Research on the Individual Income Tax-Deferred Commercial Endowment Insurance from the Perspective of Fairness

In order to alleviate the pressure of the basic endowment insurance system, China has implemented the policy of individual income tax-deferred commercial endowment insurance (IITDCEI) and actively explored the development path of individual supplementary endowment insurance. At present, the same tax rules are adopted for different income groups. Considering that people's income gap is large, different income groups enjoy different degrees of tax preference under this policy, which may cause social injustice and increase the gap between the rich and the poor. Based on this, we propose a new optimization scheme by adjusting the tax rate and the maximum premium limit of the insurance amount so as to coordinate the interests of low-, medium-, and high-income subjects and balance the degree of tax preference among the three subjects. At the same time, we also change the two parameters of the predetermined interest rate and retirement age, and compare the changes of the tax preference under the old and new schemes, and provide corresponding countermeasures for the implementation of the IITDCEI policy.

International Tax Planning: China's New Regime for Taxing Expatriate Income: Tightening the Screws or Vintage Wine in a New Bottle?

Expatriates have been fundamental to China's economic growth, contributing to the country's socioeconomic development and modernization. The second-largest group of expatriates in China are North Americans. Personal income taxation concessions for expatriate workers have been an important instrument to attract and retain skilled foreign labour since China opened its doors to foreign investment and an income tax was adopted four decades ago. A recent overhaul of the law on individual income tax introduced a number of changes to expatriate income taxation, including the winding back of some preferential concessions previously offered only to expatriates. A literal reading of these changes suggests that the new regime has led to harsher tax treatment of expatriates and increased their tax liability. This article considers whether this view holds up, by closely analyzing the new system's major features relating to individual income tax as they affect expatriates. The authors challenge the literal reading of the law and argue that the recent changes have not fundamentally altered the underlying policy on expatriate income taxation. Further, an economically stronger China has not observed any diminishment of the role of personal income taxation as an instrument of government policy, despite the recent changes. A generous interpretation of the legal terms and rules, and of the application of concessions under the amended system, may encourage more lenient treatment of Canadians and other expatriates working and living in China.

PENERAPAN BENFORD'S LAW UNTUK MENDETEKSI DUGAAN KETIDAKPATUHAN MATERIAL PADA SPT TAHUNAN PPH ORANG PRIBADI

This study aims to examine whether the Individual Income Tax Return data set conforms to the Benford's Law pattern and to examine whether there are indications of material noncompliance in that data set based on the application of Benford's Law. This research is a quantitative research. The data source in this study is the taxation database owned by the Directorate General of Taxes (DGT), Ministry of Finance. The results of this study indicate that most of the Individual Income Tax Return data set variables conform to Benford's Law pattern and there are indications of material noncompliance in that data set. Tax officer, in this case account representatives and tax auditors are expected to be able to use the results of this study to carry out further analysis of the numerical class in the Individual Income Tax Return data set that is not appropriate and deviates from Benford's Law pattern. DGT, as a tax institution, is expected to consider the use of Benford's Law to assist the taxpayer supervision and inspection process.

An Examination of Tax-Deductible Donations Made By Individual Australian Taxpayers in 2018-19:

extent and characterisitcs of tax-deductible donations made and claimed by Australian taxpayers to Deductible Gift Recipients (DGRs) at Item D9 Gifts or Donations in their individual income tax returns for the 2018–19 income year. While section 1.3 of this Executive Summary provides a more detailed overview, analysis of the ATO data showed that the total amount donated and claimed as tax deductible donations in 2018–19 was $3.93 billion (compared to $3.75 billion for the previous income year). This constitutes an increase of 4.85 per cent or $182 million from the previous income year. The average tax-deductible donation made to DGRs and claimed by Australian taxpayers in 2018–19 was $933.20 (compared to $845.73 in the previous income year).

The Appropriate Roles for Equity and Efficiency in a Progressive Individual Income Tax

Increased focus on economic efficiency in formulating tax policy, at the expense of achieving equity, has resulted in decreased rate progressivity in our individual income tax. This decrease has exacerbated inequality. There are several explanations for the intense focus on efficiency and reduced emphasis on equity. Predictions of efficiency gains from low individual income tax rates appear more certain than equity gains from progressive tax rates. Efficiency gains seem measurable, while equity gains appear intangible and unquantifiable. In addition, distributive justice, which underlies and shapes tax equity, exists in many abstract forms, some of which may not require progressive tax rates. This Article argues, however, that the emphasis on efficiency is misplaced. Inequality imposes measurable costs on the health, social well-being, and intergenerational mobility of our citizens, as well as on our democratic process. This is corroborated by significant empirical analysis. In contrast, empirical analysis shows that anticipated efficiency gains from low individual tax rates are speculative. A consensus exists among economists that taxes within the historical range of rates in the United States have little or no impact on labor supply. Moreover, economists cannot agree whether the myriad empirical studies on savings indicate that progressive tax rates decrease, increase, or have no impact on savings in the United States. The clear harms arising from inequality and the uncertain harms arising from progressive tax rates, strongly support always giving equity at least equal weight with efficiency in formulating tax policy. But given the high level of inequality in the United States and the currently low and flat tax rate structure, equity should be given more weight than efficiency at this time. Emphasizing equity in a progressive individual income tax will contribute to the health and economic mobility of our citizens, as well as the stability of our democracy.

Sharing the Wealth: How to Tax the Rich

This paper considers methods for taxing the income of the affluent. Much of this income is unrealized capital gains that escapes tax. Conventional individual income tax changes cannot capture this income and corporate taxes cannot target the wealthy. Other options are estate and gift taxes, taxation of gains on an accrual basis, and a wealth tax. Accrual taxation of capital gains most closely captures untaxed income, can be targeted to the wealthy, and appears to be feasible. If wealth and accrual taxation are deemed too difficult, a combination of conventional changes and taxing gains at death are options.