scholarly journals The Impact Of Tax Regimes On The Effectiveness Of R&D Allowances - An Investigation Of Separate Taxation And Formula Apportionment Within The Framework Of R&D

2019 ◽  
pp. 7-15
Author(s):  
Gazi Yıldız ◽  
Hülya Çelebi
Keyword(s):  
Formula Apportionment ◽  
Tax Regimes ◽  
The Impact

scholarly journals Taxation and Corporate Payout Policy

2006 ◽  
Vol 31 (4) ◽  
pp. 47-66
Author(s):  
Monica Singhania
Keyword(s):  
Regime Change ◽  
Total Sample ◽  
Growth Potential ◽  
Trade Off ◽  
Dividend Payout ◽  
Tax Preference ◽  
Tax Regimes ◽  
Significant Difference ◽  
The Impact ◽  
Dividend Tax

This study examines the dividend trends of 590 Indian companies over the period 1992–2004 of all manufacturing, non-government, non-financial, and non-banking companies listed on BSE for which there was no missing financial information over the period of the study. Dividend payout has been chosen for the purpose of examining the impact of taxation on dividend policy. Analysis was done for the full period under consideration, immediate one year of tax regime change, and immediate three years of tax regime change so as to conclusively establish the results and also to note the variations in results over different time frames, if any. For the purpose of this study, the sample was classified on the basis of dividend history, industry, and size. Of the 590 companies, 240 companies were regular payers—the companies that had paid dividend regularly without ever skipping the payments throughout the period of the study. According to tax preference or trade-off theory, favourable dividend tax should lead to higher payouts. The Union Budget of 1997 made dividends taxable in the hands of the company paying them and not in the hands of the investors receiving them. The corporate dividend tax aimed at improving the economic growth and flexibility by eliminating the tax bias against equity-financed investments thereby promoting saving and investment. The new system aimed at reducing the tax bias against capital gains in the earlier tax system, encouraging investment, and enhancing the long-term growth potential of the Indian economy. As compared to the earlier tax regime where the recipient shareholder paid the tax on the dividend received primarily on the basis of marginal tax slab rate applicable to him/her (varying between 0% to 30%), in the current structure of corporate dividend tax, the dividend paying companies pay dividend tax at a flat rate of 12.5 per cent as of financial year 2005–06. Implicitly, the present corporate dividend tax regime can be termed as a more favourable tax policy. The analysis of influence of changes in the tax regime on dividend behaviour reveals the following: Trade-off or tax preference theory does appear to hold true in the Indian context in the case of both the total sample companies as well as the regular payers. While in the case of total sample companies, the results are significant for the entire period of study and the immediate three year period, in case of regular payer, the results are significant for all the three time periods analysed. Though the results are somewhat mixed, it can be largely inferred that there is a significant difference in average dividend payout ratio in the two different tax regimes. There are wide industry-wise and size-wise variations in empirical findings visible over the period of study.

Equilibria and Location Choice in Corporate Tax Regimes

2017 ◽  
Vol 47 (2) ◽  
pp. 433-458 ◽  
Author(s):  
Ben J. Niu
Keyword(s):  
Location Choice ◽  
Corporate Tax ◽  
Policy Makers ◽  
Academic Literature ◽  
Mixed Support ◽  
Plausible Model ◽  
Tax Regimes ◽  
Key Factor ◽  
Cross Country ◽  
The Impact

This article considers the impact of preferential, base-specific taxation on equilibrium revenues. While policy makers have argued that it generates a prisoner’s dilemma result, there is mixed support in the academic literature. Using a more plausible model with asymmetric base elasticities and heterogeneity of both firms and countries, I find that preferential taxation can generate greater revenues if countries exhibit sufficient productivity and/or population asymmetry. It is also less distortionary except in cases where moving costs are fully deductible. Allowing for noncorrelated, cross-country profits is the key factor as it generates base expansion effects.

scholarly journals Impact of the 2020 Pandemic on Revenue from Various Taxes in the Russian Regions

2001 ◽  
Vol 14 (7) ◽  
pp. 987-997
Author(s):  
Marina Yu. Malkina ◽  
Keyword(s):  
Distribution System ◽  
Income Tax ◽  
Negative Impact ◽  
Linear Time ◽  
Russian Regions ◽  
Positive Role ◽  
Tax Revenues ◽  
Tax Regimes ◽  
Regional Budgets ◽  
The Impact

