TAX AVOIDANCE AND TAX EVASION IN THE SECTOR OF SMALL AND MEDIUM ENTERPRISES – REASONS, SPECIFITY, EFFECTS

The usage of electronic cash registers in the conditions of the Slovak Republic does not have a long, but definitely interesting history, which is very often related to changes and amendments in its legislative and technical-economic aspects. Small and medium enterprises need to pay a close attention to the area of electronic cash registers, as often changes and amendments of legislation and technical aspects cause them problems and additional costs. The usage of electronic cash registers is one of the measures of the Slovak government to prevent tax avoidance and tax evasion.

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Tax Avoidance in Albania

European Journal of Economics and Business Studies ◽

10.26417/270msu59a ◽

2020 ◽

Vol 6 (3) ◽

pp. 124

Author(s):

Viola Tanto

Keyword(s):

Tax Evasion ◽

Reference Model ◽

Small And Medium Enterprises ◽

Burden Of Proof ◽

Tax Avoidance ◽

Tax Administration ◽

The European Union ◽

Legal Norms ◽

Special Cases ◽

Medium Enterprises

This paper was written in order of the reforming of the tax system’s framework. Analysing phenomena such as tax evasion, tax avoidance, the use of legal loopholes to reduce tax liability in Albania was very challenged. In this paper is analysed also some other jurisdictions, which have served as a reference model for the reform of Albanian legislation, such as the Italian one and the legislation of the European Union. Recently, we were witnesses of a significant increase, in the quantitative and qualitative level, of tax evasion and tax avoidance. Often, the "battle" between the taxpayer and the contributor in bad faith is based on the probative power (burden of proof) of the elements of the transaction which must be verified by the tax administration. Even more often, this fight takes place over the basis of the correct interpretation of legal norms. Evasion is leaving more and more room for refined avoidance. Avoidance is no longer just the prerogative of big companies, corporations or powerful business groups, but it is turned into an ordinary management instrument for small and medium enterprises, even in special cases, even for natural persons. The paper analyses problems such as: basic and key aspects of tax evasion, by distinguishing with other concepts of tax law, such as tax planning and tax evasion, which are the forms of identifying tax evasion/avoidance, the meaning of the doctrine of abuse right. At the end of the paper, you can find a presentation on all findings and conclusions reached during the analysis of the above problems, and some recommendations for the improvement of the activity of the Tax Administration.

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Taxing Micro, Small and Medium Enterprises in Yogyakarta: Regulation and Compliance

BESTUUR ◽

10.20961/bestuur.v9i1.49184 ◽

2021 ◽

Vol 9 (1) ◽

pp. 59

Author(s):

Siti Rahma Novikasari ◽

Duc Quang Ly ◽

Kerry Gershaneck

Keyword(s):

Tax Policy ◽

Income Tax ◽

Government Regulation ◽

Small And Medium Enterprises ◽

Tax Avoidance ◽

Tax Compliance ◽

Legal Compliance ◽

The Government ◽

Medium Enterprises ◽

Compliance Constraints

Government Regulation No. 46/2013 has not been optimal in providing legal compliance on taxation for Micro, Small, and Medium Enterprises (MSMEs), especially in Yogyakarta. This policy was evaluated and amended with Government Regulation No. 23/2018. The amendment in tax policy for MSME actors was this research background to examine: First, how does the final income tax policy impact MSME taxpayers' compliance in Yogyakarta? Second, what are the legal compliance constraints of MSME taxpayers? The method used in this research was a juridical empirical, supported with the statute and conceptual approach. The results showed that the amendment in the final income tax tariff policy from 1% to 0.5%, as well as provide legal certainty of the timeframe of taxation had a positive impact on increasing taxpayer compliance. There was an increase in the number of taxpayers to 41,000 in 2019, or an increase of 15.5% compared to the number of taxpayers in 2017. However, tariff reduction has not been the answer to taxpayer non-compliance, the Regional Office of the Directorate General of Taxes of the Special Region of Yogyakarta still found tax avoidance. Tax compliance constraints were also caused by taxpayers' distrust of the government, poor tax morale, and tax knowledge. The government needs to conduct a cooperative compliance approach in taxation policies based on trust and dialogue between taxpayers and the government to improve MSME taxpayer compliance.Keywords: Tax Compliance; Final Income Tax Regulation; Micro; Small; Medium Enterprises.

