CORRELATION BETWEEN TAX POLICY AND CORRUPTION IN THE LEGAL PERSPECTIVE FOR COUNTRY'S ECONOMIC GROWTH

2017 ◽  
Vol 1 (2) ◽  
pp. 205
Author(s):  
Gideon J. ◽  
Edgar H. ◽  
Ivan I. ◽  
Nabil N. ◽  
Aptina A. ◽  
...  
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Tax Evasion ◽  
Tax Policy ◽  
Public Awareness ◽  
Transparency International ◽  
Tax Amnesty ◽  
Legal Perspective ◽  
State Income ◽  
The Government

<p>People Tax is the main source of state income. The better the tax policy of a country, the better the development of a country. One of the factors that influence the level of public awareness in paying taxes is corruption. Study shows that tax collection is one of them influenced by corruption. In the data of Corruption Perceptions Index 2016 reported by Transparency International, Indonesia is ranked 90 out of 176 countries. Tax evasion is a serious problem for many countries. Every year, the government loses revenue potential as many residents evade taxes in various ways. For this reason, the government implements tax amnesty. Tax amnesty is designed to permanently reduce the amount of underground economy activity, thereby increasing tax revenues in the future and developing countries can grow well.</p>

scholarly journals Penerapan Amnesti Pajak (Tax Amnesty) sebagai Alternatif Pemerintah dalam Meningkatkan Pembayaran Pajak di Indonesia

2017 ◽  
Vol 1 (02) ◽  
pp. 184-191
Author(s):  
Sri Rohartati
Keyword(s):  
Economic Growth ◽  
Tax Evasion ◽  
Public Funds ◽  
The Past ◽  
Tax Revenues ◽  
Tax Amnesty ◽  
National Economic ◽  
The Government ◽  
Tax Payments

National economic growth in the last few years has experienced a slowdown which led to the decline of tax revenues and reduces the availability of domestic liquidity that is needed to boost economic growth in Indonesia. While many treasures Indonesian citizens who were stationed outside the territory of Indonesia, which should be used to increase liquidity in the country and promote national economic growth. The government plans to give Tax Amnesty to Indonesian citizens (citizen) who are suspected of tax evasion abroad. Granting Tax Amnesty as the government seeks attract public funds that had been parked on the banks of other countries. Tax Amnesty Tax Amnesty program is one of the programs implemented by the government to grant amnesty to taxpayers who commit violations of tax payments in the past. The purpose of the implementation of their future taxpayers to pay taxes according to tax which is owned not manipulate taxes are delinquent and have good intentions to pay taxes.

scholarly journals Policy Contradictions and Policy Dilemma: A Case of Intermediary Money Transfer Tax (IMTT) on Business Performance in the Engineering Sector in Zimbabwe

2021 ◽  
Vol 11 (2) ◽  
pp. 76
Author(s):  
Josphat Nyoni ◽  
Tendai Vanesssa Jaravaza ◽  
Matthew Mare ◽  
Martin Dandira ◽  
Elias Kandjinga
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Business Performance ◽  
Small Scale ◽  
Research Approach ◽  
Tax Policies ◽  
Metal Fabrication ◽  
Money Transfer ◽  
The Government ◽  
Transfer Tax

The use of tax policies to address macro-economic challenges has often led to serious other macro-economic challenges for developing countries. The purpose of this paper is to illustrate macro-economic policy dilemmas that affect developing countries when they implement tax policies to address macroeconomic challenges. The objective of the study was to examine how the 2% Intermediary Money Transfer Tax (MTT) introduced to raise financial resources to grow the economy affected performance of companies in the engineering sector. The study was guided by the pragmatism research philosophy, used explanatory research design and a mixed research approach. Data was collected from companies in the metal fabrication and machine/equipment sub-sectors of the engineering sector. A total of 68 companies were used. The paper shows that a tax policy adopted by Zimbabwe to raise revenues for supporting economic growth and addressing several economic challenges such as poverty, unemployment and negative economic growth generated other macro-economic challenges such as declining performance of companies in the Engineering sector. Results from the study showed that 2% IMTT had a negative an influence on business performance of companies in the engineering sector. The tax reduced profit margins, sales, and competitiveness. Conclusions from the study were that adoption of tax policies by governments, to achieve increased revenue and growth of the economy may, in the process, negatively affect some sectors of the economy. It was therefore recommended that the government analyse potential contradictions and dilemmas before implementing tax policies. Further studies of the influence of IMTT on other sectors like the small scale and informal sectors that are usually hit the hardest by government policies is recommended.

