scholarly journals Destination-Based Cash Flow Taxation

2021 ◽  
pp. 267-334
Author(s):  
Michael P. Devereux ◽  
Alan J. Auerbach ◽  
Michael Keen ◽  
Paul Oosterhuis ◽  
Wolfgang Schön ◽  
...  
Keyword(s):  
Economic Impact ◽  
Cash Flow ◽  
Economic Efficiency ◽  
Value Added ◽  
Business Investment ◽  
Considerable Advantage ◽  
Uniform Rate ◽  
Business Income ◽  
Border Adjustments ◽  
Flow Element

This chapter sets out and evaluates our second main proposal: the Destination-based Cash Flow Tax (DBCFT). This has two basic components: (a) a ‘cash flow’ element, which gives immediate relief to all expenditure, and (b) a ‘destination-based’ element, which introduces border adjustments of the same form as under the value added tax (VAT): exports are untaxed, while imports are taxed. This is equivalent in its economic impact to introducing a broad-based, uniform rate VAT and making a corresponding reduction in taxes on wages and salaries. A central motivation for the DBCFT is to improve economic efficiency by taxing business income in a relatively immobile location; the DBCFT should not distort either the scale or the location of business investment. It also has the considerable advantage of being robust against avoidance through inter-company transactions.

Hungarian small business tax and possibilities to minimize distortions from capital income taxation

2015 ◽  
Vol 37 (s1) ◽  
pp. 87-105
Author(s):  
Benedek Nobilis ◽  
András Svraka
Keyword(s):  
Small Business ◽  
Cash Flow ◽  
Capital Accumulation ◽  
Value Added ◽  
Regulatory Elements ◽  
Capital Income ◽  
Potential Growth ◽  
Elegant Method ◽  
Business Tax ◽  
Working Out

Governments throughout the EU and OECD countries rely on revenues raised on capital income. Albeit several arguments can be made for keeping these taxes, in their widespread form they hinder capital accumulation and significantly lower potential growth due to their savings and investment distorting nature. At the same time, the actual economic impact of tax types is largely influenced by their structure. An elegant method, which is also simple in its concept, for eliminating the economic distortions of profit taxes is cash-flow taxation which moves income taxes closer to the more growth-friendly value-added taxes. The small business tax, which was introduced in Hungary in 2013, was designed along these principles. In this paper we review the theoretical literature on cash-flow taxation and discuss the main regulatory elements of the small business tax, as well as the solutions elaborated for working out the challenges related to its implementation.

scholarly journals The Influence of Tax Education on Obeying Tax Liability: A Statistical Methods and Results

2020 ◽  
pp. 38-52
Author(s):  
Tizazu Toma Shamana ◽  
Woldeselassie Azige Alito
Keyword(s):  
Direct Cost ◽  
Income Tax ◽  
Tax Compliance ◽  
Value Added ◽  
Simple Random Sampling ◽  
Survey Study ◽  
Before And After ◽  
Tax Education ◽  
Business Income ◽  
Wolaita Sodo

Backgrounds: In Ethiopia, taxpayers are categorized as small, medium or large depending on their business turnover or levels of income. Irrespective of one's category, taxpayers in Ethiopia, particularly Wolaita Sodo town are required to comply with VAT, TOT, Income Tax, Withholding Taxes and Customs duties in equal measure. Taxpayers will readily accept any new system introduced if they have ample knowledge to understand the system. Thus, education programs organized by custom and duty authority or public education institutions are required to enhance taxpayers' ability to understand the importance of tax on country's economic development and to increase their confidence in fulfilling their responsibilities as taxpayers. By considering the above issues, the researcher interested to investigate the influence of tax education on tax compliance attitude of taxpayers by conducting an experiment on the taxpayer in Wolaita Sodo town. The general objective of the study was to investigate the influence of tax education on tax compliance in Wolaita Sodo town. Methods: The target population for the survey study was actual taxpayers who are subject for business income tax. Only unincorporated business taxpayers in Wolaiata Sodo town are used as participants in the survey study. The target total population is 11,278 business income taxpayers as of July 2017 which is categorized under A, B and C. Only 160 taxpayers were selected by using simple random sampling from Wolaiata Sodo town. Questions regarding employment income, business income, turn over tax, and excise and value-added taxes are asked. Respondents are also asked to state whether the direct cost of producing the income, such as the direct cost of manufacturing, purchasing and selling costs shall be deductible from gross income in calculating taxable business income. Before and after the experiment (tax education) respondents were asked to check whether they know basic taxation rules. And their marks scored for the 7 basic questions after and before tax education out of 50 marks are recorded. Results: Majority of the respondents after attending the tax course scored high value regarding the tax knowledge. There is a great difference between the tax compliance attitude of these respondents before and after attending the tax course. Before attending the tax course, majority of respondents showed the plan of not complying with tax laws. But after attending the tax course, the majority of the respondents proves the identification of taxable and non-taxable income types. Generally, it resulted that the tax knowledge of respondents is improved after attending the tax course.