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The Presumptive Tax Regime on Micro, Small and Medium Enterprises in Indonesia

Syntax Literate ; Jurnal Ilmiah Indonesia ◽

10.36418/syntax-literate.v5i6.1323 ◽

2020 ◽

Vol 5 (6) ◽

pp. 50

Author(s):

Chandrika Aditya

Keyword(s):

Government Regulation ◽

Small And Medium Enterprises ◽

Tax Avoidance ◽

Tax Compliance ◽

Tax Administration ◽

Related Literature ◽

State Revenue ◽

The Government ◽

Medium Enterprises ◽

Tax Cuts

In July 2013, Indonesia implemented the presumptive tax regime on micro, small and medium enterprises (MSMEs) by assigning Government Regulation No.46/2013. This regulation simplified the tax administration and provides tax cuts to MSMEs to help them grow and encourage voluntary tax compliance, which eventually will increase their contribution to state revenue. This study provides an analysis of the implementation of this new tax regime by comparing related literature on practices of this tax regime in many countries with the recent conditions in Indonesia after this regulation was applied. It seems that the new tax regime encourages voluntary tax compliance and stimulates the contribution of MSMEs to state revenue. However, some challenges, such as different definitions, lack of tax knowledge, impartiality to business losses, and the indication of tax avoidance must be overcome by the government by improving policies that favor MSMEs. Keywords: Indonesia, MSMEs, presumptive tax, threshold

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PROBLEMS OF FUNCTIONING AND DEVELOPMENT OF MICRO-, SMALL AND MEDIUM BUSINESS SERVICES IN UKRAINE

Eastern Europe: economy, business and management ◽

10.32782/easterneurope.29-11 ◽

2021 ◽

Author(s):

Olena Lynnyk ◽

Natalia Iershova

Keyword(s):

Tax Evasion ◽

Local Community ◽

Small And Medium Enterprises ◽

Value Added ◽

Well Being ◽

Local Authorities ◽

Business Services ◽

Management And Development ◽

The Government ◽

Medium Enterprises

The article examines the existing problems of the current state of management and development of micro, small and medium enterprises in Ukraine and in the world, in particular, in the field of services. Statistical and scientific sources on the specified problems are analyzed. The important social and economic role, competitive advantages of small and medium enterprises in comparison with big business and the reasons of their insufficient efficiency are emphasized. The share of value added in the gross domestic product produced by micro and small enterprises in Ukraine in comparison with the EU countries is singled out and the main reasons for the lag are identified. The analysis of the effectiveness of the simplified system of taxation of microbusiness, in particular, individual entrepreneurs working in the fields of services, trade, catering and IT, revealed tax evasion and the existence of unequal conditions for paying taxes by different categories of taxpayers. These calculations show that significant amounts of income of simplistic entrepreneurs working in the field of information technology are not taxed at all. The international and domestic experience on the issue of removing microbusiness from the shadows by introducing the mandatory use of registrars of settlement operations has been studied. It was emphasized that, in the context of decentralization, the crucial role in overcoming the shortcomings of the simplified taxation system should be played by local authorities, which are interested in establishing clear rules for fiscalization of individual entrepreneurs to fill local budgets with taxes. In order to find common economically sound solutions that are acceptable to all parties, it is proposed to create working groups of representatives of local authorities and microbusiness. In order to increase the efficiency of micro, small and medium-sized enterprises at the local community level, a number of measures are recommended that will increase the number of entrepreneurs and jobs, increase revenues to local budgets and improve the well-being of community residents. The government should create investment infrastructure for micro, small and medium-sized businesses with favorable conditions, and entrepreneurs should pay taxes politely.

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Tax Avoidance on Poultry Business Owners in Blitar Regency, East Java Province

International Journal of Accounting & Finance in Asia Pasific ◽

10.32535/ijafap.v4i1.1032 ◽

2021 ◽

Vol 4 (1) ◽

pp. 51-59

Author(s):

Ratih Sepriana

Keyword(s):

Small And Medium Enterprises ◽

Participant Observation ◽

Tax Avoidance ◽

Tax Compliance ◽

Phenomenological Approach ◽

Business Owners ◽

Tax Planning ◽

State Revenue ◽

Tax Payments ◽

Medium Enterprises

Micro, Small and Medium Enterprises (MSMEs) are expected to be able to contribute to state revenue through tax sectors. The purpose of this study is to determine a profile of poultry business, meaning of tax compliance for poultry business owners, tax avoidance of poultry business owners, and to determine efforts to overcome tax avoidance behavior in poultry business owners in the regency of Blitar. The nature of this study is a qualitative or naturalistic paradigm with a phenomenological approach; Hussrel's transcendental phenomenology involving three interviews. We also interviewed with one tax officer from the tax office. The data were collected from interviews, participant observation, and documentation study. The data were analyzed by descriptions with Hussrel's transcendental phenomenological approach, namely Intentional Analysis, Epoche, and Eidetic Reduction. Data validation was carried out by several triangulation techniques. The results show that the poultry businesses are MSMEs that fall into the medium business category and are the main source of income for the owners. Though they are aware of tax and their obligations, their level of tax compliance remains low. The business owners are aware of tax avoidance, even doing so by reducing the tax payments through tax planning. Thus, efforts should be made to discourage tax avoidance.

