zero to ensure the optimal level of economic integration; (ii) the tax rate on interest flows to tax havens is high enough to deter profit shifting to tax havens. In second......-best environments, countries face a trade-off between economic integration and protection against tax havens, which causes protection to be suboptimally low. The key to the result is that economic integration makes it easier for multinational firms to circumvent taxes on interest payments to tax havens with conduit...

  4. TAX HAVENS

    OpenAIRE

    Horvat, Staša

    2016-01-01

    Tax havens have devoted much attention in recent years. Just a few months ago the notorious Panama documents have revealed details on hidden financial transactions of entrepreneurs, world politicians, public officials, celebrities and many others who operate in tax havens. Tax havens have usually a negative connotation in the media, particularly as money laundering places. I decided to look at the matter from the perspective of the entrepreneur and to be aware also of the many benefits of tax...

  5. Post-BEPS Tax Advisory and Tax Structuring from a Tax Practitioner’s View

    NARCIS (Netherlands)

    P. Lankhorst (Paul); H. van Dam (Harmen)

    2017-01-01

    textabstractThe international tax landscape is changing and it is changing fast. The political perception is that taxation of multinational enterprises is not aligned with the ‘economic activity’ that produces their profits (i.e. not aligned with ‘value creation’). The perception links ‘value

  6. Tax-exempt yardstick: defining the measurements.

    Science.gov (United States)

    Kuchler, J A

    1992-02-01

    Congress, the Internal Revenue Service (IRS), and state and local governments still are trying to determine requirements a hospital must meet to warrant tax exemption. Revisions to a bill introduced by Rep. Brian Donnelly (D-Mass.) likely will focus Congressional debate on whether charity care or the broader concept of community benefits is the most appropriate measure for not-for-profit hospitals to meet; the IRS may develop intermediate sanctions it could impose on errant not-for-profit facilities in lieu of a total revocation of tax-exempt status; and perhaps the most stringent clamp-down on healthcare facilities' tax-exempt status will come from state and local governments that develop boundaries for tax-exempt hospitals to maintain. Not-for-profit facilities can respond to increased scrutiny by viewing government challenges as opportunities to "tell their stories" about charity care and community benefits.

  7. Taxation of Controlled Foreign Companies in Context of the OECD/G20 Project on Base Erosion and Profit Shifting as well as the EU Proposal for the Anti-Tax Avoidance Directive

    DEFF Research Database (Denmark)

    Schmidt, Peter Koerver

    2016-01-01

    Recently, the controlled foreign company (CFC) rules have gained increased attention; as such, rules play an important role in the ongoing efforts of the OECD/G20 and the European Commission with respect to addressing base erosion and profit shifting (BEPS). In this context, the article revisits...

  8. To Profit or Not To Profit: That Is the Tough Question.

    Science.gov (United States)

    Neugebauer, Roger

    1999-01-01

    Discusses advantages and disadvantages of organizing a child care operation as a for-profit or a nonprofit organization. Areas discussed include ease of start up; access to capital and funding; exposure to taxes; access to community support; appeal to volunteers, teaching candidates, and parents; challenge of management; risk to management;…

  9. Personnel Policy and Profit

    DEFF Research Database (Denmark)

    Bingley, Paul; Westergård-Nielsen, Niels Chr.

    2004-01-01

    personnel structure variation. It is found that personnel policy is strongly related to economic performance. At the margin, more hires are associated with lower profit, and more separations with higher profit. For the average firm, one new job, all else equal, is associated with ?2680 (2000 prices) lower...... annual profit. Higher wage level and lower wage growth is associated with higher profit. A workforce that has less tenure, all else equal, is more profitable....

  10. Pakistan’s Tax Gap: Estimates By Tax Calculation and Methodology

    OpenAIRE

    Robina Ather Ahmed; Mark Rider

    2008-01-01

    This report provides estimates of Pakistan’s tax gap by type of tax and describes the methodologies and data used to produce these estimates. A country’s tax gap is the amount of tax that goes uncollected due to non-compliance with the tax law. For estimation purposes, the operational definition of the tax gap is the difference between potential and actual federal tax revenue, where potential revenue is the amount of tax that the government would collect if everyone fully complied with the ta...

  11. Revised OECD Transfer pricing Guidelines and the Czech tax policy

    Directory of Open Access Journals (Sweden)

    Veronika Solilová

    2011-01-01

    Full Text Available In applying the international principles to the taxation of Multinational Enterprises, one of the most difficult issues that have arisen is the establishment for tax purposes of appropriate transfer prices. Transfer prices are significant for both taxpayers and tax administrations because they determine in large part the income and expenses, and therefore taxable profits, of associated enterprises in different tax jurisdictions. The Committee on Fiscal Affairs, which is the main tax policy body of the OECD, has issued a number of reports relating to the transfer pricing issues. The most important are the Transfer pricing Guidelines for multinational enterprises and tax authorities which was published in 1995. These Guidelines focus on the application of the arm’s length principle to evaluate the transfer pricing of associated enterprises, the analysis of the methods for evaluating whether the conditions of commercial and financial relations within Multinational Enterprises satisfy the arm’s length principle and discussion of the practical application of those methods. Simply, these Guidelines focus on the main issues of principle that arise in the transfer pricing area. The Committee on Fiscal Affairs continues its work in this area, on 22 July 2010 approved and released the proposed revisions to Chaps. I through III of these Guidelines and simultaneously published a new Chap. IX related to business restructuring. The revisions are the result of several years of work on comparability and the use of profit-based methods. The revised text will have a significant impact on the application of transfer pricing analysis and transfer pricing methods. The paper is focused on significant changes of newly approved Guidelines with aim to evaluate how the Czech Republic began applying the principles set out in the revised text of these Guidelines.

  12. Legal and Illegal Tax Evasion

    Directory of Open Access Journals (Sweden)

    Marcel Suvelea

    2013-12-01

    Full Text Available In the economic and social plan, tax evasion is a reality seen in various forms, such as the keeping of not realistic accounting books; willful destruction of documents that might lead to the discovery of real product deliveries, adopted prices, fees received or paid, establishing false customs declarations for the goods import or export, preparing false tax declarations, while knowingly not mentioning but a portion of the incomes. The largest tax evasion - 60% - is generated from VAT, while social contributions generate approximately 24% of the total fiscal evasion, mainly through the phenomenon of “illegal work” (employees in the underground economy. For this purpose it is necessary a deep reform of the taxes administration, mainly in the direction of increasing the degree of tax collection. The phenomenon as a whole is very difficult to control and to quantify and to this contribute also the tax laws’ peculiarities, tax policies, corruption and the standard of living

  13. Tax liability and fulfillment of tax obligations

    Directory of Open Access Journals (Sweden)

    Milošević Goran B.

    2015-01-01

    Full Text Available Tax liability is the duty of the taxpayer to pay the tax. The tax­payer is responsible for the fulfillment of tax obligations from the moment of the occurrence of taxable event on which the authority imposed the tax liability. The moment of the occurrence of taxable event shall be determined separately for each tax, in accordance with the relevant tax law. The fulfillment of tax obligations is the payment of the amount owed. for the tax.

  14. THE ROLE OF THE TAX BURDEN IN THE TAXATION OF UKRAINE

    Directory of Open Access Journals (Sweden)

    Olha Melnyk

    2015-11-01

    Full Text Available The purpose of the paper is to underline and present the important of the tax burden in the taxation of Ukraine and to show its influence on the profit of the enterprises. The problem of the optimization of the taxes is closely connected with two factors. The first factor is that the aim of the tax system is to fill the state budget. The second factor is to make fovourible conditions for business to prosper. Also, the aim of the research is еру development of scientific and methodological foundations of practical recommendations on the management of the tax burden with an economic entity on the basis of more efficient use of production resources. To achieve this aim the amendments of the Tax Code and the introduction of new rates and taxes were considered, which affects the activities of the company. also the main criteria of the indicators for assessing the tax burden on the company were formed. The object of research is the process of management of the tax burden on the basis of increase of efficiency of use of industrial resources of the enterprise. The subject of the study is the theoretical and methodological and practical aspects of the tax burden, and its calculation methods for reduction and increase, based on the characteristics of business administration. Methodology. The theoretical base of the issue is taken from the economic bases, the works of the native and foreign scientists on the topic of the influence of the taxation on the work of the enterprises, their profit, the analysis of the statistic data during the last few years. To achieve these goals the following methods were used: a method of system analysis and synthesis, methods of statistical groupings, economic and mathematical, logical and comparative analysis. The information base for writing articles constitutes a legal and regulatory acts of Ukraine, the statistical data of the State Committee of Statistics of Ukraine, the reporting enterprises in Ukraine. Results. The

  15. Poll Tax in Agriculture

    Directory of Open Access Journals (Sweden)

    Marina Luminita Sarbovan

    2011-10-01

    Full Text Available Under the crisis constrains, the Romanian government tries to balance the budget, to stop the inflation and decrease unemployment, but its financial possibilities to do so prove to be much smaller than necessary. As far as agriculture is concerned, because of the strong connection of this branch to the European rural mechanism, the state intervention plays the key role in the protection and promoting the national production, in competition with other global producers. The taxation system still owes unexpected effects, influences the prices for the animal and vegetal production, the sales and the profits of this branch, in the context of included fluctuating profit particularities. Is poll tax a possibility or a necessity for agriculture?

  16. Advanced training of tax consultants

    Directory of Open Access Journals (Sweden)

    Adigamova Farida F.

    2016-01-01

    Full Text Available The purpose of the research is to review and analyze the data on the necessity to provide an educational environment for training and advanced training of tax consultants in Russia. The article considers the types of tax consulting, the historical background of training financiers in Russia, as well as identifies conditions determining the significance of tax consulting. The research establishes the connection between the negative attitude to tax payment and tax evasion. The advanced training of tax consultants should be a continuous process as they need to take into account both external and internal taxpayers risks associated with the development of law and law-enforcement practice. Obviously, the training of tax consultants should take into account the experience of developed foreign countries, such as Germany, Austria, Czech Republic, Slovakia and other European countries as well. In Russia, it is necessary to open educational institutions, which will not only be involved in the certification of tax consultants, but also provide training courses. These courses should contribute to constant increase of tax consultants knowledge, consider the tax treatment of economic activities, as well changes in the legislation, economics, finance, accounting, manufacturing processes, which will improve the quality of services provided by tax consultants.

  17. Base Erosion, Profit Shifting and Developing Countries

    OpenAIRE

    Ernesto Crivelli; De Mooij, Ruud A.; Michael Keen

    2015-01-01

    International corporate tax issues are prominent in public debate, notably with the G20-OECD project addressing Base Erosion and Profit Shifting (‘BEPS’). But while there is considerable empirical evidence for advanced countries on the cross-country fiscal externalities at the heart of these issues, there is almost none for developing countries. This paper uses panel data for 173 countries over 33 years to explore their magnitude and nature, focusing particularly on developing countries a...

  18. Taxation of Controlled Foreign Companies in Context of the OECD/G20 Project on Base Erosion and Profit Shifting as well as the EU Proposal for the Anti-Tax Avoidance Directive – An Interim Nordic Assessment

    OpenAIRE

    Schmidt Peter Koerver

    2016-01-01

    Recently, the controlled foreign company (CFC) rules have gained increased attention; as such, rules play an important role in the ongoing efforts of the OECD/G20 and the European Commission with respect to addressing base erosion and profit shifting (BEPS). In this context, the article revisits the CFC regimes of the Nordic countries in order to assess whether these regimes are in line with the recommendations from the OECD/G20 and to determine whether Sweden, Finland, and Denmark, as EU mem...

  19. Elasticities, Tax Rates, and Tax Revenue

    OpenAIRE

    Edgar K. Browning

    1989-01-01

    Develops a theoretical analysis of the responsiveness of tax revenue to a change in tax rates on labor income. Finds that tax revenue is likely to be less responsive to higher tax rates than previous estimates suggest.

  20. A New Tax System For Romanian Tourism Industry?

    Directory of Open Access Journals (Sweden)

    Traian-Ovidiu Calotă

    2014-07-01

    Full Text Available The enterprises from tourism industry may apply till the end of 2014 year one of two tax systems as follow: (i either tax on income system – quota of 3% applied to taxable income if the income’s value is less than 65.000 euro; (ii either tax on profit system for all other enterprises. The tax authorities intend to apply a 3rd system named “specific tax on certain activities”. We chose to analyze this new tax system for the listed bellow three main reasons: (i any enterprise – subject of paying tax on income or tax on profit – must analyze at the end of 2014 the new conditions mentioned by law in order to decide which tax system would be applied for the future period; (ii for the activities distinctly mentioned in CAEN Code, e.g. hotels restaurant’ and bar’s activities, the tax amount is no longer computed based on profit or income , but – instead – tax amount is computed based on several factors such as: the number of beds from hotel or the surface of restaurant.

  1. Tax and statement matters of the income tax for the year 2010

    Directory of Open Access Journals (Sweden)

    Busuioceanu, S.

    2011-01-01

    Full Text Available The numerous legislative changes that occur from one financial year to another are not always able to clarify points of divergence existent between establishing the tax profit and the accounting one. Thus, accountants are sometimes put in difficulty, regarding the obligation to present the accounts respecting the principle of a true and fair view and the desire to optimize the tax cost of their business. The fact is that in the absence of specific accounting rules, the tax normative is set as a practical normative. In the fiscal side, there are clear law provisions governing each type of tax which must be respected. The tax base is the tax result and taxation,, by imposing strict rules, is trying to balance the general tendency of the taxpayers to minimize the tax due.

  2. Corporate income tax and the international challenge

    Directory of Open Access Journals (Sweden)

    Folkvord Benn

    2014-11-01

    Full Text Available Although globalization has contributed immensely to growth and prosperity around the world, it is a growing challenge for tax policy makers. Globalization and greater mobility of tax bases increase the relative importance of taxes in corporations’ investment decisions. The combination of highly mobile capital, inadequacies in existing tax laws and a total change of international business environment have led to the fundamental problem in international tax law labeled by the OECD as the problem of BEPS (Base Erosion and Profit Shifting, along with severe competition among countries to attract investments and business activities. These challenges are the topic for the 2014 seminar of the Nordic Tax Research Council. Based on the Nordic national reports we discuss these challenges

  3. The importance and effects of BEPS multilateral convention in international tax law

    Directory of Open Access Journals (Sweden)

    Popović Dejan

    2017-01-01

    Full Text Available The Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting is a result of the BEPS project carried out by the OECD and G20. The object and purpose of the BEPS Multilateral Convention is swift and consistent implementation of the agreed solutions aimed at preventing tax evasion or avoidance via modifications of the existing bilateral tax treaties, while providing for a high level of flexibility in the implementation. Signed on 7 June 2017, the Convention encompasses provisions on hybrid mismatches, treaty abuse, avoidance of permanent establishment status, improving dispute resolution and arbitration. The first four groups of norms have a bilateral impact on the relations between contracting jurisdictions regulated by their covered tax agreements; the effect of the optional provisions on arbitration is multilateral. The Convention contains two minimum standards each party is required to include in its covered tax agreements in an offered manner. The first one refers to the prevention of treaty shopping arrangements, while the second one concerns improvements in the dispute resolution. The flexibility is assured by granting each party the right to specify the tax treaties to which the Convention applies, to opt out of a wide range of provisions (apart from the minimum standards set out in the Convention as eligible for reservations, as well as to select an offered alternative. Serbia's position vis-à-vis the given choices has been elaborated. Serbia specified all its tax treaties as the 'covered tax agreements' but Germany, Switzerland and Sweden did not do the same with their respective treaties with Serbia. Serbia opted out of five articles of the Convention. While not contesting its importance, one may conclude that the Convention does not represent an announcement of a new multilateral tax order but rather a multilateral agreement of a number of states motivated by practical considerations.

  4. Post-BEPS Tax Advisory and Tax Structuring from a Tax Practitioner’s View

    OpenAIRE

    Lankhorst, Paul; Dam, Harmen

    2017-01-01

    textabstractThe international tax landscape is changing and it is changing fast. The political perception is that taxation of multinational enterprises is not aligned with the ‘economic activity’ that produces their profits (i.e. not aligned with ‘value creation’). The perception links ‘value creation’ with ‘employees and sales’. In the BEPS Project of the OECD, the OECD attempts to combat base erosion and profit shifting and to align taxation with value creation. In this article, the authors...

  5. The Analysis of Corporate Tax and Personal Income Tax in European Countries

    Directory of Open Access Journals (Sweden)

    Telnova Hanna V.

    2017-06-01

    Full Text Available The aim of the article is to reveal the relationship between the rates of corporate tax and personal income tax and the pace of economic development. The existence of the open financial market under conditions of globalization leaves its imprint on forming the vectors of development of the tax systems in the countries. Thus, the optimal corporate taxation creates a competitive and investment-attractive climate, facilitates encouraging foreign investments and locating economic activities. The study made it possible to establish the absence of a direct link between the tax rates and economic growth. At the same time, a linear relationship between the tax rates and the tax burden is revealed. On the basis of the presented mathematical expression, it can be concluded that an increase in the personal income tax causes an increase in the tax burden, and an increase in the corporate tax — its reduction. The cluster analysis of the corporate tax and the personal income tax in European countries allowed to justify the determinants of successful economic development presenting the formation of the vector of the tax policy in the aspect of moderate taxation of individuals and the need for low taxation of corporate profits.

  6. The Process Management in Non - Profit Organisations

    National Research Council Canada - National Science Library

    Dagmara Bubel; Sylwia Legowik-Swiacik; Michal Dziadkiewicz; Anna Wisniewska-Salek

    2016-01-01

      The purpose of this paper is to learn about the implementation of the process management concepts in the non-profit organisations and the possible evaluation of effectiveness raise of the organisations' functioning...

  7. ROLE OF TAX PENALTIES IN TAXPAYERS EDUCATION

    Directory of Open Access Journals (Sweden)

    Iulia CAPRIAN

    2015-04-01

    Full Text Available Fiscal control is a form of state financial control bodies from the Ministry of Finance, the instrument we have available to public authorities for monitoring and determining the methods and techniques to ensure the financial resources of the state constitution, in this case, tax revenue is the overwhelming them. Businesses, regardless of its ownership, which profit from their activity, are required by law to calculate and pay taxes to the budget in the amount and terms provided by the regulations.

  8. Transfer Pricing: Alibi for Cross-Border Tax Evasion

    OpenAIRE

    Georgescu Iuliana Eugenia; Afrãsinei Mihai-Bogdan

    2013-01-01

    In order to maximise profit and to reduce the burden of tax in the jurisdictions with high tax, many of the multinational companies abuse transfer pricing by directing the profit towards subsidiaries which are localised in more favourable jurisdictions from this point of view. The cross-border transactions effectuated, more exactly the mechanisms used to establish the transfer pricing involved in them, vary from the perfectly legal to the illegal ones and very often it is almost impossible fo...

  9. Direct Marketers and the Virginia Sales Tax

    OpenAIRE

    Whittle, Bill; Groover, Gordon Eugene, 1956-

    2009-01-01

    When farmers sell retail or to the end-user, they must collect sales tax on the gross sales price of all retail sales. For the purpose of sales tax rules, farmers making direct sales are treated like all retail merchants and are obligated to collect and remit the sales tax on all retail sales to each customer.ï_ 

  10. Tax deregulation

    National Research Council Canada - National Science Library

    Dean, Steven A

    2011-01-01

    Deregulation has played both the hero and the villain in recent years. This Article evaluates the impact of deregulation on what may be the single most economically important regulatory regime: the income tax...

  11. AN APPROACH ON LINKS BETWEEN TRANSFER PRICING AND TAX HAVENS

    Directory of Open Access Journals (Sweden)

    ANDREEA LAVINIA CAZACU (NEAMŢU

    2015-10-01

    Full Text Available Transfer pricing are the prices at which a company transfers physical goods and intangible property or provides services to affiliated companies. Transfer pricing mechanism is the most frequently used instrument for the transfer of the tax base from countries with high tax to low tax countries. In the context of transfer pricing, all transactions should be made only respecting the principle of market value (Arm’s length principle. Under current conditions, we can say that globalization influences the transfer pricing, because it makes possible to transfer profits from one country to another, by removing state barriers. The expression "transfer pricing" is used as shorthand for multinational corporations to store profits in tax havens and to avoid tax evasion in developed countries. These two terms (transfer pricing and tax havens combined, make the benefits of affiliated groups to grow impressively.

  12. Tax Morale, Tax Compliance and the Optimal Tax Policy

    OpenAIRE

    Gaetano Lisi

    2013-01-01

    Following the behavioural branch of tax compliance literature, this paper tries to incorporate tax morale into the optimal taxation theory. We show that tax morale affects the optimal mix of policy tools of deterrence to clamp down tax evasion. The optimal tax policy in fact differs according to the type of tax payer taken into account. Precisely, in the case of honest taxpayers the optimal strategy from a social welfare standpoint is to substitute a higher taxation/penalty with tighter monit...

  13. Tax Incentives for Industry Synergy in Nigeria: A Pragmatic ...

    African Journals Online (AJOL)

    Leveraging on the outcomes, therefore, a Tax Incentive – Corporate Profitability Impact Model (TICPIM) is conceptualized and presented herein, to accord meaningful impetus to a pragmatic proprietary system advocacy (PPSA), which is expedient for the Nigerian economy. It is expected that these tax appeals and ideals ...

  14. Does reporting timeliness affect book-tax differences?

    NARCIS (Netherlands)

    Goncharov, I.

    2009-01-01

    In Europe, a number of countries align tax accounts and parent-only accounts, while allowing companies to characterize consolidated profits to capital markets in a different way. Using parent-only (consolidated) accounts as a proxy for tax (book) accounts, this paper analyzes the role of reporting

  15. Transparency in Financial Reporting: Is Country-by-Country Reporting suitable to combat international profit shifting?

    OpenAIRE

    Evers, Maria Theresia; Meier, Ina; Spengel, Christoph

    2014-01-01

    Aggressive tax planning efforts of highly profitable multinational companies (Base Erosion and Profit Shifting (BEPS)) have recently become the subject of intense public debate. As a response, several international initiatives and parties have called for more transparency in financial reporting, especially by means of a country-specific reporting of certain tax information (Country-by-Country Reporting (CbCR)). In our paper, we demonstrate that neither consolidated nor individual financial ac...

  16. Why Taxing Consumption?

    DEFF Research Database (Denmark)

    Landes, Xavier

    2015-01-01

    ’s proposition identifies three justifications for a tax on consumption: efficiency, paternalism and equality. This chapter has two purposes. Firstly, it reviews these justifications, highlighting some objections and possible replies. As such, it suggests that reasons based on equality or paternalism...... are controversial while the invocation of efficiency is actually grounded in an underlying view of social cooperation. Secondly, this chapter advances the idea that an ultimate justification for the choice of specific tax base (consumption, income and wealth) expresses such an underlying view. In other words......Robert Frank is famous for proposing an incremental tax on consumption. His proposition is motivated by the control of positional externalities, i.e. the costs that individuals impose on each other when they consume goods for securing or acquiring social status. A close analysis of Frank...

  17. DataProfit

    DEFF Research Database (Denmark)

    2016-01-01

    DataProfit er et værktøj til at kortlægge og analysere din virksomheds evne til datadreven forretningsudvikling.......DataProfit er et værktøj til at kortlægge og analysere din virksomheds evne til datadreven forretningsudvikling....

  18. Profit maximization mitigates competition

    DEFF Research Database (Denmark)

    Dierker, Egbert; Grodal, Birgit

    1996-01-01

    competition than utility maximization. Since profit maximization tends to raise prices, it may be regarded as beneficial for the owners as a whole. Moreover, if profit maximization is a good proxy for utility maximization, then there is no need for a general equilibrium analysis that takes the distribution...

  19. Failures of Big Business Tax Administration and Their Impact on Regional Budgets

    Directory of Open Access Journals (Sweden)

    Vladimir Aleksandrovich Ilyin

    2017-03-01

    Full Text Available The destabilization processes of the Russian Federation’s budget system, primarily at the regional level, are becoming longterm in their nature. It is necessary to find ways to overcome these processes. The current measures by the authorities are aimed at reducing budget expenditures and will not solve the existing problems. In the authors’ opinion, these are, first of all, the failures of tax policy concerning the major taxpayers. The main purpose of the article is to provide the selected research results of the Institute of Socio-Economic Development of Territories of the Russian Academy of Sciences on the taxation of major oil and metals corporations, their relations with both federal and regional budgets. The analysis of regulatory acts allowed to conclude that the standard practice of major taxpayers’ tax administration hardly corresponds to the basic principles of taxation. As a result, in recent years, revenues from the main income source of the territories — income tax steadily decline; industrial production development is limited by the inefficient tax concession system and the increasing costs, corporate management imbalances. These imbalances suppose that the interests of private capital owners and the management of state corporations prevail over the solution of the issues of social development. The paper proposes some measures to improve the profit taxation and increase the fiscal function of income tax. We have developed a differentiated scale of refunds from the budget of valueadded tax paid by large commodity exporters with a view to provide incentives for increasing exports of competitive products. The article also suggests that with continued centralization of the system of tax distribution across government levels, a part of additional revenues generated through the implementation of a selective approach to the provision of tax incentives could be used to increase financial support of the regions.

  20. 26 CFR 1.482-6 - Profit split method.

    Science.gov (United States)

    2010-04-01

    ... Internal Revenue INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY (CONTINUED) INCOME TAX (CONTINUED... relevant business activity will be a principal determinant of the allocation of functions and risks among... derived from the comparable profit split is affected by the quality of the data and assumptions used to...

  1. Forecasting tax revenue and its volatility in Tanzania | Chimilila ...

    African Journals Online (AJOL)

    Forecasting tax revenue and its predictability is important for government budgeting and tax administration purposes. This study used monthly tax revenue data for a period of 182 months spanning January 2000 to February 2015. The study applied ARMA and combined forecast models, and GARCH models to forecast tax ...

  2. 27 CFR 53.2 - Attachment of tax.

    Science.gov (United States)

    2010-04-01

    ... 27 Alcohol, Tobacco Products and Firearms 2 2010-04-01 2010-04-01 false Attachment of tax. 53.2 Section 53.2 Alcohol, Tobacco Products and Firearms ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT... § 53.2 Attachment of tax. (a) For purposes of this part, the manufacturers excise tax generally...

  3. Questionnaire on Corporate Income Tax Subjects - Denmark

    DEFF Research Database (Denmark)

    Friis Hansen, Søren; Nielsen, Jacob Graff

    In terms of tax policy, tax harmonization or coordination of corporate taxation in the EU is usually considered from two complementary points of view: tax base and tax rate. These two perspectives structure the debate whether EU Member States, and more broadly States belonging to the same economic...... area, should harmonize or coordinate their policies in tax matters. However, little attention has been paid so far to a more basic question: who are corporate taxpayers? Are they defined in the same way over Europe? This may be explained by the fact that the vast majority of tax systems accept the same...... fundamental idea: while companies limited by shares and limited liability companies should be subject to corporate income tax (CIT), partnerships should be considered fully or partly transparent for tax purposes. This general statement is nevertheless an oversimplification of reality. Comparative law indeed...

  4. EFFECTIVE CORPORATE INCOME TAX RATE IN ROMANIA: A MICRO-BACKWARD LOOKING APPROACH

    Directory of Open Access Journals (Sweden)

    Sebastian Lazar

    2011-12-01

    Full Text Available Within the framework of micro-backward looking methodology, the paper computes the effective corporate income tax rate for Bucharest Stock Exchange non-financial companies for 2000 - 2009 period, using data from companies financial reports. We find that effective tax rate computed as profit tax/pre-tax income ratio was below the statutory tax rate, throughout the period, except for the year 2009 (when an alternative minimum tax was introduced and the differences have diminished since the flat tax was adopted (2005. When applying a correlation analysis, we find that the difference between this effective tax rate and the statutory tax rate presents a strong negative correlation with the return on assets ratio (ROA. Also, we have find that commerce is enjoying the most favourable tax regime, while energy is the most heavily taxed.

  5. Environmental taxes

    DEFF Research Database (Denmark)

    Ekins, P.; Andersen, Mikael Skou; Vos, H.

    include those on sulphur dioxide and nitrogen oxides in Sweden, on toxic waste in Germany, on water pollution in The Netherlands, and the tax differentials on leaded fuel and 'cleaner' diesel fuel in Sweden.3.Taxes as such have potential negative impacts on competitiveness and on employment, Most barriers...... and information. 4.As environmental concerns move from point-source emissions and problems, such as industrial emissions from pipelines and chimneys, to include more diffuse and mobile sources of pollution, such as solid waste, or from the agricultural and transport sectors, there is increased scope...

  6. 26 CFR 1.904-2 - Carryback and carryover of unused foreign tax.

    Science.gov (United States)

    2010-04-01

    ... income, war profits, and excess profits taxes deemed paid or accrued in such year to such foreign country... foreign countries and possessions in the excess limitation year, (b) The income, war profits, and excess...: Taxable years 1958 1959 1960 1961 1962 1963 1964 1965 1966 Per-country limitation $175 $150 $100 $100 $100...

  7. Tax avoidance: Definition and prevention issues

    Directory of Open Access Journals (Sweden)

    Anđelković Mileva

    2014-01-01

    Full Text Available The problem of resolving issues pertaining to tax avoidance, and particularly its aggressive forms, has been the focal point of discussion among tax scholars which is increasingly gaining attention of politicians alike. As opposed to tax evasion (which is illegal, the phenomenon of tax avoidance calls for careful consideration of state fiscal interests and a highly precise demarcation of the thin line between the acceptable and unacceptable conduct. In many contemporary states, tax avoidance (which implies a formal behaviour of tax payers within the limits of tax legislation but contrary to the tax regulation objectives is declared to be illegitimate. State authorities do not want to tolerate such activity, which results in tax payers' reduction or avoidance of tax liabilities. We should also bear in mind that all tax payers have the tax planning option at their disposal, by means of which they make sure that they do not pay more tax than they are legally obliged to. However, in case they skilfully use the tax regulation flaws and loopholes for the sole purpose of tax evasion, and/or resort to misrepresentation and deceptive constructs, they are considered to be exceeding the limits of acceptable tax behaviour. In comparison to the specific anti-abuse measures which have been built into some national tax legislations, there is a growing number of states that introduce the general anti-abuse legislations, which is based on judicial doctrines or statutory legislation. Yet, there is a notable difference among the envisaged anti-abuse measures depending on whether the national legislation is based on the Anglo-American or European-Continental legal system. The efficiency of applying these general anti-abuse rules in taxation largely rests on their interpretation as well as on their relationship with the principle of legality.

  8. 26 CFR 1.852-12 - Non-RIC earnings and profits.

    Science.gov (United States)

    2010-04-01

    ... (CONTINUED) INCOME TAXES Regulated Investment Companies and Real Estate Investment Trusts § 1.852-12 Non-RIC earnings and profits. (a) Applicability of section 852(a)(2)(A)—(1) In general. An investment company does... profits the investment company succeeded by the operation of section 381, part I of subchapter M applied...

  9. The Coordination of Capital Income and Profit Taxation with Cross-Ownership of Firms

    NARCIS (Netherlands)

    Huizinga, H.P.; Nielsen, S.B.

    1996-01-01

    This paper investigates the scope for international coordination of capital income and profit taxation.The paper considers a world of many symmetric countries where public goods are financed by taxes on capital income and on profits.In the open economy, the authorities have at their disposal a

  10. 26 CFR 521.115 - Credit against United States tax liability for Danish tax.

    Science.gov (United States)

    2010-04-01

    ... Danish tax. 521.115 Section 521.115 Internal Revenue INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY... Are Residents of Denmark and of Danish Corporations § 521.115 Credit against United States tax liability for Danish tax. For the purpose of avoidance of double taxation, Article XV provides that, on the...

  11. What Do We Know About Base Erosion and Profit Shifting? A Review of the Empirical Literature

    OpenAIRE

    Dharmapala, Dhammika

    2014-01-01

    The issue of tax-motivated income shifting within multinational firms has attracted increasing global attention in recent years. It is of central importance to many current policy debates, including those related to recent initiatives by the OECD on base erosion and profit shifting (BEPS) and to proposals for US tax reform in a territorial direction. This paper provides a survey of the empirical literature on tax-motivated income-shifting within multinational firms. Its emphasis is on clarify...

  12. Evaluating Banking Profit Performance in Ghana during and post Profit Decline: A five Step Du-Pont Approach

    Directory of Open Access Journals (Sweden)

    Baah Aye Kusi

    2015-11-01

    Full Text Available In this study we aimed at three objectives. First, identify and rank banks based on a composite score comprising of all five du-pont variables. Second, we identify variables in the five step du-pont set up that are most likely to influence bank ROE during and post profit declining periods. And third, we estimate a model to capture the variables that drive bank ROE during and post profit declining periods. We first establish from our rankings that, foreign banks in Ghana performed better during profit declining periods while the local banks performed better in post profit decline periods using the top ten banks as a benchmark in both periods. Employing Pearson correlation coefficients matrix, we recognized that operating profit margin, asset turnover and leverage were most likely to influence bank ROE in both time periods. We further employ OLS regression and find that bank ROE was impacted by operating profit margin and leverage during profit declining periods and post profit decline while tax effect added up in post profit declining periods.

  13. TAX AUDIT AS A SEPARATE ITEM IN THE SYSTEM OF GENERAL AUDIT

    OpenAIRE

    Aleksey F. Akhmetshin

    2014-01-01

    The article describes General concepts of the audit, the purpose and the essence of the tax audit, determines the methods of calculation of the tax burden, describes the ratio of the total and tax audit. Comparative analysis with the purpose of definition of tax audit as a separate element of the system of General audit is given. Conclusion about expediency of holding events for tax audit for the purpose of reduction of tax risks of economic entities is made.

  14. TAX AUDIT AS A SEPARATE ITEM IN THE SYSTEM OF GENERAL AUDIT

    Directory of Open Access Journals (Sweden)

    Aleksey F. Akhmetshin

    2014-01-01

    Full Text Available The article describes General concepts of the audit, the purpose and the essence of the tax audit, determines the methods of calculation of the tax burden, describes the ratio of the total and tax audit. Comparative analysis with the purpose of definition of tax audit as a separate element of the system of General audit is given. Conclusion about expediency of holding events for tax audit for the purpose of reduction of tax risks of economic entities is made.

  15. Tax Evasion, Tax Amnesties and the Psychological Tax Contract

    OpenAIRE

    Lars P. Feld; Frey, Bruno S.

    2007-01-01

    Tax compliance has been studied in traditional public economics by heavily relying on deterrence as the most important compliance-increasing factor. This model of tax evasion is however challenged by inconclusive empirical evidence also pointing to the importance of tax morale as the individual’s intrinsic motivation to honestly pay taxes. Tax morale is, however, also endogenous and depends on an interaction of individual taxpayers and the state that could be perceived as a fiscal exchange in...

