scholarly journals Capital taxation efficiency of agricultural businesses in the Slovak Republic

10.5219/1135 ◽  
2019 ◽  
Vol 13 (1) ◽  
pp. 572-580
Author(s):  
Alena Andrejovská ◽  
Ján Buleca ◽  
Veronika Puliková
Keyword(s):  
Capital Investment ◽  
Slovak Republic ◽  
Average Rate ◽  
Tax Rates ◽  
Capital Taxation ◽  
Tax Rate ◽  
Tax Shield ◽  
Tangible Assets ◽  
The Impact ◽  
Statutory Tax Rate

Effective tax rates are presented by indicators of the actual corporate tax burden, which take into account the impact of all the elements listed in the legislation. The submitted contribution explores the issue of effective taxation through effective average tax rates (EATRs) focusing on agricultural production enterprises. The analysis assessed the effect of changing the statutory tax rate (and other taxes and factors) on changing the effective average rate of capital. Taxation efficiency was monitored for selected intangible and tangible assets for 2004 and 2018. Analysis indicated a depreciation tax shield that tracked the amount of tax savings on capital investment as well as the economic rent of the project with taxation. The analysis showed that a 3% increase in the statutory rate over the reference period increased the effective average corporate rates for intangible assets by 13.35%, tangible assets by 14.25% and inventories by 16.63%. The highest annual tax saving was achieved in 2018 for tangible assets of € 4,647.50, with a four-year return.

scholarly journals Investors´ decision on the context of the effective taxation of agricultural companies

10.5219/1223 ◽  
2019 ◽  
Vol 13 (1) ◽  
pp. 1040-1050
Author(s):  
Alena Andrejovská ◽  
Veronika Konečná
Keyword(s):  
Agricultural Production ◽  
Intangible Assets ◽  
Tax Rates ◽  
Equity Financing ◽  
Effective Tax Rates ◽  
Tax Rate ◽  
Tangible Assets ◽  
Marginal Tax Rates ◽  
External Sources ◽  
Statutory Tax Rate

The analysis of the effective taxation combines two different effective tax rates which are crucial for placement and monitoring of the investment amount in the particular country. Both of these tax rates are important for investors who make a decision on the benefits, as well as the risks of corporate taxation in the country. The contribution deals with the problem of the effective taxation through effective average tax rates (EATR) and effective marginal tax rates (EMTR). Especially, it focuses on agricultural production companies. The effectivity of taxation was observed for selected intangible and tangible assets for a period of 2004 and 2018. Our analysis evaluated the influence of the change in the statutory tax rates (and the other taxes and indicators, as well) on the change in effective average tax rates on capital in the agricultural companies. Based on the results, the lowest EATR, ranging from 20.79% to 25.25%, reported agricultural lands in both reference periods and for both ways of financing. Analyzing EMTR we found out that the lowest value reported investments in intangible assets that have crucial significance for investors. Our results definitely made it clear that in the EATR ↔ EMTR relationship, a form of financing investments is decisive. This relationship is used when an investor decides between several mutually exclusive locations or types of investment in a given country. In equity financing, the most effective capital is investing in intangible assets, and when we consider financing from external sources it is investment into stocks. An increase in the statutory tax rate of 2% resulted in a 12% increase in effective average tax rates.

scholarly journals Is Neoliberalism Still Spreading? The Impact of International Cooperation on Capital Taxation

2020 ◽  
Author(s):  
Lukas Hakelberg ◽  
Thomas Rixen
Keyword(s):  
International Cooperation ◽  
Tax Evasion ◽  
Negative Impact ◽  
Tax Avoidance ◽  
Tax Rates ◽  
Capital Taxation ◽  
Profit Shifting ◽  
Tax Rate ◽  
Corporate Profits ◽  
The Impact

The downward trend in capital taxes since the 1980s has recently reversed for personal capital income. At the same time, it continued for corporate profits. Why have these tax rates di-verged after a long period of parallel decline? We argue that the answer lies in different levels of change in the fights against tax evasion and tax avoidance. The fight against evasion by households progressed significantly since 2009, culminating in the multilateral adoption of automatic exchange of information (AEI). In contrast, international efforts against base ero-sion and profit shifting (BEPS) failed to curb tax avoidance by corporations. We theorize that international cooperation is an intervening variable, countering the negative impact of tax competition on capital taxation by reducing the risk of capital flight. Under such conditions, domestic political pressures in favor of higher capital taxes can unfold. We confirm our argu-ment in a difference-in-difference analysis and through additional tests with data for up to 35 OECD countries from 2000-2017. Our central estimate suggests that the average tax rate on dividends in 2017 is 4.5 percentage points higher than it would have been absent international tax cooperation.

scholarly journals Examining the Impact of PP 23/2018 policy through the Tax Compliance Factor of Tanah Abang Traders

