scholarly journals States Interests Legal Ensuring in the Field of Cross-Border Digital Services Taxation

2021 ◽  
pp. 18-26
Author(s):  
Volodymyr KOROL
Keyword(s):  
International Economic ◽  
Multinational Corporations ◽  
Income Tax ◽  
Action Plan ◽  
Corporate Income Tax ◽  
Digital Services ◽  
The Usa ◽  
The Common ◽  
Business Entities ◽  
The One

The article continues the series of studies in the field of international economic (tax) law relating to the barriers and prospects of multidimensional action plan BEPS initiated by OECD and G-20 implementation. It’s dedicated to the issue of the states’ economic interest ensuring in the field of digital services taxation of non-residents exporting such kind of services to the business entities and physical persons without paying any direct corporate income tax. Above mentioned issue is considered on the multilateral level initially taking into account the most significant concept and legal drafting within Action 1 «Tax Challenges Arising from Digitalization» of multidimensional action plan BEPS initiated by OECD and G-20. Attention is focused, particularly, on the basic value creation concepts as well as intentions to modify long-standing approaches and to introduce novelties regarding identification of nonresidents-importers’ nexus to the territories of the states under absence of their permanent establishments. Regional level became the context of issue researching, on the one hand, UE institutions legislative initiatives relating to directive drafting aiming at new tax on gross income of digital services on the common market big companies-providers introduction, on the other hand, negative reaction of several member states towards such initiative on behalf of their companies which are digital services leading exports. Special attention has been given to the national legislation level with respect to unilateral actions of the power bodies of France, being one of the primary European integration apologist project, resulted in special law adoption. Its rules introduced new corporate income tax on digital services to be paid both residents and non-residents. Such legislative approach is contrary to the interests of such kind of services leading exporters — multinational corporations from the USA and China creating risks of both symmetric and asymmetric international economic and law countermeasures, particularly, within World Trade Organization implementation.

scholarly journals Measuring the Effects of Corporate Tax Cuts

2018 ◽  
Vol 32 (4) ◽  
pp. 97-120 ◽  
Author(s):  
Alan J. Auerbach
Keyword(s):  
Multinational Corporations ◽  
Income Tax ◽  
Capital Investment ◽  
Corporate Income Tax ◽  
Tax Law ◽  
Corporate Tax ◽  
The Law ◽  
Jobs Act ◽  
The Impact ◽  
Tax Cuts

On December 22, 2017, President Donald Trump signed the Tax Cuts and Jobs Act (TCJA), the most sweeping revision of US tax law since the Tax Reform Act of 1986. The law introduced many significant changes. However, perhaps none was as important as the changes in the treatment of traditional “C” corporations—those corporations subject to a separate corporate income tax. Beginning in 2018, the federal corporate tax rate fell from 35 percent to 21 percent, some investment qualified for immediate deduction as an expense, and multinational corporations faced a substantially modified treatment of their activities. This paper seeks to evaluate the impact of the Tax Cuts and Jobs Act to understand its effects on resource allocation and distribution. It compares US corporate tax rates to other countries before the 2017 tax law, and describes ways in which the US corporate sector has evolved that are especially relevant to tax policy. The discussion then turns the main changes of the Tax Cuts and Jobs Act of 2017 for the corporate income tax. A range of estimates suggests that the law is likely to contribute to increased US capital investment and, through that, an increase in US wages. The magnitude of these increases is extremely difficult to predict. Indeed, the public debate about the benefits of the new corporate tax provisions enacted (and the alternatives not adopted) has highlighted the limitations of standard approaches in distributional analysis to assigning corporate tax burdens.

scholarly journals Beneficial ownership of income as an antiabusive measure in Serbian Tax Law

2020 ◽  
Vol 59 (88) ◽  
pp. 217-232
Author(s):  
Miloš Vasović
Keyword(s):  
Income Tax ◽  
Corporate Income Tax ◽  
Tax Law ◽  
Tax Rates ◽  
Double Taxation ◽  
Current Function ◽  
Tax Rate ◽  
Treaty Shopping ◽  
Beneficial Ownership ◽  
The One

