scholarly journals Nonlinear Tax Elasticities And Their Implications For The Structural Budget Balance

2011 ◽  
Vol 27 (4) ◽  
pp. 113 ◽  
Author(s):  
Charl Jooste ◽  
Ruthira Naraidoo
Keyword(s):  
South Africa ◽  
Income Tax ◽  
Linear Models ◽  
Value Added ◽  
Fiscal Sustainability ◽  
Economic Cycle ◽  
Contraction Phase ◽  
The Government ◽  
Fiscal Prudence ◽  
Structural Budget

<p>Research on tax elasticities in South Africa mainly employs linear models and shows that taxes evolve symmetrically irrespective of the economic cycle. This study extends this research to show that taxes behave asymmetrically and nonlinearly during expansions and contractions. Estimated linear elasticities imply that a one percent expansion in the cycle increases personal income tax, corporate income tax and value added tax by 1.43, 2.52 and 0.99 percent, respectively. However, estimated nonlinear elasticities are significantly different. During an expansion, the above elasticities increase by 1.89, 2.76 and 2.17 percent, respectively while during a contraction phase these elasticities increase by 0.89, 0.88 and 0.82 respectively. This finding of low tax collection during economic contractions has important implications for fiscal sustainability and overall fiscal prudence in South Africa. The findings of high tax elasticities during expansions might explain the underestimation of revenue by the government.</p>

scholarly journals Pyott case: A lasting deposit for our tax heritage

2019 ◽  
Vol 19 ◽  
pp. 47-70
Author(s):  
A C Engelbrecht ◽  
G K Goldswain ◽  
A Heyns
Keyword(s):  
South Africa ◽  
Income Tax ◽  
Rental Housing ◽  
Value Added ◽  
Point Of View ◽  
Relevant Today ◽  
Consumer Protection Act ◽  
Contingent Liability ◽  
Beneficial Ownership ◽  
Gross Income

Pyott Ltd v CIR is generally regarded as the seminal case in South Africa on the tax treatment of deposits received on containers that may be returned at a later stage for a refund. This article analyses the tax treatment of deposits, prepayments and advances from a gross income point of view, as well as the possibility of claiming a deduction for the contingent liability to refund such deposit. 6The main objective of this article is to discuss the judgment in the Pyott case and establish whether the principle enunciated that deposits,received in respect of returnable containers, are taxable in full once received, can also be extended to receipts of deposits, prepayments and advances where no returnable container is involved. 7The conclusions reached are that the principles laid down in the Pyott case are still relevant today, apart from possible relief which may now be claimed under the subsequently introduced section 24C. Where no container is involved, beneficial ownership must first be established before such deposit, prepayment or advance becomes taxable, taking into account the specific provisions of legislation such as the Rental Housing Act and the Consumer Protection Act. The research has also shown coherence in the treatment of deposits for income tax purposes and other taxes, such as value-added tax.

scholarly journals Effect of Corporate Tax on Government Expenditure in Nigeria

2021 ◽  
Vol 1 (5) ◽  
pp. 157-171
Author(s):  
Patrick Ologbenla
Keyword(s):  
Income Tax ◽  
Consumer Price Index ◽  
Government Expenditure ◽  
Value Added ◽  
Corporate Income Tax ◽  
Value Added Tax ◽  
Independent Variable ◽  
The Government ◽  
The Impact ◽  
Bound Test

The study investigated the impact of corporate income tax on the government expenditure in Nigeria. Data on corporate income tax, value added tax, interest rate, gross domestic product, petroleum profit tax and consumer price index were collected and used as independent variable in the study while data on public expenditure were collected and used as independent variable in the estimated model. The ARDL bound test was applied and the result showed that corporate income tax have long run relationship that is significant with government expenditure. Other forms of tax such as value added tax and petroleum profit tax also have significant impact on government expenditure. The study concluded that corporate income tax should be sustained in order to ensure that government continue to fulfill her obligation of provision of social amenities that will promote the economic growth of the country.

scholarly journals PERPAJAKAN DI ERA EKONOMI DIGITAL: INDONESIA, INDIA DAN INGGRIS