  16. LURING FISCAL REFUGEES: THE HIGHS AND LOWS OF TAX HAVENS

    Directory of Open Access Journals (Sweden)

    Larissa BĂTRÂNCEA

    2014-02-01

    Full Text Available Created mostly for tax purposes and boasting other financial services like asset protection or financial investments, tax havens have been often associated across time with tax incentives and tax noncompliance (either avoidance or evasion. On the grounds of double tax treatise, banking secrecy and lack of collaboration with international tax authorities, tax havens have succeeded to concentrate over 50% of the world’s financial industry and to manage 32 billion dollars, fuelling unfair competition on global market. Lately, due to pressure exerted by international bodies like the OECD, Joint International Tax Shelter Information Center, Seven Country Working Group on Tax Havens, The Leeds Castle Group or the United Nations, many countries have renounced banking secrecy and started to share client details with tax authorities. Amid rapid changes, a new generation of tax havens emerges in the Southern hemisphere.

  17. For-Profit Colleges

    National Research Council Canada - National Science Library

    David Deming; Claudia Goldin; Lawrence Katz

    2013-01-01

    For-profit, or proprietary, colleges are the fastest-growing postsecondary schools in the nation, enrolling a disproportionately high share of disadvantaged and minority students and those ill-prepared for college...

  18. The relationship between alcohol taxes and binge drinking: evaluating new tax measures incorporating multiple tax and beverage types.

    Science.gov (United States)

    Xuan, Ziming; Chaloupka, Frank J; Blanchette, Jason G; Nguyen, Thien H; Heeren, Timothy C; Nelson, Toben F; Naimi, Timothy S

    2015-03-01

    U.S. studies contribute heavily to the literature about the tax elasticity of demand for alcohol, and most U.S. studies have relied upon specific excise (volume-based) taxes for beer as a proxy for alcohol taxes. The purpose of this paper was to compare this conventional alcohol tax measure with more comprehensive tax measures (incorporating multiple tax and beverage types) in analyses of the relationship between alcohol taxes and adult binge drinking prevalence in U.S. states. Data on U.S. state excise, ad valorem and sales taxes from 2001 to 2010 were obtained from the Alcohol Policy Information System and other sources. For 510 state-year strata, we developed a series of weighted tax-per-drink measures that incorporated various combinations of tax and beverage types, and related these measures to state-level adult binge drinking prevalence data from the Behavioral Risk Factor Surveillance System surveys. In analyses pooled across all years, models using the combined tax measure explained approximately 20% of state binge drinking prevalence, and documented more negative tax elasticity (-0.09, P = 0.02 versus -0.005, P = 0.63) and price elasticity (-1.40, P elasticity and price elasticity predicting adult binge drinking prevalence in U.S. states. © 2014 Society for the Study of Addiction.

  19. Determinants of Bank Profitability

    OpenAIRE

    Mukesh Chaudhry; Arjun Chatrath; Ravindra Kamath

    1995-01-01

    This study investigates the determinants of profitability of U.S. commercial banks in the 1970s and 1980s. It is established that banks, depending on their size, may need to exercise greater control over a defined set of variables in order to maximize profits and/or minimize costs. Further, the study provides some indirect evidence of economies of scale/scope in certain aspects of the banksÕ loan and investment portfolios.

  20. Measuring Bank Profit Efficiency

    OpenAIRE

    Fitzpatrick, Trevor; McQuinn, Kieran

    2005-01-01

    This paper proposes that a variant of the Battese and Coelli (1995) inefficiency model can be applied as a consistent and unifying framework in exploring the determinants of credit institutions’ profit inefficiency scores. To date, work concerned with the potential determinants of credit institutions' profit inefficiency levels has addressed the issue in either a single-step or multi-step process. In the former, inefficiency scores are conditioned by region and bank-specific indicators, while...

  1. On using an efficiency matrix in analysing profit per employee (on the basis of the Estonian SME software sector) 

    OpenAIRE

    Paavo Siimann; Jaan Alver

    2015-01-01

    Service companies earn their profit mainly due to their employees’ intellectual skills, therefore, increasing profit per employee is one opportunity to increase profit and thereby also the company’s market value. In this article the number of employees, the value of owners’ equity and loan capital, operating expenses, net sales and profit before income tax have been used to analyse the change in profit per employee of the Estonian software small and medium-sized enterprise (SME) sector in ...

  2. Tax-qualified and non-tax qualified expenses

    OpenAIRE

    Sůra, Jiří

    2012-01-01

    TAX AND NON-TAX EXPENSES Abstract Master thesis "Tax and non-tax expenditures" deals with the definition of tax and non- tax expenditures in terms of their classification in the tax system. It also clarifies what expenses are, and it further explains some tax expenditures in more detail. The second chapter deals with the tax system and basic distribution of taxes. It also generally describes the basic tax calculation. The last section of this chapter mentions taxes which encompasses the term ...

  3. Corporate tax systems, multinational enterprises, and economic integration

    OpenAIRE

    Kind, Hans Jarle; Midelfart, Karen Helene; Schjelderup, Guttorm

    2004-01-01

    This paper addresses the outcome of international tax competition in the presence of multinationals that use transfer pricing for strategic purposes as well as to reduce their tax burden. We examine how economic integration affects tax levels, transfer pricing behaviour and national welfare. We show that the tax elasticity of the transfer price depends on the tax system and on the extent of economic integration. Under separate accounting the conventional wisdom that increased economic integra...

  4. Corporate tax systems, multinational enterprises and economic integration

    OpenAIRE

    Kind, Hans Jarle; Midelfart, Karen Helene; Schjelderup, Guttorm

    2001-01-01

    This paper addresses the outcome of international tax competition in the presence of multinationals that use transfer pricing for strategic purposes as well as to reduce their tax burden. We examine how economic integration affects tax levels, transfer pricing behaviour and national welfare. We show that the tax elasticity of the transfer price depends on the tax system and on the extent of economic integration. Under separate accounting the conventional wisdom that increased economic integra...

  5. Operating Profitability of For-Profit and Not-for-Profit Florida Community Hospitals During Medicare Policy Changes, 2000 to 2010

    Directory of Open Access Journals (Sweden)

    Barbara Langland-Orban PhD

    2015-08-01

    Full Text Available Medicare Advantage was implemented in 2004 and the Recovery Audit Contractor (RAC program was implemented in Florida during 2005. Both increase surveillance of medical necessity and deny payments for improper admissions. The purpose of the present study was to determine their potential impact on for-profit (FP and not-for-profit (NFP hospital operating margins in Florida. FP hospitals were expected to be more adversely affected as admissions growth has been one strategy to improve stock performance, which is not a consideration at NFPs. This study analyzed Florida community hospitals from 2000 through 2010, assessing changes in pre-tax operating margin (PTOM. Florida Agency for Health Care Administration data were analyzed for 104 community hospitals (62 FPs and 42 NFPs. Academic, public, and small hospitals were excluded. A mixed-effects model was used to assess the association of RAC implementation, organizational and payer type variables, and ownership interaction effects on PTOM. FP hospitals began the period with a higher average PTOM, but converged with NFPs during the study period. The average Medicare Advantage effect was not significant for either ownership type. The magnitude of the RAC variable was significantly negative for average PTOM at FPs (−4.68 and positive at NFPs (0.08, meaning RAC was associated with decreasing PTOM at FP hospitals only. RAC complements other Medicare surveillance systems that detect medically unnecessary admissions, coding errors, fraud, and abuse. Since its implementation in Florida, average FP and NFP operating margins have been similar, such that the higher margins reported for FP hospitals in the 1990s are no longer evident.

  6. Operating Profitability of For-Profit and Not-for-Profit Florida Community Hospitals During Medicare Policy Changes, 2000 to 2010.

    Science.gov (United States)

    Langland-Orban, Barbara; Large, John T; Sear, Alan M; Zhang, Hanze; Zhang, Nanhua

    2015-01-01

    Medicare Advantage was implemented in 2004 and the Recovery Audit Contractor (RAC) program was implemented in Florida during 2005. Both increase surveillance of medical necessity and deny payments for improper admissions. The purpose of the present study was to determine their potential impact on for-profit (FP) and not-for-profit (NFP) hospital operating margins in Florida. FP hospitals were expected to be more adversely affected as admissions growth has been one strategy to improve stock performance, which is not a consideration at NFPs. This study analyzed Florida community hospitals from 2000 through 2010, assessing changes in pre-tax operating margin (PTOM). Florida Agency for Health Care Administration data were analyzed for 104 community hospitals (62 FPs and 42 NFPs). Academic, public, and small hospitals were excluded. A mixed-effects model was used to assess the association of RAC implementation, organizational and payer type variables, and ownership interaction effects on PTOM. FP hospitals began the period with a higher average PTOM, but converged with NFPs during the study period. The average Medicare Advantage effect was not significant for either ownership type. The magnitude of the RAC variable was significantly negative for average PTOM at FPs (-4.68) and positive at NFPs (0.08), meaning RAC was associated with decreasing PTOM at FP hospitals only. RAC complements other Medicare surveillance systems that detect medically unnecessary admissions, coding errors, fraud, and abuse. Since its implementation in Florida, average FP and NFP operating margins have been similar, such that the higher margins reported for FP hospitals in the 1990s are no longer evident. © The Author(s) 2015.

  7. Income Tax Buyouts and Income Tax Evasion

    OpenAIRE

    Goerke, Laszlo

    2014-01-01

    A tax buyout is a contract between tax authorities and a tax payer which reduces the marginal income tax rate in exchange for a lump-sum payment. While previous contributions have focussed on labour supply, we consider the interaction with tax evasion and show that a buyout can increase expected tax revenues. This will be the case if (1) the audit probability is constant and the penalty for evasion is a function of undeclared income or (2) the penalty depends on the amount of taxes evaded, an...

  8. Constitutionalization of tax definition

    Directory of Open Access Journals (Sweden)

    Francisco J. Ruiz de Castilla Ponce de León

    2013-12-01

    Full Text Available The author works with the increasing constitutionalization process of Tax Law in the country as starting point; then, makes an analysis of tax concept evolution from a general tax law theory point of view. Afterwards, explains Tax Law Constitutionalization specifying main communicating vessels between Constitutional and Tax Law. Finally, highlights the most important values and goals related with taxing and constitutional control implementation by the Tax Court.

  9. Tax Amnesty (in Russian)

    OpenAIRE

    Kateryna Bornukova; Dzmitry Kruk; Gleb Shymanovich; Yuri Tserlukevich

    2014-01-01

    This paper explores international experience of tax amnesties. Despite the popular use of tax amnesties, the results are mixed. The main advantage of the tax amnesty is the possibility to increase tax collections and improve tax compliance. However, it does not account for adverse effect of amnesties on tax compliance and high direct and indirect costs of amnesties. The success of the tax amnesty depends largely on the state of the economy. We have identified target groups and discussed a que...

  10. Tax Compliance, Tax Morale, and Governance Quality

    OpenAIRE

    Benno Torgler; Markus Schaffner; Alison Macintyre

    2007-01-01

    Taxpayers are more compliant than the traditional economic models predict. Why? The literature calls it the ?puzzle of tax compliance?. In this paper we use field, experimental and survey data to investigate the empirical evidence on whether presence of tax morale helps to resolve this puzzle. The results reveal a strong correlation between tax morale and tax evasion/compliance which confirms the value of taking the research a step further by looking at the determinants of tax morale. We expl...

  11. Tax compliance under tax regime changes

    OpenAIRE

    Heinemann, Friedrich; Kocher, Martin G.

    2010-01-01

    In this paper we focus on the compliance effects of tax regime changes. According to the economic model of tax evasion, a tax reform should affect compliance through its impact on tax rates and incentives. Our findings demonstrate the importance of at least two further effects not covered by the traditional model: First, reform losers tend to evade more taxes after the reform. Second, a reform from a proportionate to a progressive system decreases compliance compared to a switch in the revers...

  12. 26 CFR 1.871-1 - Classification and manner of taxing alien individuals.

    Science.gov (United States)

    2010-04-01

    ... 26 Internal Revenue 9 2010-04-01 2010-04-01 false Classification and manner of taxing alien... (CONTINUED) INCOME TAX (CONTINUED) INCOME TAXES Nonresident Aliens and Foreign Corporations § 1.871-1 Classification and manner of taxing alien individuals. (a) Classes of aliens. For purposes of the income tax...

  13. Tax Policy, Venture Capital, and Entrepreneurship

    DEFF Research Database (Denmark)

    Keuschnigg, Christian; Nielsen, Søren Bo

    The paper studies the effects of tax policy on venture capital activity. Entrepreneurs pursue a single high risk project each but have no own resources. Financiers provide equity finance. They must structure the entrepreneur's profit share and base salary to assure their incentives for full effort....... In addition to providing equity finance, venture capitalists assist with valuable business advice to enhance survival rates. Within a general equilibrium framework with a traditional and an entrepreneurial sector, the paper investigates the effects of taxes on the equilibrium level of entrepreneurship...... and managerial advice. It considers differential wage and capital income taxes, a comprehensive income tax, incomplete loss offset, progressive taxation as well as investment and output subsidies to the entrepreneurial sector...

  14. Tax Consciousness and Compliance Costs of Income Tax and Local Income Tax

    OpenAIRE

    横山, 直子

    2016-01-01

    Tax consciousness has a huge influence on tax compliance costs. Tax compliance costs have a large influence on tax consciousness. That is to say, tax consciousness and tax compliance costs influence each other. As tax consciousness get higher are more likely to be large tax compliance costs, and also characteristics of tax compliance costs become clear because of a specific character of tax consciousness to be clarified. Characteristics of tax consciousness and tax compliance costs are signif...

  15. Why are U.S.-Owned Foreign Subsidiaries Not Tax Aggressive?

    OpenAIRE

    Kohlhase, Saskia; Pierk, Jochen

    2016-01-01

    This paper empirically tests a theory laid out in Scholes et al. (2015, p. 315) that the U.S. worldwide tax system reduces the incentive of U.S. parent companies to be tax aggressive in their foreign subsidiaries. Investors subject to a worldwide tax system pay taxes on their worldwide income, regardless of the origin thereof. Therefore, a U.S. investor pays the difference between the effective tax payment abroad and the higher U.S. statutory tax when profits are repatriated. I...

  16. Financialization and financial profit

    Directory of Open Access Journals (Sweden)

    Arturo Guillén

    2014-09-01

    Full Text Available This article starts from the critical review of the concept of financial capital. I consider it is necessary not to confuse this category with of financialization, which has acquired a certificate of naturalization from the rise of neoliberalism. Although financial monopoly-financial capital is the hegemonic segment of the bourgeoisie in the major capitalist countries, their dominance does not imply, a fortiori, financialization of economic activity, since it depends of the conditions of the process reproduction of capital. The emergence of joint stock companies modified the formation of the average rate of profit. The "promoter profit" becomes one of the main forms of income of monopoly-financial capital. It is postulated that financial profit is a kind of "extraordinary surplus-value" which is appropriated by monopoly-financial capital by means of the monopolistic control it exerts on the issue and circulation of fictitious capital.

  17. BEPS Action Plan: Global Tax Cooperation

    Directory of Open Access Journals (Sweden)

    Andrei Shelepov

    2016-12-01

    Full Text Available Given the dynamics of economic and financial globalization, national tax authorities often do not have adequate tools to effectively combat tax avoidance practices that exploit gaps in the existing tax rules. To address the global problem of tax base erosion and profit shifting (BEPS, the Organisation for Economic Co-operation and Development (OECD and the Group of 20 (G20 have consolidated their efforts on an equal footing. Their joint BEPS Action Plan allowed to involve more than 100 countries, both developing and advanced, in designing and implementing rules aimed at aligning the generation of profits and their taxation and increasing the predictability, transparency and flexibility of the international tax environment for business. This article examines the history of the BEPS project, emphasizing the mode of OECD-G20 engagement in global tax governance, describes the key recommendations made by international institutions to tackle BEPS and forecasts further developments in the area. The author pays special attention to the mechanisms designed to stimulate participation by non-OECD and non-G20 members in the BEPS project and the stance of business on the proposed reforms. He concludes that the work on BEPS is far from finished. Different interpretations of standards, risks of strengthening tax competition between countries and potentially excessive tax burdens on businesses should be addressed. In this regard, OECD and G20 should strengthen their efforts to ensure the participation of developing countries and the private sector, which would stimulate other reforms in international taxation to support global growth and development.

  18. For-profit colleges.

    Science.gov (United States)

    Deming, David; Goldin, Claudia; Katz, Lawrence

    2013-01-01

    For-profit, or proprietary, colleges are the fastest-growing postsecondary schools in the nation, enrolling a disproportionately high share of disadvantaged and minority students and those ill-prepared for college. Because these schools, many of them big national chains, derive most of their revenue from taxpayer-funded student financial aid, they are of interest to policy makers not only for the role they play in the higher education spectrum but also for the value they provide their students. In this article, David Deming, Claudia Goldin, and Lawrence Katz look at the students who attend for-profits, the reasons they choose these schools, and student outcomes on a number of broad measures and draw several conclusions. First, the authors write, the evidence shows that public community colleges may provide an equal or better education at lower cost than for-profits. But budget pressures mean that community colleges and other nonselective public institutions may not be able to meet the demand for higher education. Some students unable to get into desired courses and programs at public institutions may face only two alternatives: attendance at a for-profit or no postsecondary education at all. Second, for-profits appear to be at their best with well-defined programs of short duration that prepare students for a specific occupation. But for-profit completion rates, default rates, and labor market outcomes for students seeking associate's or higher degrees compare unfavorably with those of public postsecondary institutions. In principle, taxpayer investment in student aid should be accompanied by scrutiny concerning whether students complete their course of study and subsequently earn enough to justify the investment and pay back their student loans. Designing appropriate regulations to help students navigate the market for higher education has proven to be a challenge because of the great variation in student goals and types of programs. Ensuring that potential

  19. Some distinctive features of tax control in the contemporary business environment

    Directory of Open Access Journals (Sweden)

    Anđelković Mileva

    2016-01-01

    Full Text Available Traditional tax control has proven to be an insufficiently effective means of verifying the overall real economic power of large taxpayers (multinational corporations and wealthy individuals. As compared to the increasing mobility of taxpayers, tax administration activities are limited by the territorial jurisdiction of the fiscal sovereignty. The crisis of public finances has forced many countries to focus on the prevention of tax evasion and aggressive tax planning, particularly in international tax matters. In this sense, the traditional forms of tax control are supplemented by some additional strategies which are to provide tax authorities with more data on tax payers' business operations, profit, income, expenses and property. In practice, some developed tax administrations already apply a number of specific measures: the disclosure of information about aggressive tax planning schemes, advance pricing agreement, advance tax rulings, the use of financial intermediaries in data exchange processes, improved taxation relations, automatic exchange of tax information, etc. These specific measures are intended to help tax administrations to overcome the discrepancy between the information at their disposal and the information held by the taxpayers, which facilitates a more realistic assessment of tax liabilities. This will ensure a better management of tax risk and better tax compliance, which will ultimately contribute to a more efficient development of tax systems in the contemporary global business environment.

  20. GENDER AND ETHNICITY DIFFERENCES IN TAX COMPLIANCE

    OpenAIRE

    Jeyapalan Kasipillai; Hijattulah Abdul Jabbar

    2006-01-01

    The purpose of this study is to investigate whether gender and ethnicity differences occur in relation to tax compliance attitude and behavior. Prior studies on tax compliance have focused little on gender as a predictor of compliance. In Malaysia, ethnic background of a taxpayer could be a major determinant of tax compliance. A personal interview approach is used to obtain information from taxpayers in urban towns. A t-test suggests that males and females were found to have similar compliant...

  1. Costly Tax Enforcement and Financial Repression

    OpenAIRE

    Rangan Gupta; Emmanuel Ziramba

    2008-01-01

    Using an overlapping generations production-economy model characterised by financial repression, purposeful government expenditures and tax collection costs, we analyse whether financial repression can be explained by the cost of raising taxes. We show that with public expenditures affecting utility of the agents, modest costs of tax collection tend to result in financial repression being pursued as an optimal policy by the consolidated government. However, when public expenditures are purpos...

  2. Dampak Tax Accounting Choices Terhadap Tax Aggressive

    OpenAIRE

    Harnovinsah Harnovinsah; Septyana Mubarakah

    2016-01-01

    Tax Accounting choices in this study chose the straight-line method and the FIFO method,which is  the management actions in determining the policies that are applied to compile  financial statements and used as an indicator of  tax aggresivitas. In addition the study also used the deffered tax expense and firm size as another  independent variable  to measure the tax aggresivitas action of the tax aggressiveness. This study aims  to analyze the tax accounting cho...

  3. Measuring Tax Efficiency: A Tax Optimality Index

    OpenAIRE

    Raimondos-Møller, Pascalis; Woodland, Alan D

    2004-01-01

    This paper introduces an index of tax optimality that measures the distance of some current tax structure from the optimal tax structure in the presence of public goods. In doing so, we derive a [0, 1] number that reveals immediately how far the current tax configuration is from the optimal one and, thereby, the degree of efficiency of a tax system. We call this number the Tax Optimality Index. We show how the basic method can be altered in order to derive a revenue equivale...

  4. Medical Schools for Profit?

    African Journals Online (AJOL)

    and that funding is only spent on that will deliver more or better medical education. So staffing and other resources will be kept to the minimum required to deliver a high‑quality service. Secondly as in other walks of life, the profit motive should be a driver of innovation, and this should also be the case in medical education.

  5. From People to Profits.

    Science.gov (United States)

    Barber, L.; Hayday, S.; Bevan, S.

    An empirical test of the service-profit chain in a large United Kingdom retail business explored how employee attitudes and behavior can improve customer retention and, consequently, company sales performance. Data were collected from 65,000 employees and 25,000 customers from almost 100 stores. The business collected customer satisfaction for…

  6. Profitability of Serbian banking sector during global economic crisis

    Directory of Open Access Journals (Sweden)

    Marko M Miljković

    2013-12-01

    Full Text Available The aim of the paper is to identify the main factors which contributed to decline of profitability in Serbian banking sector during the period of global economic crisis. There are presented different theories of banking sector profitability and results of scientifically significant empirical researches from economic literature. Following ratios were used as measure of profitability: return on assets (ROA, return on equity (ROE, net interest gain to total revenue, net fees and commissions gain to total revenue, and net pre-tax profit/loss to total revenue ratio. The profitability was analyzed for the whole Serbian banking sector in the period 2008-2012 and particularly for the 15 largest banks according to total assets value in 2012. The empirical analysis indicated that one of the most important factors contributing to high amounts of losses of commercial banks in the previous period includes an increase of net operating expenses, especially expenses on account of a write-off of non-performing loans (NPL. Furthermore, there were analyzed the dynamics of interest rates and interest spread as a factor with certain impact on profitability of banks. Finally, it is estimated that the prospects for intensive growth of profitability in the banking sector of Serbia in the mid-term are poor.

  7. Tax Compliance Inventory: TAX-I Voluntary tax compliance, enforced tax compliance, tax avoidance, and tax evasion

    OpenAIRE

    Kirchler, Erich; Wahl, Ingrid

    2010-01-01

    Surveys on tax compliance and non-compliance often rely on ad hoc formulated items which lack standardization and empirical validation. We present an inventory to assess tax compliance and distinguish between different forms of compliance and non-compliance: voluntary versus enforced compliance, tax avoidance, and tax evasion. First, items to measure voluntary and enforced compliance, avoidance, and evasion were drawn up (collected from past research and newly developed), and tested empirical...

  8. Taxing food: implications for public health nutrition.

    Science.gov (United States)

    Caraher, Martin; Cowburn, Gill

    2005-12-01

    To set out a policy analysis of food taxes as a way of influencing food consumption and behaviour. The study draws on examples of food taxes from the developed world imposed at national and local levels. Studies were identified from a systemised search in six databases with criteria designed to identity articles of policy relevance. The dominant approach identified from the literature was the imposition of food taxes on food to raise general revenue, such as Value Added Tax in the European Union. Food taxes can be applied in various ways, ranging from attempts to directly influence behaviour to those which collect taxes for identified campaigns on healthy eating through to those applied within closed settings such as schools. There is a case for combining taxes of unhealthy foods with subsidies of healthy foods. The evidence from the literature concerning the use and impact of food taxes on food behaviour is not clear and those cases identified are mainly retrospective descriptions of the process. Many food taxes have been withdrawn after short periods of time due to industry lobbying. CONCLUSIONS FOR POLICY: Small taxes with the clear purpose of promoting the health of key groups, e.g. children, are more likely to receive public support. The focus of many tax initiatives is unclear; although they are generally aimed at consumers, another focus could be food manufacturers, using taxes and subsidies to encourage the production of healthier foods, which could have an effect at a population level. Further consideration needs to be given to this aspect of food taxes. Taxing food (and subsidies) can influence food behaviour within closed systems such as schools and the workplace.

  9. Book Tax Differences dan Kualitas Data

    Directory of Open Access Journals (Sweden)

    Diana Sari

    2015-12-01

    Full Text Available This study aims to obtain emprical evidence about differences in accounting profit and taxable income (book tax differencesis proxied by permanent differences and temporary differences on earnings quality proxied by earnings response coefficients (ERC.The method used is descriptive analysis with multiple regression analysis. The population in this study are manufacturing companies listed in Indonesia Stock Exchange in 2010-2012. The results showed that the book tax differences has significantly affect on earnings quality, with contribution influence 17,2%.

  10. Analisis Teknikal Untuk Mendapatkan Profit Dalam Forex Trading Online

    OpenAIRE

    Liyanto, .; Alwiyah, .

    2012-01-01

    Technical Analysis To Obtain Profit From Online Forex Trading. The purpose of the research is to find profitable consistency in predicting price movement, especially on pairs GBPUSD and EURUSD using candlestick, moving average convergence divergence (MACD) and stochastic oscillator as parts of technical analysis before taking an action whether to buy or to sell forex. The profit is calculated for every given buy-sell signal after considering transaction cost in the amount of spread. The desig...

  11. Tax harmonization in the European Union and the eurozone: a multilateral analysis of tax systems

    Directory of Open Access Journals (Sweden)

    Sonja Engeli Pippin

    2016-12-01

    Full Text Available This exploratory study takes a new look at the tax systems of countries in the Organisation of Economic Co-operation and Development (OECD. We measure a country’s tax system using time-series cross-sectional data on tax collection variables as well as a cross-sectional metric assessing tax administration and enforcement. More specifically, we examine the countries’ (i overall tax burden, (ii income tax reliance, and (iii fiscal decentralization as well as some “non-rate” variables related to tax administration and enforcement. The purpose is to compare European Union (EU member states and those countries in the eurozone with other OECD countries and over time in order to test (1 whether EU member states and eurozone countries have tax systems that are more similar to each other than to other countries, and (2 whether some tax harmonization is taking place - within the EU (eurozone and other countries. The descriptive analysis and graphical representation, as well as first empirical tests, show that the tax systems of EU member states and eurozone countries are significantly different from other countries’tax systems. Yet, we do not find much tax harmonization in the EU (eurozone countries over time. Future research might delve more into the question what drives harmonization with the intention of eventually formulating policy strategies.

  12. Collecting Taxes Database

    Data.gov (United States)

    US Agency for International Development — The Collecting Taxes Database contains performance and structural indicators about national tax systems. The database contains quantitative revenue performance...

  13. ANALYSIS OF PROVIDING A FAIR TAX TREATMENT IN THE ECONOMIC ENVIRONMENT OF THE NEW TAX SPECIFIC TO THE ACTIVITIES IN TOURISM SINCE 2017

    Directory of Open Access Journals (Sweden)

    NICOLAE ECOBICI

    2016-12-01

    Full Text Available The work is in the applied research line and aims to analyze the legal provisions on specific tax regarding the measure in which this tax would ensure an equal tax treatment in the economic environment that would comply with the principle of proportionality. The specific tax will take effect from January 1st, 2017 in Romania for the activities in tourism and hotels field, restaurants, bars and public food services. The research methods are based on analysis and comparison. The paper specifically follows the way in which the specific tax will influence the taxpayers, corporate tax payers currently operating in the areas listed above, as they are obliged to replace the corporate tax with a fixed tax until 2017. This tax influenced only by the entity's ability to produce income (useful surface of the location, commercial venue (area and location, category and seasonality of activities, it no longer takes into account the actual obtained profit. We believe that in those areas was rather necessary to establish a minimum tax, not a fixed tax. We welcome the calculation and substantiation mode of the specific tax depending on the national average set at the level of 2014 based on the tax data from NAFA and other institutes and business organizations in these areas, however, after the analysis, we believe that this tax, although is going to ensure more efficient collection of tax claims from a larger number of taxpayers and is going to facilitate the reduction of tax evasion level from certain taxpayers and it will also facilitate the large taxpayers who usually due a lower tax than the performed profit.

  14. State Taxes, Tax Exemptions, and Elderly Migration

    National Research Council Canada - National Science Library

    Ali Sina Önder; Herwig Schlunk

    2015-01-01

    .... We show that the elderly prefer to migrate to states with low inheritance taxes, high property taxes, low amounts of federal revenue transfers, low cost of living, and higher average temperatures...

  15. Introduction of a Uranium tax in Finland; Uraaniveron kaeyttoeoenotto Suomessa

    Energy Technology Data Exchange (ETDEWEB)

    2011-07-01

    In Finland, it is possible to create a tax model on uranium that will not compromise the profitability of future power plant investments or decisively reduce climate policy incentives for carbon-free energy production. The rise in energy costs caused by the tax could be compensated by lowering the electricity tax imposed on industry. The estimates above were made by Managing Director Pasi Holm and Professor Markku Ollikainen, who, on 4 February 2011, handed over their report concerning introduction of uranium tax to Minister of Economic Affairs Mauri Pekkarinen. According to the administrators, one can deem nuclear power to include specific grounds for imposing a tax via the fact that storage of used nuclear fuel involves a (infinitesimally small) risk of accidents with irreversible effects, and that, through the EU climate policy, nuclear power companies gain extra profit 'for nothing', i.e. windfall profit. The EU Energy Tax Directive facilitates collection of uranium tax. Uranium tax, imposed as an excise tax, would target the nuclear power plants in operation as well as the Olkiluoto 3 plant, presently under construction. The amount of uranium fuel used would serve as the basis of taxation. Holm and Ollikainen introduce two tax models, adjustable in a manner that the uranium tax would yield revenues of approximately EUR 100 million a year. The companies would still keep more than half of the profit and the state, depending on the model used, would collect 43 to 45 per cent of it via the tax. In the minimum tax model, the uranium tax is 44.5 of the difference between the market price of emission allowance and the average price of 2010 (EUR 15/tonne of CO{sub 2}), used as the comparison price, the minimum being EUR 2/MWh. The tax would yield a minimum of EUR 67 million to the state a year. When the emission allowance price rises to EUR 30, the tax would be EUR 6.7/MWh and the state would earn revenues of EUR 223 million. In a flexible tax model, the

  16. Profit and place

    Directory of Open Access Journals (Sweden)

    Ian Bentley

    1997-01-01

    Full Text Available The article deals with the physical and symbolic effects the built environment has on human activities in a capitalist economy. The built environment is integrated in the capitalist economy on three levels: as the focus of a profit-oriented manufacturing industry, as the setting for all sorts of other enterprises and as the built context of the whole economy. The built environment is understood as a commodity. The capitalist system contains inbuilt tensions which have important design implications: the first tension arises because the system, if left to itself, lacks any overall planning functions, the second tension stems from the ability of the system to generate profit and the third arises from the character of labour, which distinguishes it from other commodities used in the production process. In conclusion methods of designing built environments, which perpetuate social order, are discussed.

  17. TOP TAX SYSTEM - A common tax system for all nations

    OpenAIRE

    VIJAYA KRUSHNA VARMA

    2011-01-01

    TOP Tax system is a new tax system which can be used as a common tax system for all nations. This new tax system will be without present tax system’s all Direct and Indirect taxes accompanied by tax laws, tax exemptions, multiple tax collection departments to relieve 7 billion people of the world from the cobweb of ambiguous and complex tax structures, plethora of tax laws, mandatory and cumbersome accounting, auditing, tax returns and consequent quagmire of all tax related cases. Taxation, t...

  18. Determinants of Tunisian Bank Profitability

    OpenAIRE

    Raoudha Bejaoui; Houssam Bouzgarrou

    2014-01-01

    The aim of this study is to examine the persistence of profit and the effect of bank-specific determinants of Tunisian bank profitability. To account for profit persistence, we apply a dynamic panel model, using Generalized Methods of Moments (GMM) system for 16 Tunisian commercial banks, divided into 11 deposit banks and 5 development banks during the period 1999-2010. The estimates show that the evidence for profit persistence is positive and significant for both deposit and development ban...

  19. A comparative analysis of the factors of tax evasion in Ukraine and USA

    OpenAIRE

    Frolova, N.

    2014-01-01

    The purpose of the article is to reveal effects on the individual's tax compliance, to examine weak points of tax legislation of Ukraine that may induce tax evasion, and to develop recommendations for the improvement of Ukraine's tax system in terms of minimization of tax evasion, in particular, by introducing comprehensive tax reporting. The article presents the findings of various theoretical and empiric investigations by leading domestic and foreign experts on the issues of estimation and ...

  20. Tax Policy, Asset Prices, and Growth: A General Equilibrium Analysis

    OpenAIRE

    Lawrence H. Goulder; Lawrence H. Summers

    1987-01-01

    This paper presents a multisector general equilibrium model that is capable of providing integrated assessments of the economy's short- and long- run responses to tax policy changes. The model contains an explicit treatment of firm's investment decisions according to which producers exhibit forward- looking behavior and take account of adjustment costs inherent in the installation of new capital. This permits an examination of both short-run effects of tax policy on industry profits and asset...

  1. Tax Policy, Venture Capital and Entrepreneurship

    OpenAIRE

    Keuschnigg, Christian; Nielsen, Søren Bo

    2000-01-01

    The paper studies the effects of tax policy on entrepreneurship and venture capital activity. Entrepreneurs pursue a single high risk project each but have no own resources. Financiers provide equity finance. They must structure the entrepreneur's profit share and base salary to assure their incentives for full effort and committment to the project. The extent of risk-diversification is, thus, limited by the presence of moral hazard. The contract must also be sufficiently generous to attract ...

  2. The Proposal of the Changes in the Taxation of Income of the Non-profit Organizations

    Directory of Open Access Journals (Sweden)

    Milena Otavová

    2014-01-01

    Full Text Available The paper is focused on the issue of the taxation of incomes of the non-governmental non-profit organizations, especially the civic associations in the conditions of the Czech Republic and in the selected countries of the European Union (Austria, Slovakia, Germany. The main emphasis is put on the comparison of the corporate income tax of the studied countries. Particularly the tax benefits that are provided to the non-profit organizations in the individual countries are compared here. This paper points to the current situation in the Czech Republic, where there is no clear legislation that would regulate the activities by the studied organizations. Changes in the taxation of the incomes of non-profit organizations are designed to eliminate absences with regard to the simplicity and clarity of the individual provisions, and also to prevent misuse of the benefits and to the speculative behavior of tax entities.

