Final “Beneficiaries” and Main Creditors of Loss-Making “Entrepreneurial” Activities

2021 ◽  
pp. 119-147
Author(s):  
Maxim A. Sorokin ◽  
◽  
Mariia G. Grigorieva ◽  
Sevilbaa D. Oorzhak ◽  
◽  
...  
Keyword(s):  
Shadow Economy ◽  
Transfer Pricing ◽  
The State ◽  
Entrepreneurial Activity ◽  
Tomsk Oblast ◽  
Bad Faith ◽  
Economic Activities ◽  
Legal Form ◽  
Average Value ◽  
Entrepreneurial Activities

This article examines loss-making entrepreneurial activity, which is understood as the entrepreneurial activity of companies that have shown unprofitable results of their economic activities for several periods. The reasons for this can be different, such as using the company as cost centers in a group of companies; reflection of incomplete profits through transfer pricing, cost reduction (payment of taxes, fines), falsification of reporting data, etc. The main, final “beneficiaries” and “creditors” of companies’ activities are the state and foreign investors. They deal with the consequences of such activities that range from a decrease in tax revenues to a distortion of official statistics that serve as an important signal for economic policy. Consequently, there is a need to assess the performance of such unprofitable companies. The aim of the article is to develop methodological aspects of measuring the scale of shadow economic activity, identify problems in such a complex and multifaceted process, and propose ways to solve them. The calculation methodology is based on the analysis of the dynamics of the development of companies in Tomsk Oblast in the period from 1991 till 2021. The results of unprofitable “entrepreneurial” activities are assessed based on the analysis of the economic efficiency of 83,549 companies in Tomsk Oblast. The Index of Bad Faith is made to assess the size of the shadow economy as a percentage of GRP. It combines the factors of income from entrepreneurial activities (data on it is distorted), hired workers (unregistered or hidden from the authorities), and envelope wages. The share of the retained number of inactive companies for 10 years is found, minus the rate of natural decline in the number of companies in the total number of retained companies for 10 years from 1991 till 2001 and from 2001 till 2021. The average value obtained for these two periods is the size of the Index of Bad Faith equal to 39% and showing an upward trend. The index retains its structure and is working regardless of the organizational and legal form and industry of the enterprise, which is proved by the example of unitary enterprises and companies in the construction industry. The results of the study show that most of the existing methods are applicable to assess the state as a whole, and, due to the lack of indicators, they cannot be applied in assessing the shadow economy of the region. The proposed Index can be used to assess the shadow digital economy in the regions. Methods for minimizing such “unprofitable activities” were also proposed: creating an information accounting and analytical system, reducing the tax burden, systematizing the processes and accounting for the registration of companies in order to prevent the formation of new ones after admitting the reasons for unfair business conduct of the previous ones in terms of evasion in repaying debts to creditors, etc.

scholarly journals Empirical Study of Entrepreneurship in Tijarah Concept

2021 ◽  
Vol 1 (1) ◽  
pp. 26-33
Author(s):  
Abdiansyah Linge ◽  
Upi Sopiah Ahmad
Keyword(s):  
Economic Activity ◽  
Full Employment ◽  
Entrepreneurial Activity ◽  
Empirical Literature ◽  
Economic Activities ◽  
Production Distribution ◽  
Islamic Economic ◽  
Entrepreneurial Activities ◽  
Islamic View ◽  
Multidimensional Process

Economic activities including production, distribution and consumption are one of the ways humans meet their daily needs. Economic development is inseparable from the three economic activities, development is a multidimensional process that involves fundamental changes in social structures, social behavior and institutions. So, people can participate in the economy by creating full employment opportunities, everyone has the same abilities (equal productivity, equal access), and each behaves rationally (efficient). This study examines the Islamic economic view of the concept of entrepreneurship with an empirical literature approach, to explore the concept of entrepreneurship according to the tijarah concept contained in the Qur'an. In this study it can be understood that Islam views entrepreneurial activities as part of the work recommended in Islam to meet human economic needs. Entrepreneurial activity in Islamic view uses the equivalent of the word tijarah, there are provisions in Islam regarding the limitations that can be carried out in economic activity. Entrepreneurship that is driven by natural values ​​will become an economic activity that will be calculated before Allah, because Allah actually sees and takes into account what is done, including in economic activities