The article investigates the impact of the 2020 pandemic on tax revenues of Russian regions at the stages of their collection and allocation to regional budgets. To exclude the influence of the seasonal component and uneven receipts of various taxes to the budget, the moving annual tax revenues were calculated with a shift of one month. Based on these data for 2013-March 2020, linear time regressions were built and decomposed into 8 taxes and tax groups. These regressions were used to predict non-pandemic tax revenues for different regions in April-December 2020. The impact of the pandemic on the regional tax losses (gains) and their decomposition by sources was calculated through the deviation of the actual revenues from their predicted non-pandemic values on an accrual basis until the end of 2020. We found that the pandemic had led to losses of 13.9 % of total tax revenues in the country and 6.2 % of regional budgets’ own tax revenues. The mining regions are the most affected by the pandemic. On the contrary, in some Far Eastern regions, there is an abnormal increase in tax collections. The largest contribution to the decrease in tax revenues at the consolidated and federal levels was made by the MET receipts; they fell sharply due to lower prices and volumes of oil and gas. However, the negative effect of this decrease at the federal level was dampened by stabilizing VAT receipts. Excise taxes played a positive role in mitigating pandemic risks. The tax distribution system has shown its equalizing function when allocating tax revenues to sub-federal budgets. The largest negative contribution to the change in regional tax revenues during the 2020 pandemic was made by the corporate income tax, while the negative impact of property taxes and special tax regimes turned out to be less significant. Personal income tax has proven to be the main damper of tax revenues at the regional level. The results obtained are applicable to the management of the state fiscal revenues during pandemic crises

Modeling an investment process from taxation perspective under inflation

2020 ◽  
Vol 23 (12) ◽  
pp. 1404-1424
Author(s):  
M.V. Sechenova
Keyword(s):  
Analytical Model ◽  
Investment Project ◽  
Cash Flows ◽  
Project Performance ◽  
Process Efficiency ◽  
Efficiency Evaluation ◽  
Tax Regimes ◽  
Tax Payments ◽  
Investment Process ◽  
The Impact

Subject. The article discusses a model to evaluate the performance of investment projects taking into account taxation in the context of inflation. Objectives. The aim is to develop formal tools for investment project efficiency evaluation to unveil the impact of various taxation schemes on project performance under main types of inflation. Methods. The study draws on methods of systems analysis, economic-mathematical modeling, financial mathematics, statistical economics, and mathematical analysis. Results. The paper provides a detailed analysis of the impact of inflation on tax payments under various tax regimes when evaluating the investment project performance. I developed a method to calculate indicators of project performance under the main types of inflation, using an analytical model that considers tax expense under various tax treatment. Conclusions. The analytical model enables to elaborate the generalizing record of formal tools for investment process efficiency evaluation as applied to the specifics of tax payments in the investing activity of some enterprises. Calculations of investment project efficiency in the conditions of inflation in nominal and real cash flows are not equivalent because of the existence of non-indexed taxes and amortization charges. When calculating in real prices, it is necessary to consider this adjustment.

A Comparative Analysis of the Impact of Taxation on the SME Economy: The Case of UK and US – New York State in the Year 2000

10.1068/c0338 ◽  
2003 ◽  
Vol 21 (4) ◽  
pp. 493-508 ◽  
Author(s):  
Panikkos Poutziouris ◽  
Francis Chittenden ◽  
Tim Watts ◽  
Khaled Soufani
Keyword(s):  
New York ◽  
United Kingdom ◽  
Small Business ◽  
Small Businesses ◽  
New York State ◽  
York State ◽  
The United Kingdom ◽  
Tax Regimes ◽  
The Uk ◽  
The Impact

The purpose of this paper is to report on a comparative study of the impact on the SME economy (fewer than 250 employees) of the UK and US (New York State) tax regimes. This explorative study is part of the ongoing small business taxation research programme undertaken in association with NatWest Bank. The research involves (a) the computation of the tax position of a sample of UK-based small businesses (a self-employed person, a partnership, and a small limited company); (b) the application of the tax regime of New York State to the UK business cases studies; (c) the development of two computer simulation models that estimate the direct tax burden incurred by small businesses in the United Kingdom; and (d) the application of the tax regime of New York State to the UK models. This research forms the basis of a comparative discussion about the business tax regime in the United Kingdom and USA and throws some light on the on-going debate about the development of the tax regimes applicable to small businesses in OECD countries. The paper concludes with a summary of the key findings and policy implications and offers a brief discussion on progress towards tax harmonisation from the small business perspective.

WHY DO VARIOUS GAMING MARKETS ADOPT DIFFERENT TAX RATES?