  3. Refundable Tax Credits

    OpenAIRE

    Congressional Budget Office

    2013-01-01

    In 1975, the first refundable tax credit—the earned income tax credit (EITC)—took effect. Since then, the number and cost of refundable tax credits—credits that can result in net payments from the government—have grown considerably. Those credits will cost $149 billion in 2013, CBO estimates, mostly for the EITC and the child tax credit.

  4. 20 CFR 601.4 - Certification for tax credit.

    Science.gov (United States)

    2010-04-01

    ... 20 Employees' Benefits 3 2010-04-01 2010-04-01 false Certification for tax credit. 601.4 Section 601.4 Employees' Benefits EMPLOYMENT AND TRAINING ADMINISTRATION, DEPARTMENT OF LABOR ADMINISTRATIVE... and Additional Tax Credit and Grant Purposes § 601.4 Certification for tax credit. (a) Within 30 days...

  5. Tax Arbitrage by Colleges and Universities. A CBO Study

    Science.gov (United States)

    Congressional Budget Office, 2010

    2010-01-01

    Colleges and universities enjoy a variety of federal tax preferences that are designed to support a broader public purpose--the advancement of higher education and research. Not only are institutions of higher learning exempt from paying federal income taxes, they also are eligible to receive tax deductible charitable contributions and allowed to…

  6. 26 CFR 31.3121(k)-4 - Constructive filing of waivers of exemption from social security taxes by certain tax-exempt...

    Science.gov (United States)

    2010-04-01

    ... from social security taxes by certain tax-exempt organizations. 31.3121(k)-4 Section 31.3121(k)-4... filing of waivers of exemption from social security taxes by certain tax-exempt organizations. (a... provision of prior law) for purposes of section 210(a)(8)(B) of the Social Security Act and section 3121(b...

  7. IMPROVEMENTS IN ACCOUNTING OF BREWERIES’ PROFIT

    Directory of Open Access Journals (Sweden)

    I. Sklyaruk

    2013-11-01

    Full Text Available The peculiarities of formation of the profit of breweries, taking into account the specifics of the production process and business peculiarities were identified. There were found out the specificity of calculation of the expenses, considering the norms of the technological process, the duration of the operating cycle and the specifics of the production of beer and non-alcoholic products, which determine the methodology of formation of the prime price of the products and the price of its sale. The expediency of using the method for phases (with semi-ready and not semi- ready option method of calculation of the semi-finished products of own production there was proved. The irrelevance of using Account 44 “Undistributed profit (uncovered loss” according to its purpose under the current Plan of accounts is shown. The model of using the profit based on the proposed sub-accounts was built and the example of their use was shown.

  8. Transfer Pricing – Between Optimization and International Tax Evasion

    Directory of Open Access Journals (Sweden)

    Valentin SAVA

    2017-04-01

    Full Text Available Each enterprise in the private sector aims to increase financial return, which is achieved by obtaining the higher net profit by increasing revenue and reducing expenditure. In this endeavor, compliance with tax obligations occupy a very important role because handling taxes may lead to an increase in revenue and / or a reduction of spending, and this action is called tax optimization. In the case of multinational companies, the main tool that can be used to lower the tax burden and increasing, sometimes in sizeable benefits in net, is the transfer prices or the prices they registered entities in the group transactions between them, along with another instrument with great impact, ie tax havens. Tax evasion, designating evading payment obligations of a company according to the national tax system, may be legal in the sense that tax optimization does not violate the rules, but exploiting loopholes that are in them. But when legal tax rules are violated, we deal with tax fraud, which will be subject to punitive measures by public authorities as it affects the whole population.

  9. Capital Structure and Profitability of Quoted Companies in Nigeria

    Directory of Open Access Journals (Sweden)

    AMOS O. AROWOSHEGBE. Ph.D; ACA.

    2013-07-01

    Full Text Available The study examined the relationship of capital structure to profitability of quoted firms in Nigeria. The study was based on a panel data set from 1996 to 2010 comprising sixty non – financial companies. The study specified two panel regression models. Two profitability measures: Net Profit Margin (NPM and Operating Profit Margin (OPM were taken as the dependent variables respectively. The principal explanatory variable for each of the models was Debt Ratio (DR. The results of the study indicated that there was a significant negative relationship between capital structure and profitability of quoted companies in Nigeria. Indeed, the results the Pecking order theory that profitable firms do not target an optimal level of leverage to balance the benefits and costs of debt financing. Rather, firms use retained earnings first, then debts and finally equity. Such firms would actually be paying high tax charges and also high operating costs arising from over dependence on the money market for their funds requirements. It was recommended that appropriate fiscal policies, relevant capital market institutional and legal framework should be put in place. These measures, we believe, will ensure better access to funds and reduce the cost of doing business.

  10. Examining Not-for-Profit Higher Education Faculty Attitudes and Knowledge toward For-Profit Higher Education Institutions

    Science.gov (United States)

    Karpel, Nichole

    2013-01-01

    Over the last decade, for-profit higher education has been the fastest growing segment within higher education. Despite the growth, little research exists about for-profit higher education institutions. The purpose of this exploratory, descriptive, quantitative study was to examine the attitudes and knowledge of higher education faculty toward…

  11. Compliance Costs of Income Tax and Consumption Tax

    OpenAIRE

    横山, 直子; ヨコヤマ(モリノブ), ナオコ; Naoko, YOKOYAMA

    2013-01-01

    Characteristics of tax compliance costs for income tax are many and various. Tax compliance costs for self-assessment taxpayers are high level. Because employers incur compliance costs of collecting income tax at source for employee, compliance costs for employers are high, and for withholding income taxpayers, the compliance costs are small. Tax compliance costs of consumption tax are relatively high. And also characteristics of tax consciousness of income tax and consumption tax are various...

  12. METKA - Forest energy profitably

    Energy Technology Data Exchange (ETDEWEB)

    Kymaelaeinen, M. (FMA Kanta-Hame, Hameenlinna (Finland)); Rieppo, K. (TTS Research, Hameenlinna (Finland)), e-mail: matti.kymalainen@mhy.fi, e-mail: kaarlo.rieppo@tts.fi

    2010-07-01

    The harvesting and profitability of forest energy in Finland is practically entirely dependent on state subsidies. Currently, there is a lot to improve in forest energy knowledge and competence. METKA - Forest energy profitably project (2008-2011) aims at increasing the cost efficiency of the forest energy chain and the volume of the supply chain in Haeme region. The project ia coordinated by Forest Management Association Kanta-Haeme (Kanta-Haemeen Metsanhoitoyhdistys ry). Project partners include FMA Paeijaet-Haeme, TTS Research and the Finnish Forest Research Institute's (METLA) Joensuu unit. METKA -project belongs to the Rural Development Programme for Mainland Finland 2007-2013 and is being funded partly by the European Agricultural Fund for Rural Development (EAFRD). The final project objective is to develop a new operational forest energy model for FMA Kanta-Haeme and FMA Paeijaet-Haeme. In order to create the operational model, the project has been divided into several sub-tasks, in which TTS Research and Metla are responsible for the research. TTS Research conducts studies that focus on forest energy harvesting and processing. The studies investigate especially small-diameter energy wood harvesting. Majority of the studies investigate the use of time, and they form the basis for cost and profit analyses. Metla is responsible or areas of research that contribute to the development of a forest energy storage's moisture estimation algorithm and a forest energy harvesting yield calculation program. Upon completion, the calculation program and the estimation algorithm are integrated to the logistics control system developed by FMA Kanta-Haeme and FMA Paeijaet-Haeme and taken into use as aids in forestry planning. During 2008 and 2009, several practical tests have been performed. Tests will be executed in autumn 2010 as well. The analysis of the results is likely to be completed in 2010, and the results is likely to be completed in 2010, and the results

  13. Does outsourcing affect hospital profitability?

    Science.gov (United States)

    Danvers, Kreag; Nikolov, Pavel

    2010-01-01

    Organizations outsource non-core service functions to achieve cost reductions and strategic benefits, both of which can impact profitability performance. This article examines relations between managerial outsourcing decisions and profitability for a multi-state sample of non-profit hospitals, across 16 states and four regions of the United States. Overall regression results indicate that outsourcing does not necessarily improve hospital profitability. In addition, we identify no profitability impact from outsourcing for urban hospitals, but somewhat positive effects for teaching hospitals. Our regional analysis suggests that hospitals located in the Midwest maintain positive profitability effects with outsourcing, but those located in the South realize negative effects. These findings have implications for cost reduction efforts and the financial viability of non-profit hospitals.

  14. The Service-profit Chain

    DEFF Research Database (Denmark)

    Grønholdt, Lars; Martensen, Anne

    2016-01-01

    This paper examines the links between employee attitudes, customer loyalty and company profitability. From a conceptual point of view, this employee-customer-profit chain, also known as the service-profit chain, is well founded and generally accepted. But for many companies, it seems difficult...... to demonstrate such links, and several issues must be addressed to uncover the links. To investigate these links empirically, a hotel chain provided data matching employee and customer measures with measures of profitability. We have successfully employed a modeling approach, and the paper reports empirical...... evidence of the employee-customer-profit chain. As it is possible to estimate the links, we have demonstrated their effect on company profitability. The research findings provide a better understanding of the service-profit chain and may help practitioners in improving company financial performance....

  15. Tax penalties in SME tax compliance

    Directory of Open Access Journals (Sweden)

    Artur Swistak

    2016-03-01

    Full Text Available Small business tax compliance requires special attention. On the one hand small businesses are often incapable of rigorously fulfilling their tax obligations, more vulnerable to external risks and tempted to exploit opportunities to be non-compliant. On the other hand, unlike larger businesses, they are usually sole proprietors or owner-operated businesses, hence highly responsive to personal, social, cognitive and emotional factors. These attributes pave the way to a better use of measures designed to influence their behavior and choices. This paper discusses the role and effectiveness of tax penalties in enhancing tax compliance in small businesses. It argues that tax penalties, although indispensable for tax enforcement, may not be a first-choice tool in ensuring tax compliance. Too punitive a tax regime is an important barrier to business formalization and increasing severity of tax penalties does not produce the intended results. To be effective, tax penalties should deter and motivate taxpayers rather than exert repressive measures against them.

  16. Why public health services? Experiences from profit-driven health care reforms in Sweden.

    Science.gov (United States)

    Dahlgren, Göran

    2014-01-01

    Market-oriented health care reforms have been implemented in the tax-financed Swedish health care system from 1990 to 2013. The first phase of these reforms was the introduction of new public management systems, where public health centers and public hospitals were to act as private firms in an internal health care market. A second phase saw an increase of tax-financed private for-profit providers. A third phase can now be envisaged with increased private financing of essential health services. The main evidence-based effects of these markets and profit-driven reforms can be summarized as follows: efficiency is typically reduced but rarely increased; profit and tax evasion are a drain on resources for health care; geographical and social inequities are widened while the number of tax-financed providers increases; patients with major multi-health problems are often given lower priority than patients with minor health problems; opportunities to control the quality of care are reduced; tax-financed private for-profit providers facilitate increased private financing; and market forces and commercial interests undermine the power of democratic institutions. Policy options to promote further development of a nonprofit health care system are highlighted.

  17. Impact of Tax Relief on Public Finance

    Directory of Open Access Journals (Sweden)

    Bikas Egidijus

    2016-12-01

    Full Text Available Tax reliefs are optional, but a very important element of the taxation system. This element is used for different purposes by a country’s government institutions. Tax reliefs are a form of tax expenditure that helps to reduce budget revenues. Tax reliefs influence individual and corporate financial behaviour and can have positive or negative effects on the economic and social factors. In the last few years, expansion of tax relief has attracted worldwide attention because of the fact that, after the global financial crisis, many countries are still suffering from fiscal deficits, and expansion of tax relief has not contributed to solving this problem. Tax reliefs are presupposed to be a fiscal policy tool of significance in various subsystems of public finances. The main aim of this article is to examine the impact of personal income tax reliefs on Lithuanian public finances. To achieve this aim, statistical information was systemized; Monte Carlo method was used to group data by horizontal rows and logical links analysed, which helped to evaluate the influence of tax reliefs on public finances. In the simulations, the Monte Carlo method helped to simulate random samples, which were then examined by adapting the conclusions of the theory of probability and mathematical statistics methods.

  18. The Danish Pesticide Tax

    DEFF Research Database (Denmark)

    Pedersen, Anders Branth; Nielsen, Helle Ørsted; Andersen, Mikael Skou

    2015-01-01

    This case study analyses the effects of the Danish pesticide tax (1996-2013) on agriculture which was introduced as an ad valorem tax in 1996, doubled in 1998, and redesigned in 2013 as a tax based on the toxicity of the pesticides. The Danish pesticide taxes probably represent the world’s highest...... pesticide taxes on agriculture, which makes it interesting to analyze how effective they have been. Here the effects of the ad valorem tax (1996-2013) are analyzed. The case study demonstrates the challenges of choosing an optimal tax design in a complex political setting where, additionally, not all...... individuals in the target group necessarily react to the economic incentives as predicted by economic modeling. It also demonstrates that a small first green-tax-step over time might develop into a better tax design....

  19. Mapping Tax Compliance

    DEFF Research Database (Denmark)

    Boll, Karen

    2014-01-01

    Tax compliance denotes the act of reporting and paying taxes in accordance with the tax laws. Current social science scholarship on tax compliance can almost entirely be divided into behavioural psychology analyses and critical tax studies. This article, which presents two cases of how tax...... compliance is constructed, challenges the explanatory reaches of today's social science approaches, arguing that an alternative approach to understanding tax compliance is worthwhile exploring. This other choice of approach, inspired by actor–network theory (ANT), adopts a more practice-oriented focus...... that studies tax compliance where it takes place as well as what it is made of. Consequently, this article argues that tax compliance is a socio-material assemblage and that complying is a distributed action. The article concludes by highlighting how an ANT approach contributes to the further theoretical...

  20. 26 CFR 1.1502-43 - Consolidated accumulated earnings tax.

    Science.gov (United States)

    2010-04-01

    ... that the group's earnings and profits are permitted to accumulate beyond the reasonable needs of its... either any of its members or any other corporation by permitting earnings and profits to accumulate... profits. For purposes of this paragraph (a) and paragraph (d) of this section, the following rules apply...

  1. Taxation of Multinational Enterprises in a Global Market: Moving to Corporate Tax 2.0?

    NARCIS (Netherlands)

    M.F. de Wilde (Maarten)

    2016-01-01

    textabstractHow countries tax the profits of multinational enterprises has become hopelessly outdated. The recent OECD/G20 Base Erosion and Profit Shifting Project has left the existing international corporate taxation framework essentially intact. Perhaps it is time to consider a truly fundamental

  2. Tax burden - the tax evasion generator

    OpenAIRE

    Iudit FODOR

    2009-01-01

    The economic globalization has emphasized and elaborated the existing inter-dependencies between the national economies, favouring the development of the world economy, but at the same time, of the underground economy - a tax evasion generator. In the context of debating the tax evasion which is currently present in all the countries of the world, it is not possible to ignore one of the most important generating factors of this phenomenon, i.e. the tax burden. In our opinion, the tax burden i...

  3. Stream maintenance as a profit center

    Energy Technology Data Exchange (ETDEWEB)

    Bouchillon, J.L.

    1997-06-01

    Probably one of the most overlooked profit centers in industrial management strategy is savings in energy costs. Every $1 in certified energy savings is often worth over $10 in increased sales. The author has found from actual practice that there is big corporate profit in a shrewd, diligent steam trap management program. He describes a way to restructure corporate handling of trap maintenance to turn it into a source of revenue. Cited is a case history of building an intensive trap maintenance program at a large, 4000 trap chemical plant. The previously {open_quotes}good{close_quotes} maintenance program which was losing $565,000 per year in steam was turned into a $485,000 per year cost savings. This article will also give the steps that can in as few as 3 months generate over $125,000 annually in tax-free cash per 1000 traps with an investment payback of 18 months or less. The author is a businessman and energy management consultant that has no trap sales or promotion.

  4. 26 CFR 1.6425-2 - Computation of adjustment of overpayment of estimated tax.

    Science.gov (United States)

    2010-04-01

    ... estimated tax. 1.6425-2 Section 1.6425-2 Internal Revenue INTERNAL REVENUE SERVICE, DEPARTMENT OF THE... Computation of adjustment of overpayment of estimated tax. (a) Income tax liability defined. For purposes of... amount equal to the excess of the estimated income tax paid by the corporation during the taxable year...

  5. 26 CFR 1.6016-2 - Contents of declaration of estimated tax.

    Science.gov (United States)

    2010-04-01

    ... 26 Internal Revenue 13 2010-04-01 2010-04-01 false Contents of declaration of estimated tax. 1... of estimated tax. (a) In general. The declaration of estimated tax by a corporation shall be made on Form 1120-ES. For the purpose of making the declaration, the estimated tax should be based upon the...

  6. "Pay Now, Argue Later" Rule – Before and After the Tax ...

    African Journals Online (AJOL)

    In order to ensure effective and prompt collection of taxes, the payment of tax is not suspended pending an objection or an appeal, unless directed otherwise. This is also known as the "pay now, argue later" rule, and, for value-added tax purposes, is provided for in terms of section 36 of the Value-Added Tax Act 89 of 1991.

  7. Does More Progressive Tax Make Tax Discipline Weaker?

    OpenAIRE

    Tatiana Damjanovic

    2005-01-01

    This paper investigates the relationship between the disparity in tax base and tax collection. I address the tax collection problem with traditional industrial organization approach. Thus, I model the "tax minimization" industry where the supplier helps taxpayers to avoid their tax liability. I find that lower income inequality as well as a less progressive tax code may result in a smaller number of tax payers committing to their tax duties. Finally, I question the reduction in the highest ta...

  8. Tax Compliance Inventory: TAX-I Voluntary tax compliance, enforced tax compliance, tax avoidance, and tax evasion.

    Science.gov (United States)

    Kirchler, Erich; Wahl, Ingrid

    2010-06-01

    Surveys on tax compliance and non-compliance often rely on ad hoc formulated items which lack standardization and empirical validation. We present an inventory to assess tax compliance and distinguish between different forms of compliance and non-compliance: voluntary versus enforced compliance, tax avoidance, and tax evasion. First, items to measure voluntary and enforced compliance, avoidance, and evasion were drawn up (collected from past research and newly developed), and tested empirically with the aim of producing four validated scales with a clear factorial structure. Second, findings from the first analyses were replicated and extended to validation on the basis of motivational postures. A standardized inventory is provided which can be used in surveys in order to collect data which are comparable across research focusing on self-reports. The inventory can be used in either of two ways: either in its entirety, or by applying the single scales independently, allowing an economical and fast assessment of different facets of tax compliance.

  9. TAX EVASION THROUGH FICTITIOUS ECONOMIC OPERATIONS, OBSTACLE TO SUSTAINABLE DEVELOPMENT

    Directory of Open Access Journals (Sweden)

    SERGIU-BOGDAN CONSTANTIN

    2016-06-01

    Full Text Available Tax evasion means the avoidance of declaring and paying taxes. The purpose of the research is to identify ways and mechanisms of tax evasion through fictitious economic operations and how this kind o tax evasion can influence sustainable development. The principal methods are researching tax evasion cases investigated by the Romanian authorities responsible for combating this phenomenon, court trials on tax evasion and using the bibliographic references in the field. The data used are obtained through open sources of the authorities specialized in combating tax evasion for the cases made public, the media and also from specialised literature. The principal results are that this type of tax evasion is manifested through transactions with “ghost companies”, with offshore companies and transactions between associated enterprises. The main causes of this problem are: high taxation, corruption, inefficient government and tax authorities, no fiscal education and very hard tax legislation. The consequences are that the state budget is affected, the companies that do business legally are affected and also the final consumers, so Romania will not have economic growth and the quality of life will not improve. The main conclusion is that in order to have sustainable development, tax evasion in general and this kind of tax evasion in particular must be eradicated. The measures that have to be taken are to prevent tax evasion and to tighten controls but without violating taxpayers rights and without making abuses

  10. ANALYSIS OF TAX BURDEN PARAMETERS OF UKRAINE'S ECONOMY

    Directory of Open Access Journals (Sweden)

    I. Moyseyenko

    2017-11-01

    Full Text Available The need to solve the problems of macro-economic stabilization of the country's economy on the basis of determining the tax system efficiency led to the actuality and importance of developing methodological issues of macro-economic tax regulation. In terms of macro-financial stability for the purpose of strategic analysis, the macroeconomic category of tax burden and its fiscal efficiency in terms of direct and indirect taxation is considered. Tax burden indicators at a macro-level quantitatively measure the total level of tax payment and pumping up the budget. Based on the analysis of tax burden it is found that in Ukraine the major fiscal function is performed by consumption taxes (indirect taxes. The methodological principles of the diagnostics of tax burden influence on macro-indices of economic stabilization are as follows: selecting parameters of monitoring tax burden state and fiscal burden efficiency; the assessment of an impact on fiscal efficiency on macro-indices. To prognosticate the efficiency of fiscal burden performance in terms of indirect taxes linear and exponential trend equations are calculated. In terms of the analysis of macro-financial stability the usage of tax rates of indirect taxes as indicators of fiscal efficiency provides sufficient reasons for the conclusions regarding long-term trends of pumping the budget.

  11. THE ANALYSIS OF PROFITABILITY INDICATORS

    Directory of Open Access Journals (Sweden)

    SUCIU GHEORGHE

    2013-08-01

    Full Text Available The analysis of profitability indicators is an activity that should preoccupy all companies. Profitabilitydoes not mean only obtaining profit. A company is competitive if the ownership equity grows (the shareholders’money, the company has a profit that is comparable to that of other companies from the same area of activity,has a positive cash flow and the employees are satisfied with their salaries. Multiple indicators are used tomeasure performance: profit, commercial, economic, financial, investment rate of return, breakeven point,economic value added, net operating result.

  12. The measures against tax havens and unfair tax competition

    OpenAIRE

    Bažantová, Ilona

    2015-01-01

    This paper focuses on the issue of tax havens and unfair tax competition. It presents the OECD definition of a tax haven, and in the next section it gives an overview of the fight of the OECD, the Financial Action Task Force and the European Union against tax havens and against the lack of a tax transparency and unfair tax competition.

  13. What are the tax implications of mergers and acquisitions? Part 2.

    Science.gov (United States)

    Livingston, C O

    1988-03-01

    The changes brought about by the Tax Reform Act of 1986 are the most significant to occur in more than 25 years. Because of these changes, buyers and sellers must carefully negotiate any mergers or acquisitions to ensure each party's tax status remains intact. For-profit as well as not-for-profit institutions must carefully consider the new tax rules involved with a change in ownership. This article is the second in a series on merger and acquisition. Other articles in the series will discuss legal issues, purchase investigations, and capital planning.

  14. Why and how to tax cigarettes

    Directory of Open Access Journals (Sweden)

    Petr David

    2011-01-01

    Full Text Available Objective of the article is to identify the functions and requirements an excise tax on cigarettes should fulfil, next also to calculate a model for the taxation of cigarettes in the Czech Republic with practical relevance, and to formulate recommendations for cigarette tax policy. Determining the role which should be fulfilled by cigarette excise taxes necessarily requires knowledge of the costs of cigarette consumption, which may be used to calculate the specific tax burden on cigarettes for the particular case of the Czech Republic and to formulate general conclusions and recommendations for cigarette tax policy. Cigarette excise taxes must primarily fulfil a remedial function. Other functions and requirements which may also be fulfilled by the tax are also naturally important but they should be accorded second place. Cigarette excise taxes should reclaim societal costs for the consumption of cigarettes, primarily including healthcare costs, as well as other costs connected to the consumption of cigarettes, by utilizing a specific tax which appears most suitable to the purpose at hand. Relevant studies show taxation of cigarettes in the Czech Republic is inadequate, falling short of covering costs for the consumption of cigarettes identified in the studies, by 13% according to one study, 22% according to another, and up to 58% according to a third study. Cigarettes should be burdened by a specific tax corresponding to the costs of their consumption. Calculations show that cigarette taxes must be increased in the Czech Republic by a significant amount. This will require close cooperation with public institutions, particularly those focusing on healthcare and finance. The generally accepted results of cost calculations and the cigarette taxation rates they entail must be enforced in practice and enshrined in the European Union context in an appropriate directive as well as in national laws.

  15. NM Property Tax Districts

    Data.gov (United States)

    Earth Data Analysis Center, University of New Mexico — This layer represents boundaries for New Mexico tax district "OUT" categories and incorporated/municipal "IN" categories as identified on the "Certificate of Tax...

  16. Profitability and Efficiency of Red Onion Farming

    OpenAIRE

    Rosyadi, Imron; Purnomo, Didit

    2014-01-01

    The purpose of this research is to determine and analyze the profitability and performance of onion farming marketing margins; analyze and know the parts of prices received by farmers and analyze the efficiency of onion farming in the district of Brebes. Samples taken in this study is 30 onion farmers in the district of Brebes, who settled in six villages, each village was taken 5 farmers as the research sample. These results indicate that the location of onion farming research does not provi...

  17. Business strategies, profitability and efficiency of production

    OpenAIRE

    S. Alarcón; M. Sánchez

    2013-01-01

    The strategy choices of market-oriented companies are a topic now under wide investigation in the analysis of business performance antecedents. The purpose of this study is to examine the outcomes of the combination of three different organizational strategies (market orientation, innovativeness and entrepreneurial orientation) on business performance indicators. Models using profitability and efficiency indicators are proposed with the specific aim of obtaining a deeper analysis of the relat...

  18. Tax effects on education

    OpenAIRE

    Alstadsæter, Annette

    2005-01-01

    Taxes affect the individual’s educational choice through many channels, and they have both direct and indirect effects on human capital accumulation. The structure of the tax system creates different incentive effects that distorts the individual’s educational choice. Some of these tax effects discourage higher education, while others encourage it. I give an overview over the existing literature on taxes and education and also provide the intuition for many of these partial eff...

  19. Tax Incentives and Borrowing

    DEFF Research Database (Denmark)

    Alan, Sule; Leth-Petersen, Søren; Munk-Nielsen, Anders

    2016-01-01

    We estimate the effect of a Danish 1987 tax reform, which reduced the tax rate applied to interest deductions from 73% to 50% for households with high incomes, but less for households with middle or low incomes. Using high quality panel data we find that households responded to the reduced tax...... subsidy by lowering interest payments and we find that the responsiveness to the tax subsidy varies by the initial level of interest payments....

  20. Controlling tax evasion fluctuations

    Science.gov (United States)

    Zaklan, Georg; Lima, F. W. S.; Westerhoff, Frank

    2008-10-01

    We incorporate the behaviour of tax evasion into the standard two-dimensional Ising model and augment it by providing policy-makers with the opportunity to curb tax evasion via an appropriate enforcement mechanism. We find that tax evasion may vary greatly over time if no measures of control are taken. Furthermore, we show that even minimal audit rates of a tax authority may help to alleviate this problem substantially. Similar results are observed for other network structures.

  1. Improvement of tax administration

    OpenAIRE

    Joppe, Aina

    2008-01-01

    The objective of the promotion work, based on the result analysis of the specific economical literature and tax administration praxis worldwide and in Latvia, is to elaborate proposals for the development of tax administration in Latvia. The work consists of three chapters. In the first chapter of the work viewpoints on the essence and functions of tax administration encountered in the scientific literature have been researched and factors affecting tax administration have been analyzed. T...

  2. Improving Tax Administration's Services as a Factor of Tax Compilance: The Case of Tax Audit

    National Research Council Canada - National Science Library

    Lidija Hauptman; Mirjana Horvat; Romana Korez-Vide

    2014-01-01

    .... In the theoretical part of this article the factors of tax compliance and the tax authorities' measures in combating tax evasion are examined, the levels of tax rates and the compliance burden...

  3. House Prices and Taxes

    DEFF Research Database (Denmark)

    Gjedsted Nielsen, Mads

    This paper is the first to consider a large scale natural experiment to estimate the effect of taxes on house prices. We find that a 1 percentage-point increase in income tax rates lead to a drop in house prices of at most 2.2%. This corresponds to a tax capitalization for the average household...

  4. Small Business Tax Regimes

    OpenAIRE

    Yilmaz, Fatih; Coolidge, Jacqueline

    2016-01-01

    Simplified tax regimes for micro and small enterprises in developing countries are intended to facilitate voluntary tax compliance. However, survey evidence suggests that small business taxation based on simplified bookkeeping or turnover is sometimes perceived as too complex for microenterprises in countries with high illiteracy levels. Very simple fixed tax regimes not requiring any book...

  5. Tax Strategy Control

    DEFF Research Database (Denmark)

    Rossing, Christian Plesner

    2013-01-01

    This paper examines how a functional tax strategy impacts the management control system (MCS) in a multinational enterprise (MNE) facing transfer pricing tax risks. Based on case study findings it is argued that the MCS in a multinational setting is contingent upon the MNE's response to its tax...

  6. Electricity supply efficiency and organizational growth and profitability in Lagos, Nigeria

    Science.gov (United States)

    Adeleke, Adedeji Tajudeen

    A modern and efficient infrastructure is a basic necessity for economic development and integration into the global economy. The specific problem was the inadequate and unreliable supply of electricity to manufacturing corporations in Lagos, Nigeria. The purpose of the current quantitative correlational research study was to examine if there was a correlation between electricity supply efficiency and organizational growth and profitability in manufacturing corporations in Lagos, Nigeria. The population of the current correlational research study involved 28 out of 34 manufacturing corporations from various industrial sectors in Lagos, Nigeria, that are listed and traded on the Nigerian Stock Exchange. Spearman rho correlations were used to assess the relationships between independent variables of electricity supply efficiency levels and the dependent variables of organizational growth and profitability. The result of the correlational analysis of the data revealed that there was a statistically significant, strong positive correlation between the Average Gross Income (1998-2007) and Average Actual Electricity supply efficiency level (1998-2007), rho = 0.57; p = 0.002. A statistically significant, strong positive correlation was found between the Average Balance Sheet Size (1998-2007) and Average Actual Electricity Supply Efficiency Level (1998-2007), rho = 0.54; p = 0.003. A statistically significant, strong positive correlation between the Average Profit After Tax (1998-2007) and Average Actual Electricity Supply Efficiency Level (1998-2007), rho = 0.60; p = 0.001, was found. No statistically significant correlation between the Average Return on Investment (1998-2007) and Average Actual Electricity supply efficiency level (1998-2007), rho = 0.19; p = 0.33, was discovered.

  7. DataProfit

    DEFF Research Database (Denmark)

    Ritter, Thomas; Lund Pedersen, Carsten; Eibe Sørensen, Hans

    Mange erhvervsledere har store forventninger til at bruge data til at tjene penge i deres virksomheder. Dog viser det sig, at det ikke er så ligetil – mange forventninger bliver simpelthen ikke indfriet. Derfor har vi igennem de seneste to år kortlagt de kompetencer, som er nødvendige for at real......Mange erhvervsledere har store forventninger til at bruge data til at tjene penge i deres virksomheder. Dog viser det sig, at det ikke er så ligetil – mange forventninger bliver simpelthen ikke indfriet. Derfor har vi igennem de seneste to år kortlagt de kompetencer, som er nødvendige...... sammen for at udnytte mulighederne for datadreven profitabel vækst. Denne guide giver en anvendelsesorienteret gennemgang af de ni kompetencer i vores kort, som vi kalder for DataProfit. I guiden beskrives hver kompetence – og du inviteres til at analysere din virksomhed. Til sidst sætter vi hele...

  8. Dual Income Taxes

    DEFF Research Database (Denmark)

    Sørensen, Peter Birch

    This paper discusses the principles and practices of dual income taxation in the Nordic countries. The first part of the paper explains the rationale and the historical background for the introduction of the dual income tax and describes the current Nordic tax practices. The second part...... of the paper focuses on the problems of taxing income from small businesses and the issue of corporate-personal tax integration under the dual income tax, considering alternative ways of dealing with these challenges. In the third and final part of the paper, I briefly discuss whether introducing a dual income...

  9. Collaborative Tax Regulation

    DEFF Research Database (Denmark)

    Boll, Karen

    2016-01-01

    This article shows a new form of regulation within a tax administration where tax administrators abate tax evasion by nudging and motivating consumers to only purchase services from tax compliant businesses. This indirectly closes or forces tax evading businesses to change their practices, because...... their customer bases decline to commercially non-viable levels. The analysis is framed by public governance literature and argues that the regulation is an example of collaborative or interactive governance, because the tax administrators do not regulate non-compliance directly, but activate external...... stakeholders, i.e. the consumers, in the regulatory craft. The study is based on a qualitative methodology and draws on a unique case of regulation in the cleaning sector. This sector is at high risk of tax evasion and human exploitation of vulnerable workers operating in the informal economy. The article has...

  10. ADVANCE TAX PAYMENT AND TAX EVASION: EXPECTED UTILITY ANALYSIS

    OpenAIRE

    KEISUKE MORITA

    2014-01-01

    The traditional theoretical analysis of tax evasion fails to explain the empirical finding that declared income decreases with the tax rate. We show that one of the reasons for this result is that many such studies overlook advance tax payments in their analyses. Furthermore, we investigate how advance tax payments influence the extent of tax evasion. We conclude that the influence of advance tax payments on the extent of tax evasion depends on whether an individual's preference is based on e...

  11. The Influence of Allocation Formula on Generation of Profit in Different Economy Sectors

    Directory of Open Access Journals (Sweden)

    Kateřina Krchnivá

    2015-01-01

    Full Text Available The mechanism for the distribution of the Common Consolidated Corporate Tax Base will be based on three macroeconomics factors which are considered to be the main indicators of generated profit/loss. The paper analyzes the explanatory power of proposed allocation formula for the distribution of the Common Consolidated Corporate Tax Base with respect to the sector of economic activity from the perspective of the Czech independent enterprises. The research is based on the comparison of the coefficients of determination indicating the proportion of explained variability of proposed multiple regression models. The paper concludes that the proportion of explained profitability by the allocation formula factors as are defined by the Common Consolidated Corporate Tax Base Draft Directive may differ up to 34% with regard to the sector of economic activity classified by NACE classification.

  12. Profitability and Efficiency of Red Onion Farming

    Directory of Open Access Journals (Sweden)

    Imron Rosyadi

    2014-12-01

    Full Text Available The purpose of this research is to determine and analyze the profitability and performance of onion farming marketing margins; analyze and know the parts of prices received by farmers and analyze the efficiency of onion farming in the district of Brebes. Samples taken in this study is 30 onion farmers in the district of Brebes, who settled in six villages, each village was taken 5 farmers as the research sample. These results indicate that the location of onion farming research does not provide benefits significantly to the household economy of farmers. Higher selling prices at the retail level and supermarkets do not have a significant impact on the level of profits of farming in the study area. Farming is done by farmers in the study area is inefficient. Onion marketing chain in the study area is relatively long, which consists of 4 lines of marketing.

