scholarly journals UNIFORM INTERNATIONAL TAX COLLECTION AND DISTRIBUTION FOR GLOBAL DEVELOPMENT, A UTOPIAN BEPS ALTERNATIVE

2021 ◽  
Vol 12 (2) ◽  
Author(s):  
Henry Ordower
Keyword(s):  
Income Tax ◽  
Multinational Enterprises ◽  
International Agency ◽  
Tax Revenue ◽  
Moral Claim ◽  
Absolute Poverty ◽  
Tax Base ◽  
Income Source ◽  
Developed Economies ◽  
Goods And Services

Under the guise of compelling multinational enterprises (MNEs) to pay their fair share of income taxes, the OECD and other multinational agencies have introduced proposals to prevent MNEs from eroding the income tax base of developed economies by continuing to shift income artificially to low or zero tax jurisdictions.  Some of the proposals have garnered substantial multinational support, including recent support from the new U.S. presidential administration for a global minimum tax.  This Article reviews many of those international proposals.  The proposals tend to concentrate the incremental tax revenue from the prevention of base erosion into the treasuries of the developed economies although the minimum tax proposal known as GloBE encourages low tax countries to adopt the minimum rate.  The likelihood that and zero tax countries will transition successfully to imposing the minimum tax seems uncertain. Developed economies lack a compelling moral claim to incremental revenue so this Article argues that collecting a fair tax from MNEs and other taxpayers should be a goal that is independent of claims on that revenue.  The Article maintains that to prevent tax base erosion, the income tax base and administration must be uniform across national borders and the Article recommends applying uniform rules administered by international taxing agency.  The Article explores the convergence of tax rules under such an international taxing agency. Distribution of tax revenue by the international agency should follow contextualized need.  In addressing the conundrum of absolute poverty in the undeveloped and developing world vis á vis relative poverty in the developed world, the Article proposes that the taxing agency should distribute all incremental revenue from the uniform tax where the need is greatest to ameliorate absolute poverty and improve living standards without regard to income source.  The location of income production, destination of the produced goods and services generating the income, and residence of the income producers should not determine the tax revenue distribution.  Rather, the use of contextualized need for distribution determination will enable developed economies to receive sufficient revenue to maintain their existing infrastructures and governmental services.  Developed economies should forego new revenue, for which they have not budgeted, in favor of improving worldwide living conditions for all.  The proposals for uniform, worldwide taxation and revenue sharing based on contextualized need are admittedly aspirational and utopian but designed to encourage debate on sharing of resources in our increasingly globalized world.

Reform of the Business Tax in Germany

1987 ◽  
Vol 5 (1) ◽  
pp. 59-67 ◽  
Author(s):  
H Karrenberg
Keyword(s):  
Income Tax ◽  
Local Authority ◽  
Tax Revenue ◽  
Local Authorities ◽  
Tax Base ◽  
Payroll Tax ◽  
Finance System ◽  
Transfer Payments ◽  
Business Tax

In this paper the fiscal problems of local authorities in Germany are outlined with particular reference to recent reforms of the business tax and with special emphasis on the larger cities. The decline of tax revenue from autonomous sources is shown to undermine severely the freedom of actions of local authorities. Criteria for a good finance system, from a local authority perspective, are outlined. It is concluded that (1) renovation of the business tax is essential to increase those components which are not related to business profits, (2) inclusion of transfer payments in the assessment of the income tax base is necessary. Reform might include reinstatement of the payroll tax.

scholarly journals KONTRIBUSI, EFEKTIVITAS, EFISIENSI, DAN FAKTOR-FAKTOR YANG MEMPENGARUHI PENERIMAAN PAJAK PERTAMBAHAN NILAI

2015 ◽  
Vol 15 (1) ◽  
pp. 35
Author(s):  
M. Syarif Mulyadi
Keyword(s):  
Income Tax ◽  
Value Added ◽  
Least Square ◽  
Tax Revenue ◽  
Value Added Tax ◽  
Tax Base ◽  
Tax Rate ◽  
Point Increase ◽  
Exemption Policy ◽  
Negative Effect

This paper examines the contribution, the effectiveness, and the efficiency of value added tax (VAT) revenue.lt also investigates the variables affecting the value added tax revenue. Using the ratio of VAT revenue to total government expenditures as the measurement of the contribution shows that VAT revenue contribution is 33 percent in average lower than income tax revenue contribution. Meanwhile the effectiveness of VAT is around 3,5 percent, still below the income tax effectiveness. In addition, the c-efficiency ratio is 0.50 in average which means that every 1 point increase in VAT tax rate results in an increase in VAT revenue by 0,50 percent of GDP. Furthermore, using ordinary least square estimation, the VAT revenue is determined by tax base, regulations, and the exemption policy where household and government consumption as tax base have positive and significant effect on VAT whereas previous import has a negative effect on VAT revenue.