scholarly journals A Brief Overview of the IPO Valuation Methods

2020 ◽  
Vol 15 (12) ◽  
pp. 41
Author(s):  
Olga Ferraro
Keyword(s):  
Cash Flow ◽  
Initial Public Offering ◽  
Professional Practice ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Discounted Cash Flow ◽  
Business Valuation ◽  
Valuation Methods ◽  
Public Offering

The method adopted for pricing in an Initial Public Offering is a key issue in the studies on business valuation. In particular, various researches sought to verify which valuation methodologies are preferable in the context of an initial public offering. The review of the main literature shows that Discounted Cash Flow, Market Multiples, Dividend Discount Model and, even if just to some degree, Economic Value Added are the most popular methodologies in the valuation practice. The comparison among different valuation methods, proposed in the literature and variously applied in national and international practices, reveals the necessity to pay more attention to valuation mechanisms that drive the pricing of the shares to be listed. The topic is linked to the ever more pertinent debate on the use of different methods in professional practice: financial experts and analysts tend, in fact, to compare results according to different estimates.

scholarly journals The impact of globalization on transport investment

2021 ◽  
Vol 129 ◽  
pp. 11002
Author(s):  
Florin Dobre ◽  
Valentin Pauna ◽  
Alexandru Cristian Vasilescu ◽  
Ovidiu Andrei Cristian Buzoianu
Keyword(s):  
Economic Impact ◽  
Public Funding ◽  
Sufficient Conditions ◽  
Value Added ◽  
Transport Infrastructure ◽  
Transport Systems ◽  
Transport Sector ◽  
European Level ◽  
Gradual Development ◽  
The Impact

Research background: The economic impact of investing in new transport capacity or improving existing ones is complex and often indirect. Loans for infrastructure are often needed, but they cannot create sufficient conditions for economic growth. Investments in transport infrastructure require public funding. An assessment of their cost-effectiveness is needed to ensure a reasonable and acceptable allocation. Relevant economic, environmental and social effects must be taken into account. There is a growing concern in the transport sector about decisions on the development of the transport system and the effects of scale and externalities they produce. Planners and decision-makers need to know more about the wider economic impact of individual infrastructure projects and transport policies in general. Purpose of the article: This paper aims to present the most important theoretical and practical aspects of the importance of transport investment worldwide, at European level and Romania. Investments in transport infrastructure will not improve the economic vitality of a region unless it has sufficient economic capacity and employment, land use and economic development policies. Methods: This article starts from the hypothesis of the influence of globalization on the development of transport systems in general and applies as a case study on Romania. The paper was based on the analysis of transport legislation, as well as data sets for the period 2011-2019, to observe the gradual development of all types of transport. Findings & Value added: Following these researches, the link between globalization and investments in transport systems was found by emphasizing accessibility to new infrastructures, new horizons and development plans for the main types of transport, which is a key element in economic activity. The main results were disseminated throughout the article and it adds value through the analysis created at global and regional level (at European level) and the interpretation of statistical data related to transport investments.

scholarly journals Application of Big Data Model in Financial Taxation Management

2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Li Lin
Keyword(s):  
Big Data ◽  
Financial Risk ◽  
Value Added ◽  
Operating Conditions ◽  
Value Added Tax ◽  
Strong Negative Correlation ◽  
Problems And Solutions ◽  
Business Income ◽  
Taxation Management ◽  
Big Data Technology

