scholarly journals Capital, an Elusive Tax Object and Impediment to Sustainable Taxation

2020 ◽  
Vol 23 (2) ◽  
Author(s):  
Henry Ordower
Keyword(s):  
Income Tax ◽  
Value Added ◽  
Horizontal Equity ◽  
Environmental Taxes ◽  
High Price ◽  
Vertical Equity ◽  
Tax Base ◽  
Goods And Services ◽  
Base Modifications ◽  
Do So

Sustainable taxation requires stability and predictability. Sustainable taxation is a tax or taxes that collect sufficient revenue to support the governmental goods and services the society needs and wants. The taxes must provide for: 1) even-handedness—something akin to horizontal equity; 2) distributional fairness—aconcept emerging from notions of vertical equity; 3) transparency in application so that the populace understands and accepts the tax and the need for it; and 4) collection mechanisms that do not favor some societal groups, especially those with resources to secure creative tax advisors, over others who lack the resources. Narrow base taxes—fuel, alcohol, tobacco—cannot meet these criteria and the broad base taxes currently applicable—value added, payroll, and income—alsofail to meet one or more of the criteria. While specialized taxes like environmental taxes and sin taxes—alcohol, tobacco—serve useful regulatory functions and may achieve their behavioral objectives in part, they do so primarily by increasing the cost of engaging in the undesirable behavior and pricing some actors out of the activity. Using a pricing rather than a direct regulatory mechanism, the specialized taxes change the conversation from social rejection of the behavior to acceptance as long as the actor is willing and able to pay the high price. Is it all right to pollute if one pays to do so? Direct regulation might prove less regressive and less likely to be viewed as simply a matter of price and more as a matter of societal mainstream and commitment to addressing a problem. To secure sustainable taxation this Article recommends a non-preferential income tax on a comprehensive income tax base. While by no means a new idea, the growing resource disparity between affluent individuals and individuals with limited resources renders the idea of a non-preferential income tax on all income including realized and unrealized gains all the more compelling. This Article outlines a method for transition to the recommended tax base from the current realization-based tax base and suggests that in limited cases a taxpayer might defer payment of tax on some items of income but not defer inclusion of the items in the tax base. As it describes its tax plan, this Article reflects on the objectives and shortcomings of the targeted taxes and purposive tax base modifications that have proliferated during the 20th century. This Article concludes that a non-comprehensive tax base may accomplish narrow objectives successfully but is unlikely to become functionally sustainable to support essential governmental goods and services. Neither are targeted taxes and purposive tax base modifications fully justifiable. They are likely to distribute tax burdens unevenly among taxpayers without any compelling reason for preferring some taxpayers to others. The narrowness of the base of such taxes frequently leads to regressive tax incidence.

scholarly journals Professional Opinions And Attitudes On Tax Policy In Bosnia And Herzegovina With A Special Focus On The Federation Of Bosnia And Herzegovina

2015 ◽  
Vol 10 (2) ◽  
pp. 29-44 ◽  
Author(s):  
Lejla Lazović-Pita ◽  
Ana Štambuk
Keyword(s):  
Bosnia And Herzegovina ◽  
Tax Policy ◽  
Income Tax ◽  
Value Added ◽  
Special Focus ◽  
Tax Reforms ◽  
Tax Base ◽  
Excise Duty ◽  
Efficiency Principle ◽  
Definition Of

Abstract This research is based on tax policy opinion survey data collected in Bosnia and Herzegovina (B&H) among tax experts. A special focus of the survey was to investigate the consequences of the different institutional environments that exist between the two entities of the country. After having reviewed all previous tax reforms in B&H, the most interesting results suggest that respondents agree on the introduction of a progressive personal income tax (PIT) and excise duty on luxury products, the maintenance of personal and family allowances and the maintenance of the current value added tax (VAT) and corporate income tax (CIT) rates. However, differences exist in the respondents’ perceptions about the introduction of reduced VAT rates, the regressivity of the VAT, and giving priority to the equity principle over the efficiency principle in taxation. Probability modelling highlighted these differences and indicated inconsistencies in the definition of the PIT tax base, namely the comprehensiveness of the PIT base under the S-H-S definition of income.

scholarly journals Value Added Tax & Export: the Case of Selected Countries around the World

2011 ◽  
Vol 2 (6) ◽  
pp. 298-305
Author(s):  
Ahmad Jafari Samimi
Keyword(s):  
Value Added ◽  
Statistical Test ◽  
Annual Growth ◽  
Value Added Tax ◽  
Tax System ◽  
Goods And Services ◽  
The World ◽  
Before And After ◽  
The Impact ◽  
Do So

