scholarly journals Policy Reform Effects in the Tax Ecosystem

2021 ◽  
pp. 272-310
Author(s):  
Peter Gerbrands ◽  
Brigitte Unger
Keyword(s):  
Policy Reform ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Spillover Effects ◽  
Tax Revenue ◽  
Policy Reforms ◽  
Agent Based ◽  
Eu Member States ◽  
Exchange Of Information ◽  
International Tax Policy

International tax policy reforms such as Country-by-Country Reporting and Automatic Exchange of Information aim to increase tax compliance and revenues. Using a tax ecosystems perspective, this chapterapplies an agent-based simulation to assess the effects of these reforms. We demonstrate for EU Member States and selected European countries that reforms can be counteracted by tax competition and tax spillover effects which reduce their effectiveness. The model estimates European corporate tax revenue losses from tax avoidance and evasion of €104.9 billion in 2019. Without further reforms they would increase to €135.8 billion in 2029. A complete implementation of both Country-by-Country Reporting and Automatic Exchange of Information would help to decrease the total CIT gap by 16.4 per cent to €113.5 billion in the year 2029 The model explains why the seemingly small effect of CbCR is not so small and why the effect of AEoI may not be as promising as it seems.

scholarly journals Thin Capitalization Rules in EU Member States

2014 ◽  
Vol 9 (2) ◽  
Author(s):  
Tatjana Ðukić
Keyword(s):  
Multinational Corporations ◽  
Multinational Firms ◽  
Fixed Ratio ◽  
Tax Avoidance ◽  
Tax Revenue ◽  
Profit Distribution ◽  
Eu Member States ◽  
Avoidance Measures ◽  
Ratio Approach ◽  
Thin Capitalization

Thin capitalization rules fit in the group of the specific anti-avoidance rules (SAAR) which are legalised by domestic tax laws. Anti-avoidance measures attempt to strike down unacceptable tax avoidance practices that have taken place with the increasing importance of multinational firms. In contrast to local firms, multinational corporations can shift profits to lower taxed foreign locations, leading to substantial losses in tax revenue. The article presents a systematic review of thin capitalization rules in EU 27, summing up four most common approaches of thin capitalization regulation. The analysis revealed that the majority of countries (15) legalised the fixed ratio approach, one quater (7) the subjective approach and only a few (3) legalised the hidden profit distribution. Two of them have improved thin-cap rules to so called earningstripping rule.

scholarly journals When tax practitioners file their personal tax returns: Do attitude, social norms, and perceptual control matter?

2021 ◽  
Vol 9 (3) ◽  
pp. 50
Author(s):  
Siti Nurfarhana Mohamad Dzulkifli ◽  
Seri Ayu Masuri Md Daud
Keyword(s):  
Tax Evasion ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Sampling Technique ◽  
Tax Revenue ◽  
Self Assessment ◽  
Tax Practitioners ◽  
Compliance Behavior ◽  
Tax Returns ◽  
Personal Tax

Tax revenue is a key source of income for most countries in the world. To maximize tax revenue, it is critical that taxpayers comply with relevant tax laws particularly in a self-assessment filing system. Alas, many countries are still grappling with tax evasion or even tax avoidance issue. A key challenge is tax compliance behavior remains a complex and perplexing topic. While a lack of tax knowledge is pertinently attributable to unintentional non-compliance, the causes of intentional non-compliance are far from clear. This study aims to investigate the factors associated with intentional tax non-compliance by ruling out the variation in tax knowledge explanation. In so doing, this study employs a sample of respondents deemed conversant with tax knowledge. More specifically, this study surveys 104 tax practitioners in Malaysia using a convenience sampling technique and utilizes the theories of planned behavior and free trait to explore how they behave when filing their personal tax returns. The findings suggest only subjective norms is significantly linked to their tax compliance behavior. This study extends the literature on the role of individual factors on tax compliance behaviour among tax practitioners acting in a different persona.

scholarly journals Relative Tax Rates, Proximity, and Cigarette Tax Noncompliance: Evidence from a National Sample of Littered Cigarette Packs

2018 ◽  
Vol 47 (2) ◽  
pp. 276-311 ◽  
Author(s):  
Shu Wang ◽  
David Merriman ◽  
Frank Chaloupka
Keyword(s):  
Financial Incentive ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
National Sample ◽  
Ordinary Least Squares ◽  
Tax Revenue ◽  
Tax Rates ◽  
Cigarette Tax ◽  
Cigarette Packs ◽  
Analyze Data