We have entered an era of information technology. Many financial and taxation management tasks have been applied to big data technology. Through big data technology, we can efficiently collect data and Internet information, realize efficient management of information, and establish a complete set of tax database. The research results of the article show the following. (1) We analyze the application status of big data technology and put forward the problems and solutions in data processing in our country. (2) Most financial managers of small and medium-sized enterprises are rather vague about the definition of taxation. Training in this area should be strengthened. Taking the industrial chain of Chinese enterprises as the survey object, the concept of taxation compliance and influencing factors have been elaborated, and a taxation respect model has been established. The investigation method can be analyzed through the model. (3) We established the coefficient of variation model with Pilka coefficient and found that the main business income has the highest correlation with the value-added tax payable and has the strongest linear relationship; the correlation between return on assets and value-added tax payable is the weakest, and there is a weak relationship. There is a strong negative correlation between sales profit margin and VAT payable (4) Taking a pharmaceutical company in our country as the subject of investigation, the company’s financial operating conditions have been studied for the past ten years, and it is concluded that the company’s main business income is increasing year by year, and the corresponding tax revenue is also increasing, and the tax growth rate is relatively unstable. Among them, the financial risk coefficient of corporate income tax is the largest.

scholarly journals Economic Impact of Drought- and Shade-tolerant Bermudagrass Varieties

2018 ◽  
Vol 28 (1) ◽  
pp. 66-73 ◽  
Author(s):  
Chanjin Chung ◽  
Tracy A. Boyer ◽  
Marco Palma ◽  
Monika Ghimire
Keyword(s):  
Economic Impact ◽  
Impact Analysis ◽  
Cynodon Dactylon ◽  
Economic Impacts ◽  
Value Added ◽  
The United States ◽  
Economic Benefits ◽  
Total Output ◽  
Economic Impact Analysis ◽  
New Varieties

This study estimates potential economic impacts of developing drought- and shade-tolerant bermudagrass (Cynodon dactylon) turf varieties in five southern states: Texas, Florida, Georgia, Oklahoma, and North Carolina. First, estimates are provided for the market-level crop values of the newly developed two varieties for each state. Then, an economic impact analysis is conducted using an input–output model to assess additional output values (direct, indirect, and induced impacts), value added, and employment due to the new varieties. Our results indicate that the two new varieties would offer significant economic impacts for the central and eastern regions of the United States. Under the assumption of full adoption, the two new products would generate $142.4 million of total output, $91.3 million of value added, and 1258 new jobs. When a lower adoption rate is assumed at 20%, the expected economic impacts would generate $28.5 million of output, $18.3 million of value added, and 252 jobs in the region. Our findings quantify the potential economic benefits of development and adoption of new turfgrass varieties with desirable attributes for residential use. The findings suggest that researchers, producers, and policymakers continue their efforts to meet consumers’ needs, and in doing so, they will also reduce municipal water consumption in regions suited to bermudagrass varieties.

A technology for multifunctional hydroprocessing of oil residues (vacuum residue and atmospheric residue) on the catalysts with hierarchical porosity

2021 ◽  
Vol 21 (5) ◽  
pp. 331-360
Author(s):  
E. V. Parkhomchuk ◽  
K. V. Fedotov ◽  
A. I. Lysikov ◽  
A. V. Polykhin ◽  
E. E. Vorobyeva ◽  
...  
Keyword(s):  
Economic Efficiency ◽  
Material Balance ◽  
Value Added ◽  
Oil Refining ◽  
Vacuum Residue ◽  
Process Data ◽  
Marine Fuel ◽  
Delayed Coking ◽  
Oil Refineries ◽  
Atmospheric Residue

A technology for catalytic hydroprocessing of oil residues – atmospheric residue and vacuum residue – aimed to obtain high value added petrochemicals, particularly marine fuel complying with modern technical and environmental requirements, is reported. The technologyis based on the use of catalysts supported on alumina with a hierarchical structure of meso- and macropores, which are highly active and stable under severe conditions of the process. Data obtained by physicochemical analysis of the chemical composition, textural and phase properties of fresh and spent catalysts for the three-step hydroprocessing of atmospheric residue and vacuum residue are presented. A material balance for each step of the processes and a comprehensive analysis of the properties of produced petrochemicals were used to propose variants of implementing and integrating the technology at Russian oil refineries in order to increase the profit from oil refining. The introduction of the hydroprocessing of atmospheric residue at oil refineries without secondary processes will improve the economic efficiency due to selling the atmospheric residue by 84–170 % depending on a chosen scheme of the process and a required set of products. It is reasonable to integrate the catalytic hydroprocessing of vacuum residue with the delayed coking, catalytic cracking and hydrocracking processes in order to increase the depth of refining to 95 % and extend the production of marketable oil refining products: gasoline, diesel fuel, marine fuel with the sulfur content below 0.5 %, and low-sulfur refinery coke for the electrode industry. The integration of the hydroprocessing of vacuum residue with the secondary processes will increase the economic efficiency from selling the vacuum residue by a factor of 2–2.5 in comparison with its production in delayed coking units.

