Tax Revenue Forecast Errors: Wrong Predictions of the Tax Base or the Elasticity?

As per constitutional provisions of Indian federal finance, value added tax (VAT) (and sales tax) is the main source of revenue for the state government. Value added tax (including sales tax) collected by the Directorate of Commercial Taxes, West Bengal, accounts for approximately 62 per cent of state’s own tax revenue (SOTR). Studies on collection of taxes suggest that revenue from all taxes not only depends directly on the nature and growth of the tax base but depends also on other factors such as economic reforms, global and national economic condition and tax effort of the tax collecting department. The motivation of this article is to try to analyze the nature of the trends in collection of VAT in West Bengal during recent years and to find out the effect of different explanatory variables on collection of VAT. JEL Classification: H26, H71, H3

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Profit Shifting before and after the Tax Cuts and Jobs Act

National Tax Journal ◽

10.17310/ntj.2020.4.14 ◽

2020 ◽

Vol 73 (4) ◽

pp. 1233-1266

Author(s):

Kimberly A. Clausing

Keyword(s):

The United States ◽

Tax Revenue ◽

Profit Shifting ◽

Tax Base ◽

Foreign Countries ◽

Before And After ◽

Corporate Profits ◽

Jobs Act ◽

The U.S ◽

Tax Cuts

In recent years, profit shifting by multinational companies (MNCs) has generated substantial revenue costs to the U.S. government. The Tax Cuts and Jobs Act (TCJA) changed U.S. international tax law in several important ways. This paper discusses the nature of these changes and their possible effects on profit shifting. The paper also evaluates the effects of the global intangible low-taxed income (GILTI) tax on the location of taxable profits. Once company adjustment to the legislation is complete, estimates suggest that the GILTI tax will reduce the corporate profits of U.S. multinational affiliates in haven countries by about 12-16 percent, modestly increasing the tax base in both the United States and in higher-tax foreign countries. However, a per-country minimum tax would generate much larger increases in the U.S. tax base; a per-country tax at the same rate reduces haven profits by 23-31 percent, resulting in larger gains in U.S. tax revenue.

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DYNAMIC LAFFER CURVES AND POPULATION GROWTH

10.32920/ryerson.14662185.v1 ◽

2021 ◽

Author(s):

Shumaila Waqas

Keyword(s):

Growth Rate ◽

Population Growth ◽

Dynamic Effect ◽

Budget Constraint ◽

The Other ◽

Tax Revenue ◽

Tax Base ◽

Intertemporal Budget Constraint ◽

Other Hand ◽

Opposing Effects

This paper extends the model of Ireland (1994) by incorporating population growth in examining the dynamic effects of a tax cut on the government’s intertemporal budget constraint. A tax cut has two opposing effects. First, it increases the growth rate of the economy and, thus, increases the size of the tax base and tax revenues in the future. On the other hand, a reduction in the tax rate leads to a decrease in revenues in the short run. A dynamic Laffer curve effect arises if a decrease in tax revenue can be counter-balanced by a future increase in tax revenue to ensure that the government’s intertemporal budget constraint is not violated. Similarly, population growth has two opposing effects. A high population growth decreases the per capita growth rate of the economy. On the other hand, a larger population represents a larger tax base and, therefore, makes it easier for a government to finance a budget deficit. Relative to the simulation results in Ireland (1994), our simulations indicate that incorporating population growth into his model implies that the dynamic effect of a given tax cut worsens the government’s long-run fiscal outlook.

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Autonomy of Local Governments in Taxation in Kyrgyzstan

International Conference on Eurasian Economies 2020 ◽

10.36880/c12.02382 ◽

2020 ◽

Author(s):

Dastan Aseinov

Keyword(s):

Local Governments ◽

Central Government ◽

Legal Framework ◽

Tax Revenue ◽

Government Budget ◽

Tax Base ◽

Financial Autonomy ◽

Tax Revenues ◽

Different Types ◽

Local Budget

The authority for taxation might be delegated to the local governments to expand their financial autonomy through increasing their revenue. This study aims to assess the financial autonomy of local governments in Kyrgyzstan in terms of tax revenues. The taxing power of local governments examined using local budget data for period of 2007-2017. We use variables as reflecting the level of taxing power. Variables measured as ratio of total local government tax revenue, different types of taxes revenue to the total revenue or to the total tax revenues. This study also looks at the legal framework for delegating taxation powers to local authorities. The results show that financial autonomy of local governments in terms of taxation is low. Local governments in Kyrgyzstan largely depends on transfers from the central government budget. According to the legal framework, the tax powers of local administrations is within narrow limits. Since increasing the financial autonomy through expanding the taxing power of local governments poses problems this needs to be solved, like a narrow tax base and inefficient tax administration in the regions. Thus, it can be argued that it is too early to transfer taxation power to local governments.

