TAX ON WITHDRAWED CAPITAL IN THE CONDITIONS OF CHANGES IN TAX LEGISLATION: ACCOUNTING ASPECT

2018 ◽  
Author(s):  
Iryna Нushlenko ◽  
Keyword(s):  
Income Tax ◽  
Production Capacity ◽  
Tax Avoidance ◽  
Business Environment ◽  
Business Owners ◽  
Tax Rates ◽  
Capital Taxation ◽  
Tax Legislation ◽  
Accounting Model ◽  
Withholding Tax

The expediency of introducing changes to the tax legislation on the introduction of withholding tax instead of the classic corporate income tax is substantiated and an alternative on the transformation of income tax into withholding tax is proposed to create favorable investment conditions for business development. It is necessary to introduce an alternative accounting model of business capital taxation, where there is a clarification of the object of income taxation, specification of transactions and tax rates and the introduction of subaccounts for the accounting of such tax. The need to adopt changes to the legislation, which should become a catalyst for the development of business in Ukraine and the economy as a whole, is outlined. The relevance of the introduction of a tax on withdrawn capital as an element of protection against tax avoidance schemes and incentives for business owners to expand production capacity to stimulate the development of the business environment across the country.

Tax Reform: Theory and Practice

1987 ◽  
Vol 1 (1) ◽  
pp. 11-28 ◽  
Author(s):  
Joseph A Pechman
Keyword(s):  
World War Ii ◽  
Income Tax ◽  
Tax Reform ◽  
Theory And Practice ◽  
Income Taxation ◽  
Tax Rates ◽  
Pressure Groups ◽  
Comprehensive Income ◽  
Tax Legislation ◽  
The Individual

The Tax Reform Act of 1986 is the most significant piece of tax legislation enacted since the income tax was converted to a mass tax during World War II. After decades of erosion, the individual and corporate income tax bases were broadened and the revenues were used to reduce tax rates. Loopholes and preferences that were formerly considered sacrosanct were eliminated or moderated despite the determined opposition of powerful pressure groups. Comprehensive income taxation, which had earlier been regarded as an impossible dream, carried the day with strong bipartisan support. I will trace the origins of the tax reform movement and speculate about why it was successful in 1986 after repeated failures in earlier years. I also explain what the 1986 act accomplished and what more needs to be done to achieve the objectives of comprehensive income taxation.

scholarly journals HARMONIZATION OF TAX LEGISLATION OF THE ASEAN COMMUNITY

2017 ◽  
Vol 1 (1) ◽  
pp. 1-10
Author(s):  
TANAPONG DAMKERNGKHAJORNWONG
Keyword(s):  
Income Tax ◽  
Personal Income ◽  
Tax Rates ◽  
Personal Income Tax ◽  
Consumption Tax ◽  
Direct Taxation ◽  
Tax Legislation ◽  
Asean Member ◽  
Tax Harmonization ◽  
Asean Countries

Abstract This article indicates how tax legislations, both in direct and indirect fields, of ASEAN countries should be harmonized. With respect to direct taxation, the issue of direct tax rates harmonization - personal income tax and corporate income tax - will firstly be discussed. Further, I will look into how the personal income tax treatment on a resident exercising the free movement of skilled labour should be. In addition, how to enhance the network of tax treaties between ASEAN Member States and withholding tax levied on cross-border transaction will also be described. As regards indirect taxation, I will consider to what extent such the consumption tax systems as VAT and GST in each ASEAN countries could be in accordance with each other. Finally, what challenges over tax harmonization in ASEAN can be will be noted. The majority of the discussions above will be based upon the tax harmonization and coordination already conducted within the EU. 

scholarly journals HARMONIZATION OF TAX LEGISLATION OF THE ASEAN COMMUNITY

2017 ◽  
Vol 1 (1) ◽  
pp. 1-10
Author(s):  
TANAPONG DAMKERNGKHAJORNWONG
Keyword(s):  
Income Tax ◽  
Personal Income ◽  
Tax Rates ◽  
Personal Income Tax ◽  
Consumption Tax ◽  
Direct Taxation ◽  
Tax Legislation ◽  
Asean Member ◽  
Tax Harmonization ◽  
Asean Countries

Abstract This article indicates how tax legislations, both in direct and indirect fields, of ASEAN countries should be harmonized. With respect to direct taxation, the issue of direct tax rates harmonization - personal income tax and corporate income tax - will firstly be discussed. Further, I will look into how the personal income tax treatment on a resident exercising the free movement of skilled labour should be. In addition, how to enhance the network of tax treaties between ASEAN Member States and withholding tax levied on cross-border transaction will also be described. As regards indirect taxation, I will consider to what extent such the consumption tax systems as VAT and GST in each ASEAN countries could be in accordance with each other. Finally, what challenges over tax harmonization in ASEAN can be will be noted. The majority of the discussions above will be based upon the tax harmonization and coordination already conducted within the EU. 