  13. Employee Benefits and Tax Reform

    OpenAIRE

    Stephen A. Woodbury

    1996-01-01

    The current tax treatment of pensions and health insurance in the United States is a hybrid that lacks consistency under either an accrual income tax system or a consumption tax system. Under an accrual income tax, employer contributions to pension plans represent an addition to wealth that would be taxed at the time they are made. The interest earned on pension contributions also represents an addition to wealth that would be taxed annually. When a worker retires, all applicable taxes would ...

  14. Optimal alcohol taxes for Australia

    OpenAIRE

    Fogarty, James Joseph

    2011-01-01

    Objective: To estimate welfare maximising tax rates for beer, wine, and spirits using a mathematical model that considers both the welfare loss alcohol taxes impose on non-abusive consumers and the welfare gains due to alcohol taxes reducing externality costs. Results: Optimal per litre of pure alcohol (LAL) tax rates are substantially different to both current alcohol tax rates and the uniform tax rate recommended as part of the 2010 Australian Government Tax Review. Given an individual cons...

  15. What Do We Know About Variance in Accounting Profitability?

    OpenAIRE

    Anita M McGahan; Porter, Michael E.

    2002-01-01

    In this paper, we analyze the variance of accounting profitability among a broad cross-section of forms in the American economy from 1981 to 1994. The purpose of the analysis is to identify the importance of year, industry, corporate-parent, and business-specific effects on accounting profitability among operating businesses across sectors. The findings indicate that industry and corporate-parent effects are important and related to one another. As expected, business-specific effects, which a...

  16. Improving Gross Profit Margin in a quick service restaurant

    OpenAIRE

    Heino, Minna

    2015-01-01

    The purpose of this thesis is to try help implementing the corporate strategy in a quick service restaurant environment by offering practical examples. The objective is to improve the profitability of the case company by the management of the sales team. Questions to be answered are how the gross margin can be developed and what results can be gained. Some of the key concepts of this thesis are gross margin and sales management, restaurant profitability and implementing corporate strategy int...

  17. THE TAX CONTROL AS A COMPONENT OF TAX ADMINISTRATION

    Directory of Open Access Journals (Sweden)

    Olga Zhuk

    2017-03-01

    Full Text Available In the article the features of tax control in the system of taxes administration were investigated. The basic approaches to the determination of tax control were defined. Principles of tax control that must be kept were defined and it will ensure efficiency and effectiveness of tax control. Basic forms of tax control were characterized. An advantages of horizontal monitoring that is one of the form of tax controls were directed. Key words: tax control, tax control forms, horizontal monitoring, documentaries, desk and actual checks.

  18. Tax penalties in SME tax compliance

    OpenAIRE

    Artur Swistak

    2016-01-01

    Small business tax compliance requires special attention. On the one hand small businesses are often incapable of rigorously fulfilling their tax obligations, more vulnerable to external risks and tempted to exploit opportunities to be non-compliant. On the other hand, unlike larger businesses, they are usually sole proprietors or owner-operated businesses, hence highly responsive to personal, social, cognitive and emotional factors. These attributes pave the way to a better use of measures d...

  19. Profit Patterns Across American Agriculture

    OpenAIRE

    Blank, Steven C.; Erickson, Kenneth W.; Moss, Charles B.

    2005-01-01

    To remain viable, agriculture in each location must offer returns that are competitive with those from alternative investments and sufficient to cover producers' financial obligations. Economic theory says that rates of return converge over time as resources flow into more-profitable industries and out of less-profitable industries, causing factor price changes. Both traditional growth and trade theories say factor markets will adjust to equalize commodity returns over time. This study examin...

  20. 26 CFR 1.963-5 - Foreign corporations with variation in foreign tax rate because of distributions.

    Science.gov (United States)

    2010-04-01

    ... corporation B, which for 1964 has $100 of pretax earnings and profits on which is imposed a foreign income tax... effective foreign tax rate applicable to B Corporation, as determined under paragraph (c) of § 1.963-2, is.... Corporation M receives a minimum distribution for 1964 if it receives from B Corporation's earnings and...

  1. Progressive Taxation and Tax Morale

    OpenAIRE

    Doerrenberg, Philipp; Peichl, Andreas

    2010-01-01

    As the link between tax compliance and tax morale is found to be robust, finding the determinants of tax morale can help to understand and fight tax evasion. In this paper we analyze the effect of progressive taxation on tax morale in a cross-country approach - which has not been investigated before. Our theoretical analysis leads to two testable predictions. First, an individual's tax morale is higher, the more progressive the tax schedule is. Second, the impact of tax progressivity on tax m...

  2. Legal issues of tax rates

    OpenAIRE

    Sadílek, Jiří

    2010-01-01

    Tax rate problems The subject of the graduation thesis is legal problems of tax rate. The aim of this thesis is description and estimation of the flat tax rate and states, where is established. First of all I define the basic kinds of tax systems - the tax system with one tax rate, the progressive tax system and the flat tax system. Further I deal with the principles and elements of the flat tax rate as interpreted by American economists Robert E. Hall and Alvin Rabushka who are generally ack...

  3. Measuring Tax Efficiency

    DEFF Research Database (Denmark)

    Raimondos-Møller, Pascalis; Woodland, Alan D.

    2004-01-01

    , thereby, the degree of efficiency of a taxsystem. We call this number the Tax Optimality Index. We show howthe basic method can be altered in order to derive a revenue equivalentuniform tax, which measures the size of the public sector. A numericalexample is used to illustrate the method developed......This paper introduces an index of tax optimality thatmeasures the distance of some current tax structure from the optimal taxstructure in the presence of public goods. In doing so, we derive a [0, 1]number that reveals immediately how far the current tax configurationis from the optimal one and.......JEL Code: H21, H41.Keywords: Tax optimality index, excess burden, distance function.Authors Affiliations: Raimondos-Møller: Copenhagen Business School, CEPR,CESifo, and EPRU. Woodland: University of Sydney....

  4. The United States Congress Can Tax Interest on State Bonds: "South Carolina v. Baker".

    Science.gov (United States)

    Wyatt, Terrence M.; Sparkman, William E.

    1988-01-01

    The United States Supreme Court has made it clear that Congress can tax state bonds. All public purpose bonds issued by school districts must be issued in a registered format in order to continue their tax-exempt status. (MLF)

  5. Why Worry About Tax Expenditure?

    OpenAIRE

    Swift, Zhicheng Li; Cavalcanti, Carlos B.

    2003-01-01

    Tax expenditures are concessions that fall outside tax norms or benchmarks. These norms include accounting conventions, the structure of tax rates, the deductibility of compulsory payments, provisions to facilitate tax administration, and norms related to international fiscal obligations. Tax expenditures are deviations from these norms, implemented to encourage behavior deemed desirable b...

  6. Uncompensated care provided by for-profit, not-for-profit, and government owned hospitals

    Directory of Open Access Journals (Sweden)

    Vaughan-Sarrazin Mary S

    2010-04-01

    Full Text Available Abstract Background There is growing concern certain not-for-profit hospitals are not providing enough uncompensated care to justify their tax exempt status. Our objective was to compare the amount of uncompensated care provided by not-for-profit (NFP, for-profit (FP and government owned hospitals. Methods We used 2005 state inpatient data (SID for 10 states to identify patients hospitalized for three common conditions: acute myocardial infarction (AMI, coronary artery bypass grafting (CABG, or childbirth. Uncompensated care was measured as the proportion of each hospital's total admissions for each condition that were classified as being uninsured. Hospitals were categorized as NFP, FP, or government owned based upon data obtained from the American Hospital Association. We used bivariate methods to compare the proportion of uninsured patients admitted to NFP, FP and government hospitals for each diagnosis. We then used generalized linear mixed models to compare the percentage of uninsured in each category of hospital after adjusting for the socioeconomic status of the markets each hospital served. Results Our cohort consisted of 188,117 patients (1,054 hospitals hospitalized for AMI, 82,261 patients (245 hospitals for CABG, and 1,091,220 patients for childbirth (793 hospitals. The percentage of admissions classified as uninsured was lower in NFP hospitals than in FP or government hospitals for AMI (4.6% NFP; 6.0% FP; 9.5% government; P Conclusions For the three conditions studied NFP and FP hospitals appear to provide a similar amount of uncompensated care while government hospitals provide significantly more. Concerns about the amount of uncompensated care provided by NFP hospitals appear warranted.

  7. Utilization of tax allowances

    OpenAIRE

    Gunnar Forsling

    1998-01-01

    Swedish tax-paying firms have systematically failed to take full advantage of the allowances granted by the government. The average utilization level varied between 62 and 86 percent in the years 1979-1993. The Swedish tax-cut cum basebroadening tax reform in 1991 meant that the amount eligible for appropriation to untaxed reserves was much reduced. Our results show that the proportion of firms that fully utilize the allowances has increased since the reform. One interpretation of this is tha...

  8. Tax Expenditures in the Federal Excise Tax System

    OpenAIRE

    Davie, Bruce F.

    1994-01-01

    Presents an overview of the current role of excise taxation in the federal tax system. Breaks down excise taxes into nine distinct types, and identifies problems related to determining tax expenditures and revenue losses.

  9. In California, not-for-profit hospitals spent more operating expenses on charity care than for-profit hospitals spent.

    Science.gov (United States)

    Valdovinos, Erica; Le, Sidney; Hsia, Renee Y

    2015-08-01

    In exchange for sizable tax exemptions, not-for-profit hospitals must engage in activities that meet the Internal Revenue Service's community benefit standard. The provision of charity care-free care to those unable to pay-can help meet that standard. Bad debt, the other form of uncompensated care, cannot be used to meet the standard, although Medicaid shortfalls can. However, the ACA lacks guidelines for providing charity care, and federal law sets no minimum requirements for community benefit activities. Using data from California, we examined whether the levels of charity and uncompensated care provided differed across general acute care hospitals by profit status and other characteristics during 2011-13. The mean proportion of total operating expenses spent on charity care differed significantly between not-for-profit (1.9 percent) and for-profit hospitals (1.4 percent), in contrast to the mean proportion spent on uncompensated care. Both types of spending varied widely across hospitals. Policy makers should consider measures that remove disincentives to meeting the persistent considerable need for charity care-for example, increasing supports to offset rising Medicaid shortfalls resulting from program expansion-and facilitate the tracking of ACA impacts on the distribution of charity care and uncompensated care delivery. Project HOPE—The People-to-People Health Foundation, Inc.

  10. Tax inspectors without borders

    National Research Council Canada - National Science Library

    Brian Keeley

    2015-01-01

    .... The challenges facing developing countries are now being acknowledged internationally with the launch of a partnership between the OECD and the United Nations Development Programme on Tax Inspectors...

  11. 26 CFR 1.9002-1 - Purpose, applicability, and definitions.

    Science.gov (United States)

    2010-04-01

    ...) INCOME TAX (CONTINUED) INCOME TAXES General Actuarial Valuations § 1.9002-1 Purpose, applicability, and.... It thus includes banking institutions, finance companies, building and loan associations, and other...

  12. Features and Advantages of Using Tax Havens

    Directory of Open Access Journals (Sweden)

    Botis S.

    2014-12-01

    Full Text Available The appearance of tax havens is tied to illicit money laundering process, evolving later under various illegal forms and currently they operate under the protective umbrella of beneficial jurisdictions belonging to some political protected States worldwide. For them to be capable of functioning, special conditions to attract investors have been created. The purpose of this study is to highlight the main features of the tax havens, their operating mechanism and peculiarities of their tax laws, offshore entities regime. The article concludes on the reason of the occurrence, the existence and proliferation of tax havens, as well as legislative efforts that are submitted worldwide to eradicate them in the perspective of future global economic and financial developments.

  13. Tax Information Exchange Influence on Czech Based Companies’ Behavior in Relation to Tax Havens

    Directory of Open Access Journals (Sweden)

    Jan Rohan

    2017-01-01

    Full Text Available In recent years, borders between countries have been opened gradually thanks to globalization, which is reflected in minimal barriers to the movement of persons and capital. This situation could be potentially abused by taxpayers willing to shift the capital to preferential tax jurisdictions. Due to facts aforementioned, several instruments for tax administrators have been introduced. Bilateral and multilateral instruments are concluded with particular countries for the purpose of obtaining information about foreign residents staying abroad but also to avoid double taxation or double non‑taxation. In recent years there has been an increased number of companies in the Czech Republic whose owners come from preferential tax jurisdiction from 12,676 up to 13,167. This paper is focused on the Czech taxpayers’ reaction on concluding agreements concerning exchange of information in tax matters with preferential tax jurisdictions, the so‑called “Tax havens”. The Difference‑in‑Differences Method was carried out to predict the taxpayers’ behavior. The model shows that the agreements work well as a preventive tool. If the Czech Republic concludes the agreement with the tax haven, the taxpayers lose their anonymity. This results in their relocation into tax havens that are not covered by the agreement in order to keep their anonymity.

  14. Preferential Regimes Can Make Tax Competition Less Harmful

    OpenAIRE

    Keen, Michael

    2001-01-01

    A key feature of the recent EU and OECD standards for good behavior in international taxation is a presumption against preferential tax regimes (such as those offering advantageous treatment to non-residents or enterprises not active in the domestic market), which are seen as especially corrosive forms of tax competition. This paper shows that, on the contrary, preferential regimes may serve a useful strategic purpose in enabling countries to confine their most aggressive tax competition to p...

  15. Emission Taxes and Border Tax Adjustments for Oligopolistic Industries

    OpenAIRE

    Morihiro Yomogida; Nori Tarui

    2013-01-01

    We examine the welfare consequence of emissions tax with and without a Border Tax Adjustment for an imperfectly competitive industry, where intra-industry trade arises between countries. BTA allows a government to impose a pollution-content tariff on imports and refund an emission tax for export sales. We analyze the structure of an optimal emission tax with BTA when a government chooses its emission tax rate to maximize its national welfare. We show that the optimal emission tax policy with ...

  16. Law proposal aiming at imposing the domestic consumption tax to the natural gas used for hydrogen generation for petroleum refining purposes; Proposition de loi visant a soumettre a la taxe interieure de consommation le gaz naturel utilise pour la production d'hydrogene a des fins de raffinage petrolier

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2009-04-15

    In France, natural gas benefits from tax exemptions in several situations and in particular when used as raw material for hydrogen generation, which in turn, is used for crude oil refining and fuels generation. However, crude oil is cheaper when it is heavier but more hydrogen, and thus more natural gas, is needed to refine it and more CO{sub 2} is released in the atmosphere. Therefore, refining cheap crude oil increases the refining margins of oil companies but their environmental impact as well. The aim of this law proposal is to impose the domestic consumption tax to natural gas when used in oil refining processes in order to finance the development of the renewable hydrogen industry through the creation of a High Council of Hydrogen Industry. This High Council would be in charge of promoting the development of renewable hydrogen production facilities and distribution circuits, of hydrogen-fueled vehicles, and of fuel cells. (J.S.)

  17. Model of possible cooperation in financial markets in presence of tax on speculative transactions

    Directory of Open Access Journals (Sweden)

    Francesco Musolino

    2013-06-01

    Full Text Available In this paper, we propose an economic and mathematical model to protect the financial markets from speculative attacks, by introducing a tax on financial speculative transactions. By using Game Theory, we focus on the interaction between two general players: a real economic subject (we call Enterprise acting with hedging scopes and a bank (we call Financial Institute acting with speculative purposes. We find different equilibria of our game, by considering friendly, selfless, selfish, fearful or aggressive behavior of players; we note that no equilibrium is good for both players, and each of them prevent at least one of the two economic subjects to obtain profits. So, we propose two different transferable utility solutions, in order to achieve a result satisfying both economic subjects and, at the same time, to achieve a condition promoting the stability of the financial markets in which our two players are interacting.

  18. CRITERIA FOR DEFINING TAX EVASION AS TAX TERRORISM

    OpenAIRE

    Jurušs, M

    2017-01-01

    There are significant losses in tax revenues across the European Union (EU). National governments lose billions of euros in the revenues from non-paid taxes and other illegal activities. The fight against aggressive tax planning, tax fraud and illegal activities is on the agenda of the EU, OECD and all the national governments. However, due to the size of tax losses it should not be treated just as tax evasion, but rather as tax terrorism! Therefore, the author has set criteria when tax evasi...

  19. The Significance of Loyalty on Consumer Credit Profitability

    Directory of Open Access Journals (Sweden)

    Aditya Galih Prihartono

    2012-04-01

    Full Text Available The purpose of this research is to analyze and test the effect of customer loyalty on consumer credit profitability. Loyalty Index Score was developed to determine the level of customers’ loyalty level through 4 main variables; Longevity, Depth, Breadth and Referrals. The effect of Loyalty Index Score on profitability was further tested by path analysis to find out the significance direct relationship between loyalty and profitablity and the indirect relationship between the two variable through bucket. The result showed that loyalty has a significant effect on profitability either directly or indirectly. It was concluded that direct loyalty effect on profitability is lower than that of the indirect effect through bucket. The conclusion could be made by analyzing the available data from personal loan customers in one of the biggest multinational bank in indonesia during October 2010 until March 2011.

  20. Efficiency of tax bodies' performance

    OpenAIRE

    Fedorovskaya, M.

    2011-01-01

    The problems of assessment of tax bodies' activities efficiency which tax administration faces are touched upon. Suggestions made provide an opportunity for bodies of legislative and executive power to take specific measures aimed at enhancing the system of tax administration in the country. Suggested criteria for assessing tax bodies' performance can be put into practice by tax authorities. A new approach to aspects of solving tasks of control over tax compliance, preventing and excluding ta...

  1. Capital Budgeting: a Tax Shields’ “Mirage”?

    Directory of Open Access Journals (Sweden)

    Victor DRAGOTĂ

    2011-03-01

    Full Text Available The mainstream in Finance studies recognizes the impact of tax shields on capital budgeting. This study offers some evidences regarding a bias in direct investment projects valuation in the case of taking into account of the allowance of recovery of the losses recorded in the past financial exercises from future profits as long as the classical indicators (e.g., Net Present Value are used. Also, this tax regime seems to favour the adoption of less-performer projects by lessperformer companies, as long as these projects should be otherwise rejected by a performer company.

  2. Tax Law System

    Science.gov (United States)

    Tsindeliani, Imeda A.

    2016-01-01

    The article deals with consideration of the actual theoretic problems of the subject and system of tax law in Russia. The theoretical approaches to determination of the nature of separate institutes of tax law are represented. The existence of pandect system intax law building as financial law sub-branch of Russia is substantiated. The goal of the…

  3. Capital Income Tax Coordination and the Income Tax Mix

    DEFF Research Database (Denmark)

    Huizinga, Harry; Nielsen, Søren Bo

    2005-01-01

    Europe has seen several proposals for tax coordination only in the area of capital income taxation, leaving countries free to adjust their labor taxes. The expectation is that highercapital income tax revenues would cause countries to reduce their labor taxes. This paper shows that such changes...... in the mix of capital and labor taxes brought on by capital income tax coordination can potentially be welfare reducing. This reflects that in a non-cooperative equilibrium capital income taxes may be more distorting from an international perspective than are labor income taxes. Simulations with a simple...... model calibrated to EU public finance data suggest that countries indeed lower their labor taxes in response to higher coordinated capital income taxes. The overall welfare effects of capital income tax coordination, however, are estimated to remain positive.JEL Classification: F20, H87...

  4. THE WORLD OF TAx DEDUCTIONS

    Directory of Open Access Journals (Sweden)

    Alexei V. Dujov

    2015-01-01

    Full Text Available In this article a study and methodological foundations of the structure of taxes and fees. Disclosed the concept of elements of tax and duty. Focuses on the nature of the concept of «tax deduction». Provides legal and the author’s interpretation of the term «tax deduction». Examples of application of a tax deduction in the value-added tax and the tax to incomes of physical persons. the conclusions about the multilateral nature of the tax deduction.

  5. Understanding the Tax Gap1

    OpenAIRE

    Mazur, Mark J.; Plumley, Alan H.

    2007-01-01

    The Tax Gap is defined as the difference between the amount of tax imposed by the Tax Code and the amount that is reported and paid with timely filed returns. For the federal government, the gross tax gap is estimated at $345 billion for Tax Year 2001 (after the collection of late and enforced payments, the net tax gap is estimated at $290 billion for Tax Year 2001). This paper explains the concept of the tax gap, discusses how it is estimated, and points out some limitations with the estimates.

  6. IS THE VALUE ADDED TAX A SUPERIOR SALES TAX IN ALL SALES TAXES?

    Directory of Open Access Journals (Sweden)

    MUSTAFA ALİ SARILI

    2013-05-01

    Full Text Available Value Added Tax (VAT is a tax imposed on the value added to a product at each stage of the production and distribution process. Value added is never taxed twice under VAT and thus cascading (tax on tax effects do not occur. It is a single tax on goods and services but the tax is collected multiple stages. At each of these stages, the amount of tax payable is computed by subtracting the tax previously paid on purchases from the tax charged on sales by the traders for each taxation period. In last three decades, VAT, a relatively new and better commodity taxation, has been introduced in many countries. It has replaced different types of sales taxes in such countries. This article attempts to evaluate VAT by comparing with other sales taxes.

  7. New Leverage for Increasing Tax Revenues in Turkey: Traditional Tax Applications Supported by Electronic Tax Audits

    National Research Council Canada - National Science Library

    Ozge Onkan

    2016-01-01

    In this study, it is examined for the period 2000- 2015 in Turkey that increasing the electronic applications regarding tax audits had the effects on the required amount of tax levied as a result of tax audits...

  8. Electronic Payments Profitability Extent Model

    Directory of Open Access Journals (Sweden)

    Rudolf Vohnout

    2016-12-01

    Full Text Available Cashless payments are recent phenomena, which even increased with the introduction of contactless means like NFC, PayPass or payWave. Such new methods speed-up the entire payment process and in comparison to cash transactions are much simpler and faster. But on the other hand the key question for merchant is if it is worth to have such device, which accept these new payment means or not to have the terminal at all. What is the amount of cash flow, which delimits the cash holdings to be still profitable? This paper tries to give answers to such question by presenting general profitability model, which will address defining the cash threshold amount. The aim is to show that cash holdings could be profitable up to certain amount, but after the threshold is met, cashless payment methods are fairly superior despite their additional costs.

  9. FORMS OF TAX EVASION IN ROMANIA. ANALYTICAL PERSPECTIVE

    Directory of Open Access Journals (Sweden)

    PETRE BREZEANU

    2011-01-01

    Full Text Available This study brings to the fore an analysis of the phenomenon of tax evasion in Romania. The perspective is broad, with a descriptive substrate, originally founded by highlighting the dimensions that define this phenomenon; later, the perspective is materialized by the presentation of tax evasion schemes that often takes the form of real complex fiscal and also financial engineering. The purpose of this work consists in the awareness of practitioners, academics and the public of the tax evasion forms useful in order to identify precise modalities to combat it. Since the volume of funds subject to the phenomenon of tax evasion is greater, the negative effects of macroeconomic environment.

  10. SUSTAINABILITY OF TAX SYSTEM IN ROMANIA

    Directory of Open Access Journals (Sweden)

    Ana Patricia HOMORODEAN (CSATLOS

    2014-11-01

    Full Text Available In the context of globalization, sustainable development is the key to the development of contemporary society and future generations. Sustainability has become a key point for the debates in the political, economic, and academic environment. Therefore, today wehave reached the point when we speak of a country or company sustainability, of environmentalor agricultural sustainability, while speaking,at the same time, of fiscal policy sustainability. The purpose of this paper is to analyze the Romanian fiscal policy sustainability in terms of tax revenues. The methodology used in this research is bibliographical analysis of specialist literature and statistical analysis of data. Bibliographical analysis was used to define operating concepts: fiscal sustainability and tax revenues. Statistical analysis was used to analyze the evolution of tax revenues in Romania between2005and2013, as well as the share of tax revenues in the general consolidated budget of Romania. Statistical data were processed using Microsoft Excel and presented as evolution diagrams. The novelty and originality of the present work consist in the bibliographical study on Romanian fiscal policy sustainability, the statistical study on the evolution of tax revenues in Romania between 2005and2013, and the analysisof fiscal policy sustainability in Romania in terms of tax revenues.

  11. GENDER AND ETHNICITY DIFFERENCES IN TAX COMPLIANCE

    Directory of Open Access Journals (Sweden)

    Jeyapalan Kasipillai

    2006-01-01

    Full Text Available The purpose of this study is to investigate whether gender and ethnicity differences occur in relation to tax compliance attitude and behavior. Prior studies on tax compliance have focused little on gender as a predictor of compliance. In Malaysia, ethnic background of a taxpayer could be a major determinant of tax compliance. A personal interview approach is used to obtain information from taxpayers in urban towns. A t-test suggests that males and females were found to have similar compliant attitude. As for ethnicity, asimilar result was observed. Results of a regression analysis indicate that gender, academic qualification, and the person preparing tax return were statistically significant as determinants of non-compliant attitude. In terms of compliant behavior, a regression analysis revealed that "attitude towards non-compliance" and "receipt of cash income" were two significant explanatory variables of tax non-compliance behavior of understating income knowingly. The findings of this study are useful for policyimplications in identifying groups that require additional attention to increase voluntary tax compliance.

  12. The effect of enforcing some direct tax law

    Directory of Open Access Journals (Sweden)

    Hassan Ghodrati

    2014-08-01

    Full Text Available Regarding to the role of tax in the economy as the most stable and constant source of income and also due to the fact that there was no success in achieving fiscal goals by the government during its economic and developmental programs, paying attention to and making effort in this domain is regarded as a necessity in any country. The purpose of this study is to evaluate the effect of enforcing Article 181 of Direct Tax Law on extent of taxpayers’ satisfaction, increase of trust, increase of tax compliance or decrease of tax evasion in Isfahan, Iran. The present study consists of a main hypothesis and four sub-hypotheses. Data were collected from 100 companies regarding their performance during 200 years. Article 181 of Direct Tax Code was implemented upon these companies over the period 2006-2011. Hypotheses of the study were evaluated. The results of the study, in survey and post-event pivot, showed that enforcing Article 181 of Direct Tax Law in Isfahan was effective. However, its effect was not significant regarding increase of taxpayers’ familiarity and acquaintance with Tax Office and its functions in Isfahan; it increased tax compliance, decreased tax evasion by the taxpayers, increased taxpayers’ satisfaction and helped them trust on Tax Office and its performance.

  13. Tax avoidance with cross-border hybrid instruments

    DEFF Research Database (Denmark)

    Johannesen, Niels

    2014-01-01

    The rules demarcating debt and equity for tax purposes differ between countries, hence the possibility that a hybrid financial instrument is treated as equity in one country and debt in another. This may create a scope for tax avoidance by allowing firms that invest in foreign countries to combine...... tax deductible interest expenses in the host country and tax favored dividend income in the home country. In this paper, we first develop a formal model of hybrid instruments and show that, for a given pair of countries, firms in at least one country and sometimes in both can avoid taxes on investment...... in the other country with a cross-border hybrid instrument. We then investigate why countries tend to allow the use of hybrid instruments for tax avoidance and show that even if effective anti-avoidance rules are available, there exists a global policy equilibrium in which no country uses such rules...

  14. TAX HAVENS IN THE GLOBAL FINANCIAL CENTERS INDEX

    Directory of Open Access Journals (Sweden)

    Ana-Maria GEAMÃNU

    2014-04-01

    Full Text Available Previously scrutinized for adopting harmful fiscal measures, tax havens have progressively adhered to the internationally agreed principles of transparency and exchange of information for tax purposes promoted by the Organization for Economic Cooperation and Development (OECD. In this respect, important amendments have been made to both their tax and commercial legislation. Their main competitive advantage remains the favorable fiscal systems characterized by 0% tax rates which have favored the development of well established financial services sectors. The aim of this paper is to analyze the fiscal framework offered by six former tax haven jurisdictions: Monaco, Jersey, Guernsey, Cayman Islands, Isle of Man and British Virgin Islands, which occupy high ranks in the Global Financial Centers Index. The results come to emphasize the importance of these jurisdictions’ tax systems in the development of strong financial sectors.

  15. Tax Rates and Tax Evasion: Evidence from California Amnesty Data

    OpenAIRE

    Crane, Steven E.; Nourzad, Farrokh

    1990-01-01

    Examines the effect of marginal tax rates on income tax evasion using data from the California Tax Amnesty Program. Finds that evaders respond to higher tax rates by increasing their evasion activity and that individuals with higher levels of income tend to evade more.

  16. Tax tips for forest landowners for the 2009 tax year

    Science.gov (United States)

    Linda Wang; John Greene

    2010-01-01

    This bulletin summarizes federal income tax information useful to woodland owners in preparing their 2009 tax returns. It is current as of October 1, 2009, and supersedes Management Bulletin R8-MB 132. It should not be sonstrued as legal or accounting advice: consult your legal and tax professionals for advice on your particular tax situation.

  17. Tax tips for forest landowners for the 2008 tax year

    Science.gov (United States)

    Linda Wang; John L. Greene

    2009-01-01

    This article summarizes key federal income tax provisions for forestland owners, foresters, loggers, forest product businesses, and tax practioners, and is current as of October 1, 2008.  Consult your tax and legal professionals for advice on your particular tax situation.

  18. Evaluation of Value Added Tax Application Problems in Terms of Taxation of Electronic Commerce

    Directory of Open Access Journals (Sweden)

    Güneş ÇETİN GERGER

    2016-07-01

    Full Text Available Nowadays electronic taxation is being one of the important issues for revenue administrations. Tax administrations try to organize their tax system fairly and give attention on equity. Value added tax is most preferable taxes among the consumption taxes. Because it’s application is easy and taxpayers don’t show resistance to the value added tax. On electronic commerce value added taxes are using commonly. To provide equity in taxation, some taxation principles are adapted for value added taxes too. In this paper, we are trying to analyze the development of e-commerce in the world and e-taxation regulations and problems in the European Union (EU and Organization for Economic Cooperation and Development (OECD countries. The EU and OECD countries are making regulations in this issue. The last regulation is Base Erosion and Profit Shifting 15 point action plan in 2014. Taxation of the digital economy is the first action plan. In addition this, some regulations about taxation of digital economy are being done in Turkey in the case of Base Erosion and Profit Shifting action plan.

  19. Tax Evasion and Inequality

    DEFF Research Database (Denmark)

    Alstadsæter, Annette; Johannesen, Niels; Zucman, Gabriel

    2017-01-01

    This paper attempts to estimate the size and distribution of tax evasion in rich countries. We combine random audits—the key source used to study tax evasion so far—with new micro-data leaked from large offshore financial institutions—HSBC Switzerland (“Swiss leaks”) and Mossack Fonseca (“Panama...... Papers”)—matched to population-wide wealth records in Norway, Sweden, and Denmark. We find that tax evasion rises sharply with wealth, a phenomenon random audits fail to capture. On average about 3% of personal taxes are evaded in Scandinavia, but this figure rises to close to 30% in the top 0.......01% of the wealth distribution, a group that includes households with more than $45 million in net wealth. A simple model of the supply of tax evasion services can explain why evasion rises steeply with wealth. Taking tax evasion into account increases the rise in inequality seen in tax data since the 1970s...

  20. Excise tax avoidance: the case of state cigarette taxes.

    Science.gov (United States)

    DeCicca, Philip; Kenkel, Donald; Liu, Feng

    2013-12-01

    We conduct an applied welfare economics analysis of cigarette tax avoidance. We develop an extension of the standard formula for the optimal Pigouvian corrective tax to incorporate the possibility that consumers avoid the tax by making purchases in nearby lower tax jurisdictions. To provide a key parameter for our formula, we estimate a structural endogenous switching regression model of border-crossing and cigarette prices. In illustrative calculations, we find that for many states, after taking into account tax avoidance the optimal tax is at least 20% smaller than the standard Pigouvian tax that simply internalizes external costs. Our empirical estimate that tax avoidance strongly responds to the price differential is the main reason for this result. We also use our results to examine the benefits of replacing avoidable state excise taxes with a harder-to-avoid federal excise tax on cigarettes. Copyright © 2013 Elsevier B.V. All rights reserved.

  1. Providers issue brief: tobacco: excise taxes: year end report-2003.

    Science.gov (United States)

    McKinley, Andrew

    2003-12-31

    All 50 states, the District of Columbia, and the federal government impose excise taxes on cigarettes and have done so for many years. State tobacco taxes range from a high of $2.05 per pack of cigarettes in New Jersey to a low of $0.03 in Virginia per pack. The federal government levies an excise tax that increased by $0.05 on Jan. 1, 2002, to $0.39 per package. Cigarette taxes are directed at the consumer, while taxes on other tobacco products focus on the wholesaler. In the 2002 legislative sessions, 33 states proposed increases in cigarette excise taxes as a means of addressing budget shortfalls; 20 states enacted increases. Increasing tobacco excise taxes may decrease tobacco usage and increase state revenue. Increasing cigarette taxes is a means of generating revenue that generally is supported by public opinion. For instance, a 2003 poll in Ohio found that 63 percent of the public favored increasing cigarette excise taxes as long as the revenue is used for health care purposes. Cigarette excise taxes was again an area of substantial legislative interest and activity due to continued state budget deficits. A February 2003 NCSL study of state budget shortfalls indicated that the current cumulative budget gap is approximately $25.7 billion for fiscal year (FY) 2003. State revenues were sluggish and generally most failed to meet budgeted levels. At least 30 states noted that general fund collections were below budgeted estimates, and 12 states reported that collections failed to meet revised levels. Although the additional tax revenue generated by raising excise taxes may not eliminate state budget shortfalls, the revenue may provide funds for specific state programs.This issue brief provides an overview of the policy issue, a brief history of tobacco taxation in the 50 states and the District of Columbia, an overview of legislative activity in 2003, and a state-by-state map of state tobacco taxes.

  2. A Stochastic After-Taxes Optimisation Model to Support Distribution Network Strategies

    DEFF Research Database (Denmark)

    Fernandes, Rui; Hvolby, Hans-Henrik; Gouveia, Borges

    2012-01-01

    The paper proposes a stochastic model to integrate tax issues into strategic distribution network decisions. Specifically, this study will explore the role of distribution models in business profitability, and how to use the network design to deliver additional bottom-line results, using distribu......The paper proposes a stochastic model to integrate tax issues into strategic distribution network decisions. Specifically, this study will explore the role of distribution models in business profitability, and how to use the network design to deliver additional bottom-line results, using...

  3. Tax Competition and the International Distribution of Firm Ownership: An Invariance Result

    OpenAIRE

    Ferrett, Ben; Wooton, Ian

    2006-01-01

    Intuition suggests that the international distribution of firm ownership ought to affect tax/subsidy competition for mobile plants. One might expect that the greater the share of a firm owned within a potential host country that offers a relatively profitable production location, the more that nation will be prepared to pay to attract the firm's production facility. We show this intuition to be false. In equilibrium, both plant location and the tax/subsidy offers are independent of the intern...