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Factors That Back Up Taxes For Micro, Small And Medium Enterprises (MSMEs) In Taking The Tax Evasion In Indonesia

International Journal of Scientific and Research Publications (IJSRP) ◽

10.29322/ijsrp.11.07.2021.p11575 ◽

2021 ◽

Vol 11 (7) ◽

pp. 563-570

Author(s):

Sonny SE. BKP

Keyword(s):

Tax Evasion ◽

Small And Medium Enterprises ◽

Medium Enterprises

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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

Sustainability ◽

10.3390/su10114132 ◽

2018 ◽

Vol 10 (11) ◽

pp. 4132 ◽

Cited By ~ 1

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.

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ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI PERSEPSI WAJIB PAJAK ATAS PENGGELAPAN PAJAK

Jurnal Akuntansi ◽

10.46806/ja.v8i1.574 ◽

2019 ◽

Vol 8 (1) ◽

Author(s):

Gracia Emanuella Valentina, Amelia Sandra

Keyword(s):

Tax Evasion ◽

Small And Medium Enterprises ◽

Hypothesis Test ◽

Multiple Linear Regression Model ◽

Sampling Technique ◽

Assessment System ◽

Self Assessment ◽

Analysis Technique ◽

The Government ◽

Medium Enterprises

Tax is one of the main sources of income and expenditure for the nation of Indonesia. Therefore, every year the Government of Indonesia always tries to increase the amount of tax revenue. However, what happens is there are still some Taxpayers who seek to reduce the amount of tax payable by tax evasion. Tax evasion is an attempt to lighten the tax burden by violating existing laws. Meanwhile, this study aims to determine whether the factors such as equity, Self Assessment System, and service of the tax authorities affect the taxpayer's perception of tax evasion. The data obtained came from a questionnaire filled by 100 Individual Taxpayers Entrepreneurs in the field of Micro, Small and Medium Enterprises in the area of Kelapa Gading. The sampling technique used is Purposive Sampling, while the data analysis technique consists of descriptive statistics, data quality test, classical assumption test, hypothesis test, and multiple linear regression model analysis. The result of this research indicate that equity and service of the tax authorities influence to taxpayer perception on tax evasion, while Self Assessment System has no effect to taxpayer perception on tax evasionKeywords: Equity, Self Assessment System, Service of The Tax Authorities, and Tax Evasion

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Potensi Tax Avoidance Terhadap Peraturan Pemerintah Nomor 23 Tahun 2018 Oleh Wajib Pajak Perseroan Terbatas

Owner ◽

10.33395/owner.v5i2.490 ◽

2021 ◽

Vol 5 (2) ◽

pp. 407-416

Author(s):

Suparna Wijaya ◽

Aditya Setiawan

Keyword(s):

Government Regulation ◽

Small And Medium Enterprises ◽

Tax Avoidance ◽

Limited Liability ◽

Limited Liability Company ◽

Directorate General ◽

The Government ◽

Medium Enterprises ◽

Independent Work ◽

The Impact

Micro, Small and Medium Enterprises (MSMEs) are businesses that have an important role in encouraging the Indonesian economy, so the government provides tax facilities by issuing Government Regulation No. 46 of 2013 as has been replaced by Government Regulation No. 23 of 2018. Government Regulation No. 23 of 2018 excludes corporate taxpayers in the form of CV and firms that provide services in connection with independent work, while Limited Liability Companies do not. This study aims to explain the potential for tax avoidance in Government Regulation Number 23 of 2018 that can be carried out by Limited Liability Company taxpayers regarding income related to independent work, as well as the impact and solutions of such tax avoidance actions. The method used in this research is descriptive qualitative. The results of the study indicate that taxpayers who will establish a business entity with the type of business related to independent work, can choose to establish a Limited Liability Company compared to a CV or firm, so that they can use the relatively lower rate of Government Regulation Number 23 of 2018. This of course has an impact on reducing tax revenues, so the Directorate General of Taxes needs to minimize the potential for tax avoidance through education, supervision, and regulatory improvements.

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