scholarly journals Impact of Mode of Payment and Insider Ownership on Target and Acquirer's Announcement Returns in India

2009 ◽  
Vol 34 (4) ◽  
pp. 51-66 ◽  
Author(s):  
Bikram Jit Singh Mann ◽  
Reena Kohli
Keyword(s):  
Stock Market ◽  
Cash Flow ◽  
Value Added ◽  
Group Company ◽  
Controlling Shareholders ◽  
Acquisition Period ◽  
Tunnelling Effect ◽  
Maximum Value ◽  
Announcement Returns ◽  
Cash Flow Rights

This paper examines the effect of mode of financing employed in mergers and acquisitions on the announcement period returns of the acquiring and the target companies' shareholders in India. The study is divided into two sections. The first section analyses the announcement returns of both the acquiring as well as the target companies� shareholders with the help of market model. It has been found that maximum value has been created for the shareholders of the target companies engaged in cash offers followed by the shareholders of acquiring companies engaged in cash offers, target companies engaged in stock offers, and lastly, for acquiring companies engaged in stock offers. However, in contrast to the results of prior research, the study shows that the within-group stock offers have created positive wealth for acquiring companies� shareholders that have generally lost value in stock offers. To discern the probable reasons for the positive value being created in within-group stock offers especially for the acquiring companies� shareholders, the second section analyses the interaction between the announcement returns of the acquiring and the target companies engaged in stock offers and insiders'/promoters' ownership level. This is so because the review of literature highlights two views regarding value creation in within-group stock offers. One view relates to the tunnelling effect whereas the other relates to the value added effect. The tunnelling effect states that within group acquisitions by the acquiring companies with controlling shareholders are aimed at shifting the resources from one group company where the acquiring company has lower cash flow rights to another group company where it has higher cash flow rights or to itself for maximizing the benefits of the controlling shareholders at the expense of minority shareholders. The value added view states that within-group acquisitions by the acquiring companies with controlling shareholders are aimed at creating various financial and economic synergies by pooling the resources of both the companies in the post- acquisition period. The analysis reveals that the within-group stock offers have created value with increase in level of ownership with maximum value being created when controlling shareholders' ownership reaches the highest level (the category OWN> 49%). Likewise, not only acquiring companies' but the target companies' shareholders have gained positive returns. It means the stock market has reacted positively to the news of stock offers when these are undertaken by companies belonging to the same group as well as when the ownership is concentrated in the hands of promoters. Thus, we deduce that in India, within-group stock offers are not aimed at tunnelling of resources by the acquiring companies; rather these are aimed at creating value by providing an internal market where the group companies can pool their resources and hence can create various kinds of synergies in the post-acquisition period. Hence, the results are in consonance with the value added view. Thus, in the world of information asymmetry, the mode of financing along with ownership structures are the signals through which the stock market assesses the value creating potential of an acquisition.

The Economic Impact of Tourism in Israel: A Multi-Regional Input—Output Analysis

1997 ◽  
Vol 3 (4) ◽  
pp. 341-359 ◽  
Author(s):  
Daniel Freeman ◽  
Esther Sultan
Keyword(s):  
Spatial Distribution ◽  
Economic Impact ◽  
Value Added ◽  
The Other ◽  
Input Output ◽  
Output Analysis ◽  
Input Output Analysis ◽  
Regional Impacts

Tourism has become one of the main export services in Israel in the last five years. The objective of this study was to estimate the comprehensive contribution of tourism to the economy of Israel and its spatial distribution. The study measured the impacts (multipliers) on three levels: direct, indirect and induced. A multi-regional input–output (MRIO) model was used in this research because of its capability to evaluate the impacts of inter-regional interdependencies simultaneously with those of sectoral ones. The results were expressed as multi-regional input–output multipliers. The authors conclude that the sum of the value-added from indirect output was 4% of GDP, and that from induced impacts was 7% of the GDP. There were differences in the impacts within and outside the regions. The analysis of multi-regional impacts through the use of MRIO enabled the authors to estimate simultaneously the magnitude of the impacts within the region, the related impacts in other regions, and the feedback impacts due to the other regions' demand.

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