scholarly journals Peningkatan Kapasitas Manusia Sebagai Fokus dari People Centered Development

ARISTO ◽  
2018 ◽  
Vol 6 (2) ◽  
pp. 283
Author(s):  
Purwowibowo Purwowibowo ◽  
Kris Hendrijanto ◽  
Pra Adi Soelistijono
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Capacity Building ◽  
Environmental Damage ◽  
Human Beings ◽  
Human Element ◽  
Job Opportunities ◽  
New Strategy ◽  
The Government ◽  
Development Paradigm

This article discusses the development paradigm that focuses on human  or people centered development. Many development paradigms have been applied in many developing countries, but the results have not been satisfactory. During this time the various paradigms emphasize economic growth, equity of development, and others, but the distortion of development appears everywhere. For example, development by emphasizes economic-growth was followed by massive environmental damage. In addition, poverty is still a portrait of people in developing countries, although the country is experiencing high economic growth. In realizing a prosperous society free of poverty, a new strategy or development paradigm that emphasizes its human factors are needed. In this case, this paradigm discusses the importance of the human element as the 'core' of development itself. If human beings are capable, have sufficient knowledge, adequate skills by themselves poverty will be reduced. Therefore, this paradigm more implies that is a 'capacity building ' of human beings so that it can become the subject of development and not just as an object of development themselves. Capacity building can be achieved through social development that emphasizes elements of education, knowledge, and skills so that they can try or do entrepreneurship and open their own job opportunities. Many cases, various development paradigms that emphasize economic growth are not able to absorb the available labor so that many are unemployed. With the ability of human or people, they have will be able to open their own business and do not depend on the provision of employment from the government. In the end they are able to alleviate self-poverty.

scholarly journals Tax amnesty and secondary tax evasion

2020 ◽  
Vol 70 (1) ◽  
pp. 123-139
Author(s):  
Yu-Kun Wang ◽  
Li Zhang ◽  
We-Me Ho
Keyword(s):  
Tax Evasion ◽  
Initial Assessment ◽  
Tax Revenue ◽  
Pareto Improvement ◽  
Tax Amnesty ◽  
Policy Tool ◽  
Assessment Period ◽  
The Government ◽  
Behavioural Aspects

AbstractThough tax amnesties (TAs) are considered as a policy tool to increase revenue for governments, they have generated some puzzles. To solve the puzzles of TA we should not ignore the behavioural aspects of delinquent taxpayers. In this paper, we focus on a relatively neglected but important area of the TA literature. Considering that people who participate in tax amnesty policy (TAP) may not honestly report the whole amounts of evaded tax, thus they commit a secondary tax evasion. We indicate that even considering the risk of abstaining from TA and incurring possible uncertainty of tax evasion penalties, participating in a TA provides a higher level of utility for the delinquent taxpayers. Also, due to a secondary tax evasion usually accompanying with TA, we show that during the initial assessment period of a TAP the tax revenue drastically increases and when the assessment period is approaching the tax revenue stably declines and ultimately converges to a fixed value. Furthermore, we show that if delinquent taxpayers participate in the TAP and the penalties are larger than the expected tax revenue of the government, it increases the tax revenue without reducing the welfare of other taxpayers, so as to achieving Pareto improvement.

scholarly journals What worth is a BIT? Impact of BITs on FDI Inflows into India

2018 ◽  
Vol 4 (02) ◽  
Author(s):  
Anshuman Kamila ◽  
Mitali Chinara
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Best Practice ◽  
Foreign Investors ◽  
Fdi Inflows ◽  
New Model ◽  
Indian Model Bit ◽  
The Government