The South African Female Entrepreneurship Context

2018 ◽  
pp. 164-185
Author(s):  
Sybert Mutereko
Keyword(s):  
South African ◽  
Entrepreneurial Activity ◽  
The South ◽  
Economic Activities ◽  
Female Entrepreneurs ◽  
Long Time ◽  
Feminist Theories ◽  
Global Entrepreneurship ◽  
And Performance ◽  
Entrepreneurial Activities

For a long time, women have been excluded from economic activities in male-dominated organizations and patriarchal society. Therefore, due to this factor, their participation in economic activities such as employment and entrepreneurial initiatives has been a subject of scholarship for some time. Drawing on institutional and feminist theories, this chapter argues that feminist entrepreneurship should consider the emerging economies as heterogeneous regions with unique contexts that affect the entrance into and performance in entrepreneurial activities. Any entrepreneurship scholarship that conflates the different regions and contexts within which female entrepreneurs are found, underplays the nuances that affect them through a compressive use of the Global Entrepreneurship Monitor and Global Entrepreneurship Development Institute databases. This chapter illustrates how the South African context enables, as well as impedes, women from total entrepreneurial activity. While current regulative institutions are in place, the number of women entering TEA and flourishing is still low.

General characteristics of internal and external agrarian financial legal relations

2021 ◽  
Vol 12 (3) ◽  
Author(s):  
Pakholiuk Anatolii ◽  
Keyword(s):  
Financial Support ◽  
Legal Status ◽  
The State ◽  
Agricultural Cooperatives ◽  
Economic Activities ◽  
Agricultural Producers ◽  
Legal Form ◽  
Agricultural Enterprises ◽  
Agricultural Enterprise ◽  
State And Local

The article is devoted to the separation of specific features of the internal and the external agrarian financial relations. It is proved that the peculiarities of the first group of legal relations are conditioned by the organizational and legal form of legal entities in which they arise, change and interrupt. These features are established in the legislation governing the legal status of these entities. In particular, it determines the procedure for the formation of property funds of agricultural enterprises, the distribution of financial results (profits) among the founders and participants (members) (for example, payment of dividends (in companies), dividends and patronage dividends (in agricultural cooperatives), also contributions to this fund. At the same time, enterprises accept internal documents on the basis of which such distribution is carried out. In addition, the procedure for exercising control over their financial and economic activities is regulated. The procedure of payments with members (participants) in case of termination of the business entity or withdrawal from its members (participants) is also specific. The opinion is substantiated that the peculiarities of external agrarian financial legal relations are caused, as a rule, by the nature of the business entity activity. Therefore, these relations are regulated by agrarian legislation in field of the state financial support of agriculture and rural social sphere; implementation of certain types of agricultural activities; insurance and lending of the agricultural producers. Such legal relations, according to the author, include: payment legal relations; credit relations (including financial leasing relations); insurance legal relations; relations with the state and local budgets (regarding the payment of taxes and other obligatory payments and fees; receipt of state financial support); investment relations. Keywords: agrarian legislation, agrarian financial legal relations, agricultural enterprise, agricultural producer, internal financial relations, external financial relations

scholarly journals Concept and features of entrepreneurial activity as an object of administrative and legal protection

2018 ◽  
Vol 82 (3) ◽  
pp. 55-64
Author(s):  
V. M. Vasyliev
Keyword(s):  
Economic Activity ◽  
Legal Protection ◽  
Legal Aspects ◽  
The State ◽  
Entrepreneurial Activity ◽  
Modern Development ◽  
State Economy ◽  
Definition Of ◽  
Entrepreneurial Activities ◽  
High Degree

The article is devoted to the study of the category “entrepreneurial activity”, its definition in legal sense, as well as clarification of the legal nature and characteristics. On the basis of a comprehensive analysis of the existing national legislation, as well as systematization of scientific views on the establishment of the content and essence of entrepreneurial activity, the authorʼs definition of this type of socially useful economic activity is formulated. Under the entrepreneurial activity it is proposed to understand the independent type of economic activity, which is carried out at its own risk and under its responsibility by the subjects of entrepreneurial activity (individuals and legal entities registered in the manner prescribed by law), which is systematic, initiative, lawful and innovative and aimed at obtaining personal income and public benefit. The main and additional features that are characteristic of entrepreneurial activity in the conditions of modern development of the state economy and financial level of life of the society are determined and described. The main features of entrepreneurial activities include: systematic, innovative, risk-taking, initiative, full property liability, focus on personal profit, legality. To the optional (additional) features of entrepreneurial activity include: high degree of adaptability to existing socio-economic, political and legal conditions in the state, focus on achieving public economic results, substantiation, directness and mediation of such activities. Generalized functions of entrepreneurial activity, through which the legal aspects of the content and features of this type of economic activity, are revealed.