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Evaluasi Pelaksanaan Pengawasan Berbasis Wilayah Di KPP Pratama Batu

Educoretax ◽

10.54957/educoretax.v1i2.5 ◽

2021 ◽

Vol 1 (2) ◽

pp. 82-103

Author(s):

Eka Celia Khairani ◽

Santoso Wahyu Utomo

Keyword(s):

Qualitative Methods ◽

Quantitative Methods ◽

National Development ◽

Tax Compliance ◽

Tax Revenue ◽

Tax Base ◽

Optimal State ◽

Regional Characteristics ◽

Directorate General ◽

State Revenues

Abstract Regional-based supervision is one of the strategies of the Directorate General of Taxes as the Indonesian tax authority to support the achievement of the national development priority agenda, optimal state revenues. The main objective of implementing regional-based supervision is to optimize state revenues and expand the tax base through increasing tax compliance and increasing tax potential. This study aims to find out how the implementation of regional-based supervision, the results of regional-based supervision, and the suitability of the results with the implementation objectives that have been mentioned as well as the constraints of region-based supervision in KPP Pratama Batu. Data was collected through interviews with account representatives of the KPP Pratama Batu and documentation. Furthermore, the research was conducted by combining qualitative methods and simple quantitative methods. The results showed that the regional-based supervision activities at KPP Pratama Batu were in accordance with the regulations although there were still some procedures that had not been fully implemented. Regional-based supervision is able to realize an increase in the formal compliance of corporate taxpayers in the form of reporting compliance, action compliance and increased revenue. However, regional-based supervision has not shown satisfactory results in terms of payment compliance, individual taxpayer reporting compliance, material compliance, tax potential exploration, and tax base. Furthermore, there are three obstacles in the implementation of regional-based supervision: differences in regional characteristics, challenges in the extensification of regional-based supervision and discrepancies in taxpayer data. Keywords : Compliance, Tax Base, Tax Revenue, Regional-based Supervision.. Abstrak Pengawasan berbasis wilayah merupakan salah satu strategi Direktorat Jenderal Pajak sebagai otoritas pajak Indonesia untuk mendukung pencapaian agenda prioritas pembangunan nasional yaitu penerimaan negara yang optimal. Tujuan utama penerapan pengawasan berbasis wilayah adalah mengoptimalkan penerimaan negara serta memperluas basis pajak melalui peningkatan kepatuhan kewajiban perpajakan dan peningkatan penggalian potensi pajak. Penelitian ini bertujuan untuk mengetahui bagaimana pelaksanaan pengawasan berbasis wilayah, hasil pengawasan berbasis wilayah, dan kesesuaian hasil dengan tujuan penerapan yang telah disebutkan serta kendala pengawasan berbasis wilayah di KPP Pratama Batu. Pengumpulan data dilakukan melalui wawancara dengan account representatives KPP Pratama Batu dan dokumentasi. Selanjutnya, penelitian dilakukan dengan mengombinasikan metode kualitatif dan metode kuantitatif sederhana. Hasil penelitian menunjukkan bahwa kegiatan pengawasan berbasis wilayah di KPP Pratama Batu telah sesuai dengan regulasi meskipun masih terdapat beberapa prosedur yang belum dapat dilaksanakan sepenuhnya. Pengawasan berbasis wilayah mampu mewujudkan peningkatan kepatuhan formal wajib pajak badan berupa kepatuhan pelaporan, kepatuhan perbuatan dan peningkatan penerimaan. Akan tetapi, pengawasan berbasis wilayah belum menunjukkan hasil yang memuaskan pada sisi kepatuhan pembayaran, kepatuhan pelaporan wajib pajak orang pribadi, kepatuhan material, penggalian potensi, dan basis pajak. Lebih lanjut, terdapat tiga kendala dalam pelaksanaan pengawasan berbasis wilayah yaitu perbedaan karakteristik wilayah, tantangan dalam ekstensifikasi pengawasan berbasis wilayah, serta ketidaksesuaian data wajib pajak. Kata Kunci : Basis Pajak, Kepatuhan, Penerimaan Pajak, Pengawasan Berbasis Wilayah.

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Equatorial Guinea's heir apparent likely to endure

Emerald Expert Briefings ◽

10.1108/oxan-db225743 ◽

2017 ◽

Keyword(s):

Vice President ◽

Tax Revenue ◽

Government Officials ◽

Tax Base ◽

Content Type ◽

High Profile ◽

High Dependency ◽

Oil Sector ◽

Corporate Social ◽

Revenue Projections

Significance The polls came shortly after last month's high-profile sentencing (in absentia) by a French court of Vice-President Teodorin Obiang. He received a three-year jail term and a fine of 30 million euros (36 million dollars) on corruption charges. However, both his jail term and fine were suspended, meaning that he will only face jail or pay the fine if he re-offends and is convicted in France. Teodorin has long been seen as heir apparent and likely to succeed his father. Impacts Teodorin's conviction may set a precedent for trials of senior government officials and their families in France. International energy firms will face more demands to buy locally and improve corporate social responsibility (CSR). The continued high dependency on the oil sector and a small tax base make non-oil tax revenue projections illusory.

