Corporate Taxation under Weak Enforcement

How should developing countries tax corporate income? We study this question in Costa Rica, where firms face higher average tax rates on profits when revenues marginally increase. We combine discontinuity and bunching designs to estimate the elasticity of taxable profit and separate it into revenue and cost elasticities. We find that firms faced with a higher tax rate slightly reduce revenues but considerably increase costs, thus producing a large elasticity of taxable profit of 3–5. In this context, the revenue-maximizing rate for a corporate tax on profit is below 25 percent, and we show that a tax policy that broadens the base while lowering the rate can almost double the tax revenue collected from these firms. (JEL D22, H25, H26, H32, K34, L25, O23)

Corporate social responsibility as a determinant of tax aggressivity

This research verified whether the practices of corporate social responsibility (CSR) and tax aggressiveness are complementary, substitute or unrelated. A total of 1,081 observations from Brazilian companies listed on B3 were analyzed between 2010 and 2017. The survey used the guidelines of the Global Reporting Initiative (GRI) to measure the degree of CSR. The results show a substitution relationship between companies with a high GRI degree and tax aggressiveness when measured by the differences between accounting profit and taxable profit (BTD), however, this relationship becomes complementary if measured by the total taxes on the amount added (TTVA).

COMMERCIAL AND MANAGEMENT EXPENSES AS A FACTOR IN THE FORMATION OF TAXABLE PROFIT OF THE ENTERPRISE

The article examines commercial and management expenses from the point of view of their impact on the reduction of profit from sales and, ultimately, on the formation of profit before tax. According to the ac-counting (financial) statements of enterprises, the corresponding calculations were made and an assessment of this impact was given on the basis of two relative indicators.

Accounting and Tax Accounting of Fixed Assets, Intangible Assets and Depreciation for Development and Improvement of Approaches to Assessment of the Company's Assets

The article describes the method of accounting of fixed and intangible assets, as well as depreciation charges, in comparison of its different types, in particular accounting and tax accounting when receiving and forming the initial value of non-current assets, in their evaluation, flow and depreciation. The implementation of the described methods will give specialists an opportunity to streamline accounting and to eliminate the unnecessary and artificial discrepancy between accounting and tax accounting. All the data will be transparent and the cost and tax systems will function in compliance with common principles of accounting. Thus, the rules for accounting and tax accounting policies will become uniform. At the same time there will be no need to generate a far-fetched «taxable» profit, detached from the real economic base — accounting profit. It will be possible to tax real accounting profit generated on the accounts. The proposed methods of fixed and intangible assets accounting will reduce the cost of collecting information, it will also give an opportunity to evaluate the real state of non-current assets. The article provides recommendations on the approximation and improvement of accounting and tax accounting of fixed assets, intangible assets and depreciation.

ANALISIS PERHITUNGAN LABA KENA PAJAK PADA PT. TIGA JAYA LESTARI GORONTALO

PT. Tiga Jaya Lestari Gorontalo is one of the companies in Gorontalo, Gorontalo Province that will have the freedom to be more self-assertive among international hotel groups in Gorontalo that offer many similar products and services to customers. PT Tiga Jaya Gorontalo is a hospitality service company. Used to identify income and costs charged in calculating taxable profits, conducting tests on fees charged in connection with applicable tax regulations. This study aims to determine the suitability of the calculation of taxable profits from the company against applicable laws and regulations. This research method uses descriptive methods and the type of research used is descriptive qualitative. In this study, the profit after fiscal corrected amounting to Rp1,225,702,726.00 and fiscal profit before correction on the report is before correction and after Rp624,142,677.00 for the calculation of Taxable Profit using tariff 17 paragraph 2a at a rate of 25% Law No. 36 of 2008 Borrowing income tax The company must pay taxes in the amount of before Rp. 17,565,348,847.00 for payment of taxable income in the amount before Rp. taxable income amounting to Rp227,626,960.00 using the rate of article 31 E.Keywords : calculation of taxable profit, profit and loss, fiscal correction

VERGİ MEVZUATI AÇISINDAN KANUNEN KABUL EDİLMEYEN GİDERLERE YÖNELİK HATALI İŞLEMLERİN TESPİTİ, DÜZELTME VE MUHASEBE KAYITLARI

One of the most important concepts that appears the differentiation of accounting profit and taxable profit is expenses which are not legally accepted. In the determination of accounting profit some expense which is not legally accepted as an expense can be deducted and these expenses cannot be deducted in determination of taxable profit Therefore, it is important to correctly apply the expenses that are not legally accepted for the determination of the accounting profit which constitutes the tax base in general. For this reason, the law stated expenses that can be deducted in the 40th article of the Income Tax Law. All the expenses except these that can be discounted are considered as legally deductible expenses. The expenses that cannot be deducted are also counted in article 41 of the same law. These expenses will also be considered as unacceptable expenses without any hesitation. However, when considered from the application point of view, it is seen that there is a doubt in terms of issues such as whether it should be taken into consideration as an unacceptable expense or whether the necessity of being subject to withholding should be considered as a fee. Within this context, the errors encountered in the application in relation to legally unacceptable costs and their adjusted accounting records are included in our study.

PETROLEUM RESOURCE RENT TAX ISSUES AFFECTING THE USE OF DEDUCTIONS

Careful planning is necessary when buying or selling an interest in an offshore petroleum area, farming into a project or setting up operating arrangements for a project within the petroleum resource rent tax (PRRT) net, to ensure maximum use of deductions for exploration expenditure and other costs of the project.The rules dealing with transfers of interests in petroleum projects and with the transfer of undeducted exploration expenditure from an unprofitable project to a profitable one, encourage participants to ensure that they hold an interest in the relevant area before they commence exploration activity.There are special rules applying in the PRRT context to the transfer of interests in a project from one person to another. It is important to understand how these rules apply as they can impact both upon who is liable to pay PRRT on the project and the ability to use and transfer exploration expenditure.Certain head-office costs are excluded from deductibility when calculating the taxable profit of a project. The manner in which a project is structured may impact on the practical implications of this exclusion.This paper provides an overview of the PRRT regime, the implications of the transfer of an interest in a project and the requirements which must be satisfied in order to transfer exploration expenditure between projects. The paper then contains a discussion of a number of issues in relation to deductibility and use of exploration expenditure, the transfer of interests in permits and the use of contractors to undertake activities on behalf of joint venture participants maximising the scope of available deductions.