We analyze data about cigarette tax compliance from the first US-based national scale littered cigarette packs collection. We code each pack based on whether an appropriate tax had been paid at the location where it was found. Noncompliance across our 132 sample communities ranges from 0 percent to 100 percent with an appropriately weighted mean of 21 percent. We provide evidence that noncompliance is due to both cross-border shopping and cigarette trafficking. Ordinary least squares and binomial logit regressions demonstrate that the financial incentive for noncompliance is the most important explanatory variable and has a statistically and quantitatively significant impact on noncompliance. We find mixed evidence about the extent to which tax avoidance varies with distance to lower-tax borders. Our simulations show that, even after accounting for increased noncompliance, virtually all areas in our study would experience increases in tax revenue if they increased cigarette tax rates.

scholarly journals SHADOW ECONOMY, AEOI, DAN KEPATUHAN PAJAK

Scientax ◽  
2020 ◽  
Vol 2 (1) ◽  
pp. 39-56
Author(s):  
Muhammad Dahlan
Keyword(s):  
Conceptual Framework ◽  
Shadow Economy ◽  
Tax Compliance ◽  
Tax Revenue ◽  
Exchange Of Information ◽  
Monetary Approach ◽  
The Government ◽  
Average Size ◽  
Tax Regulation

This research develops a broad conceptual framework of shadow economy transactions in Indonesia based on the previous research and finds the correlation with the current tax regulation on automatic exchange of information and tax compliance. Shadow economy is the activity of individuals, households, and/or firms that evade, avoid, or not report its transaction to the government. Based on the previous research, by using monetary approach, the average size of shadow economy in Indonesia equals to 8 – 19% of GDP. Based on this data, the government uses automatic exchange of information (AEOI) to minimize the effect of shadow economy to increase tax revenue and to boost tax compliance.

scholarly journals Agency Theory Applied to the Italian Revenue Agency: Accountability Policies as Bonding Costs

2016 ◽  
Vol 12 (34) ◽  
pp. 1 ◽  
Author(s):  
Monia Castellini ◽  
Vincenzo Riso
Keyword(s):  
Agency Theory ◽  
Research Question ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Tax Revenue ◽  
Tax Administration ◽  
International Context ◽  
Italian Case ◽  
Theory Application ◽  
The Relationship

This paper aims at studying the consequences of the Agency Theory application at the case of the Italian Revenue Agency (afterwards IRA). The major countries in the world entrust the tax administration to the Agencies that make use of various strategies to manage tax revenue and to contrast tax avoidance. In the last years the Organisation for Economic Co-operation and Development (afterwards OECD) has invited many States to increase the tax compliance between Public Tax Administration and Taxpayers and to improve the relationship with these. There are more scientific contributions about the themes like the Agency Theory, the Stakeholder’s Theory and other more on Governance and Accountability policies: many of these will be discussed in this work. In the light of these observations the research question is: given that IRA plays a central role in the tax administration, what happen if we apply the Agency Theory on this? What are the Agency costs in this case? To answer to these question we have studied the Law provisions in the Italian tax field and the “way to do” of the IRA. So, this work not is only a theoretical analysis of the scientific literature but it move to analyse the implications of these on the real case. The conclusions achieved in this paper are based on the analysis of the Italian case that only partially brings a solution to this question. However it represent the first point for us to beginning a future comparison between the evidences in the international context.

scholarly journals Assessing the Effect of Tax Administration on Smes Tax Compliance Level in Kogi State

2020 ◽  
Vol 3 (1) ◽  
pp. 15
Author(s):  
Emmanuel Eneche Onoja ◽  
Ademu Usman Odoma
Keyword(s):  
Sample Size ◽  
Tax Evasion ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Small Scale ◽  
Tax Revenue ◽  
Tax Administration ◽  
Chi Square ◽  
Compliance Level ◽  
Chi Square Test

Effective tax administration is important for tax revenue generation. It has been observed that the loss of revenue caused by widespread of tax evasion and tax avoidance in Nigeria is due to inefficient and inept tax administration. The most common problem faced by taxpayers is to understand the instructions in the tax pack. This study assesses the burden of tax administration on taxpayers’ compliance level in Kogi State. The population of this study comprises of registered small scale businesses taxpayers in Kogi State, with a sample size of three hundred and seventy eight (378). Questionnaire was used to generate the data while One Sample chi-square test was used to test the null hypotheses. The result shows that administrative tax compliance costs have a significant effect on tax compliance level in Kogi State. The study recommends that the tax authority should make tax administration less complex in the area of tax procedures, tax rules and tax computation to enhance the level of tax payment in the State.

scholarly journals Assessing the Effect of Tax Administration on Smes Tax Compliance Level in Kogi State

2020 ◽  
Vol 3 (1) ◽  
pp. 15
Author(s):  
Emmanuel Eneche Onoja ◽  
Ademu Usman Odoma
Keyword(s):  
Sample Size ◽  
Tax Evasion ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Small Scale ◽  
Tax Revenue ◽  
Tax Administration ◽  
Chi Square ◽  
Compliance Level ◽  
Chi Square Test

Effective tax administration is important for tax revenue generation. It has been observed that the loss of revenue caused by widespread of tax evasion and tax avoidance in Nigeria is due to inefficient and inept tax administration. The most common problem faced by taxpayers is to understand the instructions in the tax pack. This study assesses the burden of tax administration on taxpayers’ compliance level in Kogi State. The population of this study comprises of registered small scale businesses taxpayers in Kogi State, with a sample size of three hundred and seventy eight (378). Questionnaire was used to generate the data while One Sample chi-square test was used to test the null hypotheses. The result shows that administrative tax compliance costs have a significant effect on tax compliance level in Kogi State. The study recommends that the tax authority should make tax administration less complex in the area of tax procedures, tax rules and tax computation to enhance the level of tax payment in the State.

