Value Creation As the Fundamental Principle of the International Corporate Tax System

2018 ◽  
Author(s):  
Michael P. Devereux ◽  
John Vella
Keyword(s):  
Value Creation ◽  
Fundamental Principle ◽  
Corporate Tax ◽  
Tax System

scholarly journals Corporate Tax Disclosure: A Review of Concepts, Theories, Constraints, and Benefits

2015 ◽  
Vol 11 (28) ◽  
pp. 1 ◽  
Author(s):  
Mahfoudh Hussein Mgammal ◽  
Ku Nor Izah Bt Ku Ismail
Keyword(s):  
Best Practices ◽  
The Other ◽  
Corporate Tax ◽  
Tax System ◽  
Full Disclosure ◽  
Tax Enforcement ◽  
Other Hand ◽  
Private Data ◽  
Future Plans

<p>The aim of this paper is to offer an impression of the issues raised by the disclosure of companies’ tax information by supplying existing and historical viewpoints from the aspects of concepts, theory, constraints, benefits and measurements. We are concerned that full disclosure of organizations' tax information could result in firms weakening tax information, hampering tax enforcement, and maybe, in a weakened structure, disclosing private data that could give a competitive benefit to those organizations that are not requested to do such a disclosure. Hence, some studies do not underpin full disclosure. On the other hand, full tax disclosure could have numerous beneficial impacts. It might put pressure on regulators to develop the tax system and it might incite companies to oppose aggressive tax decrease strategies. We anticipate and expect interested parties to take into consideration the best practices of tax disclosure in implementing their future plans.</p>

scholarly journals The Structure of the Tax System Versus the Level of Taxation: An Evaluation of the 1986 Act

1992 ◽  
Vol 6 (1) ◽  
pp. 59-68 ◽  
Author(s):  
J. Gregory Ballentine
Keyword(s):  
Tax Policy ◽  
Income Tax ◽  
Tax Reform ◽  
High Income ◽  
Tax Structure ◽  
Corporate Tax ◽  
Policy Goal ◽  
Tax System ◽  
System Versus ◽  
The Future

In this paper, I assess the 1986 Tax Reform Act relative to the tax system that might have evolved over the several years following 1986 had that particular tax reform not been enacted. Had tax reform not been enacted, I believe that the pattern of steady tax increases, particularly corporate tax increases and tax increases on high-income individuals such as occurred in the 1982 and 1984 tax acts would have continued. I also believe that the 1986 Tax Reform Act introduced an income tax system that will be quite stable; broad changes, in particular changes that raise a large amount of income tax revenues, are unlikely for many years. So I am comparing the tax structure of the 1986 Tax Reform Act to a system that, in part, has an inferior structure, but that provides more revenues. Since I believe that the most important tax policy goal in 1986 and later should have been to raise revenues, not to revise the structure of the tax system, I believe that the 1986 Tax Reform Act was harmful. Tax reform not only did not raise revenues, it has made it more difficult to raise revenues in the future, without providing significant offsetting benefits.

Home Country Tax System Characteristics and Corporate Tax Avoidance: International Evidence

2012 ◽  
Vol 87 (6) ◽  
pp. 1831-1860 ◽  
Author(s):  
T. J. Atwood ◽  
Michael S. Drake ◽  
James N. Myers ◽  
Linda A. Myers
Keyword(s):  
Tax Avoidance ◽  
Data Availability ◽  
Tax Rates ◽  
Corporate Tax ◽  
Tax System ◽  
Earnings Volatility ◽  
Variable Pay ◽  
Country Factors ◽  
Specific Factors ◽  
System Characteristics

ABSTRACT We examine whether three tax system characteristics—required book-tax conformity, worldwide versus territorial approach, and perceived strength of enforcement—impact corporate tax avoidance across countries after controlling for firm-specific factors previously shown to be associated with tax avoidance (i.e., performance, size, operating costs, leverage, growth, the presence of multinational operations, and industry) and for other cross-country factors (i.e., statutory corporate tax rates, earnings volatility, and institutional factors). We find that, on average, firms avoid taxes less when required book-tax conformity is higher, a worldwide approach is used, and tax enforcement is perceived to be stronger. However, the relations between tax avoidance and all three tax systems characteristics are contextual and depend on the extent to which management compensation comes from variable pay, including bonuses, stock awards, and stock options. Data Availability: Data are available from sources identified in the text.

scholarly journals Are We Heading towards a Corporate Tax System Fit for the 21stCentury?

2014 ◽  
Vol 35 (4) ◽  
pp. 449-475 ◽  
Author(s):  
Michael P. Devereux ◽  
John Vella
Keyword(s):  
Corporate Tax ◽  
Tax System

Study on Causes of Taxation System’s Inefficiency: Evidence from Uzbekistan

2018 ◽  
Vol 4 (3) ◽  
pp. 61-72
Author(s):  
Islambek Niyazmetov
Keyword(s):  
Current System ◽  
Fundamental Principle ◽  
Tax Burden ◽  
Tax System ◽  
Tax Legislation ◽  
Tax Regimes

This paper is intended to find main reasons of taxation system’s inefficiency leading to frequent changes in tax legislation. Uzbekistan’s tax system has been chosen as a sample for the study and has been analyzed using qualitative analyzes, such as logical comparison, analyzes of legislation, detextualization. We found that the main reason of frequent changes in tax legislation in Uzbekistan is the structure of tax system, where the fundamental principle is not followed. Beside of it, allowance of the current system to have an unequal tax burden on taxpayers, existence number of inefficient tax forms and constraints associated with the need to operate with too differentiated types of taxes and tax regimes have shown that can be the cause of overall inefficiency of the tax system of the country.