scholarly journals Tax Revenue and Nigeria Economic Growth

2020 ◽  
Vol 3 (1) ◽  
pp. 30
Author(s):  
Emmanuel Onoja Eneche ◽  
Ibrahim Ademu Stephen
Keyword(s):  
Economic Growth ◽  
Tax Evasion ◽  
Significant Relationship ◽  
Income Tax ◽  
Computer Software ◽  
Value Added ◽  
Tax Revenue ◽  
Value Added Tax ◽  
Goods And Services ◽  
Short Run

This study examines the relationship between Tax Revenue and Nigeria Economic Growth. In order to achieve this objective, data was gathered through secondary means. Tax Revenue is proxy by Petroleum Profit Tax, Value Added Tax and Companies Income Tax, while Economic Growth is proxy by Gross Domestic Product. Data collected were analyzed with the aid of the Stata computer software. The study revealed that Petroleum Profit Tax (oil tax revenue) has a positive but no significant relationship with Nigeria Economic Growth, while Value Added Tax and Companies Income Tax (non-oil Tax Revenue) have significant relationship with Nigeria Economic Growth. The study recommends that government should minimize the wide spread corruption and leakages prevalent in tax administration in Nigeria, and transparently and judiciously account for tax revenue generated through the provision of more quality public goods and services, and need not to increase the rates of Value Added Tax and Companies Income Tax in the short run, but to closely monitor the operations of companies engaged in petroleum operations to minimize tax evasion, and as well as support the development of entrepreneurial activities in order to significantly increase Tax Revenue so as to sustain the significant relationship of VAT and CIT (non-oil tax) revenue with Nigeria Economic Growth.

scholarly journals Capital, an Elusive Tax Object and Impediment to Sustainable Taxation

2020 ◽  
Vol 23 (2) ◽  
Author(s):  
Henry Ordower
Keyword(s):  
Income Tax ◽  
Value Added ◽  
Horizontal Equity ◽  
Environmental Taxes ◽  
High Price ◽  
Vertical Equity ◽  
Tax Base ◽  
Goods And Services ◽  
Base Modifications ◽  
Do So

Sustainable taxation requires stability and predictability. Sustainable taxation is a tax or taxes that collect sufficient revenue to support the governmental goods and services the society needs and wants. The taxes must provide for: 1) even-handedness—something akin to horizontal equity; 2) distributional fairness—aconcept emerging from notions of vertical equity; 3) transparency in application so that the populace understands and accepts the tax and the need for it; and 4) collection mechanisms that do not favor some societal groups, especially those with resources to secure creative tax advisors, over others who lack the resources. Narrow base taxes—fuel, alcohol, tobacco—cannot meet these criteria and the broad base taxes currently applicable—value added, payroll, and income—alsofail to meet one or more of the criteria. While specialized taxes like environmental taxes and sin taxes—alcohol, tobacco—serve useful regulatory functions and may achieve their behavioral objectives in part, they do so primarily by increasing the cost of engaging in the undesirable behavior and pricing some actors out of the activity. Using a pricing rather than a direct regulatory mechanism, the specialized taxes change the conversation from social rejection of the behavior to acceptance as long as the actor is willing and able to pay the high price. Is it all right to pollute if one pays to do so? Direct regulation might prove less regressive and less likely to be viewed as simply a matter of price and more as a matter of societal mainstream and commitment to addressing a problem. To secure sustainable taxation this Article recommends a non-preferential income tax on a comprehensive income tax base. While by no means a new idea, the growing resource disparity between affluent individuals and individuals with limited resources renders the idea of a non-preferential income tax on all income including realized and unrealized gains all the more compelling. This Article outlines a method for transition to the recommended tax base from the current realization-based tax base and suggests that in limited cases a taxpayer might defer payment of tax on some items of income but not defer inclusion of the items in the tax base. As it describes its tax plan, this Article reflects on the objectives and shortcomings of the targeted taxes and purposive tax base modifications that have proliferated during the 20th century. This Article concludes that a non-comprehensive tax base may accomplish narrow objectives successfully but is unlikely to become functionally sustainable to support essential governmental goods and services. Neither are targeted taxes and purposive tax base modifications fully justifiable. They are likely to distribute tax burdens unevenly among taxpayers without any compelling reason for preferring some taxpayers to others. The narrowness of the base of such taxes frequently leads to regressive tax incidence.

