scholarly journals Methodological approaches to estimating the use of tax benefits and the practice of their application

2021 ◽  
Vol 2021 (2) ◽  
pp. 27-44
Author(s):  
Sokolovska Alla ◽  
◽  
Keyword(s):  
Transition Economy ◽  
Public Information ◽  
Policy Instruments ◽  
Tax Rate ◽  
Economic Agents ◽  
Tax Incentive ◽  
Before And After ◽  
Methodological Approaches ◽  
Tax Benefits ◽  
Efficiency Comparison

Tax benefits, considering their consequences for the economy and the budget system, are the most controversial element of any tax. Therefore, policy decisions on the introduction of new, continued use or abolition of existing tax benefits should be based on reliable information about their expected or actual effectiveness and efficiency. The purpose of this article is to define methodological approaches to assessing the use of tax benefits as a prerequisite for improving the soundness of tax policy and effectiveness of public administration of the financial system. The article, based on the analysis of Western literature sources, considers methodological approaches to assessing the use of tax benefits in the context of their effectiveness (achievement of goals and fulfillment of the conditions for granting, impact on the behavior of economic agents and results of their activity), efficiency (comparison of benefits and costs) and relative efficiency (comparison of the effectiveness of tax benefits and other policy instruments), as well as evaluation methods and tools. The practical application of these methodological approaches is considered on the example of investment and innovation incentives for corporate income tax and VAT incentives (reduced tax rate on labor-intensive services). The author notes that the assessment of consequences of the introduction of tax benefits can be provided using methods of comparative analysis of the behavior of the beneficiary company before and after the introduction of the tax incentive; survey of the company's managers on how the tax benefit affected certain aspects of their behavior (investment decisions, implementation of R&D, employment and remuneration policies, etc.); and econometric analysis. According to the results of the study, it s concluded that ultimately the choice of an approach to assessing the application of tax benefits, as well as methods and tools of analysis is determined by the available information base in open sources and access to non-public information. In addition, the reliability of the results of evaluation of the application of tax benefits substantially depends on compliance with the requirements and procedures during their implementation, in particular, the definition of objectives and, if necessary, the conditions of their granting, as well as the quality and the completeness of accounting of the provided benefits. The latter, as well as the availability of the necessary information and its disclosure is one of the main problems in assessing the application of tax benefits in countries with transition economy.

scholarly journals METHODOLOGICAL APPROACHES TO ESTIMATING THE USE OF TAX BENEFITS AND THE PRACTICE OF THEIR APPLICATION

2021 ◽  
Vol 2021 (2) ◽  
pp. 32-51
Author(s):  
Alla Sokolovska ◽  
◽  
Keyword(s):  
Transition Economy ◽  
Public Information ◽  
Policy Instruments ◽  
Tax Rate ◽  
Economic Agents ◽  
Tax Incentive ◽  
Before And After ◽  
Methodological Approaches ◽  
Tax Benefits ◽  
Efficiency Comparison

Tax benefits, considering their consequences for the economy and the budget system, are the most controversial element of any tax. Therefore, policy decisions on the introduction of new, continued use or abolition of existing tax benefits should be based on reliable information about their expected or actual effectiveness and efficiency. The purpose of this article is to define methodological approaches to assessing the use of tax benefits as a prerequisite for improving the soundness of tax policy and effectiveness of public administration of the financial system. The article, based on the analysis of Western literature sources, considers methodological approaches to assessing the use of tax benefits in the context of their effectiveness (achievement of goals and fulfillment of the conditions for granting, impact on the behavior of economic agents and results of their activity), efficiency (comparison of benefits and costs) and relative efficiency (comparison of the effectiveness of tax benefits and other policy instruments), as well as evaluation methods and tools. The practical application of these methodological approaches is considered on the example of investment and innovation incentives for corporate income tax and VAT incentives (reduced tax rate on labor-intensive services). The author notes that the assessment of consequences of the introduction of tax benefits can be provided using methods of comparative analysis of the behavior of the beneficiary company before and after the introduction of the tax incentive; survey of the company's managers on how the tax benefit affected certain aspects of their behavior (investment decisions, implementation of R&D, employment and remuneration policies, etc.); and econometric analysis. According to the results of the study, it was is concluded that ultimately the choice of an the approach to assessing the application of tax benefits, as well as methods and tools of analysis is determined by the available information base in open sources and access to non-public information. In addition, the reliability of the results of evaluation of the application of tax benefits substantially depends on compliance with the requirements and procedures during their implementation, in particular, the definition of objectives and, if necessary, the conditions of their granting, as well as the quality and the completeness of accounting of the provided benefits. The latter, as well as the availability of the necessary information and its disclosure is one of the main problems in assessing the application of tax benefits in countries with transition economy.

