Equivalence between fixed fee and ad valorem profit royalty

Subject. This article discusses the issues related to the taxation for multi-component complex ores and commercial components using ad valorem and specific mineral extraction tax (MET) rates. Objectives. The article aims to assess some results of the application of specific MET rates in the Krasnoyarsk Krai and ad valorem rates in other subjects of the Russian Federation, taking into account the specifics of the current taxation procedure for multi-component complex ores and their commercial components. Methods. For the study, I used a comparative analysis, synthesis, and the method of extrapolation. Results. The article shows that the change in the type of MET rate for multi-component complex ores and commercial components has led to a significant increase in the effective tax rate. This led to an increase in the corresponding MET revenues in the Krasnoyarsk Krai. The article also substantiates that the introduction of specific rates in other Russian regions requires a significant differentiation of specific MET rates. However, this is risk-bearing concerning unfair distribution of the tax burden and the complexity of tax administration. Conclusions. The issue of identifying multi-component complex ores and their commercial components is controversial. Extending specific MET rates to other regions may complicate the mechanism of rent extraction.

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Business of Leisure? Specific or Ad Valorem? A Theory of Taxation in Air Passenger Transport

SSRN Electronic Journal ◽

10.2139/ssrn.1919910 ◽

2007 ◽

Author(s):

Kahlil Simeon Philander

Keyword(s):

Passenger Transport ◽

Ad Valorem

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The Unintended Consequences of Tax Policy: How Mississippi's Ad Valorem Tax Structure Led to Environmental Devastation

Accounting Historians Journal ◽

10.2308/aahj-19-019 ◽

2020 ◽

Vol 47 (1) ◽

pp. 75-85

Author(s):

William H. Black

Keyword(s):

20Th Century ◽

Unintended Consequences ◽

Tax Structure ◽

Ad Valorem Tax ◽

Timber Industry ◽

Mill Operator ◽

Clear Cutting ◽

Environmentally Sensitive ◽

Land Holdings ◽

Ad Valorem

ABSTRACT This is a story in two parts. The first describes the timber industry and the ad valorem tax structure in Mississippi during the first several decades of the 20th century. The second introduces Ran Batson, an entrepreneur and lumber mill operator, whose history illustrates the adverse consequences of the Mississippi ad valorem tax as it inspired extensive clear-cutting of forests and resulting devastation. Fortunately, the Mississippi tax structure has subsequently changed to a more favorable approach, and in the last several years of his life, Ran Batson learned the benefits possible from managing his land holdings in a more environmentally sensitive manner.

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THE SINGLE ASSESSOR vs. THE BOARD OF ASSESSORS IN ADMINISTERING AD VALOREM TAXES

The Bulletin of the National Tax Association ◽

10.1086/bullnattax41786116 ◽

1929 ◽

Vol 14 (7) ◽

pp. 195-198

Author(s):

Arthur F. Potter

Keyword(s):

Ad Valorem Taxes ◽

Ad Valorem

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ON THE INCIDENCE OF AD VALOREM SEVERANCE TAXES

National Tax Journal ◽

10.1086/ntj41792014 ◽

1985 ◽

Vol 38 (2) ◽

pp. 241-245

Author(s):

EDWARD L. RANCK

Keyword(s):

Ad Valorem

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A case study: How did IoT start-up Distronix change its business model to sustain growth in the pay-per-use economy

Journal of Information Technology Teaching Cases ◽

10.1177/2043886920981587 ◽

2021 ◽

pp. 204388692098158

Author(s):

Dipankar Chakrabarti ◽

Rohit Kumar ◽

Soumya Sarkar ◽

Arindam Mukherjee

Keyword(s):

Internet Of Things ◽

Business Model ◽

Industry 4.0 ◽

Industrial Revolution ◽

Project Delivery ◽

Public Cloud ◽

Industrial Internet Of Things ◽

Start Up ◽

Industrial Internet ◽

Fixed Fee

Industrial Internet of Things emerged as one of the major technologies enabling Industry 4.0 for industries. Multiple start-ups started working in the Industrial Internet of Things field to support this new industrial revolution. Distronix, one such Industrial Internet of Things start-up of India, started operations in 2014, when companies were not even aware of Industrial Internet of Things. Distronix started executing fixed-fee projects for implementation of Industrial Internet of Things. They also started manufacturing sensors to support large customers end-to-end in their Industry 4.0 journey. With the advent of public cloud, companies started demanding pay-per-use model for the solution Distronix provided. This posed a major challenge to Distronix as they had developed technology skills focusing fixed-fee customized project delivery for their clients. The situation demanded that they change their business model from individual project delivery to creation of product sand-box with pre-registered sensors and pre-defined visualization layer to support use cases for Industrial Internet of Things implementation in multiple industry sectors. It forced Rohit Sarkar, the 26 years old entrepreneur and owner of Distronix, to upgrade capabilities of his employees and transform the business model to support pay-per-use economy popularized by public cloud providers. The case discusses the challenges Rohit faced to revamp their business model in such an emerging technology field, like, to develop new skills of the technical people to support such novel initiative, reorienting sales people towards pay as use model, developing new concept of plug and play modular product, devising innovative pricing, better alliance strategy and finding out a super early adopter.

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