scholarly journals TAX ON THE WITHDRAWAL OF CAPITAL AS A MECHANISM TO INCREASE THE CAPITALIZATION LEVEL OF ENTERPRISES

2019 ◽  
Vol 21 (2(71)) ◽  
pp. 83-90
Author(s):  
Y.A. NAZARENKO
Keyword(s):  
Tax Evasion ◽  
Income Tax ◽  
Value Added ◽  
Economic Transformation ◽  
Tax Burden ◽  
Short Term ◽  
Tax Rate ◽  
Sharp Fall ◽  
Tax Revenues ◽  
Accumulated Losses

Topicality. Increasing the level of capitalization of the economy is of strategic importance for Ukraine, since market transformation in Ukraine is inherently capitalization of the economy. All this necessitates further investigation of the mechanisms of capitalization of enterprises, including tax mechanisms.Aim and tasks. Analyze tax on the withdrawal of capital and experience of its use in Estonia, identify its benefits and potential risks, propose improvements to its legislative support.Research results. The corporate income tax system is designed in such a way that dividends can be paid even if no profit is received. In the future, these dividends derived from one of the schemes are deposited on offshore accounts. According to conservative estimates of experts of the Institute for Social and Economic Transformation, the losses of the budget of Ukraine from offshore schemes amount to UAH 50-65 billion a year. The chances of tax evasion are great. Large Ukrainian companies, with the help of auditors, can reduce their tax burden from 18% to 3-4%. The main disadvantages of the income tax collection system are the discretion of the administration (the decision-making power of the officials at its discretion) and corruption. Many experts and businessmen see the solution to this problem by replacing the income tax with tax on the withdrawal of capital. This will ensure that business profits are not taxed as long as they are not paid out to the owners in the form of dividends and equivalent payments, that is, they are not taken out of business. Estimates of the negative short-term impact on budget revenues differ. The most optimistic estimates range from 0.5% to 1.2-1.3% of GDP. It is likely that the use of capital deduction will lead to a decrease in tax revenues, but such a sharp fall as the situation in Estonia in Ukraine is not likely to be, since the new tax will be paid by "loss-making" enterprises, and the operations used today for tax evasion will be taxed. Estimates of the negative short-term impact on budget revenues differ. The most optimistic estimates range from 0.5% to 1.2-1.3% of GDP. It is likely that the use of tax on the withdrawal of capital will lead to a decrease in tax revenues, but such a sharp fall as the situation in Estonia in Ukraine is not likely to be, since the new tax will be paid by "loss-making" enterprises, and the operations used today for tax evasion will be taxed.Analysis of the draft Law of Ukraine on tax on the withdrawal of capital allows to determine a number of proposals for its improvement in the part of enterprises that have accumulated losses in the amount exceeding their own capital or in the amount of UAH 100 million; exemption from tax on interest on the deposit, if they remain on it; defining the norms of the shortage that the enterprise can attribute to the property provided free of charge; deviation of the contractual value of the taxpayer's property upwards or downwards from ordinary prices; the unification of the tax rate on the withdrawal of capital with the tax rate on personal income.Conclusion. Tax on the withdrawal of capital forms a self-regulating economic system, that is, if dividends are not paid and invested in the development of an enterprise, then production increases, which in turn leads to an increase in value added tax and wage tax. The introduction of this tax will provide a number of positive consequences: growth of business activity, acceleration of modernization of enterprises, redistribution of the tax burden on all taxpayers, reduction of the tax burden; simplification of control and simplification of tax accounting, reduction of methods of tax minimization, shadowing of the economy.

Assesment of the Results of Personal Income Tax Reform in Russia

2003 ◽  
pp. 61-77
Author(s):  
S. Sinelnikov-Murylev ◽  
S. Batkibekov ◽  
P. Kadochnikov ◽  
D. Nekipelov
Keyword(s):  
Tax Evasion ◽  
Income Tax ◽  
Tax Reform ◽  
Personal Income ◽  
Vertical Equity ◽  
Personal Income Tax ◽  
Tax Base ◽  
Tax Rate ◽  
Tax Revenues ◽  
Income Tax Reform

The paper contains results of the analysis of personal income tax reform in Russia in 2000, including the influence of the reform on tax base, tax revenues and progressivity of income taxation. On the basis of the theoretical model the authors formulate two main hypotheses, concerning the influence of major factors on personal income tax revenues and tax base. The first hypothesis implies that the decrease in marginal income tax rate caused the decrease in personal income tax evasion, increase in tax revenues and tax base. The second hypothesis is that the decrease in tax evasion, especially among taxpayers with high incomes, increased their tax burden and, as a result, the level of vertical equity. The paper also includes the results of empirical tests of the above hypotheses about the change in tax evasion and progressivity using the regional data in 2000 and 2001; a number of measurers in the sphere of economic policy is put forward.

