scholarly journals ANALISIS PERUMUSAN KEBIJAKAN MANDATORY DISCLOSURE RULES SEBAGAI ALTERNATIF DALAM MENGATASI PRAKTIK PENGHINDARAN PAJAK DI INDONESIA

2017 ◽  
Vol 1 (1) ◽  
pp. 65-75
Author(s):  
Susi Zulvina
Keyword(s):  
Economic Development ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Mandatory Disclosure ◽  
Information Transparency ◽  
Association Member ◽  
The World ◽  
Disclosure Rules ◽  
International Tax ◽  
Taxation System

ABSTRACT Tax avoidance is one of the most serious problems faced by countries in the world, especially for countries that make taxes as their main revenues. Tax avoidance practices will reduce the source of revenues in the country and become a potential for unhealthy competition between countries. OECD and G-20 countries have a plan to overcome tax avoidance in the whole world and to improve international tax regulations, one of which is that information transparency related to aggressive tax planning by Mandatory Disclosure Rules (MDR) policy. Indonesia is the association member but has not implemented that policy. As an OECD recommendation, the MDR policy form should be researched in order to be applicable in the taxation system in Indonesia. ABSTRAK Penghindaran pajak merupakan salah satu permasalahan serius yang dihadapi oleh negara- negara di dunia ini, khususnya bagi negara yang menjadikan pajak sebagai sumber utama pendapatan negara. Praktik penghindaran pajak akan mengurangi sumber penerimaan negara dalam negeri dan menjadi potensi persaingan yang tidak sehat antar negara. Organisation for Economic Development(OECD) bekerja sama dengan negara anggota G-20 berusaha mengatasi praktik penghindaran pajak di dunia dan ingin memperbaiki regulasi perpajakan internasional, salah satunya dengan cara tranparansi informasi terkait perencanaan pajak yang bersifat agresif dalam bentuk kebijakan Mandatory Disclosure Rules (MDR). Indonesia sebagai salah negara anggota sampai saat ini belum menerapkan kebijakan tersebut. Sebagai rekomendasi OECD, bentuk kebijakan MDR tersebut perlu diteliti agar dapat diterapkan dalam sistem perpajakan di Indonesia.

scholarly journals The Use of International Tax Planning in Subsidiaries from the Financial and ICT Sectors in the Czech Republic

2021 ◽  
Vol 24 (1) ◽  
pp. 182-196
Author(s):  
Vít Jedlička
Keyword(s):  
Global Economy ◽  
Transfer Pricing ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Tax Burden ◽  
Effective Tax Rate ◽  
Tax Havens ◽  
Tax Rate ◽  
Dummy Variable ◽  
International Tax

Tax avoidance is an important element of management in the global economy. Managers use tax havens for reducing a company’s effective tax rate. The most common practices in international tax planning can be divided into three groups: loans and their related interest, royalties, and transfer pricing. The aim of this article is to find the determinants of the tax burden faced by foreign-owned subsidiaries. Therefore, a model was created for the tax burden, focusing on the special position of subsidiaries within international tax planning. For this purpose, taxes/outcomes was established as a new dependent variable. The panel data used include Czech companies that are owned by parent companies located in other EU countries. The model distinguishes EU tax havens from regular member states; sector dummy variables are also included. The regression model that was created did not confirm the assumed dependencies. Rather, it indicated other important determinants: profitability, the share of intangible assets, size, and the dummy variable for the ICT sector. Based on the regression results, the independent variables connected with known tax planning schemes have relatively low importance. The significance of these results can be seen in the subsequent conclusions. First of all, there is no difference between the subsidiaries’ tax burdens based on the parent company’s location. Corporations use international tax planning whether or not they are owned from a tax haven. The second significant conclusion indicates the importance of certain sectors and their attributes concerning the tax burden. Companies from the ICT sector are linked to a lower tax burden. On the other hand, the dependencies within the financial sector are not statistically significant. From the perspective of further research, it would be constructive to incorporate the subsidiary’s position within the group.

scholarly journals Analyzing and Formulating a Statutory General Anti-Avoidance Rule (GAAR) in Indonesia

2020 ◽  
Vol 15 (1) ◽  
pp. 35
Author(s):  
Suparna Wijaya ◽  
Dewi Sekarsari Kusumaningtyas
Keyword(s):  
Qualitative Research ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Case Study Approach ◽  
Study Approach ◽  
International Tax

