Internal Control vs External Manipulation: A Model of Corporate Income Tax Evasion

2002 ◽  
Author(s):  
Kong-Pin Chen ◽  
C. Y. Cyrus Chu
Keyword(s):  
Internal Control ◽  
Tax Evasion ◽  
Income Tax ◽  
Corporate Income Tax

scholarly journals Pengaruh Penerapan Tarif Tunggal Pajak Penghasilan Badan terhadap Indikasi Penggelapan Pajak

2019 ◽  
Vol 19 (1) ◽  
pp. 96-117
Author(s):  
Bramastia Candra Putra ◽  
Riatu Mariatul Qibthiyyah
Keyword(s):  
Tax Evasion ◽  
Income Tax ◽  
Corporate Income Tax ◽  
Firm Level ◽  
Tax Rate ◽  
Empirical Results ◽  
Level Data ◽  
Sample Data ◽  
Firm Level Data ◽  
Tax Audit

This paper investigates the dierence eects of progressive rate and single rate implementation on corporate income tax to tax evasion indication. Using firm level data of tax audit results as a measure of tax evasion indication for six years observations. The empirical results from the sample data show that the implementation of single rate on corporate income tax reduces the tax evasion indication. In addition, the results show that the higher the marginal income tax rate, the higher the tax evasion indication. ======================== Paper ini menginvestigasi perbedaan pengaruh penerapan tarif pajak progresif dan tarif pajak tunggal pada Pajak Penghasilan (PPh) Badan terhadap indikasi penggelapan pajak. Paper ini menggunakan data hasil pemeriksaan pajak pada level perusahaan sebagai ukuran indikasi penggelapan pajak selama enam tahun observasi. Hasil studi empiris pada sampel data menunjukkan bahwa penerapan tarif pajak tunggal pada PPh Badan mengurangi tingkat indikasi penggelapan pajak. Selain itu, semakin tinggi tarif pajak penghasilan cenderung menstimulasi peningkatan indikasi penggelapan pajak.

scholarly journals Comparative analysis of the effect of tax evasion through tax havens

2021 ◽  
Vol 7 (3) ◽  
pp. 51-65
Author(s):  
Dejan Karavelić ◽  
Vladimir Todorović ◽  
Kristijan Ristić ◽  
Danijela Karić ◽  
Vesna Miletić
Keyword(s):  
Comparative Analysis ◽  
Tax Evasion ◽  
Income Tax ◽  
Corporate Income Tax ◽  
Personal Income Tax ◽  
State Budget ◽  
Tax System ◽  
Tax Havens ◽  
The Eu ◽  
Budget Revenue

By looking at the most famous tax havens today, we turn our attention to research that will show the real problems and impact of tax havens on tax evasion. For the mentioned research, we will use a comparative analysis in which the tax system of the EU countries and the countries of tax havens will be included. In all modern countries, personal and corporate income tax are one of the safest sources of state budget revenue. The most significant direct taxes are personal income tax (tax) and corporate income tax.

Taxation System in Slovakia

2019 ◽  
pp. 207-224
Author(s):  
Marcela Rabatinová ◽  
Juraj Válek ◽  
Jana Kušnírová
Keyword(s):  
Economic Crisis ◽  
Tax Evasion ◽  
Income Tax ◽  
Value Added ◽  
Alcoholic Beverages ◽  
Corporate Income Tax ◽  
Excise Tax ◽  
Eu Member States ◽  
European Area ◽  
Taxation System

A common European area without any internal borders between the EU Member States creates greater risks in terms of tax evasion and avoidance by economic entities. Increasing tax burden during the financial and economic crisis led to an increase in tax evasion as a result of changes in the behavior of taxpayers. This chapter deals with the current problems of taxation in Slovakia in the context of effective tax collection and tax evasion prevention. The aim of the chapter is to assess the development of corporate income tax, excise tax on alcoholic beverages, and value added tax, which are considered to be the most risky ones in terms of tax evasion.

scholarly journals Problems and the future of corporate income tax and VAT in the conditions of digitalization

2021 ◽  
Vol 3 (95) ◽  
pp. 52-69
Author(s):  
Оksana Garkushenko ◽  
◽  
Olha Kuvaldina ◽  
Keyword(s):  
International Trade ◽  
Tax Evasion ◽  
Information Exchange ◽  
Income Tax ◽  
Cash Flows ◽  
Corporate Income Tax ◽  
Profit Shifting ◽  
Global Trends ◽  
Blockchain Technology ◽  
The Future