Pengaruh Persepsi Wajib Pajak Orang Pribadi Atas Sanksi Perpajakan Dan Kualitas Pelayanan Pajak Terhadap Kepatuhan Perpajakan

2012 ◽  
Vol 4 (2) ◽  
pp. 72-90
Author(s):  
Nancy Marchelly ◽  
Waluyo Waluyo
Keyword(s):  
Service Quality ◽  
Sampling Method ◽  
Tax Compliance ◽  
The State ◽  
Primary Data ◽  
Tax Revenue ◽  
Dominant Source ◽  
State Expenditure ◽  
Convenience Sampling

Tax Revenue is one of the most important sources of revenue for making the state expenditure budget (APBN). As a revenue dominant source for APBN derived from tax sector. The main objective of this study is to analyze the effect of tax sanctions and tax service quality on individual tax compliance.   This study focus on individual entrepreneurs tax payer those registered at the Primary Tax Office Tigaraksa (KPP Pratama Tigaraksa) especially in Gading Serpong Tangerang. Samples were selected by convenience sampling method, the data used in this study is primary data.  The results show indicate (1) tax sanction has significantly affect to individual tax compliance, (2) tax service quality has significantly affect to individual tax compliance, (3) tax sanction and tax service quality have significantly affect to  individual tax compliance. Keywords: Tax penalty, tax service quality, individual tax compliance

Thin Capitalization, Transfer Pricing Aggresiveness, Penghindaran Pajak

2018 ◽  
Vol 2 (1) ◽  
pp. 1-28
Author(s):  
Teza Deasvery Falbo ◽  
Amrie Firmansyah
Keyword(s):  
Regression Analysis ◽  
Linear Regression ◽  
Stock Exchange ◽  
Transfer Pricing ◽  
Linear Regression Analysis ◽  
Tax Avoidance ◽  
Total Sample ◽  
Multiple Linear Regression Analysis ◽  
Tax Revenue ◽  
Thin Capitalization

The increase in tax revenue in Indonesia is not accompanied by an increase in tax ratio The low tax ratioindicatestax avoidance practices in Indonesia. Some tax avoidance practices can be conductedthrough transferpricing and thin capitalization.This study is aimed to examine empirically the effect of thin capitalization as well astransfer pricing aggressiveness on tax avoidance practice in Indonesia. This study uses manufacturing companieswhich are listed on Indonesia Stock Exchange (IDX) within the period 2013-2015. Using purposive sampling, theselected samples in this study are 90 companies, so the total sample is 270 samples. The hypothesis examinationused in this study is multiple linear regression analysis of panel data.The results of this study suggest that thincapitalization is positively associated with tax avoidance,while transfer pricing aggressivenessis not associated withtax avoidance.

scholarly journals Educational Level and Tax Compliance: Empirical Evidence From Nigeria

2020 ◽  
Vol 10 (1) ◽  
pp. 160
Author(s):  
Stanley Ogoun ◽  
Godspower Anthony Ekpulu
Keyword(s):  
Educational Level ◽  
Government Expenditure ◽  
Tax Compliance ◽  
Tax Revenue ◽  
Education Expenditure ◽  
Government Investment ◽  
Ex Post ◽  
National Priority ◽  
Ex Post Facto ◽  
The Government

The study interrogates the relationship between educational level and tax compliance in Nigeria. The study employs the ex post facto research design to ascertain how government investment in education enhances tax compliance. The study covers 17 years (2002-2018) for both tax revenue (a surrogate for tax compliance) and education expenditure (a surrogate for educational level). From the empirical results, the study concludes that there is a positive nexus between government expenditure on education and tax revenue. The study, therefore, recommends that as a matter of necessity, the government should invest more in the overall educational demand of her citizens not only from tax revenues but from other oil and non-oil sources. The governments, from the federal and state levels, should act as a matter national priority endeavour to meet up with the international budgetary benchmark allocation for education, as recommended by the United Nations Educational, Scientific and Cultural Organization (UNESCO) in its Education for All (EFA) document 2000-2015. This will give Nigerians more access to quality education that would result in moving up the global ranking in HDI with its resultant benefits.

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