Dealing with the practice of tax avoidance in general, many countries have compiled and implemented their own general anti-avoidance rules (GAAR). This research aims to explore the potential of statutory GAAR in handling tax avoidance practices in Indonesia and SAAR formulas that are suitable for the Indonesian context. This qualitative research employed a case study approach. Results show that the application of SAAR and the principle of substance over form in Indonesia cannot yet be applied properly; thus GAAR is needed. It is expected that the implementation of statutory GAAR can accommodate the limitations of regulators in light of unknown and future tax avoidance schemes.. Keywords: Tax-avoidance, tax planning, specific anti avoidance rule (SAAR), international tax

scholarly journals The Complementary Role of the WTO in the Enhancement of the Base Erosion and Profit Shifting Project

World ◽  
2021 ◽  
Vol 2 (2) ◽  
pp. 267-295
Author(s):  
Lijun Zhao ◽  
Angelina Karaivanova ◽  
Pengfei Zhang
Keyword(s):  
World Trade Organization ◽  
Tax Competition ◽  
World Trade ◽  
Tax Avoidance ◽  
Profit Shifting ◽  
Development Framework ◽  
Complementary Role ◽  
Tax Regimes ◽  
The World ◽  
International Tax

The current rules on international tax do not function properly due to the gaps which allow for tax manipulation. Whereas most tax agreements largely contribute to the prevention of double taxation, they do not effectively approach double non-taxation matters arising from tax competition based on the agreements’ bilateral nature. In order to tackle this issue, the Base Erosion and Profit Shifting project was introduced. Developed under the Organization for Economic Co-Operation and Development framework, the Base Erosion and Profit Shifting project deals with tax avoidance practices that use mismatches and gaps in tax rules. Nevertheless, the success of this new soft law initiative requires a forum that can promote and enforce its recommendations. The structural nature of the Organisation for Economic Co-operation and Development has led to the consideration of the World Trade Organization to be this forum by many. However, the World Trade Organization covered agreements are drafted in a way that includes some of the tax competition matters but not others, including traditional tax havens. This paper aims to bridge the gaps in the area of the international tax regime. By examining the international trade and international tax regimes, it is shown that there is space for variations in the World Trade Organization broadly drafted agreements for such matters to find a resolution. It is argued that the World Trade Organization can play a complementary role in the enforcement of the new international tax rules.

scholarly journals China and the Future of the International Tax Regime

2017 ◽  
Author(s):  
Reuven Avi-Yonah ◽  
Haiyan Xu
Keyword(s):  
Great Recession ◽  
Tax Avoidance ◽  
Profit Shifting ◽  
The Great Recession ◽  
Single Tax ◽  
The Us ◽  
The World ◽  
The Future ◽  
International Tax ◽  
The Eu

The International tax regime (ITR) has been transformed after the Great Recession of 2008–2009. The G20/Organization for Economic Cooperation and Development (OECD)’s Base Erosion and Profit Shifting (BEPS) project (2013–2015) has fundamentally changed the ITR, giving new life to the single tax principle (income should be taxed once, i.e., no double taxation and no double non taxation). Reaction to BEPS has varied dramatically between the EU and the US, the two largest markets in the world. In the EU BEPS is taken very seriously, as shown for example by the new Anti-Tax Avoidance Directives that implement the single tax principle. In the US BEPS is almost invisible; while the US model tax treaty has been amended to incorporate it the US has refused to sign the Multilateral Instrument to implement BEPS in its treaties and the only other BEPS action that the US has taken is country by country reporting. It thus appears that the future of BEPS and the ITR depends on whether the EU or the US view prevails, i.e., whether multinationals can be forced to pay significant tax on the 160–240 billion that are currently not taxed annually because of BEPS. While US multinationals as well as EU multinationals are exposed to the EU ATAD and related measures while operating in Europe, they are less subject to EU anti BEPS measures elsewhere in the world. It therefore is crucial to assess the reaction to BEPS in the other large economy that was involved in its development, namely China. This article attempts to assess China’s reaction to BEPS based on Chinese sources. It shows that China takes BEPS seriously. Therefore, given the reactions of China (as well as India, which is even more aggressive than China for example in taxing the digital economy) it seems likely that eventually the EU view of BEPS will prevail and US based multinationals will eventually be forced to pay tax on the over 100 billion they shift offshore each year.

scholarly journals Low-Tax Jurisdictions in International Tax Planning

2021 ◽  
Vol 9 (3) ◽  
pp. 137-162
Author(s):  
Natalia Andrianova
Keyword(s):  
Tax Evasion ◽  
Multinational Enterprises ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Global Trends ◽  
National Legislation ◽  
Global Trend ◽  
International Tax ◽  
Definition Of ◽  
Financial Transactions