Highlighted of Ramadan Fasting on Diabetes-Study of Complications, Biochemical Aspects and Anthropometry

2019 ◽  
Vol 26 (3) ◽  
pp. 227-234 ◽  
Author(s):  
Meriem Bencharif ◽  
Ibrahim Sersar ◽  
Maroua Bentaleb ◽  
Fatima Zohra Boutata ◽  
Youcef Benabbas
Keyword(s):  
Nutrition Education ◽  
Preventive Measures ◽  
Glucose Monitoring ◽  
Public Information ◽  
Blood Glucose Monitoring ◽  
Loss Of Consciousness ◽  
Ramadan Fasting ◽  
Balanced Diet ◽  
Before And After ◽  
And Gender

Abstract Background and aims: The diabetic exempted from fasting by religion, wishing or not to observe the fast, is exposed like any other during Ramadan to a change in lifestyle. The objective of this study was to highlight the effects of Ramadan fasting on diabetes. Material and methods: Multicentre study on 899 diabetics was carried to collect data on the behaviour of diabetics with regard to the fast of Ramadan, biochemicals and anthropometry parameters. Results. The sample consists of 541 diabetic fasters (DTMF) and 358 no fasters. The causes of interruption of fasting were: hypoglycemia (82.4%), dehydration (44.5%), hyperglycemia (12.6%), high blood pressure (13.7%), loss of consciousness (8.3%). The risk factors related to fasting for DTMF were the type of diabetes and gender. Discussion and modifications about dietary, blood glucose monitoring and nutritional education sessions showed a protective effect against the occurrence of hypo and hyperglycemia and loss of consciousness. Decreasing differences were noted for Hb1Ac, LDL and Total-Cholesterol between before and after Ramadan. The weight of DTMF decreased in post-Ramadan (p=0.0000). Conclusion. There is a need to consider regular preventive measures based on public information on the effects of diabetes related complications and the benefits of a balanced diet combined with regular physical activity in nutrition education sessions.

scholarly journals The Impact of Austerity Measures on Government Borrowing in GIIPS

2016 ◽  
Vol 8 (12) ◽  
pp. 106 ◽  
Author(s):  
Imre Ersoy ◽  
Talha Yanmaz
Keyword(s):  
Empirical Analysis ◽  
Rate Increase ◽  
Panel Cointegration ◽  
Government Debt ◽  
Cointegration Test ◽  
Tax Rate ◽  
Economic Agents ◽  
Panel Cointegration Test ◽  
Using Data ◽  
The Impact

The article investigates the effects of austerity measures on government debt in Greece, Ireland, Italy, Portugal and Spain (GIIPS) by employing panel cointegration test and using data between 1998 and 2014. The result of empirical analysis shows that tax rate increase on personal income did not result with decrease in government debt. Interest rate and wage that are control variables are also positively related with government debt levels. The result of this empirical analysis suggests that the impact of austerity measures on government borrowing in GIIPS is positive, despite the expectations of certain economic agents.

scholarly journals Analysis of Linkages between Environmental Policy Instruments and Innovation: A Case Study of End-of-Life Vehicles Technologies in Japan

2016 ◽  
Vol 9 (2) ◽  
pp. 181 ◽  
Author(s):  
Rajeev Kumar Singh ◽  
Helmut Yabar ◽  
Rie Murakami-Suzuki ◽  
Noriko Nozaki ◽  
Randeep Rakwal
Keyword(s):  
Environmental Policy ◽  
End Of Life ◽  
Environmental Regulations ◽  
Policy Instruments ◽  
Control Policy ◽  
Before And After ◽  
Exogenous Factors ◽  
And Control ◽  
The Impact

<p>Environmental policies are designed to deal with externalities either by internalizing environmental costs or imposing specific standards for environmental pollution. This study aims to examine the impact of environmental regulations related to End-of-Life Vehicles (ELV) on innovation in Japan. We determined whether there is any statistical difference in patent activity comparing the periods before and after the regulations were enacted. In order to control for exogenous factors such as business cycles, we also analyzed the ratios of ELV and total environmental patents during the same periods. Results showed that environmental regulations drive innovations and the number of ELV-related patents were larger even after controlling for such exogenous factors. We concluded that environmental policy for ELV in Japan was effective in inducing innovation. However, we also found that the weakness in these types of command and control policy is the lack of incentives for further innovation.</p>

scholarly journals MODERN TRANSFORMATION AND PROBLEMATIC ASPECTS OF TAXATION OF THE FINANCIAL RESULTS OF INSURERS IN UKRAINE

