scholarly journals EVALUASI TINDAK LANJUT PENGELAKAN PAJAK MODUS CROSS-BORDER TRANSACTION DI INDONESIA DENGAN KEBIJAKAN AUTOMATIC EXCHANGE OF INFORMATION FOR TAX PURPOSE

Scientax ◽  
2019 ◽  
Vol 1 (1) ◽  
pp. 58-74
Author(s):  
Ryan Mohammad ◽  
Helmi Zus Rizal
Keyword(s):  
Research Design ◽  
Significant Role ◽  
Avoidance Behavior ◽  
Tax Avoidance ◽  
Difference In Difference ◽  
Indonesian Government ◽  
Financial Centre ◽  
Cross Border ◽  
Exchange Of Information ◽  
Compliance Behavior

The Implementation of Exchange of Information for Tax Purposes policy in the second quarter of 2017 is Indonesian Government efforts to mitigate tax avoidance behavior by using a cross-border transaction. In this paper, we research the effect of the policy to Indonesian resident behavior compliance with Difference-in-difference research design using cross-border deposit Indonesian resident data as a proxy for behavior compliance Indonesian resident who does cross border transaction. The observation started from the first quarter of 2008 until the first quarter of 2019, which results in the decrease of cross-border deposit Indonesian resident in Offshore Financial Centre about 25,9%. Furthermore, the results continue that not every cross-border deposit Indonesian resident repatriated or declared in Indonesian, but shifting into other countries who had not to comply to exchange of information policies around 4,6%. These results suggest that the implementation exchange of information for tax purpose policies had a significant role to increase the enforce compliance behavior of Indonesian resident.

Network Ties Among Low-Tax Firms

2013 ◽  
Vol 89 (2) ◽  
pp. 483-510 ◽  
Author(s):  
Jennifer L. Brown ◽  
Katharine D. Drake
Keyword(s):  
Social Network ◽  
Avoidance Behavior ◽  
Tax Avoidance ◽  
Executive Directors ◽  
Network Ties ◽  
Board Interlocks ◽  
Network Connections ◽  
Focal Firm ◽  
Avoidance Strategies ◽  
Network Partner

ABSTRACT This study examines (1) whether network ties help explain variation in tax avoidance, and (2) how the relation between network ties and tax avoidance varies depending on the nature and context of those ties. We posit that information on a range of tax-avoidance strategies is shared among firms through their social network connections. Using board interlocks to proxy for these connections, we find that firms with greater board ties to low-tax firms have lower cash ETRs themselves. Ties to low-tax firms are more influential when the focal firm and its network partner are operationally and strategically similar, as are ties created by executive directors. Board ties to low-tax firms are also more influential when the focal firm and its network partner engage the same local auditor. Overall, our results suggest that the influence of firms' network ties on their tax-avoidance behavior depends on the character of those ties.

scholarly journals A perfect symbiosis: Curaçao, the Netherlands and financial offshore services, 1951–2013

2021 ◽  
pp. 1-29
Author(s):  
Tijn van Beurden ◽  
Joost Jonker
Keyword(s):  
United States ◽  
The Netherlands ◽  
Competitive Advantage ◽  
Tax Avoidance ◽  
The United States ◽  
Tax Treaties ◽  
Gradual Decline ◽  
Western Countries ◽  
Financial Centre ◽  
The One

Analysing Curaçao as an offshore financial centre from its inception to its gradual decline, we find that it originated and evolved in close concert with the demand for such services from Western countries. Dutch banks and multinationals spearheaded the creation of institutions on the island facilitating tax avoidance. In this they were aided and abetted by their government, which firmly supported the Antilles in getting access to bilateral tax treaties, notably the one with the United States. Until the mid 1980s Curaçao flourished, but then found it increasingly difficult to keep a competitive advantage over other offshore centres. Meanwhile the Curaçao connection had enabled the Netherlands to turn itself into a hub for international revenue flows that today still feed both Dutch tax income and specialised financial, legal and accounting services.

Building North-South international union alliances: evidence from Mexico

2005 ◽  
Vol 11 (4) ◽  
pp. 531-547 ◽  
Author(s):  
Christian Lévesque ◽  
Mélanie Dufour-Poirier
Keyword(s):  
Critical Condition ◽  
International Union ◽  
Cross Border ◽  
Exchange Of Information ◽  
Power Resources ◽  
International Alliances ◽  
Union Renewal ◽  
The Imf

This article offers an overview of how Mexican unions get involved in international union alliances. It is intended to increase our understanding of the prospects for North-South union cooperation, as the ability to construct international alliances is at the heart of union responses to globalisation. Drawing on data gathered from seven Mexican unions affiliated to the International Metalworking Federation (IMF), the authors distinguish three patterns of union involvement: a localist/defensive pattern, which rests on a narrow conception of solidarity and on sporadic relations, rather limited in scope, with other unions affiliated to the IMF; a nationalist/offensive pattern characterised by a broader view of solidarity and by intense exchange of information with other IMF affiliates; and an internationalist/proactive pattern which rests on the community of interest between workers from different countries and on active cross-border coordination of action. A critical condition for cross-border alliances lies in the existence of several power resources. Without these resources a union cannot overcome the acute constraints that it faces. In conclusion, the authors discuss the prospect of union renewal and union empowerment through North-South international union alliances.