The purpose of the present paper is to compare the impact of implementing Value Added Tax on Export of goods and services in selected countries. In this paper, we used four different indices for export; export of goods and services, export of goods and services (BOP), export of goods and services (annual % growth), export of goods and services (% of GDP) to investigate the sensitivity to different definitions .To do so, study concentrated on a sample of 140 countries that have applied Value Added Tax in their tax system from 1990 to 2008. Findings of the study based on Mean Difference Statistical Test in a two threeyear periods before and after introduction of VAT. In general, the results show that, in different indices, the impact of VAT on export is positive. Therefore, it is suggested that other countries have not yet introduced the VAT to reform their tax system by introducing the VAT.

scholarly journals PERPAJAKAN DI ERA EKONOMI DIGITAL: INDONESIA, INDIA DAN INGGRIS

2019 ◽  
Vol 4 (2) ◽  
pp. 215-230
Author(s):  
Yanis Ulul Az'mi
Keyword(s):  
United Kingdom ◽  
Income Tax ◽  
Consumer Demand ◽  
New Technology ◽  
Value Added ◽  
Tax Law ◽  
Goods And Services ◽  
The United Kingdom ◽  
Income Tax Law ◽  
The Government

The development of new technology and diverse consumer demand has increased the digital retail industry today. This also affects the way buyers / consumers get the goods and services they want. Consumers turn to e-commerce and cellular to make purchases that are usually done physically. This change in shopping style has been driven largely due to the emergence of many market places and platforms. This change will also have effect on the taxation of the transaction. The Government of India applies the Equalization Levy Rules (EQL) scheme which is categorized as PNBP (Non-Tax Revenues). While in the United Kingdom there is a Diverted Provit Tax (DPT) scheme. Whereas Indonesia has no more specific rules, there is only a Circular (Surat Edaran) that regulates the Affirmation of Tax Regulations on e-Commerce Transactions, namely SE / 62 / PJ / 2013 tax regulations e-commerce follows the income tax law and value added tax.

scholarly journals KONTRIBUSI, EFEKTIVITAS, EFISIENSI, DAN FAKTOR-FAKTOR YANG MEMPENGARUHI PENERIMAAN PAJAK PERTAMBAHAN NILAI

2015 ◽  
Vol 15 (1) ◽  
pp. 35
Author(s):  
M. Syarif Mulyadi
Keyword(s):  
Income Tax ◽  
Value Added ◽  
Least Square ◽  
Tax Revenue ◽  
Value Added Tax ◽  
Tax Base ◽  
Tax Rate ◽  
Point Increase ◽  
Exemption Policy ◽  
Negative Effect

This paper examines the contribution, the effectiveness, and the efficiency of value added tax (VAT) revenue.lt also investigates the variables affecting the value added tax revenue. Using the ratio of VAT revenue to total government expenditures as the measurement of the contribution shows that VAT revenue contribution is 33 percent in average lower than income tax revenue contribution. Meanwhile the effectiveness of VAT is around 3,5 percent, still below the income tax effectiveness. In addition, the c-efficiency ratio is 0.50 in average which means that every 1 point increase in VAT tax rate results in an increase in VAT revenue by 0,50 percent of GDP. Furthermore, using ordinary least square estimation, the VAT revenue is determined by tax base, regulations, and the exemption policy where household and government consumption as tax base have positive and significant effect on VAT whereas previous import has a negative effect on VAT revenue.

scholarly journals MEMAJAKI TRANSAKSI EKONOMI DIGITAL: STUDI KASUS DI INDIA, PERANCIS, DAN AUSTRALIA

2020 ◽  
Vol 2 (1) ◽  
pp. 1-12
Author(s):  
Suwardi . Suwardi ◽  
Alan Budiandri ◽  
Cinthya S. ◽  
Ghifri N. A.
Keyword(s):  
Literature Review ◽  
Income Tax ◽  
Value Added ◽  
Regulatory Framework ◽  
Value Added Tax ◽  
Goods And Services ◽  
Physical Presence ◽  
Foreign Supplier ◽  
The Government