scholarly journals METHODICAL PROVISIONS FOR CREATING AN OUTSOURCING COMPANY (INCLUDING TYPES OF ECONOMIC ACTIVITY AND TAXATION SYSTEM)

2019 ◽  
Vol 21 (3(72)) ◽  
pp. 124-137
Author(s):  
A. SAINCHUK
Keyword(s):  
Economic Activity ◽  
Institutional Support ◽  
The State ◽  
Economic Activities ◽  
Legal Form ◽  
Executive Authority ◽  
Legal Forms ◽  
Definition Of ◽  
Taxation System

Topicality. There is no the central executive authority in Ukraine, which would conduct statistical accounting of outsourcing companies, because there is no methodology which could help to carry out of such powers. In addition, there is no methodology for creating an outsourcing company in Ukraine that would help new players in the outsourcing services market to create their own businesses and provide fast and high quality services. Thus, the development of a single methodology for setting up an outsourcing company in Ukraine is relevant.Aim and tasks. The aim of the article is to develop methodological provisions for creating an outsourcing company within the existing institutional support at the territory of Ukraine. The aim of this article is to research from sixth to sixteenth stages of creating an outsourcing company.Research results. The methodological provisions were developed for creating an outsourcing company. In the article was using the example of practice of law, including types of economic activity and taxation system. Also, the algorithm has been created by the author who could help choose a simplified taxation system correctly.Conclusion. Methodical provisions for creating an outsourcing company consist of sixteen stages. The author provided recommendations for making changes to the classifier of organizational and legal forms of entrepreneur. It was proposed to add an outsourcing company as a new organizational and legal form of entrepreneur in order to improve the existing system of national statistical classifications. The changes will provide the State Statistics Service of Ukraine the opportunity to raise to a qualitatively new level the statistical analysis of outsourcing companies in Ukraine.There is no methodology or instruction for creating a new outsourcing company in Ukraine. The author has developed a methodology for creating the outsourcing company within the framework of institutional support in Ukraine.The situation was researched in the article in detail, such as the outsourcing has been used in the creation of the outsourcing company. Also the algorithm was created the outsourcing company as step by step.The author has identified sixteen stages of creating the outsourcing company. The first article [1] researched from the first to the fifth steps of creating outsourcing company. This article contains of the sixth to sixteenth stages of creating the outsourcing company.Stage 6 - the definition of economic activities. The author identified the types of economic activity in accordance with SC 009:2010 - Classification of types of economic activity using the "top-down" method.Stage 7 - determination of the management body of the outsourcing company. An executive body is created in an outsourcing company: collegial (directorate) or sole (director).Stage 8 - definition of the tax system. Outsourcing companies choose both the general taxation system and the simplified taxation system.Step 9 - determining the location of the company.Stage 10 - submission of documents to the state registrar for establishing of the new outsourcing company.Stage 11 - receipt of seal and electronic digital signature (EDS).Stage 12 - opening the accounts in the bank. An outsourcing company can open current and deposit accounts in a bank.Stage 13 - Contributions. For the implementation of practice of law is a prerequisite is the payment of contributions of lawyersStage 14 - obtaining a license.Stage 15 - obtaining permission. Not all economic activities can be performed only on the basis of the charter. Sometimes this is not enough. Therefore, you need to obtain a license or permit.Stage 16 - implementation of operating activities by an outsourcing enterprise on the example of practice of law. Only the last stage involves the receipt of profit or income of the company. The previous stages involved only expenses. The list of the above steps is not exhaustive. These steps can be supplemented with specific steps. The number of stages may be less or more, depending on the type of outsourcing activity.