2019 ◽  
Vol 4 (2) ◽  
pp. 215-230
Author(s):  
Yanis Ulul Az'mi
Keyword(s):  
United Kingdom ◽  
Income Tax ◽  
Consumer Demand ◽  
New Technology ◽  
Value Added ◽  
Tax Law ◽  
Goods And Services ◽  
The United Kingdom ◽  
Income Tax Law ◽  
The Government

The development of new technology and diverse consumer demand has increased the digital retail industry today. This also affects the way buyers / consumers get the goods and services they want. Consumers turn to e-commerce and cellular to make purchases that are usually done physically. This change in shopping style has been driven largely due to the emergence of many market places and platforms. This change will also have effect on the taxation of the transaction. The Government of India applies the Equalization Levy Rules (EQL) scheme which is categorized as PNBP (Non-Tax Revenues). While in the United Kingdom there is a Diverted Provit Tax (DPT) scheme. Whereas Indonesia has no more specific rules, there is only a Circular (Surat Edaran) that regulates the Affirmation of Tax Regulations on e-Commerce Transactions, namely SE / 62 / PJ / 2013 tax regulations e-commerce follows the income tax law and value added tax.

scholarly journals Implementasi Kebijakan Pemungutan Pajak Atas Transaksi Perdagangan Melalui E-Commerce Di Indonesia

2021 ◽  
Vol 2 (2) ◽  
pp. 60-72
Author(s):  
I Kadek Beny ◽  
Meilin Loviana Dewi
Keyword(s):  
Income Tax ◽  
Value Added ◽  
Value Added Tax ◽  
Tax Collection ◽  
Public Facilities ◽  
State Revenue ◽  
Tax Laws ◽  
Direct Compensation ◽  
Directorate General ◽  
The Government

Tax collection policy is a policy issued by the government in an effort to increase state revenue. Taxes are a taxpayer's obligation or a taxpayer's contribution to a state that is compelling without receiving direct compensation, but the tax is usually allocated to the construction of public facilities and the interests of the government of a country. With the existence of a policy regarding tax collection on trade transactions carried out online, it is hoped that there will be an awareness of taxpayers to carry out their obligations. The types of taxes that can be imposed or collected are the type of income tax (PPh) and the type of value added tax (VAT). With this tax collection policy, it is hoped that it can increase state revenue from the tax sector, especially taxes from online trade transactions by utilizing E-Commerce media. The government through the Directorate General of Taxes (DGT) has confirmed the E-Commerce transaction by issuing SE-62 / PJ / 2013 dated 27 December 2013 concerning the Affirmation of Taxation Provisions on E-Commerce Transactions, which states that there are no new taxes in E-Commerce transactions. commerce. Therefore, the seller or buyer can be taxed in accordance with the applicable tax laws. Taxes on E-Commerce transactions aim to apply justice to all taxpayers, both conventional and E-Commerce.

scholarly journals An investigation into the future of discretionary trusts in South Africa – An income tax perspective

2014 ◽  
Vol 7 (3) ◽  
pp. 797-818 ◽  
Author(s):  
Sophia Brink ◽  
Leonard Willemse
Keyword(s):  
South Africa ◽  
Income Tax ◽  
Tax Avoidance ◽  
Qualitative Approach ◽  
Literature Study ◽  
National Budget ◽  
Flow Through ◽  
Potential Impact ◽  
The Government ◽  
Legislative Measures

Trusts have long been associated with elaborate tax avoidance schemes, primarily as a result of their flow-through nature. In the National Budget the Minister of Finance indicated that the government was proposing several legislative measures during 2013/2014 regarding trusts to control abuse. At this stage the proposals are vague and confusing, but it is intimated that the conduit pipe principle may be under review as the proposals state that trusts should no longer act as a flow-through vehicle, meaning that the amounts distributed to the beneficiaries will no longer retain their original identity. The main objective of the research was to clarify the proposed changes to the taxation of trusts, to investigate the potential impact(s) of these proposals (albeit unclear and consequently based on certain assumptions), and to assess whether discretionary trusts still have a future in South Africa given these proposals. In order to meet this objective, a qualitative approach based on a literature study of pure theoretical aspects was used. It was found that should the proposals become law the beneficiaries will be worse off.

