The Effect of the Formulary Apportionment System on State-Level Economic Development and Multijurisdictional Tax Planning

1999 ◽  
Vol 21 (s-1) ◽  
pp. 42-57 ◽  
Author(s):  
Teresa Lightner
Keyword(s):  
Economic Development ◽  
Employment Growth ◽  
Recent Trend ◽  
State Level ◽  
Tax Planning ◽  
Negative Association ◽  
Percentage Change ◽  
Corporate Tax ◽  
Tax Rate ◽  
Manufacturing Employment

This paper examines the effect of the formulary apportionment system on state-level economic development. All three apportionment factors, when combined with the corporate tax rate employed by each state, are shown to have a significant negative association with the percentage change in manufacturing employment. However, further analysis suggests that the corporate tax rate, and not the apportionment formula, may be driving employment growth. Also, the findings do not support the importance of the throwback rule or the recent trend to overweight the sales factor in attracting economic development to a state.

scholarly journals PENERAPAN TAX PLANNING TERHADAP PPh SEBAGAI UPAYA EFISENSI PEMBAYARAN PAJAK (Studi Kasus Pada Perusahaan Jasa Angkutan Di Malang)

IQTISHODUNA ◽  
2011 ◽  
Vol 4 (2) ◽  
Author(s):  
Nanik Wahyuni
Keyword(s):  
Income Tax ◽  
Tax Planning ◽  
Observational Result ◽  
Corporate Tax ◽  
Tax Rate ◽  
Shift Cost ◽  
New Firm ◽  
Branch Office ◽  
Cost Shift ◽  
Taxation Problem

To the effect of observational it is subject to be to insofar know which income tax planning effectiveness that can be done by firm and to reach efficiency in paying taxes charges that shall pay firm. Base observational result and taxation problem study in particular about tax planning on, therefore writer can glean from that firm has applied effective so corporate tax planning can't economize taxes charges payment it. To economize taxes, expedition company ought to applies tax planning, which is with shift cost that don't be admitted fiskus as accrued expenses fiskus as deducted as productions. In shifts cost, firm shall regard impact of that cost shift. Meanwhile to avoid of corporate maximum tax rate gets to broadcast production as production of some taxpayer, which is with make proprietary branch office as new firm that includes in group firm, then broadcasts proprietary production corporate to that new firm. With that implement, firm can economize taxes who shall be paid to state, and that thrift gets to be utilized to do marketing region extension and for things what do get to increase quality and firm amount.

Corporate Tax Planning and Financial Performance of Companies Listed in Colombo Stock Exchange (CSE)

2020 ◽  
Vol 3 (2) ◽  
pp. 1-15
Author(s):  
Dunusinghe Dharmarathna
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Listed Companies ◽  
Ordinary Least Squares ◽  
Tax Planning ◽  
Sri Lankan ◽  
Corporate Tax ◽  
Effective Tax Rate ◽  
Return On Assets ◽  
Tax Rate

This study focuses on how best performing listed companies in CSE make strategies in tax planning to reduce tax liabilities without violating rules and regulations imposed by the Tax Authority. In this study, the corporate tax planning was measured by using the Effective Tax Rate (ETR) and the financial performance was measured by using Return on Assets (ROA). The sample of the study was designed based on criteria namely, the largest and most liquid companies in the Sri Lankan equity market and the sample period was restricted for the period 10 years from 2009-2018. The sample represents seventeen (17) companies which are used to calculate the S&P SL 20 index. Data was collected through the published annual reports of CSE of the selected listed companies during the selected financial time period. Co-integration regression along with Panel Dynamic Ordinary Least Squares (DOLS) statistical technique was used to explore this study. Johansen co-integration test confirmed to run the panel DOLS. According to the result of that, corporate tax planning has a negative impact on the financial performance of Sri Lankan best-performing companies listed in CSE however, which is not statistically significant at 5% level. It provides evidence that there is no significant impact from corporate tax planning strategies to the financial performance of listed companies in CSE. This evidence implies that Sri Lankan firms do not utilize the loopholes embedded in the Sri Lankan tax law efficiently. Keywords: Corporate Tax Planning, Colombo Stock Exchange, Co-integration regression, Effective Tax Rate, Financial Performance, Panel Dynamic Ordinary Least Squares, Return on Assets.

scholarly journals Analisa Perhitungan PPh 21 dengan Menggunakan Metode Gross Up di CV. MUSTIKA Mojokerto