  4. “Transfer Prices and Profit Maximization in Multinational Enterprise Operations”: Comment

    OpenAIRE

    Thomas A Pugel; Judith L Ugelow

    1982-01-01

    A recent article by D. J. Fowler in this journal considers the use of transfer pricing by multinational enterprises (MNEs) as a mechanism for increasing global after-tax profits.111 D. J. Fowler, “Transfer Prices and Profit Maximaization in Multinational Enterprise Operations,” Journal of International Business Studies, Winter 1978, pp. 9–26. Fowler focuses on the operation of a Canadian subsidiary by a U.S. MNE. This comment observes several mathematical errors in Fowler's study; in addition...

  5. 75 FR 9141 - Reduced 2009 Estimated Income Tax Payments for Individuals With Small Business Income

    Science.gov (United States)

    2010-03-01

    ... Internal Revenue Service 26 CFR Part 1 RIN 1545-BI67 Reduced 2009 Estimated Income Tax Payments for... income requirement for purposes of claiming a reduction in their required 2009 estimated income tax... estimated income tax payments for certain qualified individuals. The text of the temporary regulations also...

  6. 26 CFR 1.31-1 - Credit for tax withheld on wages.

    Science.gov (United States)

    2010-04-01

    ... credit against the tax imposed by Subtitle A of the Internal Revenue Code of 1954, upon the recipient of... recipient of the income even though such tax has not been paid over to the Government by the employer. For the purpose of the credit, the recipient of the income is the person subject to tax imposed under...

  7. 26 CFR 1.665(d)-1 - Taxes imposed on the trust.

    Science.gov (United States)

    2010-04-01

    ... 26 Internal Revenue 8 2010-04-01 2010-04-01 false Taxes imposed on the trust. 1.665(d)-1 Section 1... (CONTINUED) INCOME TAXES Treatment of Excess Distributions of Trusts Applicable to Taxable Years Beginning Before January 1, 1969 § 1.665(d)-1 Taxes imposed on the trust. (a) For the purpose of subpart D (section...

  8. The progressivity of personal income tax in South Africa since 1994 ...

    African Journals Online (AJOL)

    The imperative to reduce poverty levels in South Africa requires not less but more public expenditure and probably higher tax levels. The purpose of this study is, firstly, to examine the impact of personal income tax reforms since 1994 on the tax structure and its scope to meet the challenges of rising needs and equity.

  9. Does a family-first philosophy affect family business profitability? An analysis of family businesses in the midwest

    OpenAIRE

    Iglesias, Maria Victoria

    2015-01-01

    Previous family business literature has analyzed how various management strategies or family tension has impacted profit. However, profit can vary due to the different family values and goals placed on the firm. The purpose of this study was to investigate how the business philosophy of a family business influenced profit. The present study sought to examine how the family business' philosophy, as in if they have a family-first or business-first orientation, influences profit. This study also...

  10. Country-by-country reporting : tension between transparency and tax planning

    OpenAIRE

    Evers, Maria Theresia; Meier, Ina; Spengel, Christoph

    2017-01-01

    Aggressive tax planning efforts of highly profitable multinational companies (Base Erosion and Profit Shifting (BEPS)) have become the subject of intense public debate in recent years. As a response, several international initiatives and parties have called for more transparency in financial reporting, especially by means of a Country-by-Country Reporting (CbCR). In line with that, the OECD and the European Commission have recently presented proposals for a com...

  11. Globalization, Tax Competition and Tax Burden İn Turkey

    Directory of Open Access Journals (Sweden)

    Veli KARGI

    2016-07-01

    Full Text Available 1990’s world was quite different from the world of 1950’s. Especially in the last twenty years, the increasing involvement of Japan in the world economy since the 1990s, in addition to the dominance of globalization and market economy throughout the world, the rapid spread of information resulting from the developments in IT-technology and the international competition emerging in the field of technology have all led to some significant developments in the world economy. Reduction of high mobility income and corporate tax rates due to tax competition may cause an unjust distribution of the tax burden. The fact that indirect taxation constitutes about 70% of the tax revenues obtained in Turkey can be taken as an indication of the unfairness in the distribution of tax burden in Turkey. In this study, following a definition of globalization and tax competition, classification of tax competition, reasons for increasing tax competition, benefits and losses of tax competition are explained, and changes introduced by various countries in their tax systems due to tax competition, the distribution of tax burden resulting from tax competition in Turkey and the effectiveness of the new income tax law in Turkey in terms of tax competition are analyzed.

  12. KARAKTERISTIK EKSEKUTIF TERHADAP TAX AVOIDANCE DENGAN LEVERAGE SEBAGAI VARIABEL INTERVENING

    Directory of Open Access Journals (Sweden)

    Verani Carolina

    2017-03-01

    Full Text Available This research aimed to examine the influence of the executive characteristic on corporate tax avoidance. Risktaker’s executive tended to be more courageous and aggressive in taking decision related to the tax. On thecontrary, the risk averse executive tended to be carefully (Low, 2006. This research used leverage as interveningvariable. Therefore, there was an assumption that the executive characteristic determined the corporateleverage which then influenced their tax avoidance in the company. Manufacturing companies which werelisted in Indonesia Stock Exchange during the period 2010-2012 were used as samples. This research usedpurposive sampling method to select the sample with the criteria as follows: they were listed in Indonesia StockExchange during the period of 2010-2012, they made a profit during the period of 2010-2012, and they usedrupiah as reporting currency. Data was processed using path analysis and the result showed that the executivecharacteristic had an impact on corporate tax avoidance with leverage as the intervening variable. The resultof this research could be used for the investors to assess the corporate tax avoidance before they made a decision,and also for the policy makers to detect the corporate tax avoidance.

  13. Tax Salience, Voting, and Deliberation

    DEFF Research Database (Denmark)

    Sausgruber, Rupert; Tyran, Jean-Robert

    Tax incentives can be more or less salient, i.e. noticeable or cognitively easy to process. Our hypothesis is that taxes on consumers are more salient to consumers than equivalent taxes on sellers because consumers underestimate the extent of tax shifting in the market. We show that tax salience...... biases consumers' voting on tax regimes, and that experience is an effective de-biasing mechanism in the experimental laboratory. Pre-vote deliberation makes initially held opinions more extreme rather than correct and does not eliminate the bias in the typical committee. Yet, if voters can discuss...... their experience with the tax regimes they are less likely to be biased....

  14. ACCOUNTING – TAXATION REPORT IN TERMS OF DEFERRED TAXES ON ASSETS REVALUATION

    Directory of Open Access Journals (Sweden)

    PALIU – POPA LUCIA

    2014-12-01

    Full Text Available There has always been and will be a relationship between accounting and taxation, and the ongoing discussions are related to intensity, interrelation and generation of reciprocal effects. Profit is the "wealth" achieved by the economic entity, the share of shareholders after paying the income tax, where applicable, which makes the profit have a major influence on the method of determination and thus of the accounting treatment incurred by the income tax depending on the accounting cultures in dispute for supremacy, namely the European accounting culture and the Anglo-Saxon accounting culture. As the users of information in the financial statements seek to assess the performance and profitability of the company in general and, academically, the income tax is the only element raising debates on the relationship between accounting and taxation, we deemed it useful to conduct a study on the accounting – taxation report in terms of deferred taxes related to assets revaluation. The record of deferred tax amount for each type of temporary difference results in elimination of tax effects from accounting, with the aim of revealing the real earnings of the economic entity and not its fiscal side, all of which is a step in disconnecting the taxation accounting

  15. Profitability analysis of KINGLONG nearly 5 years

    Science.gov (United States)

    Zhang, Mei; Wen, Jinghua

    2017-08-01

    Profitability analysis for measuring business performance and forecast its prospects play an important role. In this paper, the research instance King Long Motor in understanding the basic theory on the basis of financial management, to take a combination of theory and data analysis methods, combined with a measure of profitability related indicators of King Long Motor company’s profitability do a specific analysis to identify factors constraining the profitability of Kinglong company exists and the motivation to improve profitability, which made recommendations to improve the profitability of Kinglong car company to promote the company’s future can be better and faster development.)

  16. Real Property Tax - 2017

    Data.gov (United States)

    Montgomery County of Maryland — This data represents all of the County’s residential real estate properties and all of the associated tax charges and credits with that property processed at the...

  17. Real Property Tax - 2016

    Data.gov (United States)

    Montgomery County of Maryland — This data represents all of the County’s residential real estate properties and all of the associated tax charges and credits with that property processed at the...

  18. Gross Sales Tax Collections

    Data.gov (United States)

    City of Jackson, Mississippi — This data is captured directly from the MS Department of Revenue and specific to the City of Jackson. It is compiled from Gross Sales Tax reported by taxpayers each...

  19. Governance, Trust and Taxes

    DEFF Research Database (Denmark)

    Weihe, Guri; Joensen, E. Juanna Schröter

    This paper examines the role of social capital (trust) vis-à-vis the propensity of a country to be a tax haven. The empirical analysis corroborates that better governed countries have a higher ceteris paribus probability to be tax havens. However, social capital counteracts the effect of governance...... quality. This effect is so strong that the partial effect of governance quality is reversed for countries with the trust index in the top quartile – making these high trust countries less likely to be tax havens – even as governance quality is increased. Thus it is crucial to consider the interaction...... between institutions and social capital, since the same governance institutions have a different impact on the tax haven propensity for countries with different social capital....

  20. Real Property Tax Rates

    Data.gov (United States)

    Montgomery County of Maryland — The Levy Year 2012 real property tax rate dataset reflects all the rates per $100 set each year by the County Council. These rates are applied to the assessed value...

  1. Tax Unit Boundaries

    Data.gov (United States)

    Kansas Data Access and Support Center — The Statewide GIS Tax Unit boundary file was created through a collaborative partnership between the State of Kansas Department of Revenue Property Valuation...

  2. THE ROLE OF FAIRNESS IN TAX COMPLIANCE

    NARCIS (Netherlands)

    Verboon, Peter; Goslinga, Sjoerd

    2010-01-01

    The purpose of this paper is to study the relation between fairness considerations and tax compliance attitudes and intentions. Data from a large panel survey among small business owners in the Netherlands have been analyzed. Besides a number of background and control variables the questionnaire

  3. The role of offshore tax havens in the international tax system

    Directory of Open Access Journals (Sweden)

    Jules Hendriksen

    2016-11-01

    Full Text Available The purpose of this paper is to provide a clear and critical overview of the function and role of offshore tax havens in the current tax system. The paper uses a deductive approach and starts from a basic level to gradually work up to deeper insights on the topic. These have been formed by the examination of literature written on tax havens and through research on tax data. On the basis of this research it is argued that offshore tax havens play a contradictory role in the international tax system. The offshore industry is a product of the current tax system and makes up an integrated component of the economy. Yet simultaneously tax havens counteract against the basic principles and aims of the tax system. | "O papel dos paraísos fiscais offshore no sistema fiscal internacional". O objetivo deste artigo é fornecer uma visão clara e crítica da função e do papel dos paraísos fiscais offshore no sistema fiscal atual. O artigo usa uma abordagem dedutiva e começa a partir de um nível básico para, gradualmente, desenvolver visões aprofundadas sobre o tema. Estas foram formadas pela análise da literatura sobre os paraísos fiscais e através da investigação sobre dados fiscais. Com base nessa pesquisa, argumenta-se que os paraísos fiscais offshore desempenham um papel contraditório no sistema fiscal internacional. A indústria offshore é um produto do sistema fiscal atual e constitui um componente integrado da economia. Contudo, os paraísos fiscais contrapõem, simultaneamente, os princípios e objetivos básicos do sistema fiscal.

  4. 26 CFR 1.902-4 - Rules for distributions attributable to accumulated profits for taxable years in which a first...

    Science.gov (United States)

    2010-04-01

    ... paragraphs (a) and (b) of this section to have paid $63 of foreign income taxes paid by A Corporation on or... second-tier corporation in 1976. The dividend from B Corporation to A Corporation was from accumulated profits of B Corporation for 1975. A Corporation would have qualified as a less developed country...

  5. Determinants of Aggressive Tax Avoidance

    OpenAIRE

    Herbert, Tanja

    2015-01-01

    This thesis consists of three essays examining determinants of aggressive tax avoidance. The first essay “Measuring the Aggressive Part of International Tax Avoidance”, co-authored with Prof. Dr. Michael Overesch, proposes a new measure that isolates the additional or even aggressive part in international tax avoidance and analyzes the determinants of aggressive tax avoidance of multinational enterprises. The second essay “Capital Injections and Aggressive Tax Planning - Can Banks Have It All...

  6. Bribes and Business Tax Evasion

    OpenAIRE

    Joulfaian, David

    2009-01-01

    This paper investigates the role of governance, in particular bribes to tax officials, in shaping business tax compliance behavior in transition economies. The empirical results show that business noncompliance rises with the frequency of tax related bribes. More specifically, the findings from 27 economies suggest that tax evasion thrives when bribes to tax officials are commonplace. These findings are robust to a number of specifications that control for firm and country attributes as well ...

  7. Paternalism and tax competition

    OpenAIRE

    Kaisa Kotakorpi

    2007-01-01

    When consumers make mistakes, the government may wish to use paternalistic taxation as a corrective measure. We examine a country whose government attempts to use taxation to reduce the consumption of a harmful good, and analyse the extent to which cross-border shopping and tax competition undermine the feasibility of paternalistic taxation. We show that the paternalistic component of a tax on a harmful good is reduced due to the possibility of cross-border shopping, but it does not disappear...

  8. Understanding Tax Evasion Dynamics

    OpenAIRE

    Eduardo Engel; James R. Hines Jr.

    1999-01-01

    Americans who are caught evading taxes in one year may be audited for prior years. While the IRS does not disclose its method of selecting tax returns to audit, it is widely believed that a taxpayer's probability of being audited is an increasing function of current evasion. Under these circumstances, a rational taxpayer's current evasion is a decreasing function of prior evasion, since, if audited and caught for evading this year, the taxpayer may incur penalties for past evasions. The paper...

  9. A Decomposition of Hospital Profitability

    Directory of Open Access Journals (Sweden)

    Jason Turner

    2015-06-01

    Full Text Available Objectives: This paper evaluates the drivers of profitability for a large sample of U.S. hospitals. Following a methodology frequently used by financial analysts, we use a DuPont analysis as a framework to evaluate the quality of earnings. By decomposing returns on equity (ROE into profit margin, total asset turnover, and capital structure, the DuPont analysis reveals what drives overall profitability. Methods: Profit margin, the efficiency with which services are rendered (total asset turnover, and capital structure is calculated for 3,255 U.S. hospitals between 2007 and 2012 using data from the Centers for Medicare & Medicaid Services’ Healthcare Cost Report Information System (CMS Form 2552. The sample is then stratified by ownership, size, system affiliation, teaching status, critical access designation, and urban or non-urban location. Those hospital characteristics and interaction terms are then regressed (OLS against the ROE and the respective DuPont components. Sensitivity to regression methodology is also investigated using a seemingly unrelated regression. Results: When the sample is stratified by hospital characteristics, the results indicate investor-owned hospitals have higher profit margins, higher efficiency, and are substantially more leveraged. Hospitals in systems are found to have higher ROE, margins, and efficiency but are associated with less leverage. In addition, a number of important and significant interactions between teaching status, ownership, location, critical access designation, and inclusion in a system are documented. Many of the significant relationships, most notably not-for-profit ownership, lose significance or are predominately associated with one interaction effect when interaction terms are introduced as explanatory variables. Results are not sensitive to the alternative methodology. Conclusion: The results of the DuPont analysis suggest that although there appears to be convergence in the behavior of

  10. A Decomposition of Hospital Profitability

    Science.gov (United States)

    Broom, Kevin; Elliott, Michael; Lee, Jen-Fu

    2015-01-01

    Objectives: This paper evaluates the drivers of profitability for a large sample of U.S. hospitals. Following a methodology frequently used by financial analysts, we use a DuPont analysis as a framework to evaluate the quality of earnings. By decomposing returns on equity (ROE) into profit margin, total asset turnover, and capital structure, the DuPont analysis reveals what drives overall profitability. Methods: Profit margin, the efficiency with which services are rendered (total asset turnover), and capital structure is calculated for 3,255 U.S. hospitals between 2007 and 2012 using data from the Centers for Medicare & Medicaid Services’ Healthcare Cost Report Information System (CMS Form 2552). The sample is then stratified by ownership, size, system affiliation, teaching status, critical access designation, and urban or non-urban location. Those hospital characteristics and interaction terms are then regressed (OLS) against the ROE and the respective DuPont components. Sensitivity to regression methodology is also investigated using a seemingly unrelated regression. Results: When the sample is stratified by hospital characteristics, the results indicate investor-owned hospitals have higher profit margins, higher efficiency, and are substantially more leveraged. Hospitals in systems are found to have higher ROE, margins, and efficiency but are associated with less leverage. In addition, a number of important and significant interactions between teaching status, ownership, location, critical access designation, and inclusion in a system are documented. Many of the significant relationships, most notably not-for-profit ownership, lose significance or are predominately associated with one interaction effect when interaction terms are introduced as explanatory variables. Results are not sensitive to the alternative methodology. Conclusion: The results of the DuPont analysis suggest that although there appears to be convergence in the behavior of NFP and IO

  11. Evaluation of state taxes and tax incentives and their impact on the development of geothermal energy in western states

    Energy Technology Data Exchange (ETDEWEB)

    Bronder, L.D.; Meyer, R.T.

    1981-01-01

    The economic impact of existing and prospective state taxes and tax incentives on direct thermal applications of geothermal energy are evaluated. Study area is twelve western states which have existing and potential geothermal activities. Economic models representing the geothermal producer and business enterprise phases of four industrial/commercial uses of geothermal energy are synthesized and then placed in the existing tax structures of each state for evaluation. The four enterprises are a commercial greenhouse (low temperature process heat), apartment complex (low temperature space heat), food processor (moderate temperature process heat), and small scale energy system (electrical and direct thermal energy for a small industrial park). The effects of the state taxations on net profits and tax revenues are determined. Tax incentives to accelerate geothermal development are also examined. The magnitudes of total state and local tax collections vary considerably from state to state, which implies that geothermal producers and energy-using businesses may be selective in expanding or locating their geothermal operations.

  12. A Tax Evasion - Bribery Game: Experimental Evidence from Ukraine

    Directory of Open Access Journals (Sweden)

    Volodymyr Bilotkach

    2006-06-01

    Full Text Available This paper examines the issue of tax evasion by enterprises through underreporting activity. We develop a view of this phenomenon as an equilibrium of the game between a businessman and an imperfectly monitored supervising official, in which a businessman can hide part of his profit and offer bribe to official. We determine conditions under which such tax evasion and bribery become wide-spread in the society, resulting in shadow economy. The game is put into an experimental setting in Kiev, Ukraine, with the emphasis of spreading of the tax evasion and bribery activity in the laboratory setting. We find that once it becomes known that substantial share of subjects playing the role of supervising officials agree to accept bribes from subjects playing the role of businessmen, the latter offer bribes more aggressively. Yet, this in turn does not affect the behavior of subjects playing the role of supervising officials.

  13. Production performance and profitability analysis of small scale ...

    African Journals Online (AJOL)

    The purpose of this study was to conduct a descriptive survey to study production performance, profitability and constraints of small scale layer projects funded through CASP in Germiston Region, Gauteng Province. Data was collected using a well-structured questionnaire from 26 small scale layer producers using ...

  14. Profitability Of Pineapple Marketing In Owerri, Imo State, Nigeria ...

    African Journals Online (AJOL)

    The study article examined the profitability of pineapple marketing in Owerri, Imo State, Nigeria. Owerri was purposively chosen because there are markets in the city where pineapple is traded and the inhabitants purchase and consume them. Data collected was from sixty randomly selected marketers of pineapple.

  15. Labour productivity and profitability in the Dutch flower trade

    NARCIS (Netherlands)

    J. van Dalen (Jan); A.R. Thurik (Roy)

    1991-01-01

    textabstractThis paper makes an attempt to illustrate the use of econometric models as frame of reference for diagnosing small firm performance. For this purpose, two models are developed explaining differences in labour productivity and profitability among Dutch flower exporters. In addition, we

  16. Innovating the tax compliance management process

    OpenAIRE

    Dimitrijević Marina

    2014-01-01

    The taxpayers' observance of tax legislation (tax compliance) is important for every tax authority. This issue is particularly relevant in the contemporary circumstances when the application of tax laws occurs within a complex and ever-changing environment. Despite the differences underlying national tax policies, tax legislations, tax administration and tax moral, the primary goal of taxation remains the same: taxes should be collected in accordance with the law in order to provide for build...

  17. The relationship of CSR and the business profit: can the most responsible companies be more profitable?

    Directory of Open Access Journals (Sweden)

    Antonio Miguel Gil Salmerón

    2016-10-01

    Full Text Available Persistent financial crisis and the cases of corruption afflicting Spain have broken the trust of society that forcefully demands an ethical, responsible and sustainable management of organizations, which are not immune to environmental problems. The effects of globalization, the introduction of tecnoestructura as a management model, technological and socio-economic changes have reshaped the cultural, management and ownership system of the current company, the company nowadays is transferred the responsibility to combine growth and competitiveness with social development and environmental improvement. This reconfiguration of business management model is implemented with the introduction of Corporate Social Responsibility (CSR in the strategic plans of the companies with the purpose of achieving a competitive advantage. The question is: can the most responsible companies be more profitable? The introduction of CSR in the organizational culture of the companies involved as a vector, accelerates the profitability of the companies that apply it: the higher level of CSR used, the more profitable the companies are. These conclusions are determined from a linear regression analysis comparing the ROA –return on assets– to CSR levels in a hundred companies with higher levels of sustainability that operate in Spain, according to a survey published in 2014 by the Monitor business Corporate Reputation (Merco

  18. Uncompensated care provided by for-profit, not-for-profit, and government owned hospitals.

    Science.gov (United States)

    Cram, Peter; Bayman, Levent; Popescu, Ioana; Vaughan-Sarrazin, Mary S; Cai, Xueya; Rosenthal, Gary E

    2010-04-07

    There is growing concern certain not-for-profit hospitals are not providing enough uncompensated care to justify their tax exempt status. Our objective was to compare the amount of uncompensated care provided by not-for-profit (NFP), for-profit (FP) and government owned hospitals. We used 2005 state inpatient data (SID) for 10 states to identify patients hospitalized for three common conditions: acute myocardial infarction (AMI), coronary artery bypass grafting (CABG), or childbirth. Uncompensated care was measured as the proportion of each hospital's total admissions for each condition that were classified as being uninsured. Hospitals were categorized as NFP, FP, or government owned based upon data obtained from the American Hospital Association. We used bivariate methods to compare the proportion of uninsured patients admitted to NFP, FP and government hospitals for each diagnosis. We then used generalized linear mixed models to compare the percentage of uninsured in each category of hospital after adjusting for the socioeconomic status of the markets each hospital served. Our cohort consisted of 188,117 patients (1,054 hospitals) hospitalized for AMI, 82,261 patients (245 hospitals) for CABG, and 1,091,220 patients for childbirth (793 hospitals). The percentage of admissions classified as uninsured was lower in NFP hospitals than in FP or government hospitals for AMI (4.6% NFP; 6.0% FP; 9.5% government; P NFP; 3.3% FP; 7.0% government; P NFP; 4.2% FP; 11.8% government; P NFP and FP hospitals (4.4% vs. 4.3%; P = 0.71), and higher for government hospitals (6.0%; P NFP vs. government). Likewise, results demonstrated similar proportions of uninsured patients in NFP and FP hospitals and higher levels of uninsured in government hospitals for both CABG and childbirth. For the three conditions studied NFP and FP hospitals appear to provide a similar amount of uncompensated care while government hospitals provide significantly more. Concerns about the amount of

  19. Tax Law Changes, Income Shifting and Measured Wage Inequality: Evidence from India

    OpenAIRE

    Jagadeesh Sivadasan; Joel Slemrod

    2006-01-01

    We use a large dataset covering all registered plants in the manufacturing sector in India over the period 1986 to 1995 to examine the effects of a 1992 income tax law change that eliminated the double taxation of wages paid to partners in partnership firms. This tax law change provides a unique opportunity to identify the effects of tax policy changes on firm behavior in a developing country context. Since the change provided incentives for shifting income from wages to profits, it also has ...

  20. Business strategies, profitability and efficiency of production

    Directory of Open Access Journals (Sweden)

    S. Alarcón

    2013-02-01

    Full Text Available The strategy choices of market-oriented companies are a topic now under wide investigation in the analysis of business performance antecedents. The purpose of this study is to examine the outcomes of the combination of three different organizational strategies (market orientation, innovativeness and entrepreneurial orientation on business performance indicators. Models using profitability and efficiency indicators are proposed with the specific aim of obtaining a deeper analysis of the relative roles played by each. The empirical work takes place in the agro-food industry in the Ebro Valley, one of Spain’s most competitive regions. The estimates from profitability quantile and truncated regressions of the efficiency scores reveal that market orientation has a positive effect on economic and productivity performance. The impact of pro-active, innovation-seeking, and risk-averse entrepreneurship is nevertheless more debatable, despite some influence of these entrepreneurial styles on observed performance values. This enables conclusions regarding the possibility of combining a market-oriented business culture with innovation and entrepreneurial activity with a view to obtaining business performance gains.

  1. Taxation of Non-profit Organizations in the Selected European Countries: the Proposal of the Changes for the Czech Republic

    Directory of Open Access Journals (Sweden)

    Milena Otavová

    2015-01-01

    Full Text Available The paper is focused on the issue of taxation of income of non-profit organizations, especially to associations (clubs in the Czech Republic, Slovakia and the United Kingdom. This paper is part of research, where the main emphasis is placed on the comparison of the tax benefits which are provided to non-profit organizations in different countries. This paper points to the current situation in the Czech Republic where despite the changes that have occurred in connection with the new Civil Code, there is still missing clear legislation that would regulate the activities of the monitored organizations. Changes in the taxation of income of non-profit organizations are designed with regard to the elimination of deficiencies in order to prevent the abuse of the benefits and the speculative behavior of tax entities.

  2. Examining Corporate Governance and Corporate Tax Management

    National Research Council Canada - National Science Library

    Martin Surya Mulyadi; Yunita Anwar; Erminus Bobby Ardo Dwi Kisma

    2014-01-01

    .... To minimize the tax payment, corporation conduct a corporate tax management. According to some of previous research, there is a correlation between corporate governance and corporate tax management...

  3. An ethical justification of profit maximization

    DEFF Research Database (Denmark)

    Koch, Carsten Allan

    2010-01-01

    behaviour. It is argued that some form of consequential ethics must be applied, and that both profit seeking and profit maximization can be defended from a rule-consequential point of view. It is noted, however, that the result does not apply unconditionally, but requires that certain form of profit (and...

  4. 40 CFR 35.936-4 - Profits.

    Science.gov (United States)

    2010-07-01

    ... 40 Protection of Environment 1 2010-07-01 2010-07-01 false Profits. 35.936-4 Section 35.936-4... ASSISTANCE Grants for Construction of Treatment Works-Clean Water Act § 35.936-4 Profits. Only fair and reasonable profits may be earned by contractors in subagreements under EPA grants. See § 35.937-7 for...

  5. METHOD OF TAX AUDIT OF CERTAIN CATEGORIES OF TAXPAYERS BY STATE FISCAL SERVICE OF UKRAINE

    Directory of Open Access Journals (Sweden)

    Bohdan Kostiuk

    2016-11-01

    Full Text Available Tax audit is an important part of tax control. It’s aimed to control the observance of tax legislation on taxes and fees. The purpose of the research is to generalize the method of performance of tax audits of individual taxpayers by State Fiscal Service of Ukraine. The subject of research is the methods of audit by State Fiscal Service of Ukraine. Methods. It was used general and specific methods of research, including: analysis and synthesis, system and process approaches, induction and deduction, etc. Results. The problem of tax auditing process in Ukraine is the absence of integrated and systematic approach for its implementation. Unfortunately, the practice of the tax audit is not yet examined clearly. Today the basic principles of tax audit are considered by the scientists only in theory. Apart from the existence of guidelines on verification of a particular type of taxes, other obligatory payments that are designed fiscal service, the formation of evidence, procedure for using certain methods and techniques for auditing, information sources are ignored legislators and scientists. Apart from the existence of guidelines on verification of a particular type of taxes, other obligatory payments which are designed by fiscal service, the formation of evidence base, procedure of usage of certain methods and techniques for audit, information sources and other issues are ignored by legislators and scientists. Despite this, today the tax audit is a tool to fully examine and reduce the tax risks of the organization. Another problem of tax audit is that legislation doesn’t fix the notion of tax audit so there is no exact interpretation of it. Tax audit engages more efficient flow of taxes and fees to the state budget. Although there is increase of the efficiency of the national tax auditing mechanism now, but there are some problems which need be resolved in order to ensure rational tax revenues in the budget under the present conditions of socio

  6. A study of severance taxes on crude oil and natural gas: The irreversibility of taxation

    Science.gov (United States)

    Brandly, Mark L.

    This dissertation examines the institution of severance taxes. An explanation of the property rights allocations in the petroleum industry provides the foundation for discussing the incentive structure of the industry. This explanation concludes that the severance tax burden on the supply side of the industry is born by oil producers and royalty owners. A history of national and state severance taxes in the United States is provided. The literature on the justifications for severance taxes and the economic studies that are relevant to the issue of the tax effect on oil output is reviewed. This review shows that an important implication of severance taxes, the fact that the output effect of such taxes is at least partially irreversible, has been overlooked. A mathematical model is constructed that demonstrates the relationships between output, the sellers' price, the buyers' price, excess burden, the consumers' tax burden, the producers' tax burden, and the price elasticities of supply and demand. It is then demonstrated that the appropriate framework for analyzing severance taxes includes an upward sloping supply curve and a completely elastic demand curve. Another mathematical model shows the effect that a severance tax has on the output decision given different income tax situations. A review of the industry procedures for abandoning wells is followed by a theoretical argument that severance taxes are irreversible to some degree. When a well is abandoned, due to a severance tax, the well is plugged with cement. The costs of reentering such a well are large relative to the potential profits to be derived from such a decision. Eliminating the severance tax does not provide the incentive needed to reenter and produce an abandoned well. An empirical examination of the Kansas severance tax imposed in 1983 compares the present value of an abandoned well with the costs of reentering such a well. This comparison leads to the conclusion that, generally, a well that was

  7. The benefits of customer profitability analysis in the hospitality industry

    Directory of Open Access Journals (Sweden)

    Dragan Georgiev

    2017-03-01

    Full Text Available The article reveals the benefits of customer profitability analysis implementation according to the specifics of the hotel product and the state of the management accounting in hotels. On this basis is substantiated the necessity management accounting and information systems in the hotels to be anteriorly adapted and developed in relevance with the objectives and methodological tools of customer profitability analysis, while keeping their function in collecting information for operational revenues and costs by responsibility centers. A model for customer profitability analysis based on ABC method is proposed in this connection, providing an example to clarify its methodological aspects and benefits. The latter consist in providing information for the purposes of taking a variety of management decisions regarding costs, product mix, pricing, performance measurement and implementation of various marketing initiatives.

  8. The effect of capital structure on the profitability of pharmaceutical companies the case of iran.

    Science.gov (United States)

    Mohammadzadeh, Mehdi; Rahimi, Farimah; Rahimi, Forough; Aarabi, Seyed Mohammad; Salamzadeh, Jamshid

    2013-01-01

    Funding combination is the most important issue for the companies while they know the amount of required capital. Companies should be careful regarding the appliance of financial providing methods compatible with the investment strategy of company and profitability. This study seeks to examine the relationship between the capital structure and the profitability of pharmaceutical companies in Iran. For this purpose, top 30 Iranian pharmaceutical companies defined as study samples and their financial data were gathered for the period of 2001-2010. In this study, the net margin profit and debts to asset ratio were used as indicators of profitability and capital structure, respectively and sales growth was used as a control variable. Results showed that there was significant negative relationship between the profitability and the capital structure which means that the pharmaceutical companies have established a Pecking Order Theory and the internal financing has led to more profitability.

  9. Determinants of Profitability of Food Industry in India: A Size-Wise Analysis

    Directory of Open Access Journals (Sweden)

    Ramachandran Azhagaiah

    2012-01-01

    Full Text Available Profitability is the profit earning capacity, which is a crucial factorin contributing to the survival of firms. This paper is a maidenattempt at estimating the impact of size on profitability, consideringthe ‘size’ as the control variable. For this purpose, the selectedfirms are classified into three size categories as ‘small,’ ‘medium,’and ‘large’ based on the sales turnover. The results show that volatilityand growth are the major predictors in determining profitabilityin case of small size firms while growth is important in determiningthe profitability of medium size firms. Capital intensityhas a significant positive coefficient with the profitability of largesize firms. The overall result shows that the larger the size of thefirm, the more the investment in long lived assets has helped toincrease the profitability of the firm unlike the trend in cases ofsmall size and medium size firms.

  10. The importance of internal controls in profit centers

    Directory of Open Access Journals (Sweden)

    Ilić-Pupovac Maja

    2012-01-01

    Full Text Available Profit centers are relatively independent organization units within a company that realize revenues and expenditures whose numerical difference expresses the results they achieved. There are guided by basic mission and objectives of company, and profit centers managers are assigned to harmonize the business, motivate the employees, make decisions and implement actions that lead to increase of profitability and efficiency on the level of the whole company. In order to monitor the company development, financial statements are put together on the level of the profit center, and, on their basis, managers make decisions about further steps of company's growth and development. Since financial statements play significant role in company's further business operations, it is necessary to form and implement internal control system that can confirm reliability of profit centers financial statements with a great certainty. Internal control examines compliance with current policies and procedures, detects errors and abuses, and checks the accuracy and completeness of accounting records. The purpose of internal controls is to increase company's business efficiency, basing the decision making on timely and accurate information.

  11. Domestic and Foreign Banks’ Profitability: Differences and Their Determinants

    Directory of Open Access Journals (Sweden)

    Muhammad AZAM

    2012-01-01

    Full Text Available The purpose of this study to analyze and compare the profitability of domestic (Public & Private and foreign banks operating in the Pakistan Banking market between 2004 and 2010 on quarterly basis. Total 36 Commercial Banks of Pakistani Industry have represented our sample. To control for the effect of bank ownership on performance, we split the sample into three categories: (1 domestic banks with Government Control, (2 domestic banks with Private control, and (3 foreign banks. This study also finds that foreign banks are more profitable than all domestic banks regardless of their ownership structure by applying regression analysis. This may suggest that it is better for a multinational bank to establish a subsidiary/branch rather than acquiring an “existing player” in the host country. We also found that domestic and foreign banks have different profitability determinants, i.e. factors that are important in shaping domestic banks’ profitability are not necessary important for the foreign banks and vice versa. Empirical results show that foreign banks are less affected by the macroeconomic factors of the host country than domestic banks and they have a higher profitability margin in Pakistan.