2021 ◽  
Vol 11 (1) ◽  
pp. 68
Author(s):  
Wardinto P ◽  
Gunadi .
Keyword(s):  
Quantitative Method ◽  
Tax Compliance ◽  
Tax Rates ◽  
Legal Certainty ◽  
Group Influence ◽  
Social Phenomena ◽  
Tax Rate ◽  
Compliance Behavior ◽  
The Impact ◽  
Positive Effect

This study aims to examine the factors that can affect tax compliance at Tanah Abang Market traders, which are the tax rate, perceived opportunity to evade, legal certainty, and group influence. This study uses a quantitative method with a positivism approach which examines social phenomena and captures the perceptions of MSEs actors on the determinants of tax compliance. The sample in this study were 154 MSEs respondents in Tanah Abang Market that were scope into Central Jakarta Regional Tax Office, both private individuals and corporate taxpayers. The results of the study revealed that the tax rate, perceived opportunity to evade, legal certainty, and group influence have a positive effect on tax compliance at Tanah Abang Market traders, but not significant only in the tax rate variable. This is very useful for the DGT authority and the Fiscal Policy Agency as policymakers that the reduction in tax rates does not affect the compliance behavior of MSEs traders and increase monitoring of compliance with MSEs taxpayers through derivative regulations on the implementation of supervision of MSEs taxpayers. 

scholarly journals Company Taxation in the European Union

2012 ◽  
Vol 14 (3) ◽  
pp. 119-136 ◽  
Author(s):  
Dorota Wawrzyniak
Keyword(s):  
Tax Burden ◽  
Tax Rates ◽  
The European Union ◽  
Corporate Tax ◽  
Effective Tax Rates ◽  
Tax Rate ◽  
Advantages And Disadvantages ◽  
Company Taxation ◽  
Statutory Tax Rate ◽  
The Eu

This paper investigates different measures of corporate tax burden ranging from the most basic ones such as the statutory tax rate to the effective tax rates. Each of these measures has advantages and disadvantages and they may lead to different rankings of countries. One of the reasons lies the fact that they measure different things. The comparison of the statutory tax rates to the effective ones for the EU-27 during the period of 1998-2009 sometimes reveals very significant differences between these indicators. Taking this into consideration, the paper suggests that corporate tax burden analysis should not be limited to the most basic and readily available measure in the form of the statutory tax rate. Different measures are tailored to answer different research questions. Moreover, the article presents changes of company taxation for the EU-27 within 1998-2009.

scholarly journals How leverage can improve performance

2020 ◽  
Vol 83 ◽  
pp. 01031
Author(s):  
Miroslav Kmeťko ◽  
Eduard Hyránek
Keyword(s):  
Risk Premium ◽  
Expected Returns ◽  
Tax Rates ◽  
Expected Return ◽  
Tax Rate ◽  
Equity Ratio ◽  
Risk Free Rate ◽  
The Cost ◽  
Managed Portfolios ◽  
The Impact

One of the best-known Capital Asset Pricing Model (CAP/M) provides us with a methodology for measuring the relationship between the risk premium and the impact of leverage on expected returns. However, this model is not used only to value the cost of capital but also to evaluate the performance of managed portfolios. We will test how the expected return changes in percent by changing the debt-equity ratio and the tax rate based on following assumptions: market return 7%, risk-free rate of return 1% and beta 1.2. These assumptions will be constant and we will change the debt-equity ratio and tax rate. Based on these results, it is clear that the change in profitability varies, in relation to the change of the DE ratio by one tenth. As for changes I n tax rates, changes in expected profitability are not entirely in direct proportion to these changes.

scholarly journals Corporate taxes and the location of FDI in Europe: The importance of economic integration and project characteristics

2018 ◽  
Vol 63 (217) ◽  
pp. 39-73 ◽  
Author(s):  
Tomás Silva ◽  
Sérgio Lagoa
Keyword(s):  
Capital Intensity ◽  
Foreign Firms ◽  
Monetary Integration ◽  
High Tech ◽  
Corporate Taxes ◽  
Tax Rates ◽  
Firm Level ◽  
Tax Rate ◽  
Project Characteristics ◽  
The Impact

European countries face ever-increasing competition for Foreign Direct Investment (FDI). This paper studies how corporate taxes affect the location of FDI in Europe. Using firm-level data, we start by analysing the impact of the level and volatility of three tax rates on FDI: effective, statutory, and marginal tax rates. Next, we investigate how economic and monetary integration influences the effect of taxes on FDI. Finally, we focus on how the impact of taxes varies by project characteristics and sector: expansion versus new investment, industry versus services, high-tech versus low-tech manufacturing industries, and high versus low capital intensity firms. We conclude that stable taxes play a significant role in attracting FDI and, most importantly, that lowering taxes fosters FDI especially when the country has a high tax rate or is outside the euro area. There are some nuances in this relationship that are relevant to policymakers. Tax cuts are particularly important in stimulating foreign firms already in situ to expand their activities and in attracting industrial businesses. Finally, capital-intensive projects are less sensitive to taxes, but high-tech manufacturing projects have the same reaction to tax rates as other manufacturing projects.