scholarly journals MEMAJAKI TRANSAKSI EKONOMI DIGITAL: STUDI KASUS DI INDIA, PERANCIS, DAN AUSTRALIA

2020 ◽  
Vol 2 (1) ◽  
pp. 1-12
Author(s):  
Suwardi . Suwardi ◽  
Alan Budiandri ◽  
Cinthya S. ◽  
Ghifri N. A.
Keyword(s):  
Literature Review ◽  
Income Tax ◽  
Value Added ◽  
Regulatory Framework ◽  
Value Added Tax ◽  
Goods And Services ◽  
Physical Presence ◽  
Foreign Supplier ◽  
The Government

The digital tax is imposed on the transaction of goods and services carried out with Domestic Taxpayers or with Foreign Taxpayers without a physical presence in Indonesia. To date, the existing regulatory framework makes it impossible for Indonesia to tax those transactions. Digital taxation concepts that can be applied by Indonesia include the Income Tax and Value Added Tax. Digital tax can also be done by using a new concept specifically regulating digital tax. Indonesia introduced VAT for the foreign supplier in the mid-2020. Data were obtained through a literature review of countries that had applied taxes on digital economic transactions before Indonesia. This paper is expected to provide input for the Government of Indonesia in taxing digital transactions.Pajak digital merupakan pajak yang dikenakan atas transaksi pertukaran barang dan/atau jasa yang dilakukan oleh sesama Subjek Pajak Dalam Negeri maupun dengan Subjek Pajak Luar Negeri yang keberadaan fisiknya tidak ada di Indonesia. Alternatif pemajakan digital yang dapat diterapkan oleh Indonesia diantaranya menggunakan konsep Pajak Penghasilan (PPh), Pajak Pertambahan Nilai (PPN) atau dapat pula dilakukan dengan menambahkan jenis pajak baru khusus mengatur pajak digital. Indonesia baru mengenakan pajak untuk jenis PPN atas transaksi digital pada pertengahan tahun 2020. Data diperoleh melalui tinjauan literatur atas negara-negara yang telah menerapkan pajak atas transaksi ekonomi digital sebelum Indonesia. Tulisan ini diharapkan dapat memberikan masukan bagi Pemerintah Indonesia dalam memajaki transaksi digital.

VAT on foreign digital services in Mauritius; a comparative study with South Africa

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ambareen Beebeejaun
Keyword(s):  
South Africa ◽  
Action Plan ◽  
Value Added ◽  
Research Paper ◽  
Content Type ◽  
Goods And Services ◽  
Legal Provisions ◽  
Digital Services ◽  
Compliance Requirements ◽  
The Government

Purpose Value added tax (VAT) is an indirect tax that is payable upon the consumption of goods and services. Recently, the Government of Mauritius has introduced a new set of rules to extend the VAT system to non-resident providers of electronic services to consumers based in Mauritius. The purpose of this research paper is therefore to assess the adequacy and efficiency of the recent VAT amendments in terms of compliance requirements and collection measures and to identify loopholes in the present legal provisions. Design/methodology/approach The methodologies for the research are in essence comprised of the black letter approach which will analyse the legal provisions relating to VAT in Mauritius. A comparative analysis will also be conducted to find out the corresponding legal provisions relating to VAT on digital services in South Africa. Findings This research paper has highlighted some recommendations inspired by the laws of South Africa and the Organisation for Economic Cooperation and Development Based Erosion Profiting Shifting action plan which may be of use to Mauritius stakeholders when devising regulations on the imposition of VAT on foreign suppliers of digital services under Section 14B of the VAT Act. Originality/value To the author's best knowledge, this research paper is the first study conducted in the field of indirect taxation of foreign suppliers of digital services to residents of Mauritius.

scholarly journals CADANGAN REKLAMASI PERTAMBANGAN SEBAGAI LOOPHOLES PAJAK DALAM PENERAPAN PRINSIP TAXABILITY-DEDUCTIBILITY

2018 ◽  
Vol 6 (2) ◽  
pp. 181-198
Author(s):  
Chairil Anwar Pohan
Keyword(s):  
Income Tax ◽  
Negative Impact ◽  
Value Added ◽  
Tax Law ◽  
Mining Activities ◽  
Government Officials ◽  
Income Tax Law ◽  
Gross Income ◽  
The Government ◽  
Mining Face