2017 ◽  
Vol 1 (1) ◽  
pp. 45-56
Author(s):  
Ahfi Nova Ashriana
Keyword(s):  
Income Tax ◽  
Logical Consequence ◽  
Tax Planning ◽  
Net Income ◽  
Corporate Tax ◽  
Tax Rate ◽  
Tax Allowance ◽  
Corporate Profits ◽  
Past Conditions

The Gross Up method is a way of calculating income tax by batching net income after tax to get DPP, then after DPP is obtained newly multiplied by tax rate. This method can be used for alternative calculation of Income Tax Article 21 in relation to income tax saving efforts. The purpose of this study is to find out how the treatment of income tax article 21 on the salary of company employees and to know sebesapa big differences in the amount of corporate tax between Gross Up method with non Gross Up.  This type of research is a case study that is a detailed study of a certain obek over a period of time with sufficient depth and thorough including ngkungan and past conditions. The variables in this study is the method of calculating income tax article 21 which includes paid company, paid employer, paid company by using Gross Up.  The result of research shows that (1) Gross Up method can help the implementation of tax planning, because by using this method the company's operational expenses increase that is the burden of allowance PPh 21 which is charged to the company. So that corporate profits can be minimized. (2) Tax planning using Gross Up method is a concept to improve the efficiency of calculation of PPh 21 which is deducted by the employer and can determine the amount of tax allowance paid by the employer. (3) In this way the company will benefit on a fiscal basis because the income tax benefit of PPh 21 may be a deduction from the taxable income of the employer (the company). The logical consequence of this method is the amount of tax payable 21 which will be paid by the company will be big due to the added element of tax allowance in the procedure of calculation of income tax 21 employees

The Shareholder Response to Corporate Tax Planning Advice Regulation

2020 ◽  
Author(s):  
Michael P. Donohoe ◽  
Brian Gale ◽  
Michael Mayberry
Keyword(s):  
Tax Planning ◽  
Corporate Tax

A Model of Multinational Income Shifting and an Application to Tax Planning with E-Commerce

2014 ◽  
Vol 36 (2) ◽  
pp. 27-53 ◽  
Author(s):  
Kenneth J. Klassen ◽  
Stacie K. Laplante ◽  
Carla Carnaghan
Keyword(s):  
Tax Planning ◽  
Investment Model ◽  
Income Shifting ◽  
Tax Rates ◽  
Foreign Investments ◽  
Effective Tax Rates ◽  
Tax Rate ◽  
Foreign Earnings ◽  
Joint Consideration ◽  
The U.S

ABSTRACT: This manuscript develops an investment model that incorporates the joint consideration of income shifting by multinational parents to or from a foreign subsidiary and the decision to repatriate or reinvest foreign earnings. The model demonstrates that, while there is always an incentive to shift income into the U.S. from high-foreign-tax-rate subsidiaries, income shifting out of the U.S. to low-tax-rate countries occurs only under certain conditions. The model explicitly shows how the firms' required rate of return for foreign investments affects both repatriation and income shifting decisions. We show how the model can be used to refine extant research. We then apply it to a novel setting—using e-commerce for tax planning. We find firms in manufacturing industries with high levels of e-commerce have economically significant lower cash effective tax rates. This effect is magnified for firms that are less likely to have taxable repatriations. JEL Classifications: G38, H25, H32, M41.

Brewing Up Controversy: A Case Exploring the Ethics of Corporate Tax Planning

2015 ◽  
Vol 30 (4) ◽  
pp. 311-327 ◽  
Author(s):  
Megan F. Hess ◽  
Raquel Meyer Alexander
Keyword(s):  
Real World ◽  
Ethical Issues ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Learning Assessment ◽  
Class Discussion ◽  
Corporate Tax ◽  
Tax Havens ◽  
Multinational Organizations ◽  
The U.S

ABSTRACT This instructional case explores the ethical issues surrounding the corporate tax-planning and tax-avoidance strategies of multinational organizations. Drawing on the real-world experiences of SABMiller, one of the world's largest beverage companies, this case provides a launching point for students to consider the ethics of corporate tax planning. The ethics of multinational tax practices, especially the use of tax havens, has recently become the focus of media and legislative debate in both the U.S. and the U.K., and many well-respected companies, such as General Electric, Apple Inc., and Starbucks are now feeling the pressure to reform. In a post-case learning assessment, students demonstrated significant improvement in their understanding and indicated that they enjoyed discussing this controversial issue. The “Implementation Guidance” section and Teaching Notes offer guidance for in-class discussion of the ethical and tax issues in this case.

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.

Sign in / Sign up

Export Citation Format

Share Document