  12. Tax Efficiency vs. Tax Equity – Points of View regarding Tax Optimum

    Directory of Open Access Journals (Sweden)

    Stela Aurelia Toader

    2011-10-01

    Full Text Available Objectives. Starting from the idea that tax equity requirements, administration costs and the tendency towards tax evasion determine the design of tax systems, it is important to identify a satisfactory efficiency/equity deal in order to build a tax system as close to optimum requirements as possible. Prior Work Previous studies proved that an optimum tax system is that through which it will be collected a level of tax revenues which will satisfy budgetary demands, while losing only a minimum ‘amount’ of welfare. In what degree the Romanian tax system meets these requirements? Approach We envisage analyzing the possibilities of improving Romanian tax system as to come nearest to optimum requirements. Results We can conclude fiscal system can uphold important improvements in what assuring tax equity is concerned, resulting in raising the degree of free conformation in the field of tax payment and, implicitly, the degree of tax efficiency. Implications Knowing to what extent it can be acted upon in the direction of finding that satisfactory efficiency/equity deal may allow oneself to identify the blueprint of a tax system in which the loss of welfare is kept down to minimum. Value For the Romanian institutions empowered to impose taxes, the knowledge of the possibilities of making the tax system more efficient can be important while aiming at reducing the level of evasion phenomenon.

  13. Tax Tips for Forest Landowners for the 2013 Tax Year

    Science.gov (United States)

    Linda Wang; John Greene

    2013-01-01

    This annual bulletin provides federal income tax reporting tips to assist forest landowners and their advisers in filing their 2013 income tax returns. The information presented here is current as of Sept. 15, 2013.

  14. Tax havens: Features, operations and solving tax evasion problems

    Directory of Open Access Journals (Sweden)

    Obradović-Ćuk Jelena

    2016-01-01

    Full Text Available Tax haven offers minimal or no tax liability to foreign individuals and enterprises in economically and politically stable environment, where little or no financial information is shared with foreign tax authorities. The aim of this research is to create a comprehensive overview of the characteristics and operations of tax havens, as well as to point out to the ways to overcome the problem of tax evasion. The methodology used in the work is characteristic of social science research: analysis, synthesis and discussion, comparative, inductive and historical analysis, together with the usage of relevant national and international sources. This paper describes the basic features of tax havens, as well as specific business models applied in them. A separate chapter deals with overcoming the problem of tax evasion, which is the main adverse effect of doing business through tax havens.

  15. Tax Audit as a Significant Factor in Suppressing Tax Evasion

    National Research Council Canada - National Science Library

    Miodrag Todorović; Ivan Stanković; Samir Ljajić

    2017-01-01

    ...%. The aim of this paper is to point to the systematisation of the matter relating to an assessment of the efficiency of tax audit as a pillar of the reduction of tax evasion and informal economy in our country...

  16. Bureaucratic Tax-Seeking: The Danish Waste Tax

    DEFF Research Database (Denmark)

    Christoffersen, Henrik; Svendsen, Gert Tinggaard

    2000-01-01

    are strongly confirmed by the case of the Danish waste tax. Thus, we recommend that bureaucratic institutions should coordinate their tax-seeking efforts to maximize budgets in the long run and that the ministries that collect green tax revenues should not be allowed to control these revenues. Such a budget......Two main results in traditional tax theory states the following. First, general taxes minimize the welfare loss from changed relative prices. Second, because the total public budget tends to exceed the optimal size, a leader (here named 'troop leader') is needed in the budget process to prevent...... over-taxation. Nevertheless, differentiated taxes initiated by individual ministries generate a still larger proportion of total tax revenue, in particular under cover of taxing externalities such as environmental pollution. We suggest that this situation leads to over-taxation for two reasons. First...

  17. Employment impacts of alcohol taxes.

    Science.gov (United States)

    Wada, Roy; Chaloupka, Frank J; Powell, Lisa M; Jernigan, David H

    2017-08-16

    There is strong scientific evidence supporting the effectiveness of increasing alcohol taxes for reducing excessive alcohol consumption and related problems. Opponents have argued that alcohol tax increases lead to job losses. However, there has been no comprehensive economic analysis of the impact of alcohol taxes on employment. To fill this gap, a regional macroeconomic simulation model was used to assess the net impact of two hypothetical alcohol tax increases (a 5-cent per drink excise tax increase and a 5% sales tax increase on beer, wine, and distilled spirits, respectively) on employment in Arkansas, Florida, Massachusetts, New Mexico, and Wisconsin. The model accounted for changes in alcohol demand, average state income, and substitution effects. The employment impact of spending the new tax revenue on general expenditures versus health care was also assessed. Simulation results showed that a 5-cent per drink additional excise tax on alcoholic beverages with new tax revenues allocated to general expenditures increased net employment in Arkansas (802 jobs); Florida (4583 jobs); Massachusetts (978 jobs); New Mexico (653 jobs); and Wisconsin (1167 jobs). A 5% additional sales tax also increased employment in Arkansas (789 jobs; Florida (4493 jobs); Massachusetts (898 jobs); New Mexico (621 jobs); and Wisconsin (991 jobs). Using new alcohol tax revenues to fund health care services resulted in slightly lower net increases in state employment. The overall economic impact of alcohol tax increases cannot be fully assessed without accounting for the job gains resulting from additional tax revenues. Copyright © 2017 Elsevier Inc. All rights reserved.

  18. Taxes, Tax Subsidies and the Impact of Trade Agreements

    OpenAIRE

    Perry, Gregory M.

    1995-01-01

    Tax subsidies are an often overlooked method by which government subsidises agriculture. An examination of tax policies in Australia, Canada, Germany and the United States reveals several different tax subsidies provided to farmers in these countries. Most of these subsidies are in theory subject to reduction under GATT. For various reasons, however, most tax subsidies are not included in subsidy measures. Failure to include these kinds of subsidies in AMS measures could encourage their proli...

  19. Tax Policy Analysis: The Introduction of a Russian Tax Amnesty

    OpenAIRE

    James Alm

    1998-01-01

    Governments of all kinds have frequently turned to tax amnesties as part of their fiscal programs. An amnesty typically allows individuals or firms to pay previously unpaid taxes without being subject to some or all of the financial and criminal penalties that the discovery of tax evasion normally brings. In the last twenty years, nearly forty states in the United States have enacted some form of tax amnesty, sometimes more than once. Many other countries have also used one or more amnesties....

  20. The Minnesota income tax compliance experiment: State tax results

    OpenAIRE

    Coleman, Stephen

    1996-01-01

    This report describes the Minnesota Income Tax Compliance Experiment conducted by the Minnesota Department of Revenue in 1995. The experiment tested alternative strategies to improve voluntary compliance with the state income tax. These strategies included: increased examination and auditing of tax returns with prior notice to taxpayers, enhanced services to taxpayers, information messages in letters sent to taxpayers, and a new M-1 tax form. About 47,000 taxpayers participated in the experim...

  1. Tax Morale and Tax Compliance from the Firm's Perspective

    OpenAIRE

    James Alm; Chandler McClellan

    2012-01-01

    Much recent research has investigated whether values, social norms, and attitudes differ across countries and whether these differences have measurable effects on economic behavior. One area in which such studies are particularly relevant is tax compliance, and a factor that has been suggested as a factor in compliance behavior is "tax morale", or the intrinsic motivation to pay taxes. However, all of this work on tax morale has focused on individuals, not on firms. In this paper, we use info...

  2. Tax morale : theory and empirical analysis of tax compliance

    OpenAIRE

    Torgler, Benno

    2003-01-01

    Tax morale is puzzling in our society. Observations show that tax compliance cannot be satisfactorily explained by the level of enforcement. Other factors may well be relevant. This paper contains a short survey of important theoretical and empirical findings in the tax morale literature, focussing on personal income tax morale. The following three key topics are discussed: moral sentiments, fairness and the relationship between taxpayer and government. The survey stresses the ...

  3. Tax Competition and Double Tax Treaties with Mergers and Acquisitions

    OpenAIRE

    Siggelkow, Benjamin Florian

    2013-01-01

    In a two-period tax competition model with provision of local public goods, we analyze efficiency properties of double taxation reliefs incorporating either the exemption method, the tax credit system or the full taxation after deduction system. Foreign direct investments are presumed to be one-way and characterized by long-term mergers and acquisitions. We find that in case of (i) tax revenue maximization the exemption method implies inefficiently low tax rates, whereas the full taxation aft...

  4. Tax Benefits as Methods of the of Tax Policy Implementation

    Directory of Open Access Journals (Sweden)

    Ilona O. Babakova

    2016-09-01

    Full Text Available In this article the author considers the tax legislation, in the parts establishing tax benefits and also analyzes them as an implementer of tax policy. In conclusion the author draws a conclusion that the taxation system represents the thin tool which it is necessary to handle skillfully, keeping balance of interests of both parties of tax process. It is one of the most efficient tools of economic policy.

  5. Analysis of Deferred Taxes in the Business Environment in Serbia

    Directory of Open Access Journals (Sweden)

    Savka VUČKOVIĆ-MILUTINOVIĆ

    2013-06-01

    Full Text Available Flow-through model of income tax reporting in general purpose financial statements had a long history of use in Serbia. It was only in 2004 (and 2003 for banks, when the implementation of deferred taxes model started. It was inevitable, because IAS/IFRS became mandatory basis for preparing financial statements. In this paper we examine quality of deferred taxes disclosures in the financial statements of companies in Serbia. We also documented the most common temporary differences that arise in measuring accounting and taxable income and in that way we identified the major sources of deferred tax. We analyzed the materiality of deferred taxes and their effect on company´s performance in Serbia.

  6. Tax Competition Within the European Union – Is the CCCTB Directive a Solution?

    NARCIS (Netherlands)

    M.F. de Wilde (Maarten)

    2014-01-01

    markdownabstract__Abstract__ The author addresses the phenomenon of taxable profit-shifting operations undertaken by multinationals in response to countries competing for corporate tax bases within the European Union. The central question is whether this might be a relic of the past when the

  7. Tax Competition within the European Union - Is the CCCTB-Directive a Solution?

    NARCIS (Netherlands)

    M.F. de Wilde (Maarten)

    2014-01-01

    markdownabstract__Abstract__ The author addresses the phenomenon of taxable profit shifting operations undertaken by multinationals in response to countries competing for corporate tax bases within the European Union. The central question is whether this might be a relic of the past when the

  8. The Multilateral Tax Instrument : How to Avoid a Stalemate on Distributional Issues?

    NARCIS (Netherlands)

    Broekhuijsen, D.M.; Vording, H.

    2016-01-01

    Action 15 of the OECD/G-20 Base Erosion and Profit Shifting (BEPS) project is to "develop a multilateral instrument designed to provide an innovative approach to international tax matters" The authors turn to two areas of academic thought to clarify the choices faced by states when engaging in

  9. Tax Tips for Forest Landowners for the 2012 Tax Year

    Science.gov (United States)

    Linda Wang; John L. Greene

    2012-01-01

    Federal income tax law contains provisions to encourage stewardship and management of private forest land. The primary goal of this bulletin is to assist forest landowners and their advisors with timber tax information they can use to file their 2012 in-come tax returns. The information presented here is current as of Sept. 15, 2012.

  10. Tax Reforms in Nigeria: Case against Tax Incentives | Omesi ...

    African Journals Online (AJOL)

    This paper examined tax reforms with respect to tax incentives. Theoretical framework and conceptual framework of the subject matter were discussed. The paper also empirically reviewed the subject matter. The paper revealed that huge sums of tax revenue are being lost annually by the Nigerian Customs service due to ...

  11. Sick of Taxes?

    DEFF Research Database (Denmark)

    Ljunge, Jan Martin

    I estimate a price elasticity of sickness absence. Sick leave is an intensive margin of labor supply where individuals are free to adjust. I exploit variation in tax rates over two decades, which provide thousands of differential incentives across time and space, to estimate the price responsiven...... of sick leave, -0.7, with respect to the net of tax rate. Though large relative to traditional labor supply elasticities, Swedes are half as price elastic as bike messengers, and just as elastic as stadium vendors on the margin which they can adjust freely....

  12. Public opinion regarding earmarked cigarette tax in Taiwan

    Science.gov (United States)

    Tsai, Yi-Wen; Yen, Lee-Lan; Yang, Chung-Lin; Chen, Pei-Fen

    2003-01-01

    Background Cigarette taxation has been perceived by academics and policy-makers as one of the most effective ways of reducing the use of cigarettes. On January 1 2002, the Taiwan government imposed a New Taiwan (NT) $5 per pack tax earmarked for the purpose of tobacco control. This study uses a survey collected prior to taxation to assess public attitudes toward cigarette taxation, public beliefs about the effectiveness of cigarette taxation at reducing cigarette use and public opinions about the allocation of this tax revenue. Methods Data were drawn from a national face-to-face interview on cigarette consumption in 2000. A total of 3,279 adults were aged 18 to 64 years; 49.9% of whom were male and 50.1% female, and with a smoking prevalence of 49.1% and 4.1%, respectively. The attitudes toward cigarette tax were analysed using multi-logit regressions. We analysed by logistic regression the potential changes in smoking behaviour that smokers might make in response to the five NT (New Taiwan) dollar earmarked tax on cigarettes per pack. We summarized public opinions about the allocation of earmarked tax revenue using descriptive statistics. Results Current smokers (OR = 0.34) and former smokers (OR = 0.68) were less likely to support the cigarette tax than non-smokers. A favourable attitude toward the tax was positively associated with personal monthly income, especially among females. Among male smokers, the possibility of reducing/quitting smoking in response to the five-NT-dollar tax was negatively associated with the monthly expense for smoking. The two most frequently-suggested areas to receive money from the revenue collected from the earmarked tax were health education and cancer subsidy. Conclusions Smoking status and economic factors determine the attitude and potential responses of people toward the cigarette tax. Taiwan's five NT-dollar earmarked tax for cigarettes may have only a limited effect upon the reduction in cigarette use. PMID:14693036

  13. Who Pays the Gasoline Tax?

    OpenAIRE

    Chernick, Howard; Reschovsky, Andrew

    1997-01-01

    Analyzes panel data over 11 years (both backward from 1982 and forward from 1982) to determine the average gasoline tax burden. Considers links between economic mobility, gasoline consumption, and excise tax increases.

  14. Do Taxes Produce Better Wine?

    DEFF Research Database (Denmark)

    Ljunge, Jan Martin

    Theory predicts that unit taxes increase the quality consumed in a market since unit taxes reduce the relative price of high quality goods. Ad valorem taxes, on the other hand, have no effect on relative prices and should not affect product quality. The hypothesis is tested empirically in the US ...... wine market. I find that the market share of high quality wine is significantly increased by unit taxes and that there is no significant effect of ad valorem taxes, in accordance with the hypothesis and previous empirical studies.......Theory predicts that unit taxes increase the quality consumed in a market since unit taxes reduce the relative price of high quality goods. Ad valorem taxes, on the other hand, have no effect on relative prices and should not affect product quality. The hypothesis is tested empirically in the US...

  15. Do Taxes Produce Better Wine?

    DEFF Research Database (Denmark)

    Ljunge, Jan Martin

    2011-01-01

    Theory predicts that unit taxes increase the quality consumed in a market, since unit taxes reduce the relative price of high quality goods. Ad valorem taxes, on the other hand, have no effect on relative prices, and should not affect product quality. The hypothesis is tested empirically in the U...... wine market. I find that the market share of high quality wine is significantly increased by unit taxes, and that there is no significant effect of ad valorem taxes, in accordance with the hypothesis and previous empirical studies.......Theory predicts that unit taxes increase the quality consumed in a market, since unit taxes reduce the relative price of high quality goods. Ad valorem taxes, on the other hand, have no effect on relative prices, and should not affect product quality. The hypothesis is tested empirically in the US...

  16. New Mexico Property Tax Districts

    Data.gov (United States)

    Earth Data Analysis Center, University of New Mexico — This layer represents boundaries for New Mexico tax district "OUT" categories and incorporated/municipal "IN" categories as identified on the "Certificate of Tax...

  17. Tax Expenditures: A Theoretical Review

    Directory of Open Access Journals (Sweden)

    Vjekoslav Bratić

    2006-06-01

    Full Text Available Tax expenditures are an instrument frequently used when a government wishes to achieve certain economic and social effects. But because of the increasing number and scope of tax expenditures, their proper use, quality of administration and record-keeping have become a major challenge for the tax authorities and the whole of the government. The article considers and explains very diverse forms of tax expenditure such as reliefs, tax deductions, tax allowances, tax exceptions and special rates of taxation and the ways in which they are defined and calculated. The key problems in the analysis are the absence of a single definition and of methodology for the calculations; these ultimately make it impossible to compare tax expenditures between or among countries.

  18. THE EU TAX TREATMENT COMPETITION FOR KNOWLEDGE BASED CAPITAL – THE SPECIAL CASE OF R&D

    Directory of Open Access Journals (Sweden)

    Cozmei Cătălina

    2015-05-01

    Full Text Available Globalization spurs the diffusion of knowledge and encourages firms to incorporate investments in innovation in their portfolios because knowledge based capital (research & development, intellectual property, organisational capital, skills etc. is a key d river for competitiveness on all levels. This article aims to emphasize the differences in the R&D tax policy mix as a proxy for the knowledge based capital and analyse some R&D indicators for a number of 20 EU member states in order to sort and classify those countries in terms of R&D tax policy effectiveness. The results show that a higher corporate tax level even if is offset by a high tax subsidy does not lead to a high level business enterprise expenditure on R&D as a percentage of value added in industry. Moreover this paper highlights the need for designing a tax policy that promotesinnovation and gauges the loopholes of the tax system that activate profit shifting strategies.

  19. Income tax application into the accounting of sports clubs in the Czech republic

    Directory of Open Access Journals (Sweden)

    Radmila Herzánová

    2010-06-01

    Full Text Available Sports clubs are non-profit organizations the mission of which is mainly concerned with sports activities, but often supplemented by other activities such as provision of sports and educational trainings or of social events promoting healthy life style. To gain income, sports clubs often do business in the fields somehow related to sports, as is tourism, outdoor management training, provision of assessment centres, etc. All activities of such organisations have to be accounted in the right way according to their nature in order to satisfy the Income Tax regulations. Non-profit organisations lack quality and up-to-date expert literature on this topic which would help them to reveal frequent mistakes in their accounting and tax reporting. Moreover, the management of sports clubs often underestimates the importance of precise accounting and tax management. Nowadays the accounting of non-profit sports organisations has been gaining more interest by tax administrators and sports clubs may have to reassess some of their accounting procedures. This article deals with ambiguous statements in the Act on Income Tax and with difficult employment of such regulations into the accounting of sports clubs.

  20. Relationship between metallurgical works and the budget: debt increases, taxes decline

    Directory of Open Access Journals (Sweden)

    Anna Ivanovna Povarova

    2015-01-01

    Full Text Available Large enterprises of ferrous metallurgy consolidate a significant share of cash flows and are important taxpayers for the budget. In 2008–2013 two-thirds of the aggregate profit tax from the ferrous metallurgical industry were provided by seven largest plants: Novolipetsk Steel (NLMK; Cherepovets Steel Mill (CherMK; Nizhniy Tagil Iron and Steel Works (NTMK; Magnitogorsk Iron and Steel Works (MMK; Oskol Electrometallurgical Plant (OEMK; West-Siberian Metallurgical Plant (ZSMK and Chelyabinsk Metallurgical Plant (ChMK. All these plants are the key assets of the largest multinational corporations; therefore, the analysis of their statements makes it possible to assess the financial condition not only of individual corporations, but also of the whole ferrous metallurgy. The article presents the results of the analysis of the financial statements of the leading domestic enterprises of ferrous metallurgy for 2008–2013. Particular emphasis is placed on their relations with the budget in the field of profit tax administration. The author investigates the factors in the formation of profit before tax and reveals the destructive impact of the existing tax legislation on the mobilization of budget revenues. The article draws a conclusion about the role of large enterprises in the economic development of the country and its regions. The author proposes several options to change the tax policy in relation to large taxpayers

  1. Tax evasion, informants, and optimal auditing policy

    OpenAIRE

    Nir Dagan; Yossi Tobol

    2005-01-01

    We analyze the interaction between the tax authority, tax payers, and potential informants in a game theoretic framework. The tax authority gives monetary incentives to informants, and conducts random tax audits. The probability of a tax payer being audited depends on whether the tax authority received a tip about him from an informant or not. In subgame perfect equilibrium tax payers are divided into (at most) two groups. Those with income up to a certain level evade a small amount of taxes ...

  2. Economic Effects Real Estate Tax

    Directory of Open Access Journals (Sweden)

    Tadić Milan

    2016-06-01

    Full Text Available The real estate tax is usually a fiscal instrument which performs the property tax. When it comes to real property or immovable this term include: apartments, houses, land, cottages, excess housing landscape and more. The real estate tax as a form of the fiscal charges ownership or use of certain forms of real estate, and the revenue from this tax is levied on the area where the property is located regardless of the place of residence of its owner. The tax base for the calculation of this tax usually consists of the market, estimated or annuity value of certain real estate. This form of taxation in the Republic of Serbian applies from 1.1.2012., and its introduction has been replaced by former property taxes. The differences between the two concepts mentioned taxes are numerous and significant. Among the more important are: subject to taxation under the new concept of the real estate rather than law, a taxpayer is any property owner rather than the holder of rights to immovable property tax base is the market value of real estate which is replaced by the payment of taxes per square meter of usable area, the rate of property tax is determined local government, which can not be lower than 0.05% of the estimated value of the real estate nor higher than 0.5% of the appraised value of real estate. The last change, ie. The new law on Property Tax from 5.11.2015. was determined by the tax rate to 20%. The fact that local governments each of them determines the tax rate on real estate which range from high to low rates of multiple, makes this tax is progressive. Progression is particularly expressed in the distinction applied tax rates of developed and undeveloped municipalities, where we have a case that less developed tolerate a higher tax burden, which leads to negative economic effects. However, real estate tax has its own economic and social characteristics which must be aligned with the objectives of tax policy. This means that the real estate tax

  3. Tax Evasion and Financial Repression

    OpenAIRE

    Rangan Gupta

    2005-01-01

    Using a simple overlapping generations framework, calibrated to four Southern European countries, we analyze the relationship between tax evasion, determined endogenously, and financial repression. We show that higher degree of tax evasion within a country, resulting from a higher level of corruption and a lower penalty rate, yields higher degrees of financial repression as a social optimum. However, a higher degree of tax evasion, due to a lower tax rate, reduces the severity of financial re...

  4. Extrinsic incentives and tax compliance

    OpenAIRE

    Sour, Laura; Gutiérrez Andrade, Miguel Ángel

    2011-01-01

    This paper models the impact of extrinsic incentives in a tax compliance model. It also provides experimental evidence that confirms the existence of a positive relationship between rewards and tax compliance. If individuals are audited, rewards for honest taxpayers are effective in increasing the level of tax compliance. These results are particularly relevant in countries where there is little respect for tax law since rewards can contribute to crowding in the intrinsic motivation to comply.

  5. R&D tax incentives for innovation and managerial decisions

    Directory of Open Access Journals (Sweden)

    Monika Walicka

    2016-09-01

    Full Text Available In many countries tax incentives are a popular means of realizing political, economic and social objectives. The main motive of their application is often to achieve and accelerate the selected activities in the public interest and also stimulate development of industry, and induce growth in research and investment. The key element that helps a company achieve a competitive advantage is innovation. Global competition forces the production of unique products and services. Tax incentives in science, research and development are important in stimulating innovation. The purpose of this article is to show the level of managerial awareness about R&D tax incentives, the level of R&D tax incentive usage by companies in Poland, and main obstacles that managers meet with R&D tax incentives in practice. We explore R&D tax incentives as a government instrument on R&D management and aim to find the reasons why Polish companies do not take advantage of them. We examine 275 companies using a semi-structured questi onnaire. Our findings suggest that many firms report lack of knowledge about such incentives, and firms find many obstacles to reach all of the requirements which are necessary to use the incentive. Due to our analysis we find that large firms, especially those that implement innovation, are more likely to use the tax incentives, but small and medium sized companies find more obstacle. The effect of this tax policy is significant mainly in large, high-tech sector firms.

  6. Unconditional conservatism in Brazilian public companies and tax neutrality

    Directory of Open Access Journals (Sweden)

    Juliana Pinhata Sanches do Vale

    2017-03-01

    Full Text Available ABSTRACT Law n. 11,638/2007 legitimized the International Financial Reporting Standards (IFRS adoption process in Brazil and introduced an accounting system detached from tax purposes in the country. This law aims to reduce the influence of tax law on accounting standards and improve the quality of financial reporting, as IFRS are considered to be higher quality standards. International literature shows a reduction in earnings quality in environments where accounting and tax rules are strongly linked. Moreover, the influence of tax legislation on financial accounting is seen to encourage unconditional conservatism, a bias with no advantages for financial market efficiency. Thus, tax neutrality is expected to provide a more favorable institutional environment for quality financial reporting by detaching corporate accounting from tax accounting. In light of the above, this study aims to verify whether the advent of tax neutrality influences unconditional conservatism in Brazilian public companies. The methodology used involves panel data regressions. The sample consists of non-financial publicly-traded companies with information published in Economática® covering 2002 to 2014. The results show differences in the relationship between taxation and financial reporting between firms that are subject to different levels of monitoring in the Brazilian stock market. Evidence of unconditional conservatism is only found in companies that are subject to greater market monitoring. In this group, it is observed that taxation does not induce unconditional conservatism in reported earnings, which is expected in a tax neutrality context.

  7. 27 CFR 19.21 - Tax.

    Science.gov (United States)

    2010-04-01

    ... 27 Alcohol, Tobacco Products and Firearms 1 2010-04-01 2010-04-01 false Tax. 19.21 Section 19.21 Alcohol, Tobacco Products and Firearms ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE TREASURY LIQUORS DISTILLED SPIRITS PLANTS Taxes Gallonage Taxes § 19.21 Tax. (a) A tax is imposed by 26 U.S...

  8. Pakistan Tax Policy Report: Tapping Tax Bases for Development

    OpenAIRE

    Jorge Martinez-Vazquez; Kaspar Richter

    2009-01-01

    The main message of this report is that Pakistan can take measures to increase the tax to gross domestic product (GDP) ratio by around 3.5 percentage points over the next five years. In order to ensure a healthy long-run economic development, Pakistan needs to embrace substantial changes in tax policy aimed at increasing the buoyancy of the tax system, broadening the tax bases, reducing distortions and phasing out exemptions. Such tax reforms are also required to deal with the risks stemming ...

  9. Why Globally GDP, Trade, Profits, Wages, Employment Decrease and Why Poverty Increases?

    National Research Council Canada - National Science Library

    Peter Štrukelj

    2012-01-01

    The purpose of the paper is to propose a scientific explanation ofwhy GDP, trade, profits, wages and employment have been globallydecreasing and why poverty has been globally increasing betweenthe 2nd...

  10. Motor Fuel Excise Taxes

    Energy Technology Data Exchange (ETDEWEB)

    2015-09-01

    A new report from the National Renewable Energy Laboratory (NREL) explores the role of alternative fuels and energy efficient vehicles in motor fuel taxes. Throughout the United States, it is common practice for federal, state, and local governments to tax motor fuels on a per gallon basis to fund construction and maintenance of our transportation infrastructure. In recent years, however, expenses have outpaced revenues creating substantial funding shortfalls that have required supplemental funding sources. While rising infrastructure costs and the decreasing purchasing power of the gas tax are significant factors contributing to the shortfall, the increased use of alternative fuels and more stringent fuel economy standards are also exacerbating revenue shortfalls. The current dynamic places vehicle efficiency and petroleum use reduction polices at direct odds with policies promoting robust transportation infrastructure. Understanding the energy, transportation, and environmental tradeoffs of motor fuel tax policies can be complicated, but recent experiences at the state level are helping policymakers align their energy and environmental priorities with highway funding requirements.

  11. Taxes and gender equity

    International Development Research Centre (IDRC) Digital Library (Canada)

    Brenda Battisti

    3 ○ March 2010. Globalization, Growth and Poverty research. Taxes and gender equity. Codes, behaviours, and (un)intended consequences. THE EVIDENCE. Inequality has many faces: gender discrimination is one of them. While taxation offers a means to reduce socio-economic inequality, little is known about its impacts ...

  12. Economic and tax issues

    Science.gov (United States)

    Steverson O. Moffat; John L. Greene

    2002-01-01

    Economic conditions and tax policies affect land use decisions everywhere, but their effects on the rate of change in land use are particularly large in the wildland-urban interface. We begin this chapter with a brief economic history of the South and a description of the macroeconomic trends and conditions that affect microeconomics at the wildlandurban interface....

  13. THE IMPLICATIONS OF TAX MORALE ON TAX COMPLIANCE BEHAVIOR

    Directory of Open Access Journals (Sweden)

    Nichita Ramona-Anca

    2012-07-01

    Full Text Available The present paper focuses on the analysis of tax compliance behavior from the tax morale standpoint. We grounded our research on the idea that empirical studies constantly invalidating the assumptions of theoretical models of tax evasion show there are more factors influencing compliance than just the economic ones (e.g., audit probability, fine, tax rate, income. Giving the fact that audit probabilities are generally very low and that tax evasion is not as high as one could expect, tax morale might have to do with the high degrees of tax compliance registered around the world. In a stream of articles on taxation published beginning with the late 60n#8217;s, tax morale defined as the intrinsic motivation to comply or n#8220;internalised obligation to pay taxn#8221; (Braithwaite and Ahmed 2005 has been found to positively relate to tax compliance and negatively relate to shadow economy. This paper attempts to offer a broader view on the influence of tax morale on compliance behavior, covering articles ranging from national and cross-cultural surveys to experimental games. Moreover, the aim of the article is to emphasize the policy implications of tax morale research and the changes governments could make in order to raise the amount of public levies.

  14. Government Subsidy for Remanufacturing or Carbon Tax Rebate: Which Is Better for Firms and a Low-Carbon Economy

    Directory of Open Access Journals (Sweden)

    Tong Shu

    2017-01-01

    Full Text Available The government as a policy maker wishing to promote remanufacturing and proper disposal of hazardous old products which are harmful to environment has taken many actions, ranging from carbon regulation and financial incentives such as trade-in subsidy. However, carbon tax can result in loss of profit for firms to some degree, so the government has to give other subsidy to balance the profits and carbon emission. Thus, this article investigates two subsidy mechanisms: remanufacturing subsidy or tax rebate. The optimal pricing and production decision under these policies are examined. Our results show that carbon tax has a great impact on pricing strategies. Trade-in subsidy can encourage customers to replace their existing products with new and remanufactured products. Both remanufacture subsidy and tax rebate are beneficial to manufacturer and can further promote remanufacturing development.

  15. 48 CFR 315.404-4 - Profit.

    Science.gov (United States)

    2010-10-01

    ... factors: (1) Tax position benefits. (2) Granting of financing through advance payments. (3) Other...: quality of services or products, meeting performance schedules, efficiency in cost control (including need...

  16. Business analytics of specialized medical biochemistry laboratory using profit and loss acount

    Directory of Open Access Journals (Sweden)

    Vikica Buljanović

    2011-07-01

    Full Text Available Introduction. By measuring the actual effectiveness of a medical biochemistry laboratory’s business operations, we can determine the accounting measure of laboratory’s profitability, where operating expenses of the laboratory are covered by the income generated from the services. A laboratory’s financial report can be based on a profit and loss account, which shows whether or not a business entity, i.e., the laboratory, is making a profit during a particular business period. Methods. Profitability of the Specialized Medical Biochemical Laboratory (Laboratory of the General County Hospital in Našice, Croatia, was determined using the profit and loss account for 2007. Business success was expressed using the accounting measures of marginal contribution, gross income, and operating income, which could show whether or not the laboratory was operating profitably. This procedure allowed us to identify indicators of successful or unsuccessful business operations of the Laboratory. Results. According to the profit and loss account, the operating profit was 719,926 HRK, i.e., the operating margin was 11.7%, indicating that the Laboratory was operating positively. After subtracting all operating expenses per 100 income units, 11.7 units profit remained from the Laboratory’s core business. Conclusion. The Specialized Medical Biochemical Laboratory of the General County Hospital in Našice generated income, i.e., it operated at a profit. The purpose of profit and loss account was to determine the Laboratory operations that had impact on its business effectiveness and could increase the actual profitability. If the laboratory operates at a loss, and no activities are undertaken that would reverse the business toward positive, the analysis may provide information on the cost for the society as a whole of the studied laboratory within the existing healthcare system.

  17. China’s Emerging Tax Regime: Local Tax Farming and Central Tax Bureaucracy

    NARCIS (Netherlands)

    Z. Zhu (Ze); B. Krug (Barbara)

    2005-01-01

    textabstractChina like other transition economies needs to establish a tax system compatible with a market economy, in particular, an efficient tax administration system with capable tax bureaucrats. The paper singles out the general and China-specific features by which central government attempts

  18. Credits and Exemptions for Children. Tax Facts from the Tax Policy Center. Tax Notes[R

    Science.gov (United States)

    Maag, Elaine

    2009-01-01

    The Earned Income Tax Credit, Child Tax Credit (CTC), Additional Child Tax Credit (ACTC), and the dependent exemption all provide benefits to families with children. In 2009, a single mom (or dad) with two children can receive benefits ranging from $0 to about $7,500--depending on her income, age of the children, and where the children live. While…

  19. Amendments to the Law on Value Added Tax in Kosovo

    Directory of Open Access Journals (Sweden)

    Simeana Beshi

    2016-03-01

    Full Text Available Main purpose of this paper is to explore and analyze the objectives and effects of amendments in the Law on Value Added Tax (VAT as part of the new fiscal package in Kosovo. This paper is based on a quantitative analysis. Some of the methods used in this paperwork are: historical- , descriptive-, and comparative method. It relies on facts and researches conducted by international organizations, based on productive forces and on the development of economic capacities in general, also a comparative overview of the fiscal policies applied in different states. This paper presents also the challenges of Kosovo, towards EU, by harmonizing tax legislation, fiscal policy and combating tax evasion.

  20. Bribes and Business Tax Evasion

    Directory of Open Access Journals (Sweden)

    Joulfaian, David

    2009-12-01

    Full Text Available This paper investigates the role of governance, in particular bribes to tax officials, in shaping business tax compliance behavior in transition economies. The empirical results show that business noncompliance rises with the frequency of tax related bribes. More specifically, the findings from 27 economies suggest that tax evasion thrives when bribes to tax officials are commonplace. These findings are robust to a number of specifications that control for firm and country attributes as well as address the potential endogeneity of bribes.

