scholarly journals The Effect of Low Corporate Tax Rate on Payroll Tax Evasion

2011 ◽  
Author(s):  
Boryana Madzharova
Keyword(s):  
Tax Evasion ◽  
Corporate Tax ◽  
Payroll Tax ◽  
Tax Rate

Tax Amnesty 2004/2005 – An Appropriate Revenue Tool?

2004 ◽  
Vol 5 (4) ◽  
pp. 339-346 ◽  
Author(s):  
Martin Kellner
Keyword(s):  
Tax Evasion ◽  
Income Tax ◽  
Corporate Tax ◽  
Tax Rate ◽  
The Past ◽  
Inheritance Tax ◽  
Tax Amnesty ◽  
Tax Deductions ◽  
Wealth Tax ◽  
Gift Tax

Tax evasion is punishable. However, by tax amnesty the state waives punishment and gives tax dodgers the chance to return to honesty. The “Act To Promote Tax Honesty” offers people who evaded taxes between the years 1993 and 2002 an opportunity to wipe the slate clean by declaring their concealed income up to 2005. This offer applies to income tax, corporate tax, turnover tax, wealth tax, trade tax, inheritance tax, gift tax and tax deductions pursuant to the Einkommensteuergesetz (Income Tax Act). Amnesty participants must pay a reduced tax rate of 25 percent on declared income within ten days after the declaration. For income and corporate tax the assessment basis is reduced to 60 percent. Thereby the new law grants the repentant tax evaders a tax rate of 15 percent rather then usual up to 48 percent on the profits they gained in the past ten years.

scholarly journals Taxing across Borders: Tracking Personal Wealth and Corporate Profits

2014 ◽  
Vol 28 (4) ◽  
pp. 121-148 ◽  
Author(s):  
Gabriel Zucman
Keyword(s):  
Tax Evasion ◽  
Tax Avoidance ◽  
Corporate Tax ◽  
Effective Tax Rate ◽  
Profit Shifting ◽  
Tax Havens ◽  
Tax Rate ◽  
Policy Initiatives ◽  
Tenfold Increase ◽  
Corporate Profits

This article attempts to estimate the magnitude of corporate tax avoidance and personal tax evasion through offshore tax havens. US corporations book 20 percent of their profits in tax havens, a tenfold increase since the 1980; their effective tax rate has declined from 30 to 20 percent over the last 15 years, and about two-thirds of this decline can be attributed to increased international tax avoidance. Globally, 8 percent of the world's personal financial wealth is held offshore, costing more than $200 billion to governments every year. Despite ambitious policy initiatives, profit shifting to tax havens and offshore wealth are rising. I discuss the recent proposals made to address these issues, and I argue that the main objective should be to create a world financial registry.

scholarly journals Tax Avoidance, Tax Risk, and Corporate Governance: Evidence from Korea

2022 ◽  
Vol 14 (1) ◽  
pp. 469
Author(s):  
Jihwan Choi ◽  
Hyungju Park
Keyword(s):  
Corporate Governance ◽  
Tax Evasion ◽  
Stock Price ◽  
Tax Avoidance ◽  
Governance Structure ◽  
Corporate Tax ◽  
Corporate Governance Structure ◽  
Tax Rate ◽  
The Impact ◽  
Avoidance Level

This study examines the association between the effective corporate tax rate and the volatility of future effective corporate tax rates in Korean companies. We analyzed the effect of corporate governance on the association between tax avoidance and tax risk. Our sample is comprised of all the firms listed on the Korea Composite Stock Price Index market. We measure each firm’s tax avoidance as GAAP ETR, Cash ETR, and BTD, and use the corporate governance rating of the Korea Corporate Governance Service to measure corporate governance. Our results show that the volatility of the effective corporate tax rate and the effective corporate tax rate would have a significant negative association. Our results show that tax risk decreases when the corporate tax avoidance level increases and the tax risk increases when the corporate tax avoidance level decreases. In addition, we find that the better the corporate governance structure, the higher the level of supervision and control of managers, thereby mitigating the impact of tax evasion on future corporate tax risk. The findings of this study regarding tax avoidance and corporate governance are important for investors because tax risk can significantly affect investor welfare.

scholarly journals Factors Affecting Corporate Tax Evasion: Evidence from Jordan

2016 ◽  
Vol 4 (6) ◽  
pp. 1-8
Author(s):  
Emad Yousif Alsheikh ◽  
Mohammed Abd Alaffo AlAdham ◽  
Moh'd Fayez Qasem ◽  
Ammar Ali Yousef
Keyword(s):  
Tax Evasion ◽  
Tax Law ◽  
Company Size ◽  
Corporate Tax ◽  
Tax Rate ◽  
Factors Affecting ◽  
External Auditors ◽  
Main Factors

This study aims to point out the main factors that causing to tax evasion. It was relay on a sample of point views of external auditors in Amman city of 173 auditors. The main concluded were that tax rate, penalty, and company size have a statistical sign affecting on the tax evasion in Jordan. The study has recommended that there is a necessity to put a strategy for training to the employees who deal with the taxation according to the tax law.

scholarly journals Governmental Taxation of Households Choosing between a National Currency and a Cryptocurrency