scholarly journals ANALISIS PENERAPAN WITHHOLDING TAX SYSTEM PRESPEKTIF MUTATIS MUTANDIS PADA LEMBAGA KEUANGAN SYARIAH (Studi Kasus pada BMT Al-Hijrah KAN Jabung)

2018 ◽  
Vol 1 (1) ◽  
pp. 75
Author(s):  
Siti Eli Kurniawati
Keyword(s):  
Data Analysis ◽  
Income Tax ◽  
Qualitative Data ◽  
Financial Institution ◽  
Revenue Sharing ◽  
Tax System ◽  
Tax Legislation ◽  
Induction Process ◽  
Withholding Tax

The research objective is to know the tax cut by sharia financial institution by referring to the Tax Legislation on Income Tax (PPh) that is generally applicable, as well as the procedures of tax cuts using the means of Withholding Tax System and the basic of tax imposition on revenue sharing in sharia financial institution.The data analyzing method used by the researcher is qualitative data analysis with Case Study formulate theory, looking at theory as well as cases as the induction process from the observation toward facts (gathering information). Based on the data analysis and interview result done in this research, the finding suggests that BMT Al Hijrah KAN Jabung have implemented tax system in accordance with the generally applicable tax provision as well as withholding tax system in BMT Al Hijrah KAN Jabung which is implemented in deposit revenue sharing and time mudharabah (deposito).

scholarly journals The Nordic model: 25 years of drawing the line between earned and capital income in Finland

2018 ◽  
Vol 2018 (1) ◽  
pp. 64-80
Author(s):  
Reijo Knuutinen
Keyword(s):  
Tax Policy ◽  
Income Tax ◽  
Tax Avoidance ◽  
Personal Income ◽  
Income Taxation ◽  
Court Cases ◽  
Capital Income ◽  
Earned Income ◽  
Tax Legislation ◽  
Personal Income Taxation

Abstract In personal income taxation, Finland had used the dualistic income tax model, known as the Nordic model, since 1993. The basic idea is that taxation of earned income is progressive, whereas taxation of capital income is proportional. Here, the model is reviewed from different perspectives: What kind of tax policy background does it have and how is the distinction between types of income argued for on theoretical grounds? How has the borderline of earned and capital income been drawn in tax legislation, and how is it drawn in the court cases, in particular in those related to tax avoidance? The dualistic model has often been criticized using equity arguments, but there are still strong arguments for the model. In any case, the model has not always worked too well in practice. The distinction has required special tax legislation as well as given rise to many court cases.

Legal Analysis of the Tax Legislation of Ukraine in the Field of Alienation and Management of a Real Estate

2021 ◽  
Vol 39 (6) ◽  
Author(s):  
Lyudmyla Telizhenko ◽  
Iryna Lukasevych-Krutnyk ◽  
Iryna Storozhuk ◽  
Kostiantyn Iskrov ◽  
Nataliia Kovalko ◽  
...  
Keyword(s):  
Real Estate ◽  
Income Tax ◽  
Pension Fund ◽  
Legal Regulation ◽  
Tax Law ◽  
Tax Rates ◽  
Legal Analysis ◽  
Personal Income Tax ◽  
Tax Legislation ◽  
Legal Method

The primary purpose of this study is to carry out a legal analysis of the tax legislation of Ukraine when concluding transactions for the alienation of real estate. The authors face the task of careful and in-depth consideration of both theoretical and practical issues of legal regulation of taxes and fees in the alienation of real estate, the search for effective mechanisms for their collection, improving the tax burden on the taxpayer. This article presents the main aspects of the taxation of real estate transactions, which are subject to notarization. In particular, the provisions of the legislation on the peculiarities of personal income tax, military tax on purchase and sale transactions, real estate by individuals resident and non-residents of Ukraine, as well as the peculiarities of calculating the fee to the Pension Fund of Ukraine for the purchase of real estate are certain generalized functions of a notary as a tax agent exercising tax control.In the analysis of tax law in transactions for the sale of real estate, the authors used a comparative - legal method to identify similarities or differences in tax rates, the effectiveness of regulatory action of official - documentary methods of expression, the descriptive direction of the material prevails.

scholarly journals Predication: The Test For Tax Avoidance in New Zealand From Newton to Ben Nevis

2015 ◽  
Vol 46 (3) ◽  
pp. 1011 ◽  
Author(s):  
John Prebble ◽  
Hamish McIntosh
Keyword(s):  
New Zealand ◽  
Income Tax ◽  
Tax Avoidance ◽  
Decision Makers ◽  
Tax Legislation ◽  
First Case ◽  
The Supreme Court ◽  
Inland Revenue ◽  
To Come ◽  
Historical Antecedents