scholarly journals TAXING DIGITAL ADVERTISING: A PROPOSAL TO INDONESIA

Scientax ◽  
2021 ◽  
Vol 3 (1) ◽  
pp. 1-28
Author(s):  
Galih Ardin
Keyword(s):  
Southeast Asia ◽  
Oecd Countries ◽  
Digital Economy ◽  
Tax Revenue ◽  
Indonesian Government ◽  
Cross Border ◽  
Permanent Establishment ◽  
The World ◽  
New Challenges ◽  
Taxation System

Tax on digital economy activities has become a widely discussed issue in the world because of the limitation on the permanent establishment concept in anticipating the digital economy's externalities. The failure of OECD countries to reach digital economic taxation agreements also caused these countries to take unilateral measures in securing their respective interests. Indonesia, as a country with considerable digital economy value in the Southeast Asia region, plans to implement the significant economic presence concept to secure its tax revenue that cannot be captured by PE concept in the digital cross-border transaction. However, the implementation of this new nexus could generate new challenges in the Indonesia taxation system. This study seeks to provide alternatives to the Indonesian government regarding the taxable presence and taxation methods on the digital economy, especially digital advertising, by conducting examination and evaluation through current nexuses, the international proposals, and other countries' experience in addressing tax challenges in the digital advertising.

scholarly journals Defining the Relationship between Domestic General Anti-Avoidance Rules and Double Tax Agreements

2021 ◽  
Author(s):  
◽  
Alexandra Cooper
Keyword(s):  
Tax Avoidance ◽  
Analytical Framework ◽  
Development Model ◽  
Practical Significance ◽  
Analytical Problem ◽  
Guiding Principle ◽  
Cross Border ◽  
Economic Development Model ◽  
The Relationship ◽  
Domestic Law

<p>Double taxation agreements pose a particular analytical problem. While they provide a coherent structure that encourages cross-border investment, the agreements also provide opportunities for taxpayers to avoid their domestic tax obligations. To prevent tax avoidance, some countries enact domestic general anti-avoidance rules to protect their domestic interests. These rules raise questions as to what the relationship between the domestic law and the double tax agreement is. The Organisation for Economic Cooperation and Development’s Committee on Fiscal Affairs provides Commentary on the Organisation for Cooperation and Economic Development Model Double Tax Agreement. This Commentary sets out an analytical framework from which this relationship is to be evaluated. This paper argues that the framework is of little practical significance. The paper concludes that the weight and usefulness of the Commentary lies in a guiding principle set out in the Commentary. Consequently, the wider interpretative approaches do not practically add to the analysis and should be given little weight.</p>

scholarly journals TAX HEAVENS PHENOMENON: TAX PLANNING STRATEGY OR TAX AVOIDANCE

2020 ◽  
Vol 4 (1) ◽  
pp. 1-24
Author(s):  
Dinik Fitri Rahajeng Pangestuti ◽  
Nisrina Sari ◽  
Ambar Lestari
Keyword(s):  
Data Exchange ◽  
Tax Avoidance ◽  
Tax Planning ◽  
The Other ◽  
Planning Strategy ◽  
Exchange Of Information ◽  
Small Countries ◽  
Negative Effect ◽  
The Government ◽  
Fiscal Authority

Abstract Tax planning is one example of the use of regulatory loopholes. On the other hand for the Fiscal Authority, carrying out tax avoidance practices as a form of tax planning will have a negative effect on the Government and, for this reason, the Government makes fiscal corrections as its remedial. Many also hide their assets in tax heavens countries. This is so that the assets they have are not taxed. Tax heavens countries are usually small countries that apply very low taxes, some even do not impose taxes at all. However, the government has prepared an Automatic Exchange of Information (AEoI) data exchange plan that occurs in 2018, certainly will make tax evaders unable to run away from the pursuit of the tax authorities, even if they have to flee to tax heavens countries (tax heavens). Keywords: tax heavens, tax planning, Automatic Exchange of Information (AEoI)   Abstrak Perencanaan pajak adalah salah satu contoh penggunaan celah peraturan. Pada sisi lain bagi Otoritas Fiskal, melakukan praktik penghindaran pajak sebagai bentuk perencanaan pajak akan membawa efek negatif bagi Pemerintah dan, untuk itulah, Pemerintah melakukan koreksi fiskal sebagai remedialnya. Banyak juga yang menyembunyikan asetnya di negara-negara tax heavens. Hal ini bertujuan agar aset yang mereka punya tidak terkena pajak. Negara tax heavens biasanya merupakan negara kecil yang menerapkan pajak yang sangat rendah, bahkan ada yang tidak mengenakan pajak sama sekali. Namun, pemerintah telah menyiapkan Rencana pertukaran informasi data perbankan secara otomatis (Automatic Exchange of Information/AEoI) yang terjadi pada 2018, dipastikan akan membuat para pengemplang pajak tidak akan bisa lari dari kejaran otoritas pajak, sekalipun mereka harus kabur ke negara surga pajak (tax heavens). Kata kunci: Tax Heavens, Tax Planning, Automatic Exchange of Information (AEoI)