  1. Impact of robotic operative efficiency on profitability.

    Science.gov (United States)

    Geller, Elizabeth J; Matthews, Catherine A

    2013-07-01

    We sought to determine the impact of robotic operative efficiency on profitability and assess the impact of secondary variables. Financial data were collected for all robotic cases performed for fiscal years 2010 (FY10) and 2011 (FY11) at University of North Carolina at Chapel Hill, and included 9 surgical subspecialties. Profitability was defined as a positive operating income. From July 2009 through June 2011, 1295 robotic cases were performed. Robotic surgery was profitable in both fiscal years, with an operating income of $386,735 in FY10 and $822,996 in FY11. In FY10, urogynecology and pediatric surgery were the only nonprofitable subspecialties. In FY11, all subspecialties were profitable. Profitability was associated with case time, payor mix, and procedure type (all P profitability regardless of surgical specialty. Copyright © 2013 Mosby, Inc. All rights reserved.

  2. Analyzing profit efficiency of banks in India with undesirable output – Nerlovian profit indicator approach

    Directory of Open Access Journals (Sweden)

    A.R. Jayaraman

    2014-12-01

    Full Text Available The objective of this paper is to provide a holistic approach to measure the profit efficiency of banks, factoring desirable/undesirable outputs, using Nerlovian profit indicator approach. The profit inefficiency of banks has been decomposed into technical and allocation inefficiency using directional distance function. Results reveal that profit inefficiency of banks is primarily due to allocative inefficiency and the impact of technical inefficiency on profit inefficiency is minimal compared to allocative inefficiency, which indicates that banks need to focus on optimal utilization of input–output mix to enhance profit efficiency.

  3. Tax Incentives to Businesses in the Areas of Special State Concern

    Directory of Open Access Journals (Sweden)

    Branimir Marković

    2013-07-01

    Full Text Available The legal and strategic framework for regional development in the Republic of Croatia, which includes the development of entrepreneurship, was established almost twenty years after Croatia had gained independence. Until then, less developed areas, i.e., areas with a special status in terms of certain reliefs and exemptions granted to citizens and economic entities had been supported through individual laws. Today, government authorities stimulate entrepreneurial activity through individual regulations in force, by corporate income tax exemptions. The state gives back corporate income tax (tax liability not subject to exemptions that taxpayers engaged in entrepreneurial activities had paid up to the state budget, to local self-government units as assistance from the state budget. By doing so, the government aims to reduce the gap between the developed and underdeveloped parts of the Republic of Croatia and encourage entrepreneurial activity in the smaller and less developed regions. The indicators of entrepreneurial activity in the area supported by the state: the number of enterprises, number of employees in an enterprise, the total revenue generated by entrepreneurial activities, profit and loss after tax and net operating profit/loss, provide insight into the performance of enterprises. In view of the above, the authors have analyzed the performance of enterprises entitled to tax relief in the areas of special state concern and provided an overview of financial resources (tax revenue which state authorities have waived to facilitate a more competitive business performance.

  4. The impact of a unilateral carbon tax on carbon-intensive industries: evidence from Norway

    Energy Technology Data Exchange (ETDEWEB)

    Golombek, R.

    1996-02-01

    This publication identifies the impact of a unilateral Norwegian carbon tax on the profitability and the exit probability in 12 carbon intensive manufacturing sectors. The study uses Norwegian panel data for manufacturing firms and focuses both on a tax on burning of fossil fuels and a tax on all emissions of carbon. It is demonstrated that for most carbon intensive sectors the impact on both profits and the exit probability of a tax on burning of fossil fuel is negligible or moderate. That is, the increase in the average sectorial exit probability is always less that one percentage point when the tax is 75 USD per tonne carbon dioxide. On the other hand, for sectors where carbon emissions are due to both burning of fossil fuels and the production process, the impact of a general tax on carbon dioxide (at 75 USD) is significant. In particular, in the manufacture of ferro alloys the average exit probability may increase by more than 15 percentage points. 15 refs., 11 figs., 8 tabs.

  5. The method of quality indicators evaluation for non-profit organizations activities

    Directory of Open Access Journals (Sweden)

    V. D. Zelikman

    2013-02-01

    Full Text Available Purpose. Development of evaluation method of quality indicators for non-profit organizations activities in existing domestic conditions. Methodology. To achieve the research purposes a comparative analysis of some existing methods which were suggested by famous foreign experts for evaluation of organizational development level of non-profit organizations was used. Findings. The system of indicators suggested by C. McNamara for organizational development level assessment of non-commercial organizations and its correspondence for existing conditions of non-profit organizations activities in Ukraine have been analyzed. The technique of A. Vakulenko for qualitative evaluation of Russian non-commercial organizations has also been considered which includes five blocks of parameters for evaluation of internal organizational environment factors according their influence for external organizational environment and support of this influence. The possibility of the designated parameters application applications for domestic non-profit organizations is determined. Based on the separated elements of considered methodic the method of quality indicators evaluation of activities effectiveness for non-profit organizations in Ukraine is developed. Originality. The adapted method of quality indicators evaluation for non-profit organizations activities based on an analysis of their assessing existing methods is offered. Practical value. Non-profit organizations activities require usage of the certain material and financial resources. It leads to the need of an objective evaluation of the activity effectiveness for the particular non-profit organization and therefore to development of that assessment methods.

  6. Profitable tail-end production

    Energy Technology Data Exchange (ETDEWEB)

    Pinchbeck, R.H.

    1997-12-31

    This presentation discusses the origins of the present challenge faced in making mature oil fields profitable in the North Sea. It briefly examines the origins of these challenges, which are rooted in the industrial psychology of the North Sea. It develops a methodological formula for the successful re-engineering of inefficiently-run assets, focusing in particular on the personnel management aspects. It identifies some key areas to seek sustainable cost reductions and recognises the importance of renewing the context for investment in tail-end fields. Finally, it speculates about the way in which the learnings developed in the experiences of the last few years will influence the future of the North Sea. 2 refs.

  7. Determinants of Effective Tax Rate of Companies in Latin America

    Directory of Open Access Journals (Sweden)

    Camila Freitas Sant’Ana

    2015-12-01

    Full Text Available The objective of this study was to identify the determining factors of the effective tax rate (ETR of companies of Latin America in the period 2009 to 2013. Descriptive study was conduct through documentary research, with a quantitative approach of the data. The sample was made up of 500 companies, being 45 of Argentina, 171 of Brazil, 108 of Chile, 38 of Colombia, and Mexico's 71 67 of Peru. Whose data were collected in the database of Thompson Reuters ® and analyzed by means of panel data regression through the software STATA ®, having as dependent variable the Effective tax rate (ETR and independent variables size (TAM capital intensity (INTCAP, the intensity of inventory (INTINV, leverage (ALAV and profitability on assets (ROA. The results show that the size of companies positively influence presents significant about the ETR of Colombian companies. Capital intensity (INTCAP and the intensity of inventory (INTINV were not meaningful to determine the influence of the ETR in the countries analyzed. The leverage of the Argentine companies reveals a positive influence on the ETR, while for the Colombian companies this influence was significant not significant and negatively to the other countries. Profitability resulted in a negative influence to the Mexican and Peruvian companies, and not significant for the other countries to determine the influence on ETR. Denotes that there are differences regarding the determinants of tax burden in Latin American countries, which encourages further studies

  8. Revisiting the debate on harmful tax competition in the European Union

    Directory of Open Access Journals (Sweden)

    Veronika Sobotková

    2012-01-01

    Full Text Available Globalization leads to economic benefits for some countries but may have also many serious negative side effects for others. The increased mobility of economic activities may result in a sharp increase in tax competition between countries. On the one hand, tax competition can have desirable consequences, such as more efficiency, but on the other side it may also have undesirable or harmful consequences, such as race to the bottom. Also, the increasing using of tax havens has resulted in erosion of many countries’ tax bases. From of the point of view, there is a need to revisiting the debate on tax competition and to answer whether the tax competition is beneficial or harmful. For this reason, this paper discusses the significance of tax competition in the European Union and deals with the position of tax competition in the European Single Market. This paper discusses an economic purpose of tax competition at currently European Single Market and discusses about harmful effects of tax competition. Based on the findings in this paper the following overall conclusion is drawn. The article makes clear that Member States have a need to protect their tax bases, especially in time of economic crisis, because the foreign direct investment flows might have negative consequences on the choice of tax revenues.

  9. Profitable use of bio fuels

    Energy Technology Data Exchange (ETDEWEB)

    Ekelund, Mats [Strateco Develoment AB, Vega (Sweden)], e-mail: mats.e@strateco.se

    2012-11-01

    Traditionally, the transportation industry has been opposed to any new legislation and when rather stringent emission legislation occurred, they objected just as they did when new fuels came on the agenda. On very short notice, Taxi Stockholm lost 20 % of their business when the County decided to award all public transportation contracts to a competitor. It was time to change plans instead of complaining and to take advantage of new opportunities - 'The first mover advantage'. Making the use of bio fuels into a profitable business takes a change of a standard 'business model' to do and there is still much room others to do the same. With a new CEO, an active marketing department and active individuals among the Board of Directors, Taxi Stockholm massaged a strategy where more business and private customers would be attracted by justifying the green leaf on every cab. All initiatives were publically announced and Taxi Stockholm broke new ice by putting a ban on spike tires - a decision which the vice Mayor made part of her ruling for the whole city. The Ban on gasoline and diesel cars were announced and such a statement attracted business from a loyalty point of view and from companies that had a 'Green Transport Policy' to live up to. Taxi Stockholm has seen growth and profitability grow since and credit the green policy on bio fuels such as bio gas and ethanol for most of it. Preem, Stockholm Transit, Volvo and other market driven operators have all seen markets grow from green initiatives.

  10. Businessmen´s tax evasions

    OpenAIRE

    Karásková, Veronika

    2011-01-01

    The main goal of this bachelor thesis is categorize businessmen's tax evasions at personal income tax and find out their portion on total tax evasions. In the first chapter I focus on tax avoidance and tax evasion, causes of tax evasion and his measurement. Next parts of this thesis focus on businessmen's tax evasion at personal income tax. In the second part I describe some very frequented cases of tax evasions revealed by revenue authorities. In the last part I analyse these tax evasions, c...

  11. The Persistence of Shocks to Profitability

    OpenAIRE

    Anita M McGahan; Porter, Michael E.

    1999-01-01

    In this study, we use data for 1981 through 1994 on a large sample of U.S. companies to examine the persistence of incremental industry, corporate-parent, and business-specific effects on profitability. Our results indicate that the incremental effects of industry on profitability persist longer than the incremental effects of the corporate parent and of the specific business. Changes in industry structure have a more persistent impact on profitability than do changes in firm structure. © 199...

  12. The Choice of For-Profit College

    OpenAIRE

    Chung, Anna

    2008-01-01

    In this paper I investigate whether students self-select into the US for-profit colleges or whether the choice of for-profit sector is accidental or due to the reasons external to the students (geographic exposure to for-profit providers, tuition pricing, or random circumstances). The main student-level data samples come from the National Education Longitudinal Study of 1988 (NELS:88) and the associated Postsecondary Education Transcript Study (PETS:2000). I estimate a multinomial logit of co...

  13. Farm profitability and Labour Use Efficiency

    OpenAIRE

    Amarender A, Reddy

    2013-01-01

    Appropriate choice of cropping systems to local agro-ecology increases profitability and employment. The increased labour shortage and reduced profitability are growing concerns to the farmers. Keeping this, the paper written with the following objectives: i) To assess the profitability among different cropping systems in the semi-arid tropics; ii) To assess the labour use pattern among different cropping systems and farm size; iii) To determine the resource use efficiency of the different cr...

  14. Responsible Investment: Taxes and Paradoxes

    Directory of Open Access Journals (Sweden)

    Knuutinen Reijo

    2017-12-01

    Full Text Available Taxes have become an issue of corporate social responsibility (CSR, but the role of taxation is to some extent an ambiguous and controversial issue in the CSR framework. Similarly, another unclear question is what role investors who are committed to sustainable and responsible investment (SRI see taxes as having on their environmental, social, and governance (ESG agenda. Corporate taxes have an inverse relationship with the return of the investors: taxes paid directly affect what is left on the bottom line, reducing the return of investors. However, investors are now more aware of tax-related risks, which can include different forms of reputation risk. Corporate tax planning may increase the returns, but those increased returns are riskier. This study focuses particularly on the relationship between SRI and taxation. We find that tax matters are considered to be on the ESG agenda, but their role and significance in the ESG analysis is unclear.

  15. Tax Responses in Platform Industries

    DEFF Research Database (Denmark)

    Kind, Hans Jarle; Köthenbürger, Marko; Schjelderup, Guttorm

    Two-sided platform firms serve distinct customer groups that are connected through interdependent demand, and include major businesses such as the media industry, banking, and the software industry. A well known result of tax incidence is that consumers of a more heavily taxed good pay a higher...... price and thus buy less of the good. The present paper shows that this result need not hold in a two-sided market. On the contrary, a higher ad valorem tax may lower end-user prices and spur sales. Thus, two-sided platform firms may not at all engage in tax shifting via price increases. We further show...... that a higher ad valorem tax may undermine a firm's incentive to differentiate its product from that of its competitors. Finally, we demonstrate that the effects of increasing specific taxes may be the opposite of those of increasing value added taxes....

  16. Theoretical Provision of Tax Transformation

    Directory of Open Access Journals (Sweden)

    Feofanova Iryna V.

    2016-05-01

    Full Text Available The article is aimed at defining the questions, giving answers to which is necessary for scientific substantiation of the tax transformation in Ukraine. The article analyzes the structural-logical relationships of the theories, providing substantiation of tax systems and transformation of them. Various views on the level of both the tax burden and the distribution of the tax burden between big and small business have been systematized. The issues that require theoretical substantiation when choosing a model of tax system have been identified. It is determined that shares of both indirect and direct taxes and their rates can be substantiated by calculations on the basis of statistical data. The results of the presented research can be used to develop the algorithm for theoretical substantiation of tax transformation

  17. Tax management on corporate restructuring activities in enterprises of Minas Gerais

    Directory of Open Access Journals (Sweden)

    Ricardo Vinícius Dias Jordão

    2016-09-01

    Full Text Available The objective of this paper was to investigate the use of corporate restructuring (CR practices as a tax management (TM strategy in Minas Gerais industrial companies. The research was carried out by means of a four comparative case study of qualitative and explanatory approach in industrial companies of Minas Gerais. Based on finance, accounting and taxes theories, it was concluded that the companies investigated have made CR processes, adopting corporate models different from those defined in its original organizational plans, doing it in a planned way aligned with the business strategy. It was possible to conclude that the tax planning consists of (i a means to reduce tax costs lawfully. It helps to maximize business performance, increasing competitiveness and sustainability thereof, and (ii consists in an important basis for the development of tax governance by adopting mechanisms to ensure compliance and promote the avoidance of taxes. Overall, it was found that (iii the effectiveness of these processes depends on a careful analysis of financial, legal, economic, financial, organizational and managerial aspects, and even if the tax planning through the CR (iv promoting the reduction, postponement and/or the elimination of tax costs, (v collaborating to increase in the TM efficiency and in the profits, (vi increasing thereby the value generation.

  18. Emissions trading and profit-neutral grandfathering

    Energy Technology Data Exchange (ETDEWEB)

    Hepburn, Cameron; Ritz, Robert; Quah, John (Oxford Univ., Smith School of Enterprise and the Environment, Oxford (United Kingdom))

    2008-07-01

    This paper examines the amount of grandfathering needed for an emissions trading scheme (ETS) to have a neutral impact on firm profits. We provide a simple formula to calculate profit-neutral grandfathering in an asymmetric Cournot model with a general demand function. Using this formula, we obtain estimates of profit-neutral grandfathering for the electricity, cement, newsprint and steel industries. Under the current EU ETS, firms obtain close to full grandfathering. We find no evidence that any industry as a whole could be worse off with full grandfathering. We also show that the common presumption that a higher rate of cost pass-through lowers profit-neutral grandfathering is unreliable

  19. Aspects Concerning Taxes in the Evaluation Perspective. Romanian Case

    Directory of Open Access Journals (Sweden)

    Alina Puțan

    2016-01-01

    Full Text Available The latest amendments in national legislation on aspects related to real estate tax assessmenthave created an entire debate among practitioners. So, conceived and structured on a complexissue, the paper intends to present some elements of accounting and taxation related to taxassessment respectively a case study representative of the theoretical part. The purpose ourresearch is part of establishing repercussions within the new legislation on taxes due to the state,and implicitly impact on the activity of economic entities.

  20. Congestion and tax competition in a parallel network

    OpenAIRE

    De Borger, Bruno; Proost, Stef; VAN DENDER, K.

    2003-01-01

    The purpose of this paper is to study tax competition on a parallel road network when different governments have tolling authority on the different links of the network. Reflecting many current situations in Europe, each link is used by both local and transit traffic; moreover, transit has a choice of route. Each government maximises the surplus of local users plus total tax revenues in controlling local and transit transport. Three types of tolling systems are considered: (i) toll discrimina...

  1. Featuring Tax Education in Non-accounting Curriculum: Survey Evidence

    OpenAIRE

    Mohd Amran Mahat; Lai Ming Ling

    2011-01-01

    Purpose –This paper aimed (i) to solicit undergraduates‟ opinions on tax education, and (ii) to identify undergraduates‟ preferences on taxation topics. Design/methodology/approach – The paper used a survey to collect data. Survey questionnaires were personally administered on 575 undergraduates from accounting and non-accounting faculties in one of the public universities in Malaysia. Findings – The findings revealed that more than 90% of the respondents perceived that tax education is impor...

  2. Specific Features of Functioning of the Corporate Tax Management

    National Research Council Canada - National Science Library

    Tkachyk Lesya P

    2013-01-01

    The article identifies and reveals the essence of functional elements of corporate tax management, which are tax planning, tax analysis, tax accounting and reporting, tax control and tax monitoring...

  3. Income Tax on Wages and Factors Affecting their Tax Evasion - the Case of Kosovo

    Directory of Open Access Journals (Sweden)

    Shkendije Demalijaj Ukaj

    2015-06-01

    Full Text Available This paper addresses the factors causing tax evasion on income from wages in Kosovo, who have contributed to revenue shortfall at a satisfactory level for government also affects the welfare of the employees when they will reach retirement age because Kosovo has organized pension system in a way that accounts for the Employed Individual pensions are means each pays and collects about themselves for retirement income. For this reason, the Employed who are not involved in the informal economy and do not shirk from income tax will have a strong base of income to increase their personal welfare but also the welfare of the country in general. To achieve this, this study was focused to answer the question: What are the factors that push businesses in Kosovo that their work activities to engage employed undeclared for tax purposes? Why Employers avoid taxes on wages even when the Employed are notifying the tax authorities? This paper will address exactly that, their deficiencies and Employed businesses and the problems they encounter. The basic method used is survey data and then are further processed and analyzed by descriptive statistical methods different charts. Also work builds on a theoretical analysis by developing a comparative analysis and descriptive.

  4. Evolution of Tax Evasion

    OpenAIRE

    Lipatov, Vilen

    2003-01-01

    In this paper we analyze a tax evasion game with taxpayer learning by imitation. If the authority commits to a fixed auditing probability, a positive share of cheating is obtained in equilibrium. This stands in contrast to the existing literature that yields full compliance of audited taxpayer who are rational, have a lot of information and thus do not need to interact. When the authority adjusts auditing probability every period, cycling in cheating-auditing occurs. Thus, t...

  5. Ecological tax reform

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    1996-12-31

    An environmental tax reform is seen by many as a possible solution to some crucial problems of modern society - pollution, excessive resource consumption and unemployment. Changes in the system of taxation are here seen as a long term process, one that must cheapen the costs of labour and make the costs of resource use more expensive - a process which can also create major changes in our society as to conceptions of quality, work, consumption etc. The conference presented proposals for an ecological tax and duty system that would contribute to: Changing technology so that it becomes more resource and energy effective. Changing the economic mechanisms so that resource consumption and pollution become more expensive while human resources become cheaper. Changing personal life styles and values so that material consumption becomes less decisive for our choices and priorities. An environmental tax reform is neither without problems nor painless. An economy and an industrial sector based on increasing consumption of energy and raw materials will, in the long run, lead to drawbacks that far outweigh those that are connected with an economic re-orientation whose driving force is another conception of nature. (EG)

  6. Tax Structure and Government Behavior: Implications for Tax Policy

    OpenAIRE

    Roger H. Gordon; Wilson, John D.

    1999-01-01

    Changes in tax policy can affect all aspects of the economy. Not only do firms and individuals change behavior, creating efficiency costs, but government expenditure choices can also change. Unless these expenditure choices had been optimal' previously, changes in response to a tax reform affect welfare and should be taken into account when designing tax policy. This paper develops a specific model of government behavior and then explores the implications of government, as well as private, be...

  7. Tax Progressivity, Income Distribution and Tax Non-Compliance

    OpenAIRE

    Tatiana Damjanovic; David Ulph

    2009-01-01

    This article examines the determinants of tax non-compliance when we recognise the existence of an imperfectly competitive "tax advice" industry supplying schemes which help taxpayers reduce their tax liability. We apply a traditional industrial organisation framework to model the behaviour of this industry. This tells us that an important factor determining the equilibrium price and hence, the level of noncompliance, is the convexity of the demand schedule. We show that in this context, this...

  8. The Tax Amnesty – Usage In Modern Tax Policy

    OpenAIRE

    Svetlana Gercheva

    2010-01-01

    In the article there ar e presented some important parameters of tax amnesty as a measure for enhancing not only collectability, but also the mutual trust between the revenue administration and taxpayers. There is an emphasis on the latest “wave” of tax amnesties around the world , provoked by the global crisis. There is traced the modest experience of Bulgaria and is made an attempt at assessing the applicability of tax amnesty in this country.

  9. Evolutionary Game Analysis of Government Regulation and Enterprise Emission from the Perspective of Environmental Tax

    Science.gov (United States)

    Mai, Yazong

    2017-12-01

    In the context of the upcoming implementation of the environmental tax policy, there is a need for a focus on the relationship between government regulation and corporate emissions. To achieve the real effect of environmental tax policy, government need to regulate the illegal emissions of enterprises. Based on the hypothesis of bounded rationality, this paper analyses the strategic set of government regulators and polluting enterprises in the implementation of environmental tax policy. By using the evolutionary game model, the utility function and payoff matrix of the both sides are constructed, and the evolutionary analysis and strategy adjustment of the environmental governance target and the actual profit of the stakeholders are carried out. Thus, the wrong behaviours could be corrected so that the equilibrium of the evolutionary system can be achieved gradually, which could also get the evolutionary stable strategies of the government and the polluting enterprises in the implementation of environmental tax policy.

  10. The user cost of energy resource and its reasonable tax rate-A case of oil

    Science.gov (United States)

    Lifan, Liu

    2017-12-01

    The development and use of natural resources bring about the externality of resources depletion, especially for non-renewable resources. This paper takes oil as an example to analyze the user cost of energy resource with EI Serafy User cost method, and discusses the rationality of the resource tax. Meanwhile, this paper determines oil resource tax rate in consideration of resource sustainable development. The results show that, the user cost of oil isn’t compensated fully, it is too low to make compensation to the environment and the profit of future generation, and the resource tax is a little low. At last of the paper, some conclusions and policy suggestions on resource tax reform are given.

  11. Education for Profit, Education for Freedom

    Science.gov (United States)

    Nussbaum, Martha C.

    2009-01-01

    Education is often discussed in low-level utilitarian terms: how can educators produce technically trained people who can hold onto "their" share of the global market? With the rush to profitability, values precious for the future of democracy are in danger of getting lost. The profit motive suggests to most concerned politicians that science and…

  12. Corporate Social Responsibility and Profit Maximizing Behaviour

    OpenAIRE

    Becchetti, Leonardo; Giallonardo, Luisa; Tessitore, Maria Elisabetta

    2005-01-01

    We examine the behavior of a profit maximizing monopolist in a horizontal differentiation model in which consumers differ in their degree of social responsibility (SR) and consumers SR is dynamically influenced by habit persistence. The model outlines parametric conditions under which (consumer driven) corporate social responsibility is an optimal choice compatible with profit maximizing behavior.

  13. Price Discrimination, Economies of Scale, and Profits.

    Science.gov (United States)

    Park, Donghyun

    2000-01-01

    Demonstrates that it is possible for economies of scale to induce a price-discriminating monopolist to sell in an unprofitable market where the average cost always exceeds the price. States that higher profits in the profitable market caused by economies of scale may exceed losses incurred in the unprofitable market. (CMK)

  14. Cooperation and profit allocation in distribution chains

    NARCIS (Netherlands)

    Guardiola, Luis A.; Meca, Ana; Timmer, Judith B.

    2007-01-01

    We study the coordination of actions and the allocation of profit in supply chains under decentralized control in which a single supplier supplies several retailers with goods for replenishment of stocks. The goal of the supplier and the retailers is to maximize their individual profits. Since the

  15. Risk Management And Organisational Profitability | Ukandu ...

    African Journals Online (AJOL)

    The level of growth and profit maximization in the oil industry has been impaired by a lot of risks. Risk control measures and effective plan are used to reduce the occurrence of such risks. Also, proper risk evaluation techniques are used to evaluate the cost implication of risk on production and the profitability level of such ...

  16. Will farm profits shift in 2013?

    OpenAIRE

    Nathan Kauffman

    2012-01-01

    Despite a severe drought, profits in the U.S. farm sector soared in 2012. Beginning in late June, U.S. crops and pastures wilted under one of the worst droughts in history. Although total farm incomes remained high, the drought exacerbated a widening gulf in profitability between the crop and livestock sectors.

  17. relating customer satisfaction to customer profitability

    African Journals Online (AJOL)

    PROF EKWUEME

    carried out by marketing scholars. This is not likely to advance marketing theory. After all, accounting to profitability lies at the heart of the marketing concept, Kohli & Jaworski (1990:1-18) and Narver and Slater (1990:35). Similarly, according to Buttle (1996) marketing's link to profitability is stressed in the definitions of.

  18. Determinants of Iranian bank profitability

    Directory of Open Access Journals (Sweden)

    Hassan Ghodrati

    2014-04-01

    Full Text Available Banks are the most important tool for preparing and supplying money in each country. In recent years, by institution of the new private banks and privatization of the governmental banks, banking competition has become very complex. This paper performs an empirical investigation to study the effects of different factors on return on assets and return on equities on 18 selected Iranian firms over the period 2002-2011. Using different regression models, the study studies the effects of total assets, debt ratio, etc. on return of assets (ROA and return on equities (ROE on selected eighteen Iranian banks as statistical community. The study considers total assets, ownership ratio, deposits to assets ratio, and loans to assets ratio as independent variables, and ROE and ROA as dependent variables. The results indicate that the private banks returns were better than governmental banks and the commercial banks’ returns were better than special banks. There is a reverse relationship between logarithm of total assets and ownership ratio with profitability based on return of assets.

  19. Profiting from innovative user communities

    DEFF Research Database (Denmark)

    Jeppesen, Lars Bo

    Modding - the modification of existing products by consumers - is increasingly exploited by manufacturers to enhance product development and sales. In the computer games industry modding has evolved into a development model in which users act as unpaid `complementors' to manufacturers' product pl......, a manufacturer can incorporate and commercialize the best complements found in the user communities. Keywords: innovation, modding, user communities, software platform, business model. JEL code(s): L21; L23; O31; O32...... platforms. This article explains how manufacturers can profit from their abilities to organize and facilitate a process of innovation by user communities and capture the value of the innovations produced in such communities. When managed strategically, two distinct, but not mutually exclusive business...... models appear from the production of user complements: firstly, a manufacturer can let the (free) user complements `drift' in the user communities, where they increase the value to consumers of owning the given platform and thus can be expected to generate increased platform sales, and secondly...

  20. Profitability Analysis of Soybean Oil Processes

    Directory of Open Access Journals (Sweden)

    Ming-Hsun Cheng

    2017-10-01

    Full Text Available Soybean oil production is the basic process for soybean applications. Cash flow analysis is used to estimate the profitability of a manufacturing venture. Besides capital investments, operating costs, and revenues, the interest rate is the factor to estimate the net present value (NPV, break-even points, and payback time; which are benchmarks for profitability evaluation. The positive NPV and reasonable payback time represent a profitable process, and provide an acceptable projection for real operating. Additionally, the capacity of the process is another critical factor. The extruding-expelling process and hexane extraction are the two typical approaches used in industry. When the capacities of annual oil production are larger than 12 and 173 million kg respectively, these two processes are profitable. The solvent free approach, known as enzyme assisted aqueous extraction process (EAEP, is profitable when the capacity is larger than 17 million kg of annual oil production.

  1. Profitability Analysis of Soybean Oil Processes.

    Science.gov (United States)

    Cheng, Ming-Hsun; Rosentrater, Kurt A

    2017-10-07

    Soybean oil production is the basic process for soybean applications. Cash flow analysis is used to estimate the profitability of a manufacturing venture. Besides capital investments, operating costs, and revenues, the interest rate is the factor to estimate the net present value (NPV), break-even points, and payback time; which are benchmarks for profitability evaluation. The positive NPV and reasonable payback time represent a profitable process, and provide an acceptable projection for real operating. Additionally, the capacity of the process is another critical factor. The extruding-expelling process and hexane extraction are the two typical approaches used in industry. When the capacities of annual oil production are larger than 12 and 173 million kg respectively, these two processes are profitable. The solvent free approach, known as enzyme assisted aqueous extraction process (EAEP), is profitable when the capacity is larger than 17 million kg of annual oil production.

  2. Slovenian income taxes and analysis of their tax expenditure in 2006-2010

    Directory of Open Access Journals (Sweden)

    Maja Klun

    2012-09-01

    Full Text Available Tax expenditure analyses have been an important element in the supervision of reform processes linked to implementing different kinds of tax incentive and the management of a correct tax policy. The paper provides an evaluation of tax expenditure in Slovenia relating to personal income tax and corporate income tax. Four consecutive tax years were selected for the calculation of the tax expenditure on personal income tax (2006-09, while three consecutive years were selected for the corporate income tax calculation (2008-10. The tax expenditure calculated for personal income tax was highest in 2006 and reached 5.2% of GDP. After several changes in personal income tax, expenditures decreased to around 3% of GDP in the following three years. The tax expenditure calculated for corporate income tax was much lower as compared to GDP than for personal income tax, reaching around 0.2% of GDP.

  3. MEASURING THE ELASTICITY OF THE LOCAL TELECOMMUNICATIONS TAX BASE WITH RESPECT TO THE TAX RATE

    National Research Council Canada - National Science Library

    Yonghong Wu; David Merriman

    2009-01-01

    .... They estimate the tax rate elasticity of the telecommunications tax base after instrumenting for own telecommunications tax rate. The statistical results suggest that the consumption of telecommunication services is initially fairly unresponsive to tax rate differentials.

  4. Tax Havens in the Offshore World

    Directory of Open Access Journals (Sweden)

    Sergiu-Bogdan Constantin

    2016-01-01

    Through taxation governments get money to fulfil their role in society. It plays a major role ininvestment decisions and can be also an innoportunity for taxpayers. Tax havens are tax free areasthat have the status of states and function legally. Their main business is to attract money bycreating taxpayers friendly environments and by total secrecy. Panama is the biggest USinfluencedtax haven. Tax evasion through tax havens is illegal and is the evading of declaringand paying taxes. Tax avoidance through tax havens is the legally avoiding of declaring andpaying taxes. Tax havens are not illegal but are immoral because vast amounts of money drainfrom the states around the world to them.

  5. Waste Tax 1987-1996

    DEFF Research Database (Denmark)

    Andersen, M. S.; Dengsøe, N.; Brendstrup, S.

    The report gives an ex-post evaluation of the Danish waste tax from 1987 to 1996. The evaluation shows that the waste tax has had a significant impact on the reductions in taxable waste. The tax has been decisive for the reduction in construction and demolition waste, while for the heavier fracti...... fractions under 'household waste', it has provided an important incentive for separate collection.......The report gives an ex-post evaluation of the Danish waste tax from 1987 to 1996. The evaluation shows that the waste tax has had a significant impact on the reductions in taxable waste. The tax has been decisive for the reduction in construction and demolition waste, while for the heavier...

  6. Alcohol Taxes and Birth Outcomes

    Directory of Open Access Journals (Sweden)

    Ning Zhang

    2010-04-01

    Full Text Available This study examines the relationships between alcohol taxation, drinking during pregnancy, and infant health. Merged data from the US Natality Detailed Files, as well as the Behavioral Risk Factor Surveillance System (1985–2002, data regarding state taxes on beer, wine, and liquor, a state- and year-fixed-effect reduced-form regression were used. Results indicate that a one-cent ($0.01 increase in beer taxes decreased the incidence of low-birth-weight by about 1–2 percentage points. The binge drinking participation tax elasticity is −2.5 for beer and wine taxes and −9 for liquor taxes. These results demonstrate the potential intergenerational impact of increasing alcohol taxes.

  7. 26 CFR 1.381(c)(11)-1 - Contributions to pension plan, employees' annuity plans, and stock bonus and profit-sharing plans.

    Science.gov (United States)

    2010-04-01

    ... 26 Internal Revenue 4 2010-04-01 2010-04-01 false Contributions to pension plan, employees... TAXES Insolvency Reorganizations § 1.381(c)(11)-1 Contributions to pension plan, employees' annuity... or transferor corporation in respect of any pension, annuity, stock bonus, or profit-sharing plan. (b...

  8. Empirical Study on Accounting and Tax Differences in the Case of an Economic Entity

    Directory of Open Access Journals (Sweden)

    Valeriu Laurenţiu Onose

    2015-04-01

    Full Text Available Often enough, the definitions in tax regulations are not unique, and they can differ even within the fiscal legislation from one title to another. Thus the accounting regulations define the net turnover tax code, but at the same time it brings different definitions of turnover in terms of added value. The turnover for professionals in accounting is an indicator used to represent the value and the synthetic of the achieved sales by an economic unit during a certain period or a business segment. Also the fiscal elements come to generate a new identity of the taxable result, totally different from the accounting result. There are found clear value differences between accounting and tax perspective on the outcome in terms of operating profit and expenses. These differences at the level of operating costs continue to affect key indicators of the structure of the profit account and loss until determining the gross profit, which differs in the accounting vision compared to the gross profit in the fiscal vision.

  9. Do governments tax agglomeration rents?

    OpenAIRE

    Koh, Hyun-Ju; Riedel, Nadine

    2010-01-01

    Using the German local business tax as a testing ground, we empirically investigate the impact of firm agglomeration on municipal tax setting behavior. The analysis exploits a rich data source on the population of German firms to construct detailed measures for the communities’ agglomeration characteristics. The findings indicate that urbanization and localization economies exert a positive impact on the jurisdictional tax rate choice which confirms predictions of the theoretical New Econom...