General anti-avoidance rules in income tax legislation are a blunt instrument. They can operate most effectively when decision makers move directly from the rule, such as "Arrangements with the purpose of tax avoidance are void against the Commissioner" to the facts, for example, "Objectively, do these facts demonstrate a purpose of avoidance?", or to paraphrase Lord Denning's test, "Viewing these facts objectively, can one predicate an avoidance purpose?"New Zealand courts adopted Lord Denning's "predication test" in 1966, but later cases confused things by trying to incorporate sub-rules into the exercise of looking for an avoidance purpose.Parliament codified and strengthened the predication test in 1974. Inland Revenue Department archives show that strengthening and codification of the test was what was intended and the language of the amendment confirms this intention. Nevertheless, later judgments misunderstood what the predication test entailed, and mistakenly thought that Parliament intended the 1974 amendment to abolish the test and to replace it with something else.In 2009 the Supreme Court delivered its judgment in Ben Nevis Forestry Ventures Ltd v Commissioner of Inland Revenue, the first case on tax avoidance to come before the Court. The Court said that the 1974 amendment abolished the predication test, but its reasoning in deciding the Ben Nevis case was in effect an exercise in predication.It would be useful to employ a name for the Supreme Court's approach to tax avoidance because a name would enable people to refer to the Supreme Court's test without circumlocution. "Predication" is the appropriate name because of its accuracy as to the meaning required and because of its historical antecedents.

scholarly journals Is Neoliberalism Still Spreading? The Impact of International Cooperation on Capital Taxation

2020 ◽  
Author(s):  
Lukas Hakelberg ◽  
Thomas Rixen
Keyword(s):  
International Cooperation ◽  
Tax Evasion ◽  
Negative Impact ◽  
Tax Avoidance ◽  
Tax Rates ◽  
Capital Taxation ◽  
Profit Shifting ◽  
Tax Rate ◽  
Corporate Profits ◽  
The Impact

The downward trend in capital taxes since the 1980s has recently reversed for personal capital income. At the same time, it continued for corporate profits. Why have these tax rates di-verged after a long period of parallel decline? We argue that the answer lies in different levels of change in the fights against tax evasion and tax avoidance. The fight against evasion by households progressed significantly since 2009, culminating in the multilateral adoption of automatic exchange of information (AEI). In contrast, international efforts against base ero-sion and profit shifting (BEPS) failed to curb tax avoidance by corporations. We theorize that international cooperation is an intervening variable, countering the negative impact of tax competition on capital taxation by reducing the risk of capital flight. Under such conditions, domestic political pressures in favor of higher capital taxes can unfold. We confirm our argu-ment in a difference-in-difference analysis and through additional tests with data for up to 35 OECD countries from 2000-2017. Our central estimate suggests that the average tax rate on dividends in 2017 is 4.5 percentage points higher than it would have been absent international tax cooperation.

scholarly journals Corporate Taxation and the International Challenge

2014 ◽  
Vol 2014 (2) ◽  
pp. 113-131
Author(s):  
Peter Koerver Schmidt
Keyword(s):  
Income Tax ◽  
Transfer Pricing ◽  
Tax Avoidance ◽  
Debt Financing ◽  
Tax Rates ◽  
Eu Law ◽  
Corporate Tax ◽  
Profit Shifting ◽  
Tax Rate ◽  
Avoidance Measures

Abstract It is argued th**at the higher degree of economic integration across borders and the international trend towards a reduction of corporate income tax rates have had a significant impact on the Danish corporate tax regime in recent years. Accordingly, during the last ten years the Danish statutory corporate tax rate has been lowered further, while several government actions at the same time have been taken in order to combat international tax avoidance and evasion. As a result, new anti-avoidance provisions have been introduced and some of the older anti-avoidance provisions have been tightened in order to prevent base erosion and profit shifting. Thus, to some extent Denmark has already tried to address a number of the key pressure areas mentioned in the recently published OECD BEPS report, such as international mismatches in entity and instrument characterization, the tax treatment of related party debt financing, transfer pricing and the effectiveness of anti-avoidance measures. However, the article concludes that these anti-avoidance provisions often suffer from being quite complex, very broad in scope and open to criticism from an EU law perspective.

Federal Personal Income Tax Policy in the 1920s

1995 ◽  
Vol 55 (2) ◽  
pp. 285-303 ◽  
Author(s):  
Gene Smiley ◽  
Richard H. Keehn
Keyword(s):  
World War I ◽  
Income Tax ◽  
Tax Avoidance ◽  
Personal Income ◽  
Tax Rates ◽  
Personal Income Tax ◽  
World War ◽  
Tax Rate ◽  
Income Tax Policy ◽  
Tax Cuts

During the 1920s, federal personal income tax rates, which had been dramatically increased during World War I, were sharply reduced. These tax rate cuts have often been cited as an example of a successful supply-side policy, but they have also been criticized as policies designed primarily to benefit the wealthy. We argue that a primary motive for the tax cuts of the 1920s was the desire to reduce the tax avoidance by wealthier individuals that occurred as a result of the previous tax rate increases and that the tax cuts enacted did reduce tax avoidance.

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