The South African Female Entrepreneurship Context

2020 ◽  
pp. 111-127
Author(s):  
Sybert Mutereko
Keyword(s):  
South African ◽  
Entrepreneurial Activity ◽  
The South ◽  
Economic Activities ◽  
Female Entrepreneurs ◽  
Long Time ◽  
Feminist Theories ◽  
Global Entrepreneurship ◽  
And Performance ◽  
Entrepreneurial Activities

For a long time, women have been excluded from economic activities in male-dominated organizations and patriarchal society. Therefore, due to this factor, their participation in economic activities such as employment and entrepreneurial initiatives has been a subject of scholarship for some time. Drawing on institutional and feminist theories, this chapter argues that feminist entrepreneurship should consider the emerging economies as heterogeneous regions with unique contexts that affect the entrance into and performance in entrepreneurial activities. Any entrepreneurship scholarship that conflates the different regions and contexts within which female entrepreneurs are found, underplays the nuances that affect them through a compressive use of the Global Entrepreneurship Monitor and Global Entrepreneurship Development Institute databases. This chapter illustrates how the South African context enables, as well as impedes, women from total entrepreneurial activity. While current regulative institutions are in place, the number of women entering TEA and flourishing is still low.

scholarly journals THE INFLUENCE OF BEPS INITIATIVES ON FORENSIC EXPERTISE CONCERNING THE ISSUE OF TRANSFER PRICING

2020 ◽  
pp. 575-584
Author(s):  
I. Hrinenko ◽  
Yu. Hrinenko
Keyword(s):  
Tax Evasion ◽  
Transfer Pricing ◽  
Action Plan ◽  
Competent Authority ◽  
The State ◽  
Economic Activities ◽  
Profit Shifting ◽  
State Budget ◽  
Foreign Companies ◽  
Mutual Agreement

Ukraine has joined the BEPS (Base Erosion and Profit Shifting) action plan to combat tax evasion and increase tax transparency around the world. In other words, the state must respond appropriately to ensure the taxation of profits in the country where the taxpayer is engaged in economic activities. Such actions will reduce the transfer of capital to jurisdictions with low levels of taxation, which in turn will help to increase the revenues of the state budget. With regard to the implementation of the provisions of the BEPS Action Plan, Law No. 465-IX introduced the concept of taxation of profits of controlled foreign companies at the level of the controlling entity; introduced a three-tier documentation structure for international groups of companies, which includes transfer pricing documentation (local file), global documentation (master file) and country-by-country reporting; implements provisions 8 to 10 of the BEPS plan to control the distribution of functions, risks and intangible assets within a group of companies, improve the rules for commodity transactions by eliminating the restriction on the use of stock quotes of certain exchanges and allowing the use of quotations for such commodities; the procedure for carrying out the mutual agreement procedure has been determined, which provides for the mechanism of submitting the application for the consideration of the case under the mutual agreement procedure, the requirements for such application, the procedure for the action of the competent authority, etc .; introduced the concept of taxation of dividends equal to dividends, which provides for adjustments to the methodology and procedures envisaged to control transfer pricing when conducting transactions with non-residents.

Entrepreneurial activities of municipalities in the Slovak Republic

2020 ◽  
Author(s):  
Maroš Valach ◽  
Monika Bumbalová
Keyword(s):  
Slovak Republic ◽  
Limited Liability ◽  
Economic Activities ◽  
Legal Form ◽  
The Status ◽  
Entrepreneurial Activities ◽  
The Town ◽  
Positive Effect ◽  
Long Term Experience

Local self-governments in Slovakia have on their disposal several ways of performing entrepreneurial activities. In general municipal entrepreneurship leads to the appreciation of municipal assets and generation of additional own budget revenues. The aim of the paper was to identify and analyse commercial enterprises, through which local self-governments conduct entrepreneurial activities. Within the research, we focused on the enterprises with the property share of municipalities, which have the status of the town. The following factors were taken into account when analysing the municipal enterprises: number of enterprises, their distribution in regions, legal form, economic activity and their economic results. Research results point to the fact that Slovak municipalities have long-term experience in performing of entrepreneurial activities using the municipal enterprises. They are mostly enterprises with 100 percent ownership of towns, and in terms of legal form, they are mostly limited liability companies. As for the economic activities, these enterprises are active in the fields corresponding with the municipal competences. An important positive effect of the entrepreneurial activities of the local self-governments is the increase in the value of assets.