The Serbian Corporate Income Tax Act contains a provision on the beneficial ownership of income (hereinafter: the BO provision), which is one of the conditions for the application of the preferential tax rate on income tax after tax deduction, which is envisaged in Treaties for the avoidance of Double Taxation on income and capital (hereinafter: Double Taxation Treaties/ DTTs). The subject matter of research in this paper is the term "beneficial ownership", which is not defined in the Corportate Income Tax Act. It may ultimately lead to abusing the preferential tax rates from the DTTs in tax planning and "treaty shopping" through the use of conduit companies. Tax experts have different opinions on the legal nature of the BO provision, which is given the function of an anti-abusive measure (on the one hand) and a rule for the attribution of income (on the other hand). The author analyzes the current function of the BO provision envisaged in the Serbian Serbian Corporate Income Tax Act (CITA), and its inadequate application. The author advocates for enacting the BO provision as an anti-abusive measure, and examines the possible application of the BO provision in domestic tax law, with reference to Articles 10, 11, and 12 of the DTTs that Serbia contracted with other states, as well as Articles 10-12 of the OECD Model-Convention on Income and Capital (2017) and Commentaries on these articles. Such an application of the BO provision may preclude "treaty shopping". In final remarks, the author points out why the BO provision should be envisaged as an anti-abusive measure in Serbian tax law.

scholarly journals Implementing a (global?) minimum corporate income tax

2021 ◽  
Vol 4 (01) ◽  
Author(s):  
Andrea Riccardi
Keyword(s):  
Developing Countries ◽  
Global Solution ◽  
Income Tax ◽  
Global Minimum ◽  
Action Plan ◽  
Policy Preferences ◽  
Corporate Income Tax ◽  
Main Concern ◽  
Profit Allocation ◽  
Advanced Economies

Seven years have passed since the BEPS Action Plan was launched by the OECD, and Action 1 identified the tax challenges derived from the digitalization of the economy as a relevant area to be addressed. However, no concrete recommendations were delivered and, in an increasingly digitized economy, countries started acting unilaterally. Against this situation, as from January 2019, the stream of work at the OECD has changed and, apparently, a novel era - “BEPS 2.0” - has begun under the slogan of working on a “without prejudice” Almost eight years have passed since the BEPS Action Plan was launched by the OECD and Action 1 identified corporate income tax challenges derived from the digitalization of the economy as a relevant area to be addressed. As from January 2019, the stream of work at the OECD has changed. Apparently, a novel era - “BEPS 2.0” - has begun under the slogan of working on a “without prejudice” basis and a two-pillar approach with the aim of reaching an agreement on a global solution. Though the author recognizes the need to find a coordinated answer, she believes that in the construction of said solution, attention should be given to specific features and policy preferences evidenced by developing countries. Under this scenario, this contribution focuses on the so-called “Pillar Two” and assesses its “Global Anti-Base Erosion (GloBE) proposal” from said perspective. After her analysis, the author concludes that this rushed political-driven proposal not only has been designed in the benefit of major and more advanced economies, but it goes far more beyond “BEPS”. In this vein, the author advocates for concentrating the efforts and resources on a transparent discussion that directly addresses efficient and fairer nexus and profit allocation rules – main concern for developing countries and, in the autor´s view, the base problem to be solved.

scholarly journals A Study from Slovakia on the Transfer of Slovak Companies to Tax Havens and Their Impact on the Sustainability of the Status of a Business Entity

2019 ◽  
Vol 11 (10) ◽  
pp. 2803
Author(s):  
Samer Khouri ◽  
Lubos Elexa ◽  
Michal Istok ◽  
Andrea Rosova
Keyword(s):  
Income Tax ◽  
Financial Statements ◽  
Tax Planning ◽  
Corporate Income Tax ◽  
Profit Shifting ◽  
Tax Havens ◽  
Tax Haven ◽  
Before And After ◽  
The Status ◽  
The One

The main aim of this paper is to provide empirical evidence about profit-shifting to selected tax havens by Slovak companies. This contribution focused on the very rare evidence of use of tax havens by Slovak companies not only in the field of corporate income tax, but also in selected areas of profitability. Two sources of data were used. Lists of Slovak companies with tax haven links were provided by the company, Bisnode, and financial statements of investigated companies were gained from the Finstat database. Based on the available data, the investigated period was between 2008 and 2016. We statistically tested selected indicators (ETR, taxes per assets, ROE, ROA, and ROS) of Slovak companies with direct ownership links to tax havens compared to their counterparts. Our findings suggest that Slovak companies with an ownership link to tax havens pay significantly lower taxes compared to companies without ownership links to tax havens during the period monitored. The aggressive tax planning was not only confirmed by the significantly lower reported values of ETR and taxes per assets, but also by the lower values of ROA. On the one side, Slovak companies with ownership links to midshore tax havens had the highest values of ROE, ROA, and ROS, but on the other side, these Slovak companies reported the highest ETR among the appointed categories (onshore, midshore, and offshore). The lowest taxes paid per unit of total assets were found in Slovak companies with ownership links to onshore tax havens. The analysis was supplemented by the changes of the selected indicators before and after obtaining an ownership link to a tax haven.