Developing countries often consider foreign direct investment (FDI) as an engine to boost economic growth. Therefore they try to promote investment inflow by various means. One approach is to offer investment guarantees to foreign investors using Bilateral Investment Treaties (BITs). Following international best practice, India has signed a number of BITs to stimulate inflow of FDI. Till date, the Government of India has signed BITs with 83 countries. These BITs were largely negotiated on the basis of the Indian Model BIT of 1993. There have been recent moves that point in the direction of India fundamentally altering the text of its BITs with countries, including calling off existing BITs and approving a new model BIT. However, concerns have been raised as to the possible pernicious impact of these changes on the inflow of FDI into India. This paper investigates whether the concern is warranted at all – by asking if BITs significantly impact the inflow of FDI. It is established that BIT is indeed a veritable boost to FDI inflow, and the estimated coefficient remains significant and robust across econometric specifications. Therefore, a note of caution is sounded for the rejigging exercise involving BITs that has been initiated by India.

scholarly journals Forecasting The Demand of Jernang Extract (Daemonorops spp) in The Export Market

2020 ◽  
Vol 9 (1) ◽  
pp. 75
Author(s):  
Dedy Fitriandi ◽  
Jangkung Handoyo Mulyo ◽  
Dwidjono Hadi Darwanto
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Raw Material ◽  
Export Market ◽  
Global Markets ◽  
Limited Information ◽  
The Government ◽  
Zero Potential ◽  
Forest Plants ◽  
Single Exponential

One indicator of a country’s progress is economic growth. In an economic growth, export is an important component in contributing to a positive trade and balance. Indonesia as one of the developing countries always looking for a various way to increase the number of export value. To achieve these goals, Indonesia started the exploitation of its forest to obtain more valuable commodities that are in demands by the global markets. One of the high-value forest plants that have the zero potential to the environment damage is the Jernang extract (Daemonorops sp) that has been used as a raw material in the manufacture of the traditional medicine in several countries, e.g. China, Taiwan, and Hong Kong. The opportunity to make Jernang extract as one of the major foreign commodities for the country’s development is relatively open. But in the current situation, the utilization of Jernang extract has not been fully used and the matter of fact that there is limited information about the world’s demand for the Jernang extract. The aim of this study is to find out the possibility of the needs of Jernang extract in the future. All the data regarding the Jernang extract will be processed using the methodology of Single Exponential Smoothing Techniques. The result of this study shows that the demand of jernang was fluctuated but still in the trend of large demand. This study recommends that the government need to encourage people to develop Jernang plantation.

Evaluasi Pelaksanaan Program Amnesti Pajak Tahun 2016 Di Indonesia

2019 ◽  
Vol 10 (1) ◽  
pp. 34-50
Author(s):  
Setiadi Alim Limseti ◽  
Lilik Indrawati
Keyword(s):  
Tax Evasion ◽  
Tax Avoidance ◽  
Point Of View ◽  
Tax Revenue ◽  
Successful Implementation ◽  
Tax Base ◽  
Tax Revenues ◽  
Tax Amnesty ◽  
The Government

Income from the tax sector is generally the main income for all countries in the world in order to finance its activities. Increased revenue from the tax sector is often hampered, due to the large tax evasion and tax avoidance activities. Tax evasion and tax avoidance practices are triggered by the practice of low tax rates and other facilities provided by the tax heaven countries. In order to combat tax evasion and tax avoidance, the approach taken by each country is different. But basically approach done can be distinguished on soft apporach and hard approach. One approach that is classified as a soft approach is a tax amnesty program. In 2016 the Government of Indonesia is implementing a tax amnesty program based on Law Number 11 of 2016 concerning Tax Amnesty applied from 1 July 2016 to 31 March 2017. This paper will evaluate the successful implementation of the tax amnesty program that has been implemented in Indonesia. Evaluation is based on the achievement of 3 objectives, namely the repatriation of assets from abroad, expansion of the tax base and increase in tax revenue for the short and long term. From the point of asset repatriation, the tax amnesty program is considered quite successful, because although the target of asset repatriation is not achieved, but the asset repatriation has reached 30.54% of the estimated financial assets abroad. From the point of view of the expansion of the tax base, the number of declarations and repatriation reaches Rp. 4,737.56 trillion has exceeded the target. Meanwhile, from the point of view of increasing short-term tax revenues, the objective of the amnesty program can be considered quite successful, because it contributes 10.15% to the average amount of tax revenue in 2016 and 2017, although it has not been able to raise the growth rate of overall tax revenue for the year 2016 and 2017. Increased tax revenues for the long term can not be evaluated, because the tax amnesty program was completed 1 year ago.