The Determinants and Consequences of Tax Audits: Some Evidence from China

2018 ◽  
Vol 41 (1) ◽  
pp. 91-122 ◽  
Author(s):  
Wanfu Li ◽  
Jeffrey A. Pittman ◽  
Zi-Tian Wang
Keyword(s):  
Financial Reporting ◽  
Discretionary Accruals ◽  
Tax Rates ◽  
Effective Tax Rate ◽  
Difference In Differences ◽  
Effective Tax Rates ◽  
Tax Rate ◽  
Using Data ◽  
Tax Reporting ◽  
The Impact

ABSTRACT Using data obtained from a local tax office in China, we examine the determinants of corporate tax audits and the consequences of those audits. We find that the tax authority is more likely to select a firm for an audit when the firm has a lower effective tax rate, a higher book-tax difference, and more income-decreasing discretionary accruals. Applying a difference-in-differences research design, we find that after firms have been audited, they significantly increase their effective tax rates, reduce their book-tax differences, and reduce their income-decreasing discretionary accruals. Our study provides important insights on the determinants of the tax authority's decision on whether to initiate an audit and the impact of tax audits on both tax reporting and financial reporting. JEL Classifications: H26; L51; M41.

The Impact of the Source of Changes in Marginal Tax Rates on Participation in Individual Retirement Accounts

2002 ◽  
Vol 24 (1) ◽  
pp. 46-59 ◽  
Author(s):  
David H. Eaton
Keyword(s):  
Fixed Effects ◽  
Tax Reform ◽  
Tax Rates ◽  
Tax Rate ◽  
Taxable Income ◽  
Individual Retirement Accounts ◽  
Retirement Accounts ◽  
Marginal Tax Rates ◽  
The Impact ◽  
Participation Decisions

This paper uses a series of two-year panels of tax return data to estimate the effects of two sources of tax rate changes on the participation in Individual Retirement Accounts (IRAs). This paper uses a panel logit approach to control for individual specific fixed effects, which may also influence IRA participation behavior. This paper examines participation during the years of open eligibility for IRAs, as well as examining the impact of the 1986 tax reform on participation. A key finding of this paper is that taxpayers' IRA participation decisions are more sensitive to changes in tax rates due to changes in taxable income than to direct changes in the tax tables.

Impact of the Sales Tax Rate on its Base: Evidence from a Small Town

1986 ◽  
Vol 14 (3) ◽  
pp. 329-338 ◽  
Author(s):  
John L. Mikesell ◽  
C. Kurt Zorn
Keyword(s):  
Local Governments ◽  
Small Town ◽  
Local Economy ◽  
Sales Tax ◽  
Tax Rates ◽  
Small Cities ◽  
Tax Rate ◽  
Share Model ◽  
Short Run ◽  
The Impact

Local governments and businesses fear that increased local sales tax rates will induce losses to the local economy, even inducing losses so severe that no additional revenue will result from a higher tax rate. Earlier works by Fisher, Hamovitch, and Mikesell have examined sales loss in metropolitan areas, typically finding significant but not overwhelming effects. Those results do not address the question for small cities and typically are complicated by the expenditure effects resulting from the increased tax revenues. The present analysis uses unique data for a small town to examine the impact of a temporary sales tax rate increase with a retail sales share model. The evidence shows a significant but small sales impact that did not endure (a differential of 1% would lower city sales by 3.07%) and no impact on vendor location. The unfavorable rate differential produced a short-run effect, but not economic disaster.

Lease vs buy: clarifying the impact of tax and borrowing rates

2019 ◽  
Vol 45 (5) ◽  
pp. 686-696 ◽  
Author(s):  
Jim Musumeci ◽  
Thomas O’Brien
Keyword(s):  
Design Methodology ◽  
Conventional Wisdom ◽  
The Other ◽  
Tax Rates ◽  
Content Type ◽  
Tax Rate ◽  
Rate Difference ◽  
The Impact

Purpose The purpose of this paper is to survey the lease vs buy coverage in leading managerial finance textbooks and to clarify the impact of tax rates and borrowing rates. Design/methodology/approach The survey uses “plain vanilla” lease vs buy scenarios to critique and clarify particular issues in the textbook presentations. Findings The survey finds: a lone text shows that there can be a gain from leasing if the lessee’s tax rate is higher than the lessor’s, which challenges the “conventional wisdom” maintained in all the other texts; some textbook examples attribute an overall benefit to leasing to the tax rate difference, but the benefit is actually due to a borrowing rate difference, and borrowing rate differences may be a more important source of leasing benefits than tax rate differences. Originality/value The survey provides insights that are not well known and should be useful to instructors and practitioners.

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