2013 ◽  
Vol 3 (1) ◽  
pp. 65-87 ◽  
Author(s):  
Xinhua Gu ◽  
Guoqiang Li
Keyword(s):  
Price Change ◽  
Relative Price ◽  
Tax Rates ◽  
Market Conditions ◽  
Welfare Impact ◽  
Market Participants ◽  
Tax Regimes ◽  
Supply Capacity ◽  
Economic Journal ◽  
The Impact

This paper studies the welfare impact of a gaming tax in a two-sector, trade base equilibrium model. Its partial-equilibrium part examines tax divisions between market participants and the impact of this divisiveness on the relative price of gaming. The general-equilibrium part analyzes the welfare effect of the tax via the resultant relative-price change. We establish that market conditions such as supply capacity and market size have a clear bearing on tax division and overall welfare, and that a gaming tax is more likely to be economically bad if less of the tax burden can be passed along to tourist players. A high tax can only be applied if much of the tax is borne by visitors; a low tax has to be adopted if otherwise. Since its small adverse effect can be easily absorbed by its induced economic growth, a low gaming tax will attract outside investment conducive to overall efficiency. We also point out that policy concerns as well as market conditions may all affect tax regimes and their differences as observed in the American and Asian markets. We find that gaming business reality supports our theoretical assertions.This paper was presented at the Southern Economic Journal Symposium on Gambling, Prediction Markets and Public Policy on September 15-16, 2008 in Nottingham, U.K.; we thank conference participants for their helpful comments. Also, we have benefited a lot from intensive discussions with Ricardo Chi Sen Siu about gaming tax issues in each revision of this paper. The usual disclaimers apply.

scholarly journals Emerging Issues in East Coast Oil and Gas Development

1997 ◽  
Vol 35 (2) ◽  
pp. 269
Author(s):  
Michael Harrington ◽  
Colm Seviour ◽  
Mark MacDonald ◽  
James Dickson
Keyword(s):  
Oil And Gas ◽  
Gas Production ◽  
Oil And Gas Development ◽  
Oil And Gas Production ◽  
Tax Regimes ◽  
Recent Developments ◽  
Emerging Issues ◽  
Development Plans ◽  
Significant Discovery ◽  
The Impact

The authors discuss recent developments in oil and gas production in Newfoundland and Nova Scotia and the legal and regulatory regimes which affect both interest holders and oil and gas practitioners. The authors pay particular attention to jurisdictional issues arising from the intersection of federal and provincial legislation and clarify when particular legislation does or does not apply. The authors then examine the legal requirements for the approval of and implementation of oil and gas development plans, the impact of provincial royalty and tax regimes on development, and the criteria for the granting of significant discovery licenses. Finally, the authors discuss the roles of provincial and federal bodies with respect to regulatory and environmental inter-jurisdictional issues.

scholarly journals FOREIGN EXPERIENCE IN USING OUTSOURCING

2021 ◽  
Author(s):  
Stanislav Nazarenko
Keyword(s):  
Information Technology ◽  
Multinational Corporations ◽  
The Philippines ◽  
Global Market ◽  
Production Costs ◽  
It Outsourcing ◽  
High Tech ◽  
Foreign Experience ◽  
Tax Regimes ◽  
The Impact

The article examines the foreign experience of the outsourcing process. The analysis of outsourcing development in such countries as: USA, Germany, India, Japan, etc. is carried out. Outsourcing has become widespread due to the development of information systems and technologies. The role of multinational corporations in the development of outsourcing, primarily information technology, is determined and it is noted that American companies use outsourcing as a component of management strategy. Corporations such as Ford, British Petroleum, Procter & Gamble, Dell, Exel and others, due to the use of outsourcing have achieved high economic results: increased profits by almost half by reducing organizational and production costs, improving the overall efficiency of their companies, reengineering. Experts note that today the leader in international outsourcing is India, which accounts for 42.5% of IT outsourcing worldwide. The foundations of India's successful development in the field of information technology outsourcing are the support of the state, whose government since 1970-1980 identified IT as a priority for economic development and created export-production zones with preferential tax regimes. A significant share of the outsourcing market belongs to China, as well as Singapore, the Philippines and Malaysia. These countries have a developed infrastructure and a high-tech culture that ensures high quality order fulfillment. Vietnam and Indonesia also have a significant impact on the global outsourcing market, primarily due to more attractive pricing policies. The impact of outsourcing on the economies of countries is noted. The ranking of countries by the degree of development and implementation of outsourcing is studied. According to the ranking, the top 10 countries in the outsourcing market include India, China, Malaysia, Indonesia, Brazil, Vietnam, the Philippines, Thailand, Chile and Colombia. It is worth noting that the leaders of the ranking are the countries of South and Southeast Asia, as well as Latin America. The factors of outsourcing development in the global economy are determined and the influence of human resources on the development of outsourcing in different countries is analyzed. The ways of state support for the development of outsourcing in the countries of the world are determined. In Germany, the High Technology Development Strategy was adopted last year, the main priorities of which are: innovative solutions in the field of digital technologies. The Brazilian government has adopted a new National Strategy for the Development of Science, Technology and Innovation, which aims to reduce the technological gap between Brazil and developed countries. The article also notes that the Ukrainian IT outsourcing industry is actively gaining ground in the global market. The rapid growth of IT outsourcing is due to the prospects, prestige and dynamism of the IT sector in Ukraine.

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