scholarly journals Features of taxation of agro-industrial enterprises in Ukraine

2021 ◽  
Vol 12 (1) ◽  
Author(s):  
Sliusarenko Sergiy ◽  
◽  
Artemenko Olena ◽  
Keyword(s):  
Income Tax ◽  
Value Added ◽  
Tax Burden ◽  
Industrial Complex ◽  
Agricultural Producers ◽  
Tax Rate ◽  
Fourth Group ◽  
Agricultural Enterprises ◽  
Industrial Enterprises ◽  
Single Tax

The article is devoted to the research of problems of taxation of enterprises of agro – industrial complex in Ukraine. Peculiarities of the tax burden on agricultural enterprises are considered. The article also identifies the features and outlines the main problems of taxation of agricultural enterprises in Ukraine. Also, the historical stages of development of agricultural tax in modern Ukraine, the evolution of changes in regulations governing the payment of taxes by agricultural enterprises are analyzed. The process of formation of the system of taxation of agricultural enterprises is investigated. The key factors in the economic sphere of the agro-industrial complex of Ukraine, special regimes of taxation of agricultural producers, the order of payment of taxes and privileges that agricultural enterprises have are identified. The procedure for payment of income tax, value added tax and specifics of the fourth group of the single tax by agricultural producers has been studied. Particular attention is paid to the procedure and requirements for the transition of agricultural enterprises to the fourth group of the single tax and the consequences of increasing the tax burden for this group. The main elements of taxes for enterprises of the agricultural sector are revealed: taxpayers; objects of taxation; tax base; tax rate; the procedure for calculating the tax; tax period; term and procedure for tax payment; term and procedure for reporting on tax calculation and payment. It is concluded that the taxation of agro-industrial enterprises in Ukraine needs to be changed.The main goal is to make it optimal and acceptable for both the state and farmers, to simplify the system of tax administration, the establishment of tax benefits, especially for small agricultural producers, and to maintain predictability for the coming years. Keywords: taxation, agricultural commodity producer, simplified taxation system, agricultural enterprise, single tax, land tax, income tax, value added tax, tax rate, tax period, taxpayer, IV group of single tax payers

Ocena skutków regulacji zawartych w poselskim projekcie ustawy o podatku od niektórych usług cyfrowych i Funduszu Technologii Cyfrowych

2021 ◽  
Vol 2 (70) ◽  
pp. 202-212
Author(s):  
Jacek Kulicki
Keyword(s):  
Local Government ◽  
Income Tax ◽  
The State ◽  
Tax Base ◽  
Tax Rate ◽  
Tax Revenues ◽  
Digital Services ◽  
State And Local Government ◽  
State And Local

In the opinion of the author, doubts are raised as to the manner of determining the scope of the tax and the tax base by relating these elements of the tax to the so-called significant digital presence of the digital sector enterprise in the territory of Poland. The amount of the tax rate (7%) also raises doubts. The introduction of a tax on certain digital services may also be associated with a decrease in income tax revenues of the state and local government budgets.

scholarly journals Income Tax Avoidance and Evasion

2016 ◽  
Vol 45 (6) ◽  
pp. 815-837 ◽  
Author(s):  
Duccio Gamannossi degl’Innocenti ◽  
Matthew D. Rablen
Keyword(s):  
Tax Evasion ◽  
Income Tax ◽  
Tax Avoidance ◽  
Expected Return ◽  
Tax Rate ◽  
Increasing Function ◽  
Reported Income

We characterize optimal individual tax evasion and avoidance when taxpayers “narrow bracket” the joint avoidance/evasion decision by exhausting all gainful methods for legal avoidance before choosing whether or not also to evade illegally. We find that (1) evasion is an increasing function of the audit probability when the latter is low enough, yet tax avoidance is always decreasing in the probability of audit; (2) an analogous finding to the so-called Yitzhaki puzzle for evasion also holds for tax avoidance—an increase in the tax rate decreases the level of avoided income and the level of avoided tax; and (3) that, holding constant the expected return to evasion, it is not always the case that the combined loss of reported income due to avoidance and evasion can be stemmed by increasing the fine rate and decreasing the audit probability.

scholarly journals Tax Burden of Agricultural Enterprises in Ukraine

2021 ◽  
Vol 25 (1) ◽  
pp. 157-169
Author(s):  
Serhii Kostornoi ◽  
Olena Yatsukh ◽  
Volodymyr Tsap ◽  
Ivan Demchenko ◽  
Natalia Zakharova ◽  
...  
Keyword(s):  
Value Added ◽  
Political Stability ◽  
Optimal Level ◽  
Tax Burden ◽  
Tax Rate ◽  
Agricultural Enterprises ◽  
Is Implementation ◽  
Advantages And Disadvantages ◽  
Tax Legislation ◽  
The Impact