scholarly journals Corporate taxation in Denmark and the international challenge

2014 ◽  
Vol 2014 (2) ◽  
pp. 88-112
Author(s):  
Anna Holst ◽  
Anders Fuglsig Larsen
Keyword(s):  
Tax Competition ◽  
Income Tax ◽  
Corporate Income Tax ◽  
Tax Revenue ◽  
Complex Task ◽  
Profit Shifting ◽  
Tax Base ◽  
Policy Makers ◽  
International Tax Competition ◽  
Base Broadening

Abstract We study the development in the Danish corporate income tax base and the corporate income tax revenue in the period from 1990 until present. Measured in per cent of GDP the CIT base has out-paced the revenue due to parallel CIT rate cuts and base broadening reforms. We seek to explain the development in the CIT base and discuss whether this is threatened by base erosion and profit shifting. Describing the development in the CIT tax base is a comprehensive and complex task and to pin-point one single cause is not possible. But it is possible to point to elements which have contributed to the development. We conclude that there exists a challenge in terms of international tax competition but find no evidence of the Danish CIT base suffering from this. The challenge for policy makers is designing a tax system which on one side secures sufficient revenue and on the other hand is internationally competitive.

scholarly journals Effective Taxation of Top Incomes in Germany

2013 ◽  
Vol 14 (2) ◽  
pp. 115-137 ◽  
Author(s):  
Stefan Bach ◽  
Giacomo Corneo ◽  
Viktor Steiner
Keyword(s):  
Income Distribution ◽  
Income Tax ◽  
Tax Revenue ◽  
Tax Rates ◽  
Tax Base ◽  
Tax Rate ◽  
Top Incomes ◽  
Tax Returns ◽  
The Individual ◽  
Income Tax Reform

Abstract We exploit a dataset that includes the individual tax returns of all taxpayers in the top percentile of the income distribution in Germany to pin down the effective income taxation of households with very high incomes. Taking tax base erosion into account, we find that the top percentile of the income distribution pays an effective average tax rate of 30.5% and contributes more than a quarter of total income tax revenue. Within the top percentile, the effective average tax rate is first increasing, then decreasing, with income. Since the 1990s, effective average tax rates for the German super-rich have fallen by about a third, with major reductions occurring in the wake of the personal income tax reform of 2001-05. As a result, the concentration of net incomes at the very top of the distribution has strongly increased in Germany.

scholarly journals Tax Revenue and Nigeria Economic Growth

2020 ◽  
Vol 3 (1) ◽  
pp. 30
Author(s):  
Emmanuel Onoja Eneche ◽  
Ibrahim Ademu Stephen
Keyword(s):  
Economic Growth ◽  
Tax Evasion ◽  
Significant Relationship ◽  
Income Tax ◽  
Computer Software ◽  
Value Added ◽  
Tax Revenue ◽  
Value Added Tax ◽  
Goods And Services ◽  
Short Run

This study examines the relationship between Tax Revenue and Nigeria Economic Growth. In order to achieve this objective, data was gathered through secondary means. Tax Revenue is proxy by Petroleum Profit Tax, Value Added Tax and Companies Income Tax, while Economic Growth is proxy by Gross Domestic Product. Data collected were analyzed with the aid of the Stata computer software. The study revealed that Petroleum Profit Tax (oil tax revenue) has a positive but no significant relationship with Nigeria Economic Growth, while Value Added Tax and Companies Income Tax (non-oil Tax Revenue) have significant relationship with Nigeria Economic Growth. The study recommends that government should minimize the wide spread corruption and leakages prevalent in tax administration in Nigeria, and transparently and judiciously account for tax revenue generated through the provision of more quality public goods and services, and need not to increase the rates of Value Added Tax and Companies Income Tax in the short run, but to closely monitor the operations of companies engaged in petroleum operations to minimize tax evasion, and as well as support the development of entrepreneurial activities in order to significantly increase Tax Revenue so as to sustain the significant relationship of VAT and CIT (non-oil tax) revenue with Nigeria Economic Growth.

