Changes in the effect of corporate tax avoidance on the cost of debt over the past 25 years

Purpose This study aims to examine how the effect of corporate tax avoidance on the cost of debt has changed in the period 1993–2017. Although it is known that tax avoidance has significantly increased during this period (Dyreng et al., 2017), little evidence exists on how this change alters the effect of tax avoidance on the cost of debt. This study investigates how changes in tax avoidance modify the association between tax avoidance and the cost of debt. Design/methodology/approach By using a comprehensive sample of 15,825 loan facilities issued to US public firms in the period 1993–2017, this study tests the time-series changes in the association between tax avoidance and the cost of debt. Findings This study finds that a positive association between tax avoidance and the cost of debt has been declined over the past 25 years. Accordingly, tax avoidance in general no longer increases the loan spread after the enactment of domestic production activities deduction. However, the risker end of tax avoidance does still increase the loan spread. Originality/value This study spotlights the time-series changes in the effect of corporate tax avoidance on the cost of debt, showing how lenders perception on corporate tax avoidance has altered in accordance with changes in corporate tax practice.

Problems of legal regulation of taxation of electronic commerce

One of the most pressing issues in modern tax law is the solution of the issue of taxation in the field of electronic commerce. Currently, in the world practice of national states and economic unions of taxation, a number of methods have been formed related to the development of a tax mechanism in this area.An analysis of the scientific literature, as well as domestic and international legislation, indicates that attempts are being made to legally regulate the term “electronic commerce”, as well as to determine the types of taxes applicable to it. The most common taxes in international tax practice are VAT and the tax on goods and services. The Russian Federation also uses VAT in this area in the implementation of electronic commerce.

The Association between Corporate Social Responsibility Disclosure and Tax Avoidance: Evidence from Philippine

This study investigates the association between corporate social responsibility disclosure and tax avoidance as allocations of corporate resources to the stakeholders, other than the shareholders. The study aims to examine whether companies that are actively disclosing their social responsibility are also behaving ethically in their financial aspect. Specifically, this study investigates whether companies with good social responsibility will also behave responsibly in their taxation aspect by reducing tax avoidance practices. The study is conducted in a developing country, namely the Philippines, where the sample group is obtained from go-public companies listed on the Philippine stock exchange during the 2014-2019 period that published sustainability reports. The results show there is a negative association between corporate social responsibility disclosure with tax avoidance. This shows that corporate tax practice is part of social responsibility actions.

Improving the tax system of Uzbekistan

Subject. The article spotlights directions of the tax system and fiscal policy, which induce the economic growth in Uzbekistan, sustainability of its tax system, and address key goals of the socio-economic development. Objectives. We evaluate the current reforms intended to improve the tax system of Uzbekistan during the globalization of the world economy, and formulate relevant recommendations. Methods. The study uses analytical methods to process publicly available data. Results. The tax practice of Uzbekistan is found to demonstrate a disparity in tax burden in case of the general and simplified tax treatment, i.e. a comparatively big gap between taxes paid by taxpayers. To reduce the disparity, it is necessary to dramatically alleviate the tax burden and facilitate general taxation rules. Furthermore, to create the equitable and fair tax system, tax benefits should be gradually abolished, since they seriously reduce the income of people. A reduction in the VAT rate may help change the simplified tax treatment into the general one. Conclusions and Relevance. If the proposed actions are implemented, Uzbekistan will be able to establish a modern taxation model, eliminate the systemic disparity and inequality, and, ultimately, create effective social institutions driving the sustainable economic growth. There should be the fiscal mechanism for net profit or income, value added, with the concurrent abolishment of the turnover tax, which contradicts international tax practices.

“ARCHIVE OF KHIVA KHANS” AS AN IMPORTANT SOURCE

This article explores the role of the archives of Khiva khans in the study of socio-economic life of the khanate in the XIX-XX centuries, the tax system. Detailed information on the history of the study of the archive and the tax practice of the Bell period was provided.

Aggressive tax planning

The article forms and systematizes the author's approach to the legislative enshrinement in the Tax Code of Ukraine of the essence of economic categories "aggressive tax planning", "minimization of tax liabilities". These terms are widely used in the practice of the OECD and countries with developed market relations. The article highlights the results of the work of the 10th OECD Working Group on Aggressive Tax Planning and the OECD Forum on Tax Administration. Generalized issues regarding the inconsistency of the tax base, which allows taxpayers to minimize and evade their payment. Methodological and theoretical foundations of the study are economic theory, scientific developments of foreign and domestic scientists on the problems of aggressive tax planning. The following research methods were used in the research process: abstract –logical, comparison, monographic and scientific generalization. Studies show that aggressive tax planning as a relatively new category still requires painstaking improvements from those international structures that have sponsored it. Note that the OECD has proposed two somewhat vague definitions of aggressive tax planning that have already been criticized by experts. Thus, according to one definition, it is planning that includes a tax position that is rational, but leads to a result that is unpredictable for the tax authorities, given its inconsistency with the purpose of the law. The experience of foreign countries in identifying and regulating aggressive tax planning should be adapted to domestic realities and reflected in the tax system at the legislative level, which will help improve tax administration, support big business, solve investment, innovation and social problems. The results of the study show that the management of any socially important process requires the ability to constantly maneuver in a large number of changes and new opportunities. The OECD's experience shows that responding to new taxpayer schemes for aggressive tax planning is a challenge. With the enactment of legislation to counter aggressive planning to eliminate them from tax practice, taxpayers are finding new, more sophisticated methods, using them to minimize tax liabilities. This struggle between the two subjects of tax relations will continue as long as the states function mainly through taxes and other obligatory payments.

From the history of the formation of the economic system of the Caliphate

The era of the rise and prosperity of the Caliphate puts before researchers many problems of political, economic and social history. Among these problems, the history of the formation of the economic system of the Caliphate is one of the most relevant for medieval studies. This article examines the process of feudalization in the Caliphate, in particular, the administrative and tax practice of the new state, the monetary reform of the Caliph Abd al-Malik, as well as the financial policy of the Umayyad Caliphate. Based on the extensive material of medieval sources and numismatic data the place and role of the city in the economic structure of the Caliphate are investigated.

TAX INSTRUMENTS AS A LEVER FOR CONTROL OF THE PARAMETERS OF ECONOMIC SUBJECTS AND THEIR ENVIRONMENT

In the study, the author have given a definition of the definition of "tax instruments". Listed are the cate-gories that the author refer to tax instruments, subdivided, based on this definition, into two main types: ele-ments of taxation, subject to external influence, and the means of exerting this influence. The examples of tax instruments used in tax practice are considered.

Examining the Taxation Profession in Australia – A Framework

This paper examines the nature of the taxation profession in Australia and its development over the past three decades and then suggests a framework to analyse important initiatives that have taken place during this period. Using secondary sources and the organizing principles of State, Market and Community (Puxty et al., 1987), we begin with the subject of tax policies and legislation introduced by the state and its impact on the tax profession in Australia. We follow this with a discussion relating to the recognition of Australian tax practice as a profession. The paper then focusses on two key areas of professional development during the last three decades, namely: tax law and tax administration. The paper finds interesting issues relating to professionalization of taxation in Australia. With the involvement of the state, market and the society over the last three decades, there is a requirement to recognise taxation practice as a profession in Australia. The paper suggests that the establishment of the Tax Practitioners Board[1], a statutory body to regulate the taxation profession in Australia, in conjunction with approved professional associations, may have enhanced the effective maintenance of the tax profession which has contributed to social, political and economic development in Australia. [1] The Minister for Revenue and Financial Services appoint the Board, so there is some degree of control by the state.