Ironic look messy mining face in this country and so much troublesome services of government officials, especially in the mining region of area businesses amid rampant mining minerals (Gold, Tin, Copper, Nickel, etc.) and coal were carried out by the Investor, the resultant investment offers little value added contribution on state revenues, whereas post-exploitation or post-mining closure leaves holes gaping tailings left just by miners, resulting in environmental degradation, social inequality and other things that have a negative impact that brings enormous material losses for the country and society, which never should have happened because of the taxation aspects of the government actually had anticipated that the mining activities should be facilitated by the provisioning cost of reclamation in mining production activities are underway, the reserve for reclamation explicitly accommodated as accounts exclusion in Article 9, paragraph 1 of Income Tax Law, that the taxation treatment is a cost that can be a deduction from gross income.

scholarly journals Tax Revenue and Economic Development in Nigeria

2019 ◽  
Vol 6 (9) ◽  
pp. 312-321
Author(s):  
Clement Olatunji Olaoye ◽  
Ayobolawole Adewale Ogundipe ◽  
Oladimeji Emmanuel Oluwadare
Keyword(s):  
Economic Development ◽  
Income Tax ◽  
Unit Root Test ◽  
Value Added ◽  
P Value ◽  
Value Added Tax ◽  
Distributed Lag ◽  
Long Run ◽  
The Government ◽  
The Impact

This study investigated the impact of taxation on economic development of Nigeria from 2003 to 2017.Vector Error Correction Model (VECM), Augmented Dickey-Fuller (ADF) unit root test, Autoregressive Distributed Lag (ARDL) bounds test, Jarque-Bera Normality Test and Eigenvalue stability condition were utilised in this study. The study revealed that companies’ income tax, petroleum profit and value added tax have a long run impact of -0.225(p-value=0.000),-0.0005 (p-value=0.699), and 0.211(p-value=0.000) respectively on the economic development of Nigeria.It was concluded that taxation has a significant long run relationship with Nigeria’s economic development. The study recommended that the government should not increase companies’ income tax rate because it is detrimental to the economic development of the country in the long run, instead the government should increase the value added tax because it has the potentiality to improve economic development of Nigeria. Also, the government should not concentrate effort on petroleum profit tax as it not significant on economic development of the country.

scholarly journals Persepsi Wajib Pajak UMKM Terhadap Kewajiban Perpajakan (Studi Pada UMKM di Eks Karisidenan Surakarta)

2021 ◽  
Vol 21 (02) ◽  
Author(s):  
Hanung Triatmoko ◽  
Juliati Juliati ◽  
Sri Suranta ◽  
Trisninik Ratih Wulandari ◽  
Renata Zoraifi
Keyword(s):  
Income Tax ◽  
Quantitative Method ◽  
Sampling Method ◽  
Linear Regression Analysis ◽  
Value Added ◽  
Tax Revenue ◽  
Directorate General ◽  
Negative Perceptions ◽  
The Government ◽  
Tax Payments

This study aims to assess the perceptions of MSME taxpayers who are in the Karisidenan Surakarta area on tax obligations. MSMEs are a driver of increasing economic growth in the present era. Solo is one of the cities that is famous for the growth of MSMEs because culinary, handicraft, and clothing entrepreneurs have started to appear in Karisidenan Surakarta. Ideally, an increase in the number of MSMEs will also be followed by an increase in the amount of taxes that will be received by local and central governments. Income Tax (PPh) and Value Added Tax (PPN) are two central taxes which should also increase with the growth of MSMEs. The perception of UMKM taxpayers towards taxation obligations is certainly important to research because negative perceptions of taxes will result in decreased tax revenues so that these perceptions need to be improved with better socialization from the Directorate General of Taxes. This study will examine the perceptions of taxpayers related to NPWP ownership, SPT reporting and tax payments. The method used is a quantitative method by distributing questionnaires to samples of MSMEs in Karisidenan Surakarta. The sampling method used was purposive sampling and the analysis used was linear regression analysis. This research is expected to provide benefits to the government in making policies to increase tax revenue.

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