2017 ◽  
pp. 19-33 ◽  
Author(s):  
Oleksandr KVASOVSKYI ◽  
Mykola STETSKO
Keyword(s):  
Financial Performance ◽  
Income Tax ◽  
Legal Framework ◽  
Insurance Companies ◽  
Pension Insurance ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Direct Taxation ◽  
Legal Provisions ◽  
Before And After

Introduction. Today the problem of establishing an effective taxation technology of domestic insurers' financial results has not been finally solved. That technology would ensure achieving fiscal objectives of budget revenues improvement and the implementation of the regulatory capacity of the tax regime to enhance the development of the insurance market in Ukraine on the principles of transparency and legitimacy of the business. Purpose. The purpose of the article is critical analysis of recent transformations in the method of taxation of the financial performance of insurance companies in Ukraine, assessment of their impact on the dynamics of national insurance organizations budget revenues in recent years, a clear identification of legal conflicts and problematic aspects of the insurers' profit and income tax collecting procedures with a view to their elimination. Results. The article looks into the major differences in innovation and methodological approaches to taxation of the financial performance of domestic insurers before and after January 1, 2015. The work characterizes the dynamics of absolute and relative indicators of income tax on profits from insurance companies to the consolidated budget of Ukraine in 2012-2016 (compared to banks) from a position of impact of changes in tax regime for insurers. The research also revealed a number of legal contradictions and problematic issues in the current procedure for determining taxable profits of insurance organizations in the consideration of tax differences, calculating the income tax of taxable item in the neglecting of the revenues and transmission of insurance payments (contributions, premiums) for reinsurance operations and so on. Conclusion. A number of recommendations to improve the technology of direct taxation of insurance companies' corporate income tax and indirect taxes on insurance premiums, namely: clear distinction of mentioned fiscal duties; revision of the legal framework regarding the collection of insurers’ income tax (detailed definition of the list of costs for the calculation of financial results of the insurer before tax, establishing a list and approval of scientifically based methods of calculating insurance reserves for the calculation of taxable income, specification of legal provisions regarding taxation of insurance companies that specialize in life insurance, and longterm pension insurance); the introduction of preferential tax treatment of small profit insurance organizations through the establishment of progressive tax rates; gradual reduction of the effective tax rate for insurance companies.

scholarly journals Economic policy and confidence of economic agents – a causal relationship?

2020 ◽  
Vol 20 (4) ◽  
pp. 471-484
Author(s):  
Silvo Dajčman
Keyword(s):  
Fiscal Policy ◽  
Granger Causality ◽  
Government Spending ◽  
Government Expenditure ◽  
Policy Instruments ◽  
Consumer Confidence ◽  
Causality Analysis ◽  
Economic Agents ◽  
Business Confidence ◽  
The Government

AbstractThe purpose of this paper is to study whether innovations in monetary and fiscal policy are a leading indicator of future business and consumer confidence and reverse applying the panel Granger causality analysis to two periods in the history of the euro area: before and after the start of the Great Recession. The results show that Granger causality interaction between the confidence of economic agents and the stance of monetary policy (measured by the shadow rate) is stronger than between the former and the fiscal policy instruments. The European Central Bank (ECB) shadow rate innovations Granger caused business and consumer confidence in both periods, but also indicators of confidence Granger caused the shadow rate. No such feedback could be established between two fiscal policy instruments (government expenditure and revenue growth) and the indicators of confidence. Government spending and revenues Granger caused business confidence in the first subperiod, but not in the second subperiod when the causality reversed. The government revenues Granger caused consumer confidence in the first subperiod, while government expenditures in the second subperiod. Consumer confidence Granger caused government spending in the first subperiod.

scholarly journals The new political macroeconomics in modern macroeconomics and its appliance to transition processes in Serbia

2011 ◽  
Vol 58 (4) ◽  
pp. 545-557
Author(s):  
Miomir Jaksic ◽  
Aleksandra Prascevic
Keyword(s):  
Economic Policy ◽  
Political Parties ◽  
Economic System ◽  
Transition Economies ◽  
Transition Economy ◽  
Policy Instruments ◽  
The Political ◽  
Political Uncertainty ◽  
European Parties ◽  
New Democracy

This study deals with important issues related to the new political macroeconomics and its appliance to the economic movements in Serbia, which is a country of ?new democracy? as well as with transition economy. In political macroeconomics, it is a known fact that the economic policy instruments can be used for political purposes - simulated improvement of economic indicators to win the elections. These options assume specific features in transition economies, such as the Serbian economy. The political instability in Serbia, reflected in frequent elections, as well as in the diversity in political and economic goals of the key political parties leading to increasing political uncertainty in both the pre-election and post-election periods, weakened the economic system. Simultaneously, using the economic policy for political purposes to support the ?pro-democratic? and ?pro-European? parties proved to be paradoxically justified.