scholarly journals FISCAL EFFECTIVENESS ASSESSMENT OF THE BUDGET-GENERATING TAXES IN UKRAINE

2021 ◽  
pp. 66-78
Author(s):  
Olha ZAMASLO ◽  
Maksym KOBYLNYK
Keyword(s):  
Correlation Analysis ◽  
Income Tax ◽  
Value Added ◽  
Corporate Income Tax ◽  
Capital Investments ◽  
Value Added Tax ◽  
Excise Tax ◽  
Tax Revenues ◽  
Macroeconomic Indicators ◽  
Business Entities

Introduction. A significant share of tax revenues in the revenue part structure of the Consolidated budget of Ukraine forms the grounds for assessing the economic efficiency of established taxes in order to make managerial decisions in the budget and tax management field at the macro level. Therefore, it is important to analyse the fiscal effectiveness indicators of taxes that form the tax revenues majority to the budgets of Ukraine, as well as to identify socio-economic factors that affect the size of such revenues. The purpose of the article is to analyse the fiscal effectiveness indicators of budget-generating taxes, to perform a correlation analysis of the tax revenues dependence on macroeconomic indicators and substantiate ways to increase the tax revenues sources to budgets of different levels. Results. The scientists’ approaches to the definition of the essence of the category “fiscal efficiency” were considered as well as was monitored the volume and structure of tax revenues to the Consolidated budget of Ukraine for 2015–2020. The factors of fiscal effectiveness were investigated and its assessment was carried out on the basis of data on the revenues of value added tax, personal income tax, excise tax and corporate income tax to the Consolidated budget using indicators of the fiscal significance of the tax in the budget, the fiscal significance of the tax in the state GDP and the ratio of the predicted and actual indicators of tax revenues. It was performed a correlation analysis of budget-forming taxes with macroeconomic indicators, as a result of which close relationship has been determined between the number of introduced types of innovative products and the volume of value-added tax revenues of goods (work and services) produced in Ukraine; the volume of revenues from corporate income tax and capital investments made by business entities, as well as between the volume of revenues from excise tax and the number of unemployed population in Ukraine. Based on the results of the investigation, there were proposed and substantiated the ways of tax reforms and directions of government measures to increase tax revenues.

scholarly journals Ambiguity of boundaries of tax optimization: the problem of the Russian tax system

2021 ◽  
pp. 118-129
Author(s):  
Igor' Viktorovich Vachugov ◽  
Oleg Nikolaevich Martynov
Keyword(s):  
Income Tax ◽  
The Other ◽  
Corporate Income Tax ◽  
Tax System ◽  
Special Contribution ◽  
Economic Relations ◽  
Disadvantaged Population ◽  
The Subject ◽  
The Government ◽  
The One

The subject of this research is the boundaries of tax optimization of the Russian tax system. The goal is to outline the reasons and method of for removing ambiguity of such boundaries. The consequences of ambiguity of boundaries of tax optimization not only limit the development of businesses, but also entail the disproportions of social development, contradictions between the government on the one hand and the middle class and disadvantaged population groups that participate in the financial and economic relations on the other hand, and thus, undermine confidence in the government. The reasons for such negative phenomenon are as follows: the absence of the unity of opinions on the concept of tax optimization; unregulated division of rights to establish the boundaries of tax optimization by the judicial, legislative and executive branches; vagueness of the terms and definitions characterizing these boundaries; no set rules for establishing the consequences of exceeding these criteria. It is revealed that the new doctrine in the form of a judicial-legal symbiosis of determining the boundaries of tax optimization did not resolve all issues associated with ambiguity of these boundaries. The author’s special contribution lies in substantiation of the shift in conceptual approaches towards the term “tax optimization”, which should exclude the use of this term circumventing the law. The article describes the advantages of legislative regulation of the criteria of tax optimization over judicial regulation. The author specifies the terms and definitions necessary for marking out boundaries of tax optimization on the legislative level. The novelty of this research consists in substantiation using the factor analysis of judicial tax disputes of legislative consolidation of the concept of tax reconstruction with regards to corporate income tax in accordance with the methodology recommended by the tax service, with extension of its application in case of cooperation of the evader with the auditor for preventing tax offences