GST - Sway On Small Scale Industries

2019 ◽  
Vol 118 (10) ◽  
pp. 365-372
Author(s):  
Jayanti.G ◽  
Dr. V.Selvam
Keyword(s):  
State Government ◽  
Tax Reform ◽  
Small Scale ◽  
Tax Revenue ◽  
Tax System ◽  
Goods And Services ◽  
Single Tax ◽  
The People ◽  
Indirect Taxes ◽  
The Government

India being a democratic and republic country, has witnessed the biggest indirect tax reform after much exploration, GST bill roll out on 1 April 2017.  The concept of this reform is for a unified country-wide tax reform system.  Enterprises particularly SMEs are caught in a state of instability.  Several taxes such s excise, service tax etc., have been subsumed with a single tax structure. it is the responsibilities of both centre and state government to shoulder the important responsibility to cater the needs of the people and the nation as a whole.  The main basis of income to the government is through levy of taxes.  To meet the so called socio-economic needs and economic growth, taxes are considered as a main source of revenue for the government.  As per Wikipedia “A tax is a mandatory financial charge or some other type of levy imposed upon tax payer by the government in order to fund various public expenditure”   it is said that tax payment is mandatory, failure to pay such taxes will be punishable under the law.   The Indian tax system is classified as direct and indirect tax.   The indirect taxes are levied on purchase, sale, and manufacture of goods and provision of service.  The indirect tax on goods and services increases its price, this can lead to inflationary trend.  Contribution of indirect taxes to total tax revenue is more than 50% in India, therefore, indirect tax is considered as a major source of tax revenue for the government, which in turn is one of source for GDP growth.  Though indirect tax is a major source of revenue, it had lot of hassles.  To overcome the major issues of indirect tax system the government of India subsumed most of the indirect tax which in turn gave birth to the concept called Goods and Service Tax.

scholarly journals CSR reporting by Chinese and Western MNEs: patterns combining formal homogenization and substantive differences

2021 ◽  
Vol 6 (1) ◽  
Author(s):  
Irina Ervits
Keyword(s):  
Emerging Markets ◽  
Multinational Enterprises ◽  
Qualitative Content Analysis ◽  
Developed Economies ◽  
Csr Reporting ◽  
Business Operations ◽  
Advanced Economies ◽  
Chinese Mnes ◽  
Complex Picture ◽  
Corporate Social

AbstractIn light of the growing economic might and intensification of global activities of Chinese multinational enterprises (MNE), this paper looks into the nature of their corporate social responsibility (CSR) reporting. CSR communications of the largest Chinese companies and their counterparts from advanced economies have been compared based on quantitative and qualitative content analysis of CSR reports. A mixed method approach has been rarely utilized in the analysis of CSR reporting. To analyze CSR reports the paper uses a two-dimensional conceptual framework based on Wood (Acad Manag Rev 16:691–717, 1991); Jamali and Mirshak (J Bus Ethics 72:243–262, 2007) and Lockett, Moon and Visser (J Manag Stud 43:115–136, 2006); Moon and Shen (J Bus Ethics 94:613–629, 2010). The findings indicate that quantitatively Chinese MNEs display patterns of CSR reporting comparable to major MNEs in developed economies. This paper argues that just like MNEs from developed economies Chinese MNEs use a global CSR reporting template as a convenient tool to align and harmonize various isomorphic pressures. However, qualitatively substantive discrepancies in content have been also identified due to national or other contextual characteristics. The analysis reveals a complex picture of national and international isomorphic forces at play. The paper addresses the lack of consensus concerning convergence/divergence of CSR reporting across the globe and, more specifically, between developed economies and emerging markets. In this respect this paper responds to the general call for research looking into various aspects of business operations, including CSR reporting, of MNEs from emerging markets.

Distributional Effects of Taxes and Benefits in Korea

2009 ◽  
Vol 24 (1) ◽  
pp. 59-80
Author(s):  
Sung Myung Jae ◽  
Jeon Byung Mok ◽  
Jun Byung Hill
Keyword(s):  
Simulation Model ◽  
Income Tax ◽  
Tax Revenue ◽  
Tax Law ◽  
Current Version ◽  
Middle Income ◽  
Absolute Value ◽  
Consumption Decisions ◽  
Income Tax Law ◽  
Income Taxpayers

A Simulation model has been developed in Korea, named Korea Institute of Public Finance Simulation Model (KIPFSIM), which aims to estimate the effects of taxes and transfers in Korea. The current version of KIPFSIM adopts a statice approach combined with a zero-elasticity assumption that there will be no change in labor supply and consumption decisions even after changes in taxes and transfers. KIPFSIM uses a representative sample from the House-hold Income and Expenditure Survey, compiled and released by the Statistical Office of Korea. Using KIPFSIM, we hypothetical changes in taxes and transfers, which is set to be enacted in 2009 and 2010. We found that the benefit of the income tax cut is concentrated mostly on high-income taxpayers in terms of absolute value, but more on middle-income taxpayers in terms of percentage of the tax burden. Therefore, the new income tax law is considered to strengthen the progressive nature of the tax code and to lower tax burdens and tax revenue. We also found that after-income-tax income inequality, as measured by Gini coefficeint, was slightly worsened, primarily due to the decrease in income tax revenue, whice helps equalize income distribution.

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