Actual issues of accounting for subsidies by commodity producers of the agroindustrial complex when calculating corporate income tax

The article examines the procedure for accounting for subsidies in the formation of the tax base for corporate income tax, systematizes the factors that affect the determination of the procedure for their accounting. An algorithm is derived for accounting for subsidies for agricultural producers when calculating the tax base for corporate income tax based on the peculiarities of the formation of the tax base for income tax, providing for the possibility of forming tax bases that are taxed at different tax rates.

AGGLOMERATION TAXES IN THE INDIAN STATES DUE TO WIDER ECONOMIC BENEFITS: AN EMPIRICAL ASSESSMENT

This paper carries out an empirical study to examine the contribution of urban areas in generating tax revenue and growth at 28 Indian state levels. The study is based on the hypothesis that the productivity and agglomeration externality effects present in cities, known as “wider economic benefits”, lead to enhanced tax bases of State Governments. The cross-sectional estimation has confirmed that urbanization and state gross domestic product per capita significantly contribute to the tax bases of State Governments, such as sales tax, stamps, registration duty and motor vehicle tax. These three agglomeration taxes (including goods and services tax) are recommended for sharing with urban local bodies.

Features of accounting for property taxes by institutions

The article analyzes the basic rules of taxation for land tax and property tax. It is considered how to report on property taxes. The cases of payment of land tax by institutions, tax bases with and without cadastral value are analyzed. The variants when the land plot occupies the territory of several municipalities, cases when accounting periods are established and not established by local legislation are considered. The calculation of land tax and advance payments on it, as well as their reflection in accounting, is shown. The rules for determining the composition of property that is considered an object of taxation are considered, the calculation of property tax and the rules for reflecting it in accounting are given. Formulas and examples of calculating the average value of taxable property, residual value, advance payments for property tax for the reporting year, including and excluding benefits, and calculating property tax for the year are given.

Reappraising the Tax Gap

The tax gap has been described as the amount of tax jurisdictions do not collect, caused by the tax system not being appropriately complied with—in the manner intended by the tax authority—given the current tax laws in operation. That description does, however, ignore the fact that substantial parts of their potential tax revenues are not collected by all governments as a result of their decisions not to tax some tax bases, or because of granted tax allowances, reliefs and exemptions, many of which in turn provide opportunities for tax abuse. This chapter considers the implications of reframing the tax gap to include these tax losses that arise as a result of government policy and suggests the changes in perception, including in macro-economic as well as micro-economic thinking, that might result if this were done. For this, the use of tax spillover analysis is recommended.

Taxation of Digital Services Under Trade Agreements

ABSTRACT The digitalization of the economy combined with sophisticated tax planning has enabled some multinationals to avoid paying almost any income tax in most market jurisdictions from which they earn substantial profits. Faced with financial and political pressures to act, market states have sought to expand their tax bases so that these multinationals, especially those providing internet advertising and digital intermediation services, pay their ‘fair’ share of tax. The failure to reach an agreed outcome among Organisation for Economic Co-operation and Development and Group of Twenty members has led to an increasing number of states to take unilateral measures. In doing so, states need to navigate their obligations under double taxation agreements and trade agreements. An examination of typical double taxation agreements, the General Agreement on Trade in Services, and recent preferential trade agreements shows that states have limited options to expand their tax bases in compliance with their international obligations. Here, the imposition of an appropriately designed digital services tax has political and legal advantages. The growing volume of cross-border digital services and data flows suggests that greater engagement between the international tax and trade regimes is likely in the future, including in the negotiations of disciplines on electronic commerce.

Zmiany w procedurach podatkowych i uprawnieniach organów podatkowych – ich znaczenie w kontekście uszczelniania systemu podatkowego w Polsce w latach 2015–2019

One of the effects of globalization is the intensification of tax avoidance which leads to the erosion of tax bases in many tax jurisdictions. Not surprisingly, one of the main objectives of governmental policies is to tighten (seal) their tax systems. This can be illustrated by the changes to the tax procedures and powers of tax authorities introduced in Poland. The aim of the article is to examine to what extent these changes have impacted the tax gap. The author analyzed the relevant literature, legal provisions and empirical data. The results demonstrate that the changes in question deserve approval and they could impact the tax gap. However, they do not fully solve the problems resulting from the former legal solutions and it is not entirely clear whether the higher revenues to the state budget result from the activities of tax authorities or whether they are primarily driven by economic growth and the growth in prosperity. The constantly growing gap in foreign CIT also calls for further action.