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Gewerbesteuerreform 2008 – Belastungswirkungen bei Unternehmen und Gemeinden

Zeitschrift für Wirtschaftspolitik ◽

10.1515/zfwp-2008-0102 ◽

2008 ◽

Vol 57 (1) ◽

Cited By ~ 5

Author(s):

Michael Broer

Keyword(s):

Tax Reform ◽

Tax Revenue ◽

Corporate Tax ◽

Tax Base ◽

Corporate Tax Reform ◽

Interest Barrier

AbstractThe draft of a 2008 Corporate Tax Reform Law adopted in March 2007 also reforms the trade tax. This applies both to the rate and to the tax base. In future, not only the interest on permanent debt will be included in the tax base, but also all interest paid as well as the financing share of rents, leases and leasing instalments, though only at 25 % instead of 50 %. Since the interest barrier will also affect the trade tax base, it is still unclear how all the measures will affect the receipts of the municipalities and what tax burdens they will place on the various forms of business entity. Using the trade tax statistics from the year 2001, the changes in burdens resulting from the trade tax reform have been simulated. Taking account of the interest barrier, the result for municipalities is a drop in trade tax revenue. Incorporated businesses will have to pay less due to the reform and unincorporated companies will have to pay more.

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ESTIMASI ELASTISITAS DAN BUOYANCY PAJAK PERTAMBAHAN NILAI (PPN) DI INDONESIA

INFO ARTHA ◽

10.31092/jia.v3i0.51 ◽

2017 ◽

Vol 3 ◽

pp. 170-191

Author(s):

NFN Nurhidayati

Keyword(s):

Value Added ◽

Sales Tax ◽

Tax Revenue ◽

Public Expenditures ◽

Tax Rates ◽

Tax Base ◽

Luxury Goods ◽

State Revenue ◽

The Government ◽

Is Value

Tax revenue is the most important source of state revenue nowadays. One of the largest sources of tax revenue is Value Added Tax (VAT) and Sales Tax on Luxury Goods. Tax buoyancy and elasticity is a common measure employed to estimate tax revenue productivity. Concept of elasticity is used to determine the level of responsiveness of automatic (built-in) of tax revenue to the tax base. While the concept of buoyancy is useful to know responsiveness of tax revenue, both to the tax base and to changes in policy. By using the Divisia index during 1984 to 2012, this research specifies that the coefficients of buoyancy and elasticity are 0.99 and 0.82 respectively. It shows that the PPN / PPnBM (VAT and Sales Tax on Luxury Goods) relatively unitary buoyant, but less elastic to the tax base. While using the basis of sectoral GDP from 2005 to 2012, VAT revenues also inelastic with respect to the development of the tax base with a coefficient of 0.632 and a buoyant relative to GDP overall with a coefficient of 1.076. Inelastic tax system forces governments to continuously make discretionary changes, either in the tax bases or in the tax rates or both, in order to be able to keep up with increasing public expenditures. Moreover, the point elasticity indicates that manufacturing and mining sectors are fluctuating as the VAT key sector and the trade sector are relatively stable and buoyant. Therefore, the government needs to review the policies of both the base and the VAT structure, in particular for the manufacturing and the mining sector.

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Evaluasi Pelaksanaan Program Amnesti Pajak Tahun 2016 Di Indonesia

BIP's JURNAL BISNIS PERSPEKTIF ◽

10.37477/bip.v10i1.44 ◽

2019 ◽

Vol 10 (1) ◽

pp. 34-50

Author(s):

Setiadi Alim Limseti ◽

Lilik Indrawati

Keyword(s):

Tax Evasion ◽

Tax Avoidance ◽

Point Of View ◽

Tax Revenue ◽

Successful Implementation ◽

Tax Base ◽

Tax Revenues ◽

Tax Amnesty ◽

The Government

Income from the tax sector is generally the main income for all countries in the world in order to finance its activities. Increased revenue from the tax sector is often hampered, due to the large tax evasion and tax avoidance activities. Tax evasion and tax avoidance practices are triggered by the practice of low tax rates and other facilities provided by the tax heaven countries. In order to combat tax evasion and tax avoidance, the approach taken by each country is different. But basically approach done can be distinguished on soft apporach and hard approach. One approach that is classified as a soft approach is a tax amnesty program. In 2016 the Government of Indonesia is implementing a tax amnesty program based on Law Number 11 of 2016 concerning Tax Amnesty applied from 1 July 2016 to 31 March 2017. This paper will evaluate the successful implementation of the tax amnesty program that has been implemented in Indonesia. Evaluation is based on the achievement of 3 objectives, namely the repatriation of assets from abroad, expansion of the tax base and increase in tax revenue for the short and long term. From the point of asset repatriation, the tax amnesty program is considered quite successful, because although the target of asset repatriation is not achieved, but the asset repatriation has reached 30.54% of the estimated financial assets abroad. From the point of view of the expansion of the tax base, the number of declarations and repatriation reaches Rp. 4,737.56 trillion has exceeded the target. Meanwhile, from the point of view of increasing short-term tax revenues, the objective of the amnesty program can be considered quite successful, because it contributes 10.15% to the average amount of tax revenue in 2016 and 2017, although it has not been able to raise the growth rate of overall tax revenue for the year 2016 and 2017. Increased tax revenues for the long term can not be evaluated, because the tax amnesty program was completed 1 year ago.

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