scholarly journals Shadow Economy: Causes and Ways to De-shadow Economic Processes

2020 ◽  
Vol 23 (1) ◽  
pp. 31-36
Author(s):  
Alina Bukhtiarova ◽  
◽  
Andrii Semenog ◽  
Alona Mykhalova ◽  
◽  
...  
Keyword(s):  
Shadow Economy ◽  
Economic Security ◽  
The State ◽  
Economic Effects ◽  
Political Support ◽  
Entrepreneurial Activity ◽  
Negative Consequences ◽  
The Sustainable Development ◽  
High Level ◽  
The Impact

Introduction. The spread of the shadow economy is a significant obstacle to the sustainable development of Ukraine’s economy and its entry into the world community. It negatively affects all economic processes. In Ukraine, the scale of the shadow economy has reached a critical level, so it is vital to find ways to minimize the shadow economy as essential prerequisites for increasing economic security of the state. Purpose. The purpose of the article is to discover the essence of the concept of the shadow economy, to find out the leading causes of the shadow economy and identify ways to de-shadow economic processes. Results. The article analyzes the approaches to the interpretation of the essence of the concept of the shadow economy on the basis of the analysis of the foreign researchers` scientific achievements. The characteristic of its constituent elements has been presented. It has been determined that the shadow economy can take the form of covert, informal and illegal. The level of the shadow economy in Ukraine has been considered. It has been substantiated that the shadow sector of the economy exists regardless of the level of development of the national economy. At the same time, in some countries, it has no significant impact on the economy (5-12% of GDP), and in others – has a detrimental effect on all socio-economic processes (over 30% of GDP). ). It has been emphasized that Ukraine belongs to the second group of countries with a high level of the shadow economy. Also, the main factors that lead to the formation of the shadow economy have been substantiated. Ways to overcome the shadow economy to strengthen Ukraine’s economic security have been proposed. Conclusions. To overcome the negative consequences of the process of shadowing the economy, it is necessary to develop and implement several measures to combat it. The state policy on the de-shadowing of Ukraine’s economy requires the development and application of a set of tools, assessment of the impact (social and economic effects) on the real and financial sectors of the economy, stimulation of entrepreneurial activity. An essential factor in the success of de-shadowing is political support for this complex process, a sequence of actions to reform society, avoid populism and punish irresponsible activities of officials, change the mentality of citizens towards awareness of civic position and involvement in the overall process.

TRANSFER FİYATLAMA UYGULAMASININ İŞLETME PERFORMANSINA ETKİSİ VE VERGİSEL AÇIDAN DEĞERLENDİRİLMESİ

2014 ◽  
Vol 1 (2) ◽  
pp. 187
Author(s):  
Serdar KUZU
Keyword(s):  
Business Performance ◽  
Transfer Pricing ◽  
Tax Law ◽  
Economic Activities ◽  
Tax System ◽  
Goods And Services ◽  
Tax Legislation ◽  
International Transactions ◽  
The Cost ◽  
The Impact

The size of international trade continues to extend rapidly from day to day as a result of the globalization process. This situation causes an increase in the economic activities of businesses in the trading area. One of the main objectives of the cost system applied in businesses is to be able to monitor the competitors and the changes that can be occured as a result of the developments in the sector. Thus, making cost accounting that is proper according to IAS / IFRS and tax legislation has become one of the strategic targets of the companies in most countries. In this respect, businesses should form their cost and pricing systems according to new regulations. Transfer pricing practice is usefull in setting the most proper price for goods that are subject to the transaction, in evaluating the performance of the responsibility centers of business, and in determining if the inter-departmental pricing system is consistent with targets of the business. The taxing powers of different countries and also the taxing powers of different institutions in a country did not overlap. Because of this reason, bringing new regulations to the tax system has become essential. The transfer pricing practice that has been incorporated into the Turkish Tax System is one of the these regulations. The transfer pricing practice which includes national and international transactions has been included in the Corporate Tax Law and Income Tax Law. The aim of this study is to analyse the impact of goods and services transfer that will occur between departments of businesses on the responsibility center and business performance, and also the impact of transfer pricing practice on the business performance on the basis of tax-related matters. As a result of the study, it can be said that transfer pricing practice has an impact on business performance in terms of both price and tax-related matters.

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