The digital tax is imposed on the transaction of goods and services carried out with Domestic Taxpayers or with Foreign Taxpayers without a physical presence in Indonesia. To date, the existing regulatory framework makes it impossible for Indonesia to tax those transactions. Digital taxation concepts that can be applied by Indonesia include the Income Tax and Value Added Tax. Digital tax can also be done by using a new concept specifically regulating digital tax. Indonesia introduced VAT for the foreign supplier in the mid-2020. Data were obtained through a literature review of countries that had applied taxes on digital economic transactions before Indonesia. This paper is expected to provide input for the Government of Indonesia in taxing digital transactions.Pajak digital merupakan pajak yang dikenakan atas transaksi pertukaran barang dan/atau jasa yang dilakukan oleh sesama Subjek Pajak Dalam Negeri maupun dengan Subjek Pajak Luar Negeri yang keberadaan fisiknya tidak ada di Indonesia. Alternatif pemajakan digital yang dapat diterapkan oleh Indonesia diantaranya menggunakan konsep Pajak Penghasilan (PPh), Pajak Pertambahan Nilai (PPN) atau dapat pula dilakukan dengan menambahkan jenis pajak baru khusus mengatur pajak digital. Indonesia baru mengenakan pajak untuk jenis PPN atas transaksi digital pada pertengahan tahun 2020. Data diperoleh melalui tinjauan literatur atas negara-negara yang telah menerapkan pajak atas transaksi ekonomi digital sebelum Indonesia. Tulisan ini diharapkan dapat memberikan masukan bagi Pemerintah Indonesia dalam memajaki transaksi digital.

scholarly journals METHODOLOGICAL APPROACHES TO THE ASSESSMENT OF THE TAX POTENTIAL OF THE REGIONS OF UKRAINE

2021 ◽  
pp. 72-80
Author(s):  
Svitlana Demydenko ◽  
Viktor Demydenko
Keyword(s):  
Income Tax ◽  
Value Added ◽  
Real Income ◽  
Gross Regional Product ◽  
Tax Base ◽  
Excise Tax ◽  
Advantages And Disadvantages ◽  
Tax Revenues ◽  
Potential Index ◽  
Regional Product

The article considers the essence and main properties of the tax potential of the region. The structure of tax potential, including three main components – realized, unrealized and forecasted ones – is studied. It is proved that the main sources of tax potential formation are potential tax revenues, opportunities of taxpayers, tax base resources and rates. The results of an analysis of tax revenues structure in Consolidated Budget of Ukraine for 2013–2019 have shown that the actual tax revenues, forming the realized component of the tax potential, occupy the largest share among all types of budget revenues. The main budget-forming taxes in Ukraine are personal income tax, value added tax, corporate income tax, and excise tax. The characteristics of the existing methods of assessing the tax potential in the region, their advantages and disadvantages are given. To assess the tax potential of the regions in Ukraine, the method using the index of tax potential based on gross regional product has been applied. The analysis of the tax potential index has allowed to systematize the regions of Ukraine into groups according to the indicator of tax capacity, to objectively assess the real income opportunities of each region in the country and to prove that the factors of influence on increasing tax potential should be the growth of gross regional product and income. It is proved that the assessment of tax potential is an important step in the system of tax planning and forecasting, which is based on information about the level of potential income. Based on the results of the assessment of the tax potential of the regions, it is advisable to develop measures aimed at expanding and improving the structure of the tax base, which may be prospects for further development in this area.

scholarly journals UNIFORM INTERNATIONAL TAX COLLECTION AND DISTRIBUTION FOR GLOBAL DEVELOPMENT, A UTOPIAN BEPS ALTERNATIVE

2021 ◽  
Vol 12 (2) ◽  
Author(s):  
Henry Ordower
Keyword(s):  
Income Tax ◽  
Multinational Enterprises ◽  
International Agency ◽  
Tax Revenue ◽  
Moral Claim ◽  
Absolute Poverty ◽  
Tax Base ◽  
Income Source ◽  
Developed Economies ◽  
Goods And Services

Under the guise of compelling multinational enterprises (MNEs) to pay their fair share of income taxes, the OECD and other multinational agencies have introduced proposals to prevent MNEs from eroding the income tax base of developed economies by continuing to shift income artificially to low or zero tax jurisdictions.  Some of the proposals have garnered substantial multinational support, including recent support from the new U.S. presidential administration for a global minimum tax.  This Article reviews many of those international proposals.  The proposals tend to concentrate the incremental tax revenue from the prevention of base erosion into the treasuries of the developed economies although the minimum tax proposal known as GloBE encourages low tax countries to adopt the minimum rate.  The likelihood that and zero tax countries will transition successfully to imposing the minimum tax seems uncertain. Developed economies lack a compelling moral claim to incremental revenue so this Article argues that collecting a fair tax from MNEs and other taxpayers should be a goal that is independent of claims on that revenue.  The Article maintains that to prevent tax base erosion, the income tax base and administration must be uniform across national borders and the Article recommends applying uniform rules administered by international taxing agency.  The Article explores the convergence of tax rules under such an international taxing agency. Distribution of tax revenue by the international agency should follow contextualized need.  In addressing the conundrum of absolute poverty in the undeveloped and developing world vis á vis relative poverty in the developed world, the Article proposes that the taxing agency should distribute all incremental revenue from the uniform tax where the need is greatest to ameliorate absolute poverty and improve living standards without regard to income source.  The location of income production, destination of the produced goods and services generating the income, and residence of the income producers should not determine the tax revenue distribution.  Rather, the use of contextualized need for distribution determination will enable developed economies to receive sufficient revenue to maintain their existing infrastructures and governmental services.  Developed economies should forego new revenue, for which they have not budgeted, in favor of improving worldwide living conditions for all.  The proposals for uniform, worldwide taxation and revenue sharing based on contextualized need are admittedly aspirational and utopian but designed to encourage debate on sharing of resources in our increasingly globalized world.

