Corporate value added tax avoidance

2021 ◽  
pp. 1-25
Author(s):  
Junsheng Zhang ◽  
Zheng Huo ◽  
Yamin Zeng ◽  
Xiaojian Tang ◽  
Oliver M. Rui
Keyword(s):  
Tax Avoidance ◽  
Value Added ◽  
Corporate Value ◽  
Value Added Tax

scholarly journals Tax avoidance: the aspect of value added tax

2020 ◽  
Vol 8 (2) ◽  
pp. 590-605
Author(s):  
Egidijus Bikas ◽  
Greta Bagdonaitė
Keyword(s):  
Tax Avoidance ◽  
Value Added ◽  
Value Added Tax

TAX FRAUD PHENOME: QUALIFICATION DUE TO CRIMINAL LAW IN FIELD OF VAT

2016 ◽  
Vol 3 (76) ◽  
pp. 29
Author(s):  
Ļubova Švecova
Keyword(s):  
Present Article ◽  
Criminal Law ◽  
Tax Evasion ◽  
Negative Impact ◽  
Tax Avoidance ◽  
Value Added ◽  
Value Added Tax ◽  
Law System ◽  
Tax Fraud ◽  
The Law

In the present article the author has considered in a concentrated form the essence of the tax fraud phenomenon, the responsibility for which is determined by the legislation, both in administrative and criminal order – in accordance with 218 (tax avoidance) and 177 (fraud) acts. The aim of the present research is to consider the problems of tax violation, to systematize the issues related to the qualification of criminal acts in the area of taxation at establishing the fact of fraud with value added tax. The author systematized the elements of criminal acts’ compounds - fraud and tax evasion, the importance of the aspect of separating fictitious and real transactions during their classification, as well as addressed issues related to the offense ascertaining at the stage of its ending, in case of fraud with value added tax. There have been no previous investigations found on researching the phenomenon of tax fraud in Latvia through the prism of analysis of prevalence cause, types on manifestation of the phenomenon and ways of preventing and dealing with it. While researching the phenomenon of tax fraud, the author intends to examine the problem in greater details. The main conclusion, which relates to fraud with value added tax, is the fact that the Law system on Value Added Tax itself enables the unfair taxpayer to commit fraud. The lack of clear approach and criteria for the qualification of tax fraud has a negative impact on the effectiveness of preventing and dealing with this criminal act.

scholarly journals A comparative analysis of VAT grouping schemes from a Nordic perspective—aspects of tax avoidance and fiscal competition

2017 ◽  
Vol 2017 (1) ◽  
pp. 1-25
Author(s):  
Karina Kim Egholm Elgaard
Keyword(s):  
Comparative Analysis ◽  
Tax Avoidance ◽  
Value Added ◽  
Fiscal Competition ◽  
Value Added Tax ◽  
Eu Member States ◽  
Original Intention ◽  
Main Emphasis ◽  
Specific Tax ◽  
The Eu

Abstract Value-added tax (VAT) grouping schemes, whereby several legally independent entities are treated as a single taxable person for VAT purposes, are well known, though their detailed rules differ from country to country. This article deals with specific tax avoidance and fiscal competition aspects of VAT grouping schemes in Denmark, Norway, and Sweden. The article gives examples of tax abuse and avoidance by using various VAT grouping models, with the main emphasis on the practice in Denmark, which may be indicative of similar problems in other countries. The article shows that there are significant differences in the rationales for national VAT grouping schemes, and these indicate that there are mismatches between the national schemes of the EU Member States and the original intention of the EU scheme. Finally, an examination of the different national rationales shows the necessity of striking a balance between combating tax avoidance and preventing distortion of competition.

scholarly journals The Effects of the RCS’s Application in the Value Added Tax Collecting Process on the Perception of SME Taxpayer in Korea’s Trade Activity: Transparency and Fairness in Trade

2018 ◽  
Vol 10 (11) ◽  
pp. 4132 ◽  
Author(s):  
Sung Yoon
Keyword(s):  
Bargaining Power ◽  
Small And Medium Enterprises ◽  
Tax Avoidance ◽  
Value Added ◽  
Positive Influence ◽  
Policy Implications ◽  
Steel Scrap ◽  
Value Added Tax ◽  
Charge System ◽  
Medium Enterprises