Globalization and digitalization lead to significant changes in society and economy, including the field of taxation. Moreover, the efforts of governments of many countries are aimed at implementing measures to combat profit shifting and ensure that budget revenues from corporate income tax and VAT are received in the proper amount. The article analyses main problems of corporate income tax and VAT, possible ways to solve them in near and distant perspectives. With regard to respective taxes, the main aspects of combating tax base erosion and tax evasion with the use of new digital methods, and the state of BEPS steps implementation in this part are analysed. Given that the corporate income tax in modern conditions has a number of disadvantages, it is likely that in the future it will be replaced by an alternative – a tax on withdrawn capital or a tax on cash flows at destination. VAT, in turn, is a neutral tax that is easy to algorithmize and administer. Therefore, it can also displace corporate income tax from the tax systems of countries. At the same time, there are a number of problems with VAT: cases of fraud, non-taxation or double taxation of transactions in international trade. It has been found that in the short run (up to 5 years) it is important for national governments to increase efforts to implement BEPS plan and to strengthen information exchange and international cooperation to counteract base erosion and profit shifting. To simplify VAT administration and improve the interaction between taxpayers and tax authorities within the same country, as well as in international trade, it is feasible to use the e-invoicing practice more widely. In distant perspective, it is possible to use blockchain technology. Taking into account global trends, the article provides recommendations for improving VAT and corporate income tax in the context of globalization and digitalization (in particular – further implementation of BEPS measures in all countries of the world, mandatory registration as VAT payers in jurisdictions, where sells of goods and services to end users take place, strengthening international coordination and cooperation in the field of taxation), as well as general recommendations that should contribute to digitalization and economic development of Ukraine in the near and distant future.

scholarly journals The peculiarities of international and Russian taxation of foreign organizations operating through permanent representation

2020 ◽  
pp. 1-13
Author(s):  
Pavel Igorevich Yakovlev
Keyword(s):  
Tax Evasion ◽  
Income Tax ◽  
Corporate Income Tax ◽  
Tax Base ◽  
Foreign Companies ◽  
The Subject ◽  
The Russian Federation ◽  
International Tax ◽  
The Impact

The subject of this research is the taxation of permanent representations of foreign organizations. The object of this research is permanent representations of foreign organizations. The author explores such aspects of the topic as prevention of tax base erosion, modernization of international tax relations, impact of international tax agreements upon the taxation legislation of the Russian Federation with regards to corporate income tax and transfer of expenditure by head organization to the permanent representation. Analysis is conducted on the problematic of Russian taxation of the permanent representations of foreign organizations, with consideration of the accepted international tax standards. The article examines the promptness and factors of implementation of new tax measures aimed at countering tax evasion. The scientific novelty is substantiated by the usage of permanent representations by Russian and foreign companies, remained problematic of their taxation in the Russian tax jurisdiction, flaws in the current tax norms, as well as the impact of international tax agreements upon Russian tax normative document. The main conclusions contain recommendations on modernization of the existing in Russia tax rules in the context of determination of the tax base and application of the “principle of gravity”, increase of accuracy in determination of the actual results of activity of the permanent representations for improving efficiency and achieving balanced level of taxation of the permanent representations, which also function within the framework of a single technological process.

scholarly journals TAX REFORMS FOR THE DEVELOPMENT OF FISCAL SPACE

2020 ◽  
Vol 6 (3) ◽  
pp. 48-58 ◽  
Author(s):  
Inna Lunina ◽  
Olena Bilousova ◽  
Nataliya Frolova
Keyword(s):  
Transition Economies ◽  
National Economy ◽  
Tax Evasion ◽  
Income Tax ◽  
Tax Reform ◽  
Corporate Income Tax ◽  
Tax Reforms ◽  
Fiscal Space ◽  
The Eu