Abstract Agriculture is one of the leading sectors of the Ukrainian economy, and the state pays special attention to its development. One of directions of the state’s support for agriculture is implementation of tax preferences due to which agricultural enterprises have a lower tax burden. The optimal level of the tax burden is an important factor in ensuring the positive dynamics of business activity in agriculture, as well as socio-political stability. The objective of the article is to determine the impact of recent changes in the Ukrainian tax legislation on the tax burden of agricultural enterprises, as well as the possible impact of current draft laws. The article examines features of the tax legislation in Ukrainewith regard to agricultural producers and its changes in recent years - increasing a single tax rate, introduction of indexation of land regulatory, monetary valuation, abolition of the special regime of a value added tax. The advantages and disadvantages of using a simplified taxation system by agricultural enterprises are considered. the study’s outcome comprises recommendations for agricultural enterprises to choose a tax system with the lowest tax burden, as well as recommendations for improving the tax legislation of Ukraine using preferential VAT rates for agricultural enterprises and a tax on withdrawn capital.

scholarly journals INFLUENCE OF TRANSFER PRICES ON TAX EVASION

2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Vedran Šupuković
Keyword(s):  
Tax Evasion ◽  
Transfer Pricing ◽  
Market Price ◽  
Value Added ◽  
Tax Base ◽  
Tax Rate ◽  
Objective Evidence ◽  
Transfer Prices ◽  
The Subject ◽  
Business Entities

In recent years, transfer (internal) prices have become the subject of interest of many theorists and regulators, both for determining their effects on business and for the possibility of exploiting tax evasion. The foundations for the functioning of transfer pricing are given in the OECD guidelines, and further elaborated through national tax laws and regulations for their application. This regulatory framework treats all relevant entities, circumstances and conditions of transfer pricing, identification and explanation of transfer pricing methodology, and providing objective evidence on the application of the principle of independence and setting other conditions in transactions between related companies, all in order to prevent tax evasion and proven application of legal regulations in the field of transfer pricing. Since transfer prices are linked to decentralized related business entities consisting of parent companies and branches (organizational units or centers of responsibility) operating in the same or another country, tax evasion is done through the transfer of profits from a country with a high tax burden to a country with a lower tax rate. In addition, tax evasion is performed by reducing the tax base for value added tax, which is the difference between the transfer (non-market) price and the market price. Transfer price is formed using methods that are classified into two groups: classical transaction methods or transaction profit methods. Which method will be applied from these two groups depends on the adopted policy of the business entity. In principle, methods that are in line with the nature of the business of the business entity and that can determine the tax base in the most objective way should prevail. In practice, a method is chosen that results in maximizing profits and minimizing tax liabilities, which further leads to a better competitive position of the business entity, improvement of market position and increase of market shares. The subject of observation are all transactions between related parties on the basis of direct and indirect agreements, contracts, agreements and similar business relationships that affect the tax base, namely transactions with assets, services, financial transactions, capital transactions (purchase and sale of securities and shares ) and other similar transactions. The purpose of this paper is to investigate whether transfer prices are in line with the principle of marketability, regardless of the applied calculation method. The aim of this paper is to eliminate all possibilities of tax evasion in transactions between the parent company and subsidiaries within the group. In order to achieve the stated goal and purpose, the basic hypothesis of the work is set, which states that the application of different methods of calculating transfer prices affects the amount of the tax base. Proof of this hypothesis will be done on a case study example. The obtained results can serve as a basis for the commitment of the business entity for the appropriate method of calculating transfer prices. This excludes the individual goals of the business entity and the primacy given to one of the basic goals of taxation: achieving efficiency and fairness.

scholarly journals ENTERPRISE TAX SECURITY: MANAGING BUSINESS WITHOUT CONSEQUENCES

2019 ◽  
Vol 7 (3) ◽  
pp. 16-20
Author(s):  
Екатерина Лебедева ◽  
Ekaterina Lebedeva
Keyword(s):  
Income Tax ◽  
Value Added ◽  
Negative Consequences ◽  
Value Added Tax ◽  
Tax Rate ◽  
Regulatory Authorities ◽  
Tax Regimes ◽  
Tax Benefits

The search for optimization of taxation of commercial enterprises often leads to the choice of illegal schemes of evasion of value added tax and income tax. For example, the choice of the scheme of splitting business in order to understate income by distributing them to artificially created organizations, transferred to special tax regimes, which leads to the receipt of an unreasonable tax benefit by the enterprise in the form of a reduced tax rate and VAT exemption. This article formulates the main methods of proving the unjustified receipt of tax benefits by the regulatory authorities and the possible negative consequences of such tax optimization for the enterprise.