The Effects of Regulatory Scrutiny on Tax Avoidance: An Examination of SEC Comment Letters

2016 ◽  
Vol 91 (6) ◽  
pp. 1751-1780 ◽  
Author(s):  
Thomas R. Kubick ◽  
Daniel P. Lynch ◽  
Michael A. Mayberry ◽  
Thomas C. Omer
Keyword(s):  
Indirect Effect ◽  
Avoidance Behavior ◽  
Tax Avoidance ◽  
Regulatory Scrutiny ◽  
Comment Letters ◽  
To Receive ◽  
Tax Costs

ABSTRACT This study examines the tax avoidance behavior of firms prior to the issuance, and following the resolution, of SEC tax comment letters. We find that firms that appear to engage in greater tax avoidance are more likely to receive a tax-related SEC comment letter. We also find that firms receiving a tax-related SEC comment letter, relative to firms receiving a non-tax comment letter, subsequently decrease their tax avoidance behavior consistent with an increase in expected tax costs. Additionally, we document evidence consistent with other firms that do not receive a comment letter reacting to multiple publicly disclosed tax-related comment letters within their industry by increasing their reported GAAP ETR, consistent with an indirect effect of regulatory scrutiny on certain types of tax avoidance.

scholarly journals Cross-border Euro-regional activation and regional development in Slovakia

2012 ◽  
Vol 51 (No. 12) ◽  
pp. 547-554
Author(s):  
Ľ. Falťan
Keyword(s):  
Regional Development ◽  
Significant Role ◽  
State Policy ◽  
Regional Policy ◽  
Political Transition ◽  
Cross Border ◽  
Political Background ◽  
Border Areas ◽  
Regional Associations ◽  
Significant Activation

Social-political transition in the former socialist countries led to a new understanding of borders and created the prerequisites for renaissance and significant activation of the cross-border co-operation. This way, Slovakia along with other countries joined the Euro-regional movement in Europe, which spread since the end of 60-ies through Western-European countries. Formation and institutionalisation of Euro-regional relations, links and co-operation was initially hindered by a whole range of obstacles, including the ones with political background. It was obvious mainly in Slovakia where it influenced the existence and potential establishment of new Euro-regional associations. Rebirth of the Euro-regional activities started after 1998. Currently, there are Euro-regions practically operating along the entire Slovak border with its neighbours. The extent and form of institutionalisation and professional staffing varies. Activities of Euro-regions are merely based on projects which bring funding. Projects are broadly oriented, while the prevailing focus is currently on the economic activation of Euro-regions. There is a lack of partner co-operation and co-ordination of activities between countries and their activities, including cross-border activities and activities of Euro-regions. Euro-regional activities play a significant role in activation of border areas in the country, while they have a complementary character for the regional state policy and regional policy of self-governed regions which is being formulated.

scholarly journals An Estimable Model of Income Redistribution in a Federation: Musgrave Meets Oates

2019 ◽  
Vol 11 (1) ◽  
pp. 406-434 ◽  
Author(s):  
Kevin Milligan ◽  
Michael Smart
Keyword(s):  
Tax Avoidance ◽  
Tax Base ◽  
Tax Rate ◽  
Personal Taxes ◽  
Cross Border ◽  
State Tax ◽  
Decentralization Reform ◽  
National Tax ◽  
Optimal Taxes ◽  
Personal Taxation

We develop a theory of cross-border income shifting in response to subnational personal taxation in a federation and examine its implications for the excess burden of personal taxes. We show how a properly chosen federal tax rate can offset the fiscal externality between states and facilitate decentralization, even in a heterogeneous federation where unitary taxation is suboptimal. Optimal taxes depend on the elasticities of national tax avoidance and of cross-state tax base shifting. We estimate these elasticities around a tax decentralization reform in Canada, finding both to be empirically relevant. We discuss the implications for optimal federalism. (JEL D31, H21, H23, H24, H26, H71, H77)

Institutional Shareholders' Investment Horizons and Tax Avoidance

2012 ◽  
Vol 35 (1) ◽  
pp. 111-134 ◽  
Author(s):  
Inder K. Khurana ◽  
William J. Moser
Keyword(s):  
Avoidance Behavior ◽  
Firm Value ◽  
Tax Avoidance ◽  
Institutional Ownership ◽  
Managerial Opportunism ◽  
Tax Savings ◽  
Institutional Shareholders

ABSTRACT: We investigate whether the level of ownership by institutional shareholders with a long-term horizon is associated with firms' tax avoidance activities. In theory, tax avoidance increases firm value through tax savings; however, institutions with long-term investment horizons are likely to discourage tax avoidance activities if such activities encourage managerial opportunism and reduce transparency. Using a sample of firms with institutional ownership data from 1995–2008, we find less tax avoidance in firms held by long-term institutional shareholders. Probing further, we find these results are generally driven by poorly governed firms. Overall, our results highlight the role of certain types of institutional shareholders in affecting a firm's tax avoidance behavior.

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