Puerto Rican fiscal crunch is approaching Congress

2015 ◽  
Keyword(s):  
Puerto Rico ◽  
Puerto Rican ◽  
Democratic Party ◽  
Corporate Tax ◽  
Tax System ◽  
Content Type ◽  
Working Age ◽  
Working Age Population

Significance Puerto Rico has suffered from an inability to service its debts, as its economy has been in or near recession since 2005. Its population has declined -- especially the working age population -- as residents, who are US citizens, have moved to the mainland to look for work. The governor has proposed an overhaul of the tax system in an attempt to raise revenues. Impacts Tax breaks for US companies operating in Puerto Rico may be part of a corporate tax overhaul. There is little prospect for such legislation this Congress, but a fiscal crunch could spur a separate bill. The Democratic party would probably split, as opposition to corporate tax breaks would clash with its Hispanic base.

scholarly journals Recent developments in Corporate Taxation in Sweden

2014 ◽  
Vol 2014 (2) ◽  
pp. 195-214 ◽  
Author(s):  
Christian Thomann
Keyword(s):  
Corporate Taxation ◽  
Equity Capital ◽  
Corporate Tax ◽  
Firm Level ◽  
Tax System ◽  
Debt Capital ◽  
Recent Developments ◽  
Tax Payments ◽  
Interest Costs ◽  
Taxation Data

Abstract This article investigates if increasing neutrality between debt and equity capital might improve the efficiency in a corporate tax system. Firm-level and sector- level taxation data from Sweden is used to study if a tax system that is characterized by very few limitations with respect to the deductibility of interest costs leads to systematic differences in the taxes paid by different sectors. This paper finds that there are differences between different sectors’ tax payments and these differences can be explained by the sectors’ use of debt capital.

scholarly journals Corporate Inversions: The Migration Of Corporate Tax Revenue

2016 ◽  
Vol 32 (4) ◽  
pp. 1137-1144
Author(s):  
Joel Barker
Keyword(s):  
United States ◽  
Tax Reform ◽  
Tax Incentives ◽  
The United States ◽  
Business Strategies ◽  
Tax Revenue ◽  
Corporate Tax ◽  
Tax System ◽  
Tax Revenues ◽  
Corporate Profits

Estimates of over 20 billion of tax revenue are lost to our economy because of corporate inversions. Therefore, lawmakers are actively exploring ways to stop the hemorrhaging of corporate tax-revenues, tighten restrictions on corporate inversions, and to find ways to collect on defer tax revenues. From a business prospective, corporate inversions are nothing less than prudent, innovative, business strategies to enhance corporate profits. However, it’s undoubtedly having a significant impact on U.S. tax revenues and ultimately reducing domestic investments. Ireland is now the most popular new home to many U.S. Corporations, especially within the pharmaceutical industry. The advantageous tax incentives offered by Ireland is a “no-brainer,” when compared to the heavy taxes levied upon domestic business. Since the Tax Reform Act of 1986, there has been no major tax reform to the United States Tax System. Despite the various proposals and recommendations made to address this growing economic issue, all concern parties are in consensus that the United States Tax System needs reform.

scholarly journals New Corporate Tax: Impact of Corporate Tax Cut on Indian Economy

2021 ◽  
Vol 10 (2) ◽  
pp. 44-50
Author(s):  
◽  
Amartya Saha ◽  
Ankita Kumari ◽  
Anuradha Padhy ◽  
Anuradha Panda ◽  
...  
Keyword(s):  
Stock Market ◽  
Income Tax ◽  
Central Government ◽  
Manufacturing Companies ◽  
Corporate Tax ◽  
Tax System ◽  
Tax Rate ◽  
Assessment Strategy ◽  
Set Up ◽  
Domestic Companies

On 20th December, 2019, the Central Government introduced the Taxation Laws (Amendment) Ordinance, 2019, which created a favourable taxing environment for the Companies. Through this Ordinance, section 115BAB, which covers all sorts of domestic companies, that is, any company formed and registered in India, was introduced in the Income Tax Act which offered a very low tax rate of 15% (17.5% including surcharge and cess) to the new manufacturing companies. This Ordinance also reduced the Tax rate for domestic companies to 22% (25.17% including surcharge and cess). Additionally under the new corporate assessment strategy, new organizations that set up assembling offices in India beginning in October and initiate creation before the finish of March, 2023 will be charged at a viable pace of 17%. This move did cause a rise in the value of the stock in India, but through this paper, we plan to delve deeper into how this new introduction affected the economy of India – ranging from the stock market to the value of rupees against dollar, the idea behind introducing this Ordinance, while also touching upon what is Corporate Tax and the Corporate Tax system that was present before the introduction of section 115BAB.

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