A reduction of the tax burden on corporate income in order to stimulate drivers of economic development has become the important issue of tax reform in many countries in recent decades. Tax competition forces national governments to take well-balanced solution on increasing outward and domestic investments as well as ensuring the fiscal capacity of the budget to cope with urgent socio-economic problems under enhancing fiscal risks. The purpose of the article is to assess the impact of tax reforms, addressing reducing the corporate income tax burden, on the fiscal space and investment processes in the EU countries and Ukraine, to establish directions of improvement of the tax system in Ukraine and other transition economies in order to spur the expansion of fiscal space. The research subject covers tax policy settings that shape fiscal space development. Research methodology. In accordance with the purpose of the article, the research methods are set as follows: abstract-logical; systemic analysis; analysis and synthesis; graphical method. Findings. By summing up theoretical ideas on the issue of feasibility of cutting corporate income tax, we have arrived at the conclusion that this measure has a significant impact on the improvement of tax competitiveness of the national economy. The gain from its application is confirmed by the best practices of many European countries. The results of the tax reform in Ukraine have proved that a traditional approach to the choice of tax issues – in contrast with developed economies – do not comply with theoretical provisions on increasing the competitiveness of the national economy and fostering investments. This is conditional on the specific tax effects in Ukraine due to the restriction of the key economic freedoms (investment, financial, property rights protection and judicial effectiveness) needed for successful entrepreneurship, as well as of a high rate of corruption, which increases the costs of business activity. Such effects include, in particular, a drop of tax revenues in the short and long term while reducing the level of corporate income taxation; a high level of tax evasion, capital outflow instead of expanding investment in the national economy. It is argued that the emphasis while carrying out tax reforms and expanding fiscal space in transition economies considering the specific effects of changing corporate income tax provisions, should be made on ensuring the long-term sustainability of public finances through measures of budget adjustments aimed at avoidance shifting the existing fiscal problems on future generations; harmonization of national tax legislation with the EU regulations and prevention of tax evasion; increasing the financial capacity of enterprises by introducing targeted innovation tax incentives, which will gain higher competitiveness of the country in the world markets and as a result facilitate the growth of the country’s future revenue receipts.

scholarly journals Factors affecting the corporate income tax compliance in private enterprises in Ba Ria – Vung Tau province

2021 ◽  
Vol 5 (2) ◽  
pp. first
Author(s):  
Lê Thị Bảo Như ◽  
Nguyễn Thị Thu Hảo ◽  
Nguyễn Thị Hồng Hạnh
Keyword(s):  
Tax Evasion ◽  
Income Tax ◽  
Linear Regression Analysis ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Corporate Income Tax ◽  
Survey Method ◽  
Private Enterprises ◽  
Tax Rate ◽  
Factors Affecting

The corporate income tax management in Vietnam in general and Ba Ria - Vung Tau province, in particular, are facing a big challenge, which is finding the means of tax sufficient collection and avoidance of tax evasion. However, tax fraud or tax avoidance has been complicated and the number of these illegal activities tends to increase. From practical requirements, this paper contributes to the gap of previous studies by identifying factors affecting the corporate income tax compliance in private enterprises in Ba Ria - Vung Tau province. By survey method and linear regression analysis, the results show that there are seven factors that affect corporate income tax compliance, including the simplicity in tax declaration, tax inspection, the fairness of tax system, tax rate, financial status, the taxpayer's knowledge, and tax administration performance. Of all factors, the tax rate factor has a negative effect and the remaining factors have a positive effect on corporate income tax compliance. Based on these results, the authors propose some solutions to encourage private enterprises to comply with the corporate income tax regulations in Ba Ria - Vung Tau province.

The investment activity of Russian business: Relationships with corporate income tax burden

2020 ◽  
Vol 23 (7) ◽  
pp. 800-823
Author(s):  
A.A. Razuvaeva ◽  
N.V. Pokrovskaya
Keyword(s):  
Income Tax ◽  
Systems Approach ◽  
Corporate Income Tax ◽  
Federal State ◽  
Tax Burden ◽  
Return On Assets ◽  
Investment Activity ◽  
Analysis And Synthesis ◽  
Tax Benefits

Subject. This article assesses the role of tax incentives for the Russian business' investment behavior. Objectives. The article aims to identify the relationship between the corporate income tax burden as an indicator responding to tax benefits application and the investment activities of Russian companies. Methods. For the study, we used the methods of analysis and synthesis, and the systems approach. The analysis covers the period from 2012 to 2018. The data of the Russian Federal State Statistics Service, Federal Tax Service of Russia, and the Ministry of Finance of the Russian Federation are the source of information for analysis. Results. The article summarizes the characteristics of the investment activity of the Russian business. However, the article does not reveal any obvious relationship between the income tax burden and the investment activity of the Russian business in the 2010s. There is also no link found between fixed investment and return on assets. Conclusions. The increase in income tax burden in the late 2010s, accompanied by a decrease in profitability, poses a threat to the active investment development of Russian organizations.

Sign in / Sign up

Export Citation Format

Share Document