Games ◽  
2021 ◽  
Vol 12 (2) ◽  
pp. 34
Author(s):  
Guizhou Wang ◽  
Kjell Hausken
Keyword(s):  
Central Bank ◽  
Tax Evasion ◽  
National Currency ◽  
Tax Rate ◽  
Digital Currency ◽  
Output Elasticity ◽  
Penalty Factor ◽  
The Government ◽  
Parameter Values ◽  
High Output

: A game between a representative household and a government was analyzed. The household chose which fractions of two currencies to hold, e.g., a national currency such as a Central Bank Digital Currency (CBDC) and a global currency such as Bitcoin or Facebook’s Diem, and chose the tax evasion probability for each currency. The government chose, for each currency, the probability of detecting and prosecuting tax evasion, the tax rate, and the penalty factor imposed on the household when tax evasion was successfully detected and prosecuted. The household′s fraction of the national currency, the government’s monitoring probability of the national currency, and the penalty factor imposed on the global currency, increased in the household′s Cobb Douglas output elasticity for the national currency. The household′s probabilities of tax evasion on both currencies increased in the government’s Cobb Douglas output elasticity for the national currency. The government’s taxation on both currencies decreased in the output elasticity for the national currency. High output elasticity for the national currency eventually induced the government to tax that currency more than the global currency. The household′s probability of tax evasion on the global currency increased in the government’s output elasticity for that currency. The household was less (more) likely to tax evade on the national (global) currency if the government valued taxation and penalty on the national (global) currency. The results are illustrated numerically where each of the eight parameter values were varied relative to a benchmark.

Ireland faces economic uncertainty with OECD reforms

2021 ◽  
Keyword(s):  
Tax Revenue ◽  
Economic Uncertainty ◽  
Corporate Tax ◽  
Content Type ◽  
Tax Rate ◽  
Sinn Fein ◽  
Fiscal Spending

Significance This framework laid out two pillars of reform. Pillar One would see large companies liable for tax in the end-market jurisdiction where their goods or services are used or consumed. Pillar Two would set a minimum tax rate of 15%. Impacts Ireland will probably support the reforms by October, and in return it may get some concessions over implementation or sectoral coverage. Reduced corporate tax revenue may result in tighter fiscal spending, which would play into the hands of the opposition Sinn Fein. The corporate tax proposals come at a particularly bad time for the Irish economy, which is already facing the consequences of Brexit.

scholarly journals A minimum corporate tax rate in the EU combines the best of two worlds

2004 ◽  
Vol 39 (4) ◽  
pp. 180-182 ◽  
Author(s):  
Ruud de Mooij
Keyword(s):  
Corporate Tax ◽  
Tax Rate ◽  
The Eu

scholarly journals Malaysian corporate tax rate and revenue: the application of Ibn Khaldun tax theory

2018 ◽  
Vol 10 (2) ◽  
pp. 251-262
Author(s):  
Hairul Azlan Annuar ◽  
Khadijah Isa ◽  
Salihu Aramide Ibrahim ◽  
Sakiru Adsebola Solarin
Keyword(s):  
Cash Flow ◽  
Positive Impact ◽  
Tax Revenue ◽  
Corporate Tax ◽  
Gradual Reduction ◽  
Content Type ◽  
Ibn Khaldun ◽  
Tax Rate ◽  
Optimal Tax ◽  
The Impact

Purpose The present study aims to investigate the impact of the reduction of the corporate tax rate on corporate tax revenue. The study adopts the theory of taxation by Ibn Khaldun, depicted as the Laffer curve. Design/methodology/approach The paper analyses time series data for the period 1996 to 2014 using the autoregressive distributed lag (ARDL) approach. Findings The paper finds that the corporate tax rate has a dual effect on corporate tax revenue over the study period. It shows an inverted U-shape relationship between the corporate tax rate and corporate tax revenue and reveals that the optimal tax rate is 25.5156 per cent. Inferentially, a positive relationship exists between the two variables prior to the optimal tax rate, and a negative relationship prevails afterwards. A further test of causality shows a long-run unidirectional causality between corporate tax rate and corporate tax revenue. Research limitations/implications First, it should be noted that the policy was not implemented in isolation. Several other tax incentives were given to corporate tax payers, and therefore, such incentives should be controlled for to have a more insightful evaluation of the policy. Second and most important, there is a need to investigate whether the increased cash flow available to firms as a result of the reduction in the corporate tax rate adds value to firms. It is also necessary to investigate whether firms’ stakeholders benefited from the increased cash flow or was there managerial diversion of firms’ resources. Practical implications The policy of gradual reduction of the corporate tax rate in Malaysia is suspected to have a positive impact on the productivity of Malaysian companies, which has contributed to an increase in corporate tax revenue. It also has a positive impact on the economic growth of the country. It means that the lower corporate tax rate has actually reduced the cost of doing business in the country. Originality/value The benefit of increased corporate tax revenue needs to be investigated empirically for insightful policy evaluation. In Malaysia, however, such investigation is close to non-existent to the best knowledge of the researchers. Thus, the present study aims at investigating the impact of the policy of gradual reduction of the corporate tax rate on corporate tax revenue over an 18-year period from 1996 to 2014.

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