New York Film Production Unions Enter the Political Arena in Search of Tax Subsidies

2017 ◽  
Author(s):  
Maria Figueroa ◽  
Lois S. Gray
Keyword(s):  
New York ◽  
Low Income ◽  
The Political ◽  
Urban Residents ◽  
Concentrated Ownership ◽  
Tax Incentive ◽  
Tax Subsidies ◽  
Labor Pool ◽  
Tax Benefits ◽  
High Skill

This chapter explains how labor's preference for tax incentives is conditioned by the highly concentrated ownership structure, flexible production system, and fragmented bargaining relations that characterize the film industry. Labor's preference for a tax incentive-based approach in New York encouraged greater coordination between local film unions, policymakers, employers, and local studios, and was successful in generating employment in the specific context of the city's deep talent and qualified labor pool. The chapter also shows how the strategy induced tensions among local film unions over the distribution of tax benefits within the sector, and between film unions and representatives of low-income urban residents, who find themselves subsidizing a high-skill/high-wage industry from which they are largely excluded.

scholarly journals Estimating Adjustment Frictions Using Nonlinear Budget Sets: Method and Evidence from the Earnings Test

2020 ◽  
Vol 12 (1) ◽  
pp. 1-31 ◽  
Author(s):  
Alexander M. Gelber ◽  
Damon Jones ◽  
Daniel W. Sacks
Keyword(s):  
Adjustment Cost ◽  
Marginal Tax Rate ◽  
Tax Rate ◽  
The Social ◽  
Before And After ◽  
Short Run ◽  
Earnings Test ◽  
Social Security Earnings Test ◽  
The Cost ◽  
Induced Changes

We introduce a method for estimating the cost of adjusting earnings, as well as the earnings elasticity with respect to the net-of-tax share. Our method uses information on bunching in the earnings distribution at convex budget set kinks before and after policy-induced changes in the magnitude of the kinks: the larger is the adjustment cost, the smaller is the absolute change in bunching from before to after the policy change. In the context of the Social Security Earnings Test, our results demonstrate that the short-run impact of changes in the effective marginal tax rate can be substantially attenuated. (JEL H24, H31, H55, J22, J31)

scholarly journals On the Evolution of Trade and Sanitary and Phytosanitary Standards: The Role of Trade Agreements

Agriculture ◽  
2018 ◽  
Vol 9 (1) ◽  
pp. 2 ◽  
Author(s):  
Fabio Santeramo ◽  
Valentina Guerrieri ◽  
Emilia Lamonaca
Keyword(s):  
Developing Countries ◽  
Policy Instruments ◽  
Trade Agreements ◽  
Regression Discontinuity Design ◽  
Aggregate Level ◽  
Joint Influence ◽  
Before And After ◽  
Policy Measures ◽  
Trade Measures

Trade agreements and trade measures are policy instruments thought to favour trade by providing a degree of harmonisation among members. We analyse how the agri-food trade and the incidence of Sanitary and Phytosanitary Standards (SPSs) have evolved within countries sharing agreements. We examine, through a regression discontinuity design, whether the approval of agreements affects the evolution of trade and SPSs over time, and quantify the trade effects of SPSs. We also provide differences before and after the introduction of agreements, and among the most regulated agri-food products. Findings show that trade agreements tend to favour the increase of trade and the reduction of policy measures between members. However, regulation inequalities exist across trade agreements covering different geo-economic areas: after the approval of agreements, the existence and the importance of SPSs become relevant among developing countries, whereas the pervasiveness of SPSs becomes less stringent between developed and developing countries. Our analyses also prove that trade agreements and trade measures are trade-enhancing only at aggregate level: product-specific analyses show that cereal is the only sector that benefits from the joint influence of trade agreements and SPSs. The harmonisation of SPSs within agreements may be determinant in avoiding distortions in favour of members.

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