Assesment of the Results of Personal Income Tax Reform in Russia

2003 ◽  
pp. 61-77
Author(s):  
S. Sinelnikov-Murylev ◽  
S. Batkibekov ◽  
P. Kadochnikov ◽  
D. Nekipelov
Keyword(s):  
Tax Evasion ◽  
Income Tax ◽  
Tax Reform ◽  
Personal Income ◽  
Vertical Equity ◽  
Personal Income Tax ◽  
Tax Base ◽  
Tax Rate ◽  
Tax Revenues ◽  
Income Tax Reform

The paper contains results of the analysis of personal income tax reform in Russia in 2000, including the influence of the reform on tax base, tax revenues and progressivity of income taxation. On the basis of the theoretical model the authors formulate two main hypotheses, concerning the influence of major factors on personal income tax revenues and tax base. The first hypothesis implies that the decrease in marginal income tax rate caused the decrease in personal income tax evasion, increase in tax revenues and tax base. The second hypothesis is that the decrease in tax evasion, especially among taxpayers with high incomes, increased their tax burden and, as a result, the level of vertical equity. The paper also includes the results of empirical tests of the above hypotheses about the change in tax evasion and progressivity using the regional data in 2000 and 2001; a number of measurers in the sphere of economic policy is put forward.

scholarly journals Justifikasi hukum Islam atas pajak dalam perspektif hukum dan ekonomika

2019 ◽  
Vol 18 (1) ◽  
pp. 1
Author(s):  
Arvie Johan
Keyword(s):  
Income Tax ◽  
Islamic Law ◽  
Law And Economics ◽  
Low Cost ◽  
Value Added ◽  
Demand Elasticity ◽  
Deadweight Loss ◽  
Value Added Tax ◽  
Tax Base

In the earliest period of islam, islam introduced jizya, kharaj, and 'ushr as taxes. In its development, taxes are expanded into more complex types such as: income tax, value added tax, land tax, and customs. This expansion of tax base requires justification of how extent islamic law covers scope for expansions of tax base. This paper uses a law and economics approach to examine the range of islamic law to conform scope for expansions of tax base. The paper scrutinises in advance a common dilemma between Islamic law and law and economics in dealing with taxes: budgetair and deadweight loss. To achieve welfare, good taxes concern several aspects, among other: a large number of tax object, cross demand elasticity, a impact of reducing the gap, and low cost administration.

scholarly journals Tax Revenue and Nigeria Economic Growth

2020 ◽  
Vol 3 (1) ◽  
pp. 30
Author(s):  
Emmanuel Onoja Eneche ◽  
Ibrahim Ademu Stephen
Keyword(s):  
Economic Growth ◽  
Tax Evasion ◽  
Significant Relationship ◽  
Income Tax ◽  
Computer Software ◽  
Value Added ◽  
Tax Revenue ◽  
Value Added Tax ◽  
Goods And Services ◽  
Short Run

This study examines the relationship between Tax Revenue and Nigeria Economic Growth. In order to achieve this objective, data was gathered through secondary means. Tax Revenue is proxy by Petroleum Profit Tax, Value Added Tax and Companies Income Tax, while Economic Growth is proxy by Gross Domestic Product. Data collected were analyzed with the aid of the Stata computer software. The study revealed that Petroleum Profit Tax (oil tax revenue) has a positive but no significant relationship with Nigeria Economic Growth, while Value Added Tax and Companies Income Tax (non-oil Tax Revenue) have significant relationship with Nigeria Economic Growth. The study recommends that government should minimize the wide spread corruption and leakages prevalent in tax administration in Nigeria, and transparently and judiciously account for tax revenue generated through the provision of more quality public goods and services, and need not to increase the rates of Value Added Tax and Companies Income Tax in the short run, but to closely monitor the operations of companies engaged in petroleum operations to minimize tax evasion, and as well as support the development of entrepreneurial activities in order to significantly increase Tax Revenue so as to sustain the significant relationship of VAT and CIT (non-oil tax) revenue with Nigeria Economic Growth.

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