Until recently low-tax jurisdictions have played an important role in the formulation of tax planning schemes by multinational enterprises. However with the onset of global trends towards deoffshorization, existing methods of tax optimization have seen significant changes. As there is currently no one single approach when creating the definition of, or defining a “low-tax jurisdiction”, in this article the definition and the main features of lowtax jurisdictions are proposed and the main stages in the formation and development of low-tax jurisdictions are detailed. On the basis of research carried out on the national legislation of low-tax jurisdictions, the main company types which meet the special legal formulae that can be incorporated into low-tax jurisdictions have been analyzed. In order to highlight similar characteristics and to simplify the analysis of the national legislation of low-tax jurisdictions so that general recommendations covering the nature of measures which can be used to counter illegal tax avoidance, tax evasion, money laundering and other illegal financial machinations, different classifications of low-tax jurisdictions have been analyzed. The unfair and perhaps even illegal use of low-tax jurisdictions often leads to violations of core tax principles which may have an impact on the overall size of budget revenues available to high-tax countries. Therefore, deoffshorization measures are being proposed at the international level. Currently the main global trend has been to increase the transparency of tax information and of financial transactions which are carried out by international exchanges. This is supported by the strengthening and expansion of cooperation between tax authorities which serves to counter the abuse of provisions in international tax treaties on the avoidance of double taxation.

scholarly journals Multilateral Convention: Potential Issues of Legal Uncertainty

2021 ◽  
Vol 16 (1) ◽  
pp. 38-55
Keyword(s):  
Law Enforcement ◽  
Russian Federation ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Tax Treaties ◽  
Profit Shifting ◽  
The Russian Federation ◽  
Legal Uncertainty ◽  
International Tax ◽  
Further Development

On October 1, 2019, the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting entered into force with respect to the Russian Federation. The main purpose of the MLI is to establish minimum standards for combating international tax avoidance. The MLI will extend the key approaches of the BEPS plan at once to a large number of bilateral double tax treaties. The application of the MLI is expected from January 1, 2021 in relation to a number of tax treaties concluded by the Russian Federation. At the same time, certain provisions of the MLI leave some questions about their application and may cause new problems for the taxpayers and tax authorities. In the short term, the application of a number of MLI provisions may be expected to increase uncertainty in international tax planning and lead to an increase in the number of disputes over tax treaties. The main purpose of this article is to analyze the key provisions of the MLI and identify possible problems of their enforcement for the subsequent analysis of potential ways to overcome the legal uncertainty of the application of the MLI. To this end, the tasks were set to study the goal of adopting the MLI, and analyze the content and procedure for the application of the MLI, as well as the content of the key standard of the MLI—the principal purpose test. Identifying the problems of law enforcement before the start of active use of the MLI is important, since it would allow one to pay attention to possible problems at an earlier stage and quickly move to their resolution, which would contribute to the formation of a higher level of legal certainty in the field of international tax planning and further development of foreign economic cooperation.

International tax planning techniques: a review of the literature

2020 ◽  
Vol 21 (2) ◽  
pp. 329-343
Author(s):  
Khaoula Ftouhi ◽  
Wafa Ghardallou
Keyword(s):  
Literature Review ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Literature Survey ◽  
Empirical Literature ◽  
Planning Techniques ◽  
Content Type ◽  
Starting Point ◽  
Key Variables ◽  
International Tax

PurposeThis paper aims to understand the international practices of tax planning. International companies choose their capital structure according to differences in international taxation, in order to minimize the tax burden of the whole company group. This paper reviews the literature that deals with international tax avoidance techniques by highlighting tax planning measurements in the empirical literature. The methodology used is the narrative approach of literature review, which consists on assembling and synthesizing previously published research. The paper concludes that there are several approaches of international tax planning including transfers of revenues by geographical area, redevelopment of the company, haven and loopholes in tax legislation. Moreover, finding more precise measures of tax planning techniques would be of great value to studies in this respect.Design/methodology/approachThe authors follow the guideline provided by Templier and Pare (2015) in order to select the type of the literature review to use in this paper. Accordingly, this paper employs the narrative approach of literature review, which consists on assembling and synthesizing previously published research on international tax planning. This narrative review will serve as a starting point for future investigations and research developments. The authors rely on a logic of configuration in order to analyze data. This logic consists on addressing then organizing various aspects of international practices of tax planning.FindingsThe paper concludes that there are many aspects of international tax planning that need to be covered by future researchers, especially finding more precise measures of tax planning techniques would be of great value to studies in this respect.Research limitations/implicationsThe literature survey reveals the following issues. First, few studies have been conducted to date. Second, several approaches remain unexplored, and studies rely only on surveys' results collected from the annual report of companies (microeconomics variables), while macroeconomic variables can better explain the phenomenon of international tax planning. In this context, studies containing proposals to estimate more accurate international companies' tax planning techniques would also be welcome. Previous literature supposes premises on this issue th:at limit the accurateness of the analysis. Particularly, empirical literature is short of the proper measurement to evaluate corporate tax avoidance. This would explain the various interpretations of research findings. Hence, finding more precise measures of tax planning techniques would be of great value to studies in this respect.Practical implicationsThis literature survey highlights recent studies dealing with tax planning theories within the framework of corporate governance. This theoretical framework particularly specifies which key variables are the most suitable for measuring tax planning methods and highlights the need to examine how those key variables might differ and under what circumstances. In addition, it underlines limits on tax planning measurements by addressing the comparison of the empirical measurements.Originality/valueThe paper contributes to the literature on internal tax planning in several ways. First, this study is unique in that it constitutes the only literature review that provides a comprehensive overview of research on international tax planning. Especially, it extends previous studies by considering the specific new trend of empirical literature dealing with the techniques of international tax planning. This literature review identifies two categories of tax planning approaches including techniques related to company internal management practices and international tax planning techniques. In addition, the literature survey helps to determine various strategies used by multinationals for tax planning, through an in-depth review of the existing studies. Finally, it provides researchers with a starting point to further explore issues related to tax avoidance techniques.