Value Added Tax (VAT) is the largest source of global tax revenue. However, it faces issues of tax avoidance, such as the black-market and missing trader intra-community fraud. Many studies have postulated that the introduction of the Reverse Charge System (RCS) will contribute to the enhancement of transparency and fairness in trade for small and medium enterprises (SMEs) that supply goods or provide services. This study analyzes SME taxpayers’ perception of transparency and fairness in trade resulting from the introduction of the RCS into the South Korean VAT system. In B2B transactions that handle gold, copper, and steel scrap, large companies often abuse their bargaining power over smaller firms by not paying VAT with their purchase or reducing the prices to equal VAT, leading to low trade transparency. When it comes to gold, copper and steel scrap trading, the imbalance in bargaining power results in one of the parties being unable to reap maximum benefits because of unfairness. SMEs with relatively weak bargaining power suffer from unfair trading practices such as price cutting and the imposition of VAT by their counterparts. Since the introduction of the RCS, however, SME taxpayers appear to believe that trade fairness has improved. This study’s findings reveal that SMEs are more likely to perceive improvement in trade transparency and fairness since the implementation of the RCS, indicating that the RCS has exerted a positive influence on SMEs. This study provides important policy implications for countries that intend to implement the RCS by offering empirical evidence of its benefits.

scholarly journals Value-Added Taxes, Chain Effects, and Informality

2010 ◽  
Vol 2 (4) ◽  
pp. 195-221 ◽  
Author(s):  
Áureo de Paula ◽  
José A Scheinkman
Keyword(s):  
Equilibrium Model ◽  
Tax Avoidance ◽  
Value Added ◽  
Single Stage ◽  
Value Added Tax ◽  
Empirical Measures ◽  
Production Stage

We present an equilibrium model of tax avoidance and test its implications using a survey of firms in Brazil. In the model, the credit method used to collect value-added tax (VAT) creates informality chains—clients or suppliers of informal firms are more likely to be informal. An increase in enforcement in a production stage increases formality downstream and upstream. Various empirical measures of formality of suppliers and buyers, and of enforcement downstream and upstream, are positively correlated with formality. When the VAT is applied in a single stage of production at a rate estimated by the authorities, these chain effects disappear. (JEL H25, H26, L14, L21, O14, O17)

Collection of Value Added Tax in Kosovo and Its Effect on Economic Growth

2017 ◽  
Vol 8 (1) ◽  
pp. 225
Author(s):  
Teki Shala
Keyword(s):  
Economic Growth ◽  
Descriptive Analysis ◽  
Value Added ◽  
Analytical Techniques ◽  
Value Added Tax ◽  
Statistical Tool ◽  
Revenue Collection ◽  
Strong Positive Relationship ◽  
Level Of Economic Development ◽  
Level Of Significance

The revenue collected from the value added tax constitutes the main income of the Kosovo government. For this reason, this research has a great importance in the formulation of effective policies in Kosovo that will subsequently improve the efficiency of tax collection of Value Added and growing fiscal and budgetary stability. This research it will have a descriptive analysis of the trends of VAT collection in Kosovo from 2005- 2015 years using different analytical techniques to examine trends and data structure over the years. We have used two types of analysis; One is the descriptive analysis of trends and the other is the contrast of the descriptive analysis of trends that is the econometric technique used to analyze the VAT effect on economic growth in Kosovo. The source of data for this study is secondary through the Annual Financial Report of the Ministry of Finance of Kosovo and the IMF. In order to analyze the data generated for the study, the statistical tool utilized is OLS technique (multiple regression). One of the key findings in the collection of VAT has been its dependence on the border. Revenue collection is among the most pressing problems and such situation does not guarantee a country's budgetary stability. Also, based on the findings we noted that the VAT share of the gathering in gross domestic product of the Interior of the country has been low compared to other countries in Europe developing, reflecting a low level of economic development. Also from econometric analysis is confirmed that the regression coefficient shows that we have a VAT impact on GDP in Kosovo, because the level of significance is .000, or includes the rate of 1%. Also, the correlation between VAT and GDP shows a strong positive relationship, or statistically interpreted with the increase of VAT, will increase the GDP of Kosovo, these two elements conclude that VAT has a significant impact on economic growth in Kosovo. Furthermore, this research highlight some key issues that policy makers should consider dealing with the collection and effective use of revenue collected from VAT, to improve growth.

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