  10. Tax havens and financial markets

    OpenAIRE

    Solvoll, Sigurd Rognmo

    2012-01-01

    This thesis is about some of the effects and implications that tax havens have on our financial markets. It focuses on giving the reader a better understanding of the consequences that tax havens impose to our financial markets using the financial crisis that started in 2007 as an example. The first chapter has a brief introduction that lays the foundation of the thesis. The second chapter defines and explains many different types of tax havens that exist worldwide. The third part considers t...

  11. The politics of tax structure

    OpenAIRE

    Ganghof, Steffen

    2006-01-01

    Governments that wish to redistribute through budgetary policy do so mostly on the spending side, not on the taxation side of the budget. The taxation side is nevertheless important, partly because less efficient tax structures seem to be associated with lower taxation and spending levels. Hence political conflicts over spending levels may partly be fought as conflicts over tax structure. The paper provides a coherent perspective on the politics of tax structure. Specific topics include the (...

  12. Property Taxes and Elderly Mobility

    Science.gov (United States)

    Shan, Hui

    2009-01-01

    The 2000–05 housing market boom in the U.S. has caused sharp increases in residential property taxes. Housing-rich but income-poor elderly homeowners often complain about rising tax burdens, and anecdotal evidence suggests that some move to reduce their tax burden. There has been little systematic analysis, however, of the link between property tax levels and the mobility rate of elderly homeowners. This paper investigates this link using household-level panel data from the Health and Retirement Study (HRS) and a newly collected data set on state-provided property tax relief programs. These relief programs generate variation in effective property tax burdens that is not due solely to arguably endogenous local community choices about taxes and expenditure programs. The findings provide evidence suggesting that higher property taxes raise mobility among elderly homeowners. The point estimates from instrumental variable estimation using relief programs to generate instruments suggest that a $100 increase in annual property taxes is associated with a 0.73 percentage point increase in the two-year mobility rate for homeowners over the age of 50. This is an eight percent increase from the baseline two-year mobility rate of nine percent. These results are robust to alternative specifications. PMID:20161617

  13. Corrective Taxes and Cigarette Characteristics.

    Science.gov (United States)

    Calcott, Paul; Petkov, Vladimir

    2016-07-01

    If cigarette design was exogenous, inefficiencies arising from smoking could be addressed either with a tax per packet or with an ad valorem tax. However, it is well known that the consequences of these two instruments differ when product characteristics are endogenous. We consider three such characteristics: nicotine, tar, and flavor. Implementation of the first-best social optimum typically requires the capacity to tax or regulate harmful ingredients. Without such a capacity, the next-best policy often combines a per-unit tax on cigarettes with an ad valorem subsidy. Copyright © 2015 John Wiley & Sons, Ltd. Copyright © 2015 John Wiley & Sons, Ltd.

  14. Local Tax Competition in Poland?

    Directory of Open Access Journals (Sweden)

    Swianiewicz Paweł

    2016-09-01

    Full Text Available The concept of tax competition has been successfully applied in an analysis conducted in several European countries, but so far it has not been systematically tested either in Poland or in other countries of Central and Eastern Europe. There are two types of competition discussed in the article: classic competition for mobile tax base and ‘yardstick competition’, in which local politicians compete for political capital being related to the comparison of tax rates with neighbouring municipalities. It is expected that in Poland the ‘yardstick competition’ is more important from the classic competition for the mobile tax base.

  15. MUNICIPAL TAX HARMONIZATION; ECONOMIC ACTIVITIES

    Directory of Open Access Journals (Sweden)

    Belsy Tortolero

    2014-04-01

    Full Text Available This research work is a desk study to establish the technical and economic criteria that help to minimize double taxation at the municipal level of this tax in Venezuela, specifically for: industrial taxpayer, the taxpayer eventual merchant and / or walking, and to taxpayer service providers and implementers works on Hence the choice of the Tax Harmonisation Law of Municipal Public power in Article 162 of the Code, and the business tax. The methodology is based on the quantitative paradigm, with documentary research design, descriptive level - explanatory. Concluding that the criteria depend on the connecting factors set forth in the Law, and they are the same governing tax under study.

  16. Islamic Perspective on the Impact of Ethics and Tax for Nigerian Economic Development

    Directory of Open Access Journals (Sweden)

    Almustapha A. Aliyu

    2016-12-01

    Full Text Available The tax system, policies, and structures have been one of the significant factors that directly affect the social and economic activities of any nation. Despite the importance of tax, the attitude of the taxpayers, their reaction concerning tax, could in greater sense facilitate or draw back the policies and system from their original intention and purposes, particularly from an Islamic perspective. Islamic tax income is for the benefits of poor, needy and less privileged people in the society. Even though, policies on tax approved tax avoidance and made it legal, however, tax evasion is illegal in all society because it will deviate from its purpose. The most significant point, however, evading taxes by the people is viewed as unethical behaviour in any economy as the consequences could be greater to the economy and society. Several countries used Islamic system of tax because of the ethics of the system and possibly fewer evasions by the Muslims. Given that, with the number of the Nigerian Muslims, adoption of Islamic tax system will improve the revenue generation, and thereby enhance the economic development of Nigerian economy.

  17. Tax Risk Management Practices and their Impact on Tax Compliance Behaviour - The Views of Tax Executives from Large Australian Companies

    National Research Council Canada - National Science Library

    Catriona Lavermicocca

    2011-01-01

    ... and the ability to manage those tax risks. The views of tax managers on the impact of tax risk management practices on compliance behaviour are also discussed and used to identify issues requiring further research...

  18. Book-tax conformity in Polish private companies

    Directory of Open Access Journals (Sweden)

    Anna Białek-Jaworska

    2016-12-01

    Full Text Available The purpose of this paper is to identify whether financial income differs significantly from the tax base in Poland and what determines these differences between accounting and taxable results in Polish private entities that are not listed on the stock exchange. In this paper, besides examining the level of book-tax conformity in Poland, we investigate the determinants of book-tax differences in the one-book and twobook accounting systems, with deferred income tax. We use the single factor ANOVA variance analysis, robust fixed effects estimator and the fixed effects linear model with an AR(1 disturbance estimator for panel data of 26,657 private limited liability and non-public joint-stock companies for the period of 2003–2014 (177,667 firm-year observations. The originality of this paper results from the deep quantita-tive analysis of the determinants of book-tax conformity on a novel dataset of Polish private firms. We confirm a strong significant influence of tax law on the shape of the one-book accounting system in Poland. Larger enterprises show fewer book-tax differences. Book-tax conformity is lower in private companies that incur financial losses and in private companies conducting the one-book accounting system. Family-owned companies have higher mean and median book-tax conformity than businessgroups members, due to higher demand for information from their accounts to support stewardship func-tions and to monitor the activities of the management board in the business groups.

  19. 26 CFR 1.641(a)-1 - Imposition of tax; application of tax.

    Science.gov (United States)

    2010-04-01

    ... 26 Internal Revenue 8 2010-04-01 2010-04-01 false Imposition of tax; application of tax. 1.641(a... (CONTINUED) INCOME TAX (CONTINUED) INCOME TAXES Estates, Trusts, and Beneficiaries § 1.641(a)-1 Imposition of tax; application of tax. For taxable years beginning after December 31, 1970, section 641 prescribes...

  20. New high profitable wind turbines

    Energy Technology Data Exchange (ETDEWEB)

    Frankovic, Bernard [Rijeka Univ., Faculty of Engineering, Rijeka (Croatia); Vrsalovic, Ivan [Rijekaprojekt d.o.o., Rijeka (Croatia)

    2001-11-01

    To generate more quantities of electric energy from wind it is necessary to use a new type of wind turbine built in the regulable mantle's nozzle. This wind turbine type replaces the free air stream from wind by a programmed, i.e. regulated, and partially concentrated stream of air. The nozzle shell is designed as an aerodynamically shaped ring with wings with its lower pressure side pointed towards the centre so that the lift force on each part of the wing is directed radially towards the centre. This induces centrifugal reaction force in the airflow that causes the stream field to expand strongly downstream of the rotor and includes a greater number of streamlines in the active stream in front of the rotor (upstream). Thus the nozzle forces a higher mass flow rate of air through the turbine. The higher mass flow and higher velocity reduction behind the rotor result in a higher energy output from the wind turbine in the nozzle. In this way the wind turbine efficiency is multiplied. New turbines induce more power from weaker and medium winds and their lasting time, because of the relation p = f(v{sup 3}) (i.e. the power corresponds to wind velocity raised to third power). Wind turbine nozzle produces three times more energy than conventional wind turbine. Short economic analysis for conditions of the island of Lastovo indicates that profit gained by new turbines is up to five times higher than by conventional turbines. The new wind turbine nozzle should generate interest and demand on an international market, even for regions with weaker winds. (Author)

  1. Fuel Prices as a Factor of Shaping Profitability of Road Transport in Poland

    Directory of Open Access Journals (Sweden)

    Marzantowicz Łukasz

    2016-12-01

    Full Text Available The goal of this article is to determine the relation between the price of fuel and the profitability of the company. For this purpose, the article defines the profitability of transport enterprises and points the source of the impact of changes in fuel prices on the profitability of companies in the road transport sector. The case of the ABC transport company shows the relationship between the costs incurred for the purchase of fuel and the cost of transport activities. To test the theoretical assumptions, case study method was used.

  2. Partnerships for Community Benefit: Exploring Non-Profit Health Systems as Corporate Citizens in the Communities They Serve.

    OpenAIRE

    Jackson, Reginauld W.

    2012-01-01

    The introduction of the IRS Form 990 Schedule H and the 2010 Patient Protection and Affordable and Care Act (ACA) has challenged not-for-profit (NFP) health systems and hospitals to reassess the charitable practices that afford them tax-exemption. Many NFP health systems have been prompted to reexamine their roles, contributions, and impact in the communities they serve. These organizations have begun to explore alternative means to plan and strategically provide community benefit. As the ...

  3. Slovak Income Tax Legislation in Terms of EU Secondary Law Transposition

    Directory of Open Access Journals (Sweden)

    Krajčírová Renáta

    2016-12-01

    Full Text Available The article deals with the integration process of implementation of European Union secondary law into the Slovak tax legislation. In particular, the article analyses whether provisions of (i EU Parent Subsidiary Directive, (ii EU Interest and Royalty Directive and (iii EU Merger Directive are implemented into the Slovak Income Tax Act. Following our research, it should be noted that in general, the Slovak tax legislation has adopted the EU secondary law, in particular, the Parent Subsidiary and Interest and Royalty Directives have been implemented. It should be noted that the profit distributions are not subject to tax in Slovakia. It follows that interest and royalty are not subject to tax and is applicable to EU associated companies. Following the Slovak implementation of EU Merger Directive, merger transactions are generally treated as not giving rise to a capital gain. As a result, according to the Slovak Income Tax Act the income received by shareholders from acquiring new shares and income from exchange of the shares on merger transaction is not subject to income tax.

  4. Tax Tips for Forest Landowners for the 2000 Tax Year

    Science.gov (United States)

    Larry M. Bishop

    2000-01-01

    Here is some information to keep in mind when you prepare your 2000 Federal income tax return for the 2000 tax year. This discussion is necessarily brief, and you should consult other sources for a more comprehensive treatment of the issues. This information is current as of December 1, 2000 and supersedes Management Bulletin R8-MB 86.

  5. Tax Reforms in Nigeria: Case for Value Added Tax (VAT)

    African Journals Online (AJOL)

    Nneka Umera-Okeke

    realization that dependency on crude oil earning cannot sustain public expenditure. The economy faces the ... over dependency on oil revenue for the economic development of the country has left much to be deserved. .... Another dimension to theory of tax reforms is the optimal tax reform theory. Under this theory, it is ...

  6. Optimal Tax Depreciation under a Progressive Tax System

    NARCIS (Netherlands)

    Wielhouwer, J.L.; De Waegenaere, A.M.B.; Kort, P.M.

    2000-01-01

    The focus of this paper is on the effect of a progressive tax system on optimal tax depreciation. By using dynamic optimization we show that an optimal strategy exists, and we provide an analytical expression for the optimal depreciation charges. Depreciation charges initially decrease over time,

  7. Tax Reforms in Nigeria: Case for Value Added Tax (VAT)

    African Journals Online (AJOL)

    Nneka Umera-Okeke

    over dependency on oil revenue for the economic development of the country has left much to be deserved. ... growth results from the deliberately designed regimes that encourage compliance by all who should pay. .... Nigerian tax system and economic growth: A times analysis found that indirect tax. (VAT and CED) ...

  8. Tax Compliance Behaviour

    OpenAIRE

    ªtefura Gabriela

    2011-01-01

    To every state it is essential to ensure that the public budget copes with the public expenditure, in other words, to make sure that it collects sufficient revenues in order to have a stable economy. These revenues come especially from the collecting of taxes and fees. In order to have a functional fiscal system, it is important to understand both the fiscal component and the behaviour of its contributors. That is why the taxpayer behaviour has grown as a subject of research, in many fields b...

  9. Tax-tariff reform with costs of tax administration

    DEFF Research Database (Denmark)

    Munk, Knud Jørgen

    As is broadly recognized, the straightforward application of the Diamond-Mirrlees (1971) production efficiency theorem implies that when lump-sum taxation is not available, then it is optimal for the government in a small open economy to rely on taxes on the net demand of ouseholds rather than...... on border taxes to finance its resource requirements. However, the theorem does not hold when taxation is associated with administrative costs. The present paper explores the implications of taking into account the costs of tax administration for optimal taxation and for desirable directions of tax......-tariff reform in countries at different levels of economic development. The paper clarifies the reasons for, and lends support to, the criticism by Stiglitz (2003) of the IMF and the World Bank's recommendation to developing countries to adopt VAT to replace border taxes....

  10. Applying Emotional Intelligence Skills to Leadership and Decision Making in Non-Profit Organizations

    OpenAIRE

    James D. Hess; Arnold C. Bacigalupo

    2013-01-01

    Non-profit organizations and leaders may benefit from the utilization of behaviors attributed to emotional intelligence. The consideration of emotional intelligence skills becomes a strategy for the development of the non-profit organizational leader’s ability to assess the impact and consequences of decisions, while simultaneously improving the quality and effectiveness of the decision-making process. The purpose of this paper is to identify how emotional intelligence skills can be applied t...

  11. The Effect of Tax Rates and Tax Bases on Corporate Tax Revenues: Estimates with New Measures of the Corporate Tax Base

    OpenAIRE

    Laura Kawano; Joel Slemrod

    2012-01-01

    Several recent analyses have suggested that the revenue-maximizing corporate tax rate resides in the low-30's. We challenge this result by re-examining this relationship using a new compilation of changes in corporate tax base definitions for OECD countries between 1980 and 2004. By considering tax base changes in addition to tax rate changes, we can address the estimation bias that applies to tax rates absent their consideration. We find that the relationship between corporate tax rates and ...

  12. TAX EXPENDITURES IN THE DOMINICAN REPUBLIC

    OpenAIRE

    Glenn Jenkins; Chun-Yan Kuo

    2004-01-01

    This paper takes a broad approach in the sense that only the fundamental structure elements of each tax system are considered as part of the benchmark tax system. Moreover, this paper will go beyond the traditional tax expenditure reporting by taking into account an ideal tax system with minor distortions as part of the benchmark. Because of having an ideal tax system as a norm, the report makes some judgments about the appropriateness of the ideal tax structure in the Dominican Republic and ...

  13. METHODOLOGY OF THE TAX CONTROL IN ALBANIA

    OpenAIRE

    ALLA, Mikel

    2015-01-01

    The mission of the tax administration in Albania is to encourage and achieve the highest level of implementation and voluntary compliance of tax obligations. Also, the mission is to ensure the highest degree of public trust to the integrity and efficiency of the tax administration. Actually, the law "On Tax Procedures in RA" regulates the procedures for administering taxes and principles of organization and functioning of the tax administration in the Republic of Albania. The provis...

  14. Innovating the tax compliance management process

    Directory of Open Access Journals (Sweden)

    Dimitrijević Marina

    2014-01-01

    Full Text Available The taxpayers' observance of tax legislation (tax compliance is important for every tax authority. This issue is particularly relevant in the contemporary circumstances when the application of tax laws occurs within a complex and ever-changing environment. Despite the differences underlying national tax policies, tax legislations, tax administration and tax moral, the primary goal of taxation remains the same: taxes should be collected in accordance with the law in order to provide for building and preserving the taxpayers' confidence in the tax system and its effective administration. Consequently, the activities of tax authorities in tax procedure should promote a high degree of voluntary tax compliance and lead to minimizing the occurrence of various forms of non­compliance. There is a wide range of diverse factors underlying tax compliance. The understanding of these factors enables tax authorities to establish the particular reasons for non-compliance and to devise specific activities and measures which will be an incentive for taxpayers to revert to tax compliance. These goals may be accomplished through the process of tax compliance management. Tax compliance management is a structured and systematic process of monitoring the taxpayers' compliance, which also includes decisions on the essential elements for the development of tax compliance and the treatment of identified tax compliance risks. The innovations in this process are aimed at: establishing the adequate balance and framework for the evaluation of activities and measures concerning tax law and tax procedures; improving information transparency and taxpayers' education; establishing tax control; and instituting adequate legal proceedings in response to non-compliance. These activities are expected to contribute to a more successful application of tax laws in the future.

  15. Seignorage and Capital Taxation: Tax Competition Revisited

    OpenAIRE

    Miltiadis Makris

    2006-01-01

    We re-examine the standard view that capital taxes are too low when capital is mobile across tax jurisdictions. We do so by emphasising a previously neglected implication of non-cooperative capital tax setting in a world with national currencies. Namely, capital taxes also affect foreign seignorage. This horizontal externality may lead, ceteris paribus, to too high national capital taxes, and may more than o set the usual effects of tax competition. In this case, and contrary to conventional ...

  16. The Gains from Preferential Tax Regimes Reconsidered

    OpenAIRE

    Gaigné, Carl; Wooton, Ian

    2010-01-01

    The EU policy against harmful tax competition aims at eliminating tax policies targeted at attracting the internationally mobile tax base. We examine this issue by considering two countries which decide their corporate tax rates their tax regimes (discriminatory or non-discriminatory tax policy). Firms produce under imperfect competition and trade between countries is costly. The endogenous spatial allocation of mobile firms depends upon different parameters of the economy while the distribut...

  17. Tax Policy From a Public Choice Perspective

    OpenAIRE

    Randall G. Holcombe

    1998-01-01

    Tax policy is a product of politics, so a complete understanding of tax policy requires an explicit recognition of the political environment within which tax policy is made. The paper emphasizes the concept of political costs associated with the tax system and discusses several aspects of tax policy using a public choice approach. The paper argues that the political costs associated with taxation can be minimized by embedding the tax system within a relatively inflexible fiscal constitution. ...

  18. The Sugar Tax in Holland

    NARCIS (Netherlands)

    Ajjaji, Fadoua

    2016-01-01

    This inquiry supports the theory of a sugar tax has a positive influence on the sugar consumption of Dutch individuals. Once a tax is implemented, the sugar consumption declines. Furthermore, this study supported the hypothesis claiming that children have a positive influence on their parental sugar

  19. Tax rates as strategic substitutes

    NARCIS (Netherlands)

    H. Vrijburg (Hendrik); R.A. de Mooij (Ruud)

    2016-01-01

    textabstractThis paper analytically derives conditions under which the slope of the tax-reaction function is negative in a classical tax competition model. If countries maximize welfare, a negative slope (reflecting strategic substitutability) occurs under relatively mild conditions. The strategic

  20. The Tax Break's Double Bind.

    Science.gov (United States)

    Milner, Jeffrey L.; And Others

    1990-01-01

    Stimulating economic activity by offering tax abatements can deprive schools of tax revenues for years while enrollment is increasing. Taking action forestalled a substantial loss of revenue for the Twinsburg City Schools in Ohio. Offers advice to boards facing a similar circumstance and suggests ways school boards can be involved in enterprise…

  1. Tax Expenditures for the Elderly.

    Science.gov (United States)

    Nelson, Gary M.

    1983-01-01

    Examines federal tax expenditures or subsidies directed toward enhancing the retirement income of the elderly. Charges that such expenditures annually target benefits to the wealthiest segment of the elderly population. Examines equity issues and recommends that these tax expenditures be examined on a case-to-case basis. (JAC)

  2. Green tax reform in Denmark

    DEFF Research Database (Denmark)

    Andersen, Mikael Skou

    1994-01-01

    Energy, transport and fuel taxes in Denmark have, since the late 1970s, been among the highest in the OECD, and raise already more than 30 billion DKK annually to cover 10-12 per cent of the state household: a share that will be increased over the next five years with new green taxes. Furthermore...

  3. Tax incentives in fiscal federalism

    DEFF Research Database (Denmark)

    Kelders, Christian; Köthenbürger, Marko

    2010-01-01

    Models of fiscal federalism rarely account for the efficiency implications of intergovernmental fiscal ties for federal tax policy. This paper shows that fiscal institutions such that federal tax deductibility, vertical revenue-sharing, and fiscal equalization (being common features of existing f...

  4. A choice experiment on tax: Are income and consumption taxes equivalent?

    OpenAIRE

    Kurokawa, Hirofumi; MORI Tomoharu; OHTAKE, Fumio

    2016-01-01

    We test the equivalence of income and consumption taxes through a choice experiment. Under a given set of income and consumption parameters, subjects were asked to choose among an income tax of 20%, a consumption tax of 25% (which is an equivalent tax burden), a consumption tax of 22%, and a consumption tax of 20%. Our results showed that subjects prefer income tax to consumption tax when the nominal consumption tax rate is higher than the nominal income tax rate. However, subjects tend to pr...

  5. Sin taxes in the Czech Republic

    OpenAIRE

    Mouček, Jan

    2012-01-01

    This paper is concerning taxes on so called sin goods. Consumption of these goods is believed to be wrong, its consumption have its negative effects on either the consumer or others. Such taxes are called excise taxes. In particular we focus this paper on tax incidence, the effect of these taxes on price of taxed goods. In economic literature concerning excise taxes it is usually presumed that the price rises by the same amount that the tax. If this presumption was false, it might have signif...

  6. Tax cooperation among member states of European Union and Directive on administrative cooperation in the field of taxation

    Directory of Open Access Journals (Sweden)

    Josimovski Aleksandar G.

    2013-01-01

    Full Text Available Countries have possibility to choose between several alternatives for cooperation in international tax matters at global level. They can decide not to cooperate or provide some form of tax cooperation. Because of harmful tax competition among countries and efforts of international organizations, all countries in the world are oblidged to comply with one of multiple alternatives for tax cooperation. Situation in European Union (hereinafter EU is specific. EU is not country or classic international organization. By the reason of its successful functioning, EU has need for tax cooperation. EU has attempted to harmonise tax policies of member states, but member states did not approve that. Only indirect taxes are harmonized on EU level, direct taxes are harmonized only to the point necessarily for functioning of single market. That is why tax cooperation instruments are so important. Object of this paper are procedures and measures, stipulated by the most important instrument in the field of tax cooperation enacted by institutions of EU, its development and status in international tax law. Regulatives and directives in field of tax cooperation in the EU are 'pioneers' in tax matters. EU instruments provide standards which are subsequently accepted by several international organizations - Organisation for Economic Co-operation and Development (OECD and United Nations (UN. Our purpose is to present positive and negative aspects of tax cooperation in the EU. In time of crisis efficient tax cooperation provides higher revenues for the member states, on the other hand, taxpayers and tax administrations have increased expenses as result of tax cooperation which are not fairly distributed.

  7. Tax me if you can

    DEFF Research Database (Denmark)

    Jacobsen, Catrine; Piovesan, Marco

    In this paper, we test whether increased salience of a tax charge increases dishonesty using a version of the die-under-cup paradigm. Participants earn money in proportion to the outcome reported and, thus, have an incentive to over-report. We find a significant increase in high outcomes in the p......In this paper, we test whether increased salience of a tax charge increases dishonesty using a version of the die-under-cup paradigm. Participants earn money in proportion to the outcome reported and, thus, have an incentive to over-report. We find a significant increase in high outcomes...... in the presence of a tax frame suggesting that participants use the tax as an excuse to rationalize their dishonest act. In addition, we tested whether adding an explanation for the adoption of the tax would increase honesty. We find evidence for reversed dishonesty with participants reporting significantly more...

  8. Tax me if you can

    DEFF Research Database (Denmark)

    Jacobsen, Catrine; Piovesan, Marco

    2016-01-01

    In this paper, we test whether increased salience of a tax charge increases dishonesty using a version of the die-under-cup paradigm. Participants earn money in proportion to the outcome reported and, thus, have an incentive to over-report. We find a significant increase in high outcomes in the p......In this paper, we test whether increased salience of a tax charge increases dishonesty using a version of the die-under-cup paradigm. Participants earn money in proportion to the outcome reported and, thus, have an incentive to over-report. We find a significant increase in high outcomes...... in the presence of a tax frame suggesting that participants use the tax as an excuse to rationalize their dishonest act. In addition, we tested whether adding an explanation for the adoption of the tax would increase honesty. We find evidence for reversed dishonesty with participants reporting significantly more...

  9. Electronic Commerce: A Taxing Dilemma

    Directory of Open Access Journals (Sweden)

    Steven John Simon

    2002-01-01

    Full Text Available In the last five years, remote selling-led by online organizations - has surged. The resulting growth has created concern among both traditional and remote sellers as they jockey for improved competitive position and governmental entities, in particular US states, over the erosion of their tax revenues as sales are diverted to remote sellers. This paper explores the issues and potential solutions surrounding the e-commerce tax dilemma. It provides a current assessment of the taxation environment for individuals and organizations impacted by the tax debate. Those individuals and organizations might include online business customers, remote sellers both traditional (mail order and online, tax equity organizations, and governmental bodies. Current tax obligations are explored based on landmark legal decisions. Potential short and long -term solutions are assessed.

  10. Donations and Differentiation: Three Essays on Non-Profit Strategy

    OpenAIRE

    Wolfolds, Sarah

    2016-01-01

    Given increased competition with for-profit firms, the issue of the comparative advantage of non-profit organizations is renewed. While non-profits may want to differentiate themselves when faced with additional non-profit competition, it is unclear whether they would want to differentiate themselves or converge towards for-profit competitors. This paper addresses this issue by considering the different financing models, human resource systems, and objectives of non-profit organizations, as c...

  11. Social media and small non profit organisations

    OpenAIRE

    Gulyás, A.

    2016-01-01

    This project sought to explore patterns of and views about social media adoption among small non-profit organisations and to identify mechanisms that could effectively support these organisations with their social media use. \\ud The following findings emerged from the study: \\ud • Social media are now part of the organisational infrastructure of small non-profits and the main ways in which they communicate with the public\\ud • Key variables that influence social media adoption among small non...

  12. Inclusive governance in non-profit organisations

    OpenAIRE

    Borzaga, Carlo; Sacchetti, Silvia

    2015-01-01

    The study of private non-profit enterprises that offer general interest services is only at the start. The understanding of existing organisations resists an inclusive, public interest view of governance. This contribution aims at providing a reflection on specific features that non-profit enterprises should have, and outlines four main justifications for including stakeholders in production governance: 1) access to knowledge and other resources, 2) trust creation, 3) internal efficiency, 4) ...

  13. DETERMINANTS OF BANK PROFITABILITY IN CROATIA

    OpenAIRE

    Ana Kundid; Blanka Škrabić; Roberto Ercegovac

    2011-01-01

    The research objective of this study is twofold. It aims to provide a synthesis of relevant empirical researches on the determinants of commercial banks’ profitability and to establish empirical verification of profitability determinants of banks in the Republic of Croatia using an econometric method of dynamic panel analysis. The empirical analysis is carried out on a data sample of 28 commercial banks in the period 2003-2008 which continuously refers to more than 95 % of assets of the overa...

  14. Determinants of commercial bank profitability in Mexico

    OpenAIRE

    Chavarín, Rubén

    2015-01-01

    The aim of the present work is to identify the main determinants of profitability for commercial banks established in Mexico. A data base of 45 banks representing virtually the whole world of commercial banking in the period 2007-2013 was used. Dynamic models using Arellano-Bover/Blundell-Bond estimators with an error that follows an MA(1) process were employed along with static models having random effects and Hausman-Taylor estimator. Findings suggest that the profitability of commercial ba...

  15. Energy Conflicts and Differential Profits: An Update

    OpenAIRE

    Bichler, Shimshon; Nitzan, Jonathan

    2014-01-01

    During the late 1980s and early 1990s, we identified a new phenomenon that we called ‘energy conflicts’ and showed that these conflicts were intimately linked to the differential profitability of the leading oil companies. This link remains as true today as it was in the early 1970s. Like earlier energy conflicts, the ‘Arab Spring’, the outsourced wars that followed and the third Gulf War against ISIS continue to march to the drum beat of differential profits.

  16. Municipalities as the subjects of tax administration in the Republic of Lithuania.

    Directory of Open Access Journals (Sweden)

    Bronius Sudavicius

    2017-01-01

    Full Text Available УДК 342.5+347.73The subject. Article deals with problem of the participation of the municipalities in tax administration in the Republic of Lithuania.The purpose of the article is clarify how municipalities may participate in tax administration in the Republic of LithuaniaThe methodology of the research includes the analysis of Constitution and legislation of Republic of Lithuania, system analysis, logical-analytical method.Results, scope of it’s application. The existence of a unified state tax system, does not mean that the administrative-territorial unit (municipality do not possess certain powers upon the introduction of taxes and (or in the regulation of their collection. So, municipalities obtain part of the revenue by taxes, which rates are established by the councils of municipalities, not exceeding statutory dimensions, etc. Participation of municipalities in tax administration bases on the provisions of the Constitution on the law of the administrative territorial units to self-government and to have their own budget.Elements of centralization and decentralization, based on the recognition of the single state tax system, are combined in Lithuania in the determination of tax competence.The tax legislation of the Republic of Lithuania almost does not provide for local governments to participate in the tax collection process or in monitoring their collection.Tax laws provide the right to local authorities to refine (adjust the individual elements of taxes, although the establishment of these elements remain the exclusive right of bodies of the state (central authorities. Besides, local authorities have the right to establishment and the provision of common and individual tax benefits, the right to use the incomes received in the form of taxes, etc.Conclusions. Local authorities are involved in the process of tax regulation and possess a certain autonomy in this area – the Council of the municipality has the right to adjust tax

  17. Fractal profit landscape of the stock market.

    Science.gov (United States)

    Grönlund, Andreas; Yi, Il Gu; Kim, Beom Jun

    2012-01-01

    We investigate the structure of the profit landscape obtained from the most basic, fluctuation based, trading strategy applied for the daily stock price data. The strategy is parameterized by only two variables, p and q Stocks are sold and bought if the log return is bigger than p and less than -q, respectively. Repetition of this simple strategy for a long time gives the profit defined in the underlying two-dimensional parameter space of p and q. It is revealed that the local maxima in the profit landscape are spread in the form of a fractal structure. The fractal structure implies that successful strategies are not localized to any region of the profit landscape and are neither spaced evenly throughout the profit landscape, which makes the optimization notoriously hard and hypersensitive for partial or limited information. The concrete implication of this property is demonstrated by showing that optimization of one stock for future values or other stocks renders worse profit than a strategy that ignores fluctuations, i.e., a long-term buy-and-hold strategy.

  18. TURKISH BANKING SECTOR’S PROFITABILITY FACTORS

    Directory of Open Access Journals (Sweden)

    Songül Kakilli ACARAVCI

    2013-01-01

    Full Text Available Profitability of banking sector is the most important instrument of financial system for the future of the economy. The objective of this study is to determine by using Johansen and Juselius cointegration test approach of the bank specific and macroeconomic factors that affect the profitability of commercial banks in Turkish banking sector. In study, the data are collected from the three biggest state-owned, privately-owned and foreign banks. The sample period spans from 1998 to 2011. In the study, return of asset, return of equity and net interest margin were used as proxy for profitability of banks. The bank specific determinants, which were thought to have effects on profitability are total credits/total assets, total deposits/total assets, total liquid assets/total assets, total wage and commission incomes/ total assets, total wage and commission expenses/total assets, the logarithm of total assets and total equity/total assets. The macroeconomic determinants of study are real gross domestic product, inflation rate, real exchange rate and real interest rate. Empirical findings suggest that the bank specific determinants have been more effect than macroeconomic factors on profitability of the banks. The reel gross domestic product and real exchange rate have been effective on the profitability. In addition, the 2001 economic crisis has a negative effect on all Turkish Banking sector.

  19. Energy taxes, resource taxes and quantity rationing for climate protection

    Energy Technology Data Exchange (ETDEWEB)

    Eisenack, Klaus [Oldenburg Univ. (Germany). Dept. of Economics; Edenhofer, Ottmar; Kalkuhl, Matthias [Potsdam-Institut fuer Klimafolgenforschung e.V., Potsdam (Germany)

    2010-11-15

    Economic sectors react strategically to climate policy, aiming at a re-distribution of rents. Established analysis suggests a Pigouvian emission tax as efficient instrument, but also recommends factor input or output taxes under specific conditions. However, existing studies leave it open whether output taxes, input taxes or input rationing perform better, and at best only touch their distributional consequences. When emissions correspond to extracted ressources, it is questionable whether taxes are effective at all. We determine the effectiveness, efficiency and functional income distribution for these instruments in the energy and resource sector, based on a game theoretic growth model with explicit factor markets and policy instruments. Market equilibrium depends on a government that acts as a Stackelberg leader with a climate protection goal. We find that resource taxes and cumulative resource quantity rationing achieve this objective efficiently. Energy taxation is only second best. Mitigation generates a substantial ''climate rent'' in the resource sector that can be converted to transfer incomes by taxes. (orig.)

  20. Financial sector taxation: Financial activities tax or financial transaction tax?

    Directory of Open Access Journals (Sweden)

    Danuše Nerudová

    2011-01-01

    Full Text Available The recent financial crises has revealed the need to improve and ensure the stability of the financial sector to reduce negative externalities, to ensure fair and substantial contribution of the financial sector to the public finances and the need to consolidate public finance. All those needs represent substantial arguments for the discussion about the introduction of financial sector taxation. There are discussed in the paper two possible schemes of financial sector taxation – financial transaction tax and financial activities tax. The aim of the paper is to research the possibility of the introduction of financial sector taxation, to discuss the pros and cons of two major candidates on financial sector taxation – financial transaction tax and financial activities tax and to suggest the possible candidate suitable for the implementation on the EU level. Financial transaction tax represents the tool suitable mainly on global level, for only in that case enables generate sufficient financial resources. From EU point of view is considered as less suitable, for it bears the risk of reallocation. Therefore the introduction of financial activities tax on EU level is considered as a better solution for the financial sector taxation in the EU, for financial sector is exempted from value added tax. With respect to the fact, that the implementation would represent the innovative approach to the financial sector taxation, there are no empirical proves and therefore this could be the subject of further research.