THE ROLE OF CORPORATE INCOME TAX IN THE FORMATION OF THE CONSOLIDATED BUDGET OF NORTH OSSETIA–ALANIA

2020 ◽  
Vol 4 (10) ◽  
pp. 43-48
Author(s):  
R. B. KHAPSAEVA ◽  
◽  
Z. B. DZUKAEVA ◽  
Kh. T. KOZYREV ◽  
M. U. KUSOV ◽  
...  
Keyword(s):  
Income Tax ◽  
Distribution Functions ◽  
Corporate Income Tax ◽  
Current Crisis ◽  
The Russian Federation ◽  
Business Entities ◽  
Crisis Conditions ◽  
North Ossetia ◽  
Financial Result

Corporate income tax plays an important role in the tax system of the Russian Federation, fulfilling not only its fiscal purpose, but also to a large extent, implementing regulatory and distribution functions. This tax is of great importance for business entities, since their financial result directly depends on it. Profit taxation issues are of particular relevance in the current crisis conditions associated with the consequences of the coronavirus pandemic.

scholarly journals PENGARUH STRUKTUR MODAL TERHADAP PPh BADAN TERUTANG PADA PERUSAHAAN MANUFAKTUR SEKTOR INDUSTRI SEMEN YANG TERDAFTAR DI BEI PERIODE 2010-2013

2015 ◽  
Vol 1 (2) ◽  
pp. 21-31
Author(s):  
Patar Simamora ◽  
Muhamad Ressa Mahardika Ryadi
Keyword(s):  
Income Tax ◽  
Processing Method ◽  
Corporate Income Tax ◽  
Maximum Profit ◽  
Data Processing Method ◽  
Tax Management ◽  
Simultaneous Testing ◽  
The One ◽  
The Cost ◽  
Descriptive Statistical Analysis

The One of the company's goal is to maximize the welfare of shareholders or investors by maximizing the company's value by obtaining the maximum profit the other hand, paying taxes is one of the company's liabilities that cant be avoided. However, the company can undertake tax management so that the amount of tax to be paid to be low. One tax management relating to the use of debt is the interest expenses on debt including the cost of business that can be a deduction from income, causing the company's taxable income is reduced, which in turn will reduce the amount of tax to be paid by the company. Data processing method is by descriptive statistical analysis with analysis tools that multiple linear regression. The results showed that the value of the variable LDAR is that t hitung> t tabel or 2,384> 2,229 then H0 rejected, which means LDAR partially affect the corporate income tax payable. For the value of the variable DER is t hitung> t tabel or 2,350> 2,229 then H0 rejected, which means DER partially affect the corporate income tax payable. Simultaneous testing values obtained F count> F table or 6.931> 2.816 means LDAR and DER simultaneously have an impact on corporate income tax payable. It can be concluded that: (1) LDAR affect the corporate income tax payable, (2) DER affect the corporate income tax payable, and (3) LDAR and DER jointly affect the corporate income tax payable.Key words: LDAR, DER, and Income Tax Payable

scholarly journals The concept of fairness as a criterion for the assessment of the personal income tax in Poland

2021 ◽  
pp. 83-96
Author(s):  
Katarzyna Anna Lewkowicz-Grzegorczyk ◽  
Keyword(s):  
Income Tax ◽  
Personal Income ◽  
Vertical Equity ◽  
Tax Structure ◽  
Personal Income Tax ◽  
Tax Exemptions ◽  
Polish Society ◽  
The Common ◽  
The Rich ◽  
The One

Purpose – The aim of the article is to present the essence of tax justice in relation to the personal income tax in Poland. Research method – The realisation of the aim required using the method of descriptive and compa-rative analysis to assess the fairness of charging the personal income tax.Results – The results of the empirical study on the personal tax structure point to the progressive tax as the one which better fulfils the concept of tax justice. The common acceptance of the tax progression confirms the deeply rooted sense of vertical equity in the Polish society. According to this, higher taxes should be paid by the rich, while the less wealthy should be charged with lower taxes. Unfortunately, the structure of the personal income tax in Poland does not reflect this. On the basis of the evolution of the PIT tax structure, it is possible to determine flattening of the progression due to the introduction of the two-stage tax scale. What is more, one may experience frequent ethical doubts connected with tax exemptions, and especially with the rules of granting them.Originality / value / implications / recommendations – Author’s own evaluation of the personal income tax in terms of tax fairness.

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