Zur gesamtwirtschaftlichen Problematik des Zusammenwirkens von Nominalzinsbesteuerung und Inflation

1996 ◽  
Vol 45 (2) ◽  
Author(s):  
Stefan Glaß
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Tax Evasion ◽  
Real Interest Rates ◽  
Legal Rules ◽  
The Government

AbstractIn Germany, nominal interest earnings are taxed. Combined with persistent inflation, this leads to real interest rates which are often extremely low and sometimes even negative. This, in turn, creates strong incentives for tax evasion. When the government attempts to alter the legal rules of the taxation of interest in order to reduce the amount of tax evasion, many citizens strive to prevent their interest earnings from being taxed by transferring large sums of capital to other countries. Moreover, the excessive actual taxation of real interest earnings causes a misallocation of saving, which hampers economic growth.

scholarly journals UPAYA PENINGKATAN PENERIMAAN PAJAK PASCA TAX AMNESTY PADA KANWIL DJP BALI

2018 ◽  
Vol 1 (1) ◽  
pp. 37-49
Author(s):  
Ida I Dewa A Manik Sastri ◽  
Luh Kade Datrini
Keyword(s):  
Public Awareness ◽  
National Income ◽  
Institutional Transformation ◽  
Tax Revenue ◽  
State Spending ◽  
Tax Revenues ◽  
Tax Amnesty ◽  
The World ◽  
The Government ◽  
State Revenues

On July 1, 2016, the Government established Law No. 11 of 2016 concerning Tax Amnesty. This law has been postponed several times, after tough discussions in the House of Representative (Dewan Perwakilan Rakyat – DPR) since 2015. The failure to achieve tax revenues over the past few years has triggered the enactment of this law. The government sees that tax revenues are still low due to a lack of public awareness in reporting taxes, even though the government in the last few years has relied heavily on state revenues from the results of tax revenues. The World Bank notes that Indonesia's tax ratio in 2014 was only 10.84% ​​of Gross Domestic Income, while the average tax ratio of countries in the world was 14.81%. So the level of tax collectibility in Indonesia is still very small, so it is quite heavy in supporting state spending. The purpose of this study was to find out the benefits of tax amnesty as an effort to stimulate national income, to find out the magnitude of the tax amnesty contribution in increasing state revenues, and analyze the influence of several factors in increasing tax revenue after tax amnesty. The implementation of tax amnesty that ended at the end of March 2017 was quite good. The results showed that the number of taxpayers participating in the tax amnesty were 974,058, the amount was still small compared to the potential tax in the country. The amount of state revenue from the Tax amnesty is 107 trillion from 1,104.9 total realized tax revenues in 2016. An important point that must be done immediately after the tax amnesty is the administration update related to data and information management with an integrated IT system with all stakeholders, coordination of tax law enforcement through examination, and institutional transformation.

scholarly journals Jurisdiction Not to Tax, Tax Sparing Clauses, and the OECD Minimum Taxation (GloBE) Proposal

2021 ◽  
Vol 2021 (1) ◽  
pp. 6-19
Author(s):  
Aitor Navarro
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Tax Competition ◽  
Tax Policy ◽  
Multinational Enterprises ◽  
Tax Incentives ◽  
Policy Preferences ◽  
Minimum Taxation

Abstract The OECD Programme of Work on the tax challenges arising from the digitalization of the economy comprises a so-called GloBE (Global Base Erosion) or Pillar Two proposal, consisting of a series of measures aimed at establishing a floor to tax competition by achieving minimum taxation of the income obtained by in-scope multinational enterprises. If such a measure is implemented, developing countries would be severely deprived of the possibility to grant tax incentives to attract FDI and potentially foster economic growth. This contribution emphasizes the importance of the thorough review of their tax policy preferences that developing countries should undertake amidst the rapid adoption of GloBE, which the OECD is pushing to achieve. To illustrate this concern, an examination of implementation issues shows that a deficient enactment of the income inclusion rule proposed in GloBE could paradoxically trigger the applicability of tax sparing clauses aimed at protecting the effectiveness of tax incentives, even when both sets of rules pursue opposing goals.

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