scholarly journals Personal Income Taxation in Poland

Ekonomika ◽  
2008 ◽  
Vol 84 ◽  
Author(s):  
Edyta Małecka-Zieńska
Keyword(s):  
Income Tax ◽  
Value Added ◽  
Personal Income ◽  
Tax Rates ◽  
Personal Income Tax ◽  
Tax Rate ◽  
Tax Exemptions ◽  
Tax Deductions ◽  
The One ◽  
Taxation System

The Polish taxation system has been undergoing substantial changes in recent years, aimed at creating a more transparent system and conforming to the taxation standards of market economy countries. The two most important changes were introduction of the personal income tax (PIT) in 1992 and replacement of the turnover tax with the value added tax (VAT) in 1993. The uniform personal income tax covered all incomes generated by natural persons irrespective of where the sources of income are located. The reform provided also a more equitable distribution of the tax burden by introducing a progressive system with three nominal tax rates (in 1992-20%, 30%, 40%).A comparative study of the effective PIT rate for pensioners and other groups of PIT payers is the main goal of this paper. The study refers to our own research on data received from The information of Polish Ministry of Finance about accounting of PIT in several subsequent years. Statistics cover a period from 1993 to 2003. However, numbers of taxpayers refer also to year 1992 when the PIT has been established and a period from 2004 to 2006.Concluding the situation in Poland, taxpayers with the highest income make exhaustive use of tax reductions. There are occurring situations when well-off people benefit more than people with relatively minor income (e. g. pensioners). It happens even if most of deductions were aimed generally at all taxpayers. Such a situation reduces the impression of the system fairness. Because tax deductions reduce budgetary revenues, the foregone revenues have to be compensated by other taxes or / and higher rates. Therefore, the system of deductions and relief, on the one hand, supports the special gains (e. g. house building), however, on the other it generates costs. It is possible that the reduction of tax rate for the I tax bracket and removal of some tax exemptions and deductions would make the Polish personal income tax more transparent, equal and simple.

scholarly journals DILEMMAS RELATED TO POTENTIAL CHANGES IN TAXATION OF FARMS

2020 ◽  
Vol 51 (51) ◽  
pp. 5-15
Author(s):  
Marian Grzegorz Podstawka
Keyword(s):  
Income Tax ◽  
Motor Vehicle ◽  
Property Tax ◽  
Tax Burden ◽  
Small Farms ◽  
Tax Rate ◽  
Excise Tax ◽  
Large Farms ◽  
A Share

Polish farms are burdened with the following taxes: agricultural tax, forestry tax, property tax, motor vehicle tax, VAT, and excise tax. The research showed that small farms suffered losses in the years 2014-2018. However, income made by small farms (income of EUR 8,000 to 25,000) was burdened with all taxes ranging from 29.9% in 2014 to 67.05% in total. In 2018, middle-sized farms with income between EUR 50,000 and EUR100,000 had a share of all taxes in their income of about 4-6%. Very large farms (>EUR 500,000 of income) had a symbolic tax burden of ca. 1%. In the case of the tax burden on farms’ revenues, very small and small farms were in the worst situation, similarly as before. They recorded ca. 2.7% of taxes in their revenues. The medium-sized farms had a burden of ca. 1% of their revenues with all taxes. By contrast, the revenues of very large farms were burdened with symbolic taxes in the amount of ca. 0.2%. In this situation, while maintaining the current tax burden borne by farms, it should be remembered that the income tax rate and the revenue tax rate cannot exceed 5% and ca. 1%, respectively.

scholarly journals Kenapa Wajib Pajak UMKM Enggan Membayar Pajak Penghasilan?

2020 ◽  
Vol 30 (6) ◽  
pp. 1561
Author(s):  
Ni Putu Rossica Sari ◽  
Agus Fredy Maradona
Keyword(s):  
Income Tax ◽  
Theory Of Planned Behaviour ◽  
Research Setting ◽  
Planned Behaviour ◽  
Tax Rate ◽  
Tax Revenues ◽  
Compliance Level ◽  
Service Areas ◽  
Primary Determinant ◽  
The Government

To boost tax revenues from the SMEs sector, the government has reduced the income tax rate for SMEs through the issuance of PP Number 23 of 2018. Nevertheless, in some regions, the tax revenues from the SMEs sector have, unexpectedly, decreased. The purpose of this study is to investigate the reasons for the lack of compliance by SME taxpayers, using the theory of planned behaviour as a theoretical framework. This study employed an exploratory design using a qualitative approach, in which the service areas of the Singaraja tax office served as the research setting. The results of this study show that the primary determinant of SME taxpayers’ compliance in paying income tax is the taxpayers’ consciousness concerning the importance of tax revenues for the country’s financial wellbeing. This finding provides significant implications for the Indonesian tax authority concerning their mission to increase the compliance level of SMEs taxpayers in fulfilling their tax obligations. Keywords: Taxpayer Compliance; SME; PP Number 23 Of 2018; Taxpayer Awareness; Theory Of Planned Behaviour.

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