scholarly journals O OUTRO LADO DA MOEDA NA NOVA RELACAO ENTRE FISCO E CONTRIBUINTES – A OBRIGACAO DE REVELAR PLANEJAMENTOS FISCAIS AGRESSIVOS / THE OTHER SIDE OF THE COIN IN THE NEW RELATIONSHIP BETWEEN TAX AUTHORITIES AND TAX PAYERS – MANDATORY DISCLOSURE RULES ON AGGRESSIVE TAX PLANNING

2019 ◽  
Vol 7 (8) ◽  
Author(s):  
Marcio Henrique Sales Parada
Keyword(s):  
Tax Planning ◽  
The Other ◽  
Mandatory Disclosure ◽  
Disclosure Rules ◽  
Tax Payers

A tributação, enquanto elemento primordial na atividade estatal, é sempre um campo fértil para discussões acadêmicas, frequentemente de caráter multidisciplinar. A relação entre Fisco e contribuintes, especialmente no que diz respeito a transparência e confiança, vem sendo desenvolvida, há anos, em vários países que decidiram migrar de um modelo baseado nas auditorias e aplicação de punições para um modelo fundado na autorregularização, muitas vezes com supervisão ou acompanhamento da administração tributária. Este artigo, partindo das propostas de uma nova dimensão nessa relação, no caminho que finalmente a Administração Tributária brasileira encontra  no sentido de fortalecer o cumprimento voluntário de obrigações fiscais, dispõe-se a analisar a possibilidade da introdução, no sistema tributário, de ações com o escopo de determinar a revelação de planejamentos tributários agressivos, assim entendidos aqueles que produzam vantagens fiscais, conforme proposto pela Organização para a Cooperação e o Desenvolvimento Econômico. O trabalho reconhece que tal modelo contém nuances ainda não exploradas. A análise descritiva realiza uma comparação entre sistemas em vigor e propostas recentes nesse sentido, em países europeus, focando no tempo da informação e nos sujeitos da obrigação, para concluir que conjuntos de regras que determinam a revelação de planejamento tributário agressivo devem estar ligadas a dois outros tipos de programas: a troca de informação entre as administrações tributárias e programas de compliance cooperativo. Além disso, analisando uma experiência frustrada brasileira, o artigo reflete sobre possíveis questões envolvendo princípios constitucionais que precisam ser considerados na aplicação desse tipo de sistema e endereça para futuros estudos no tocante a sigilo profissional, privacidade e intimidade.

scholarly journals International Tax Avoidance and Evasion with Special Reference to India

2017 ◽  
Vol 4 (01) ◽  
Author(s):  
M. M. Sury
Keyword(s):  
Tax Evasion ◽  
Structural Changes ◽  
Transfer Pricing ◽  
Tax Avoidance ◽  
Tax Havens ◽  
Business Operations ◽  
History Of ◽  
International Tax ◽  
Taxation System ◽  
International Tax Evasion

International tax avoidance and evasion is a serious problem in developing countries where the tax systems are still evolving. While it is true that international business operations are exposed to the risk of being subject to double taxation, such activities also provide various opportunities for tax avoidance and evasion. This paper analyses at the various methods adopted for international tax evasion and avoidance such as tax treaties, tax havens, and transfer pricing. It also examines the general causes of this evasion along with the detrimental impact that it has on the economy. In addition, it discusses the various estimates of tax evasion in India from time to time. While examining the history of taxation law amendments in India, it is seen that it is essentially a history of plugging loopholes, as and when discovered, to prevent leakages of revenue rather than making structural changes in the taxation system to strike at the root cause of the problem. India needs tougher laws and stricter enforcement of existing provisions to deal with the root causes of international tax evasion and avoidance.

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