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With a theoretical approach to tax incentives, direct taxes and their incidence on cooperatives, it was sought to identify the current Latin American legal systems for Income Tax. Especially, the norms that include the legal figures for the release of the tax are analyzed, verifying its scope, requirements and procedures for its application. It is based on the fact that the granting of incentives is based on the principle of tax equity and on the recognition of the countries about the benefits that they contribute to social and economic development. Therefore, the research is based on theoretical guidelines on incentives and equity for cooperatives. It is recognized that the region is heterogeneous but that it shares legal similarities, which makes it possible to contrast its regulations. For this reason, the comparative method was considered suitable. With this, the particularities of the normative systems of seventeen nations were understood, through the confrontation of their tax precepts, allowing the identification of their convergences and divergences. The results show that most of the countries integrate exemptions in the various legal devices and, to a lesser extent, countries that tax cooperatives with reduced rates or tariffs were distinguished. [ABSTRACT FROM AUTHOR]

We use firm-level data from a Colombian manufacturing survey, complemented with data from the tax department, to test the effect of firms' total tax and contribution rate (TCR) on the ratio of innovation expenditures to sales. We construct a data panel from 2003 to 2018 comprising 104,762 observations and implement fixed effects and instrumental variables estimation methods. Our results suggest that an increase of one percentage point in direct taxation leads to a decrease of 0.10% in the probability that firms engage in innovation investments, and market power moderates this effect. We discuss distinctive features of the effect of taxation on innovation in emerging economies—one being the inability of local innovation clusters to temper it. Policy implications include considering modifications to the magnitude and composition of the TCR as an alternative to R&D tax credits. [ABSTRACT FROM AUTHOR]

This text aims to assess the distributional impacts of taxation and spending on cash transfers, taking into account gender, race, class and intersectionality. To this end, the 2017/18 Household Budget Survey is used to estimate the impact of taxation and spending on cash transfers and the usual indicators of income concentration - the Gini index and the Concentration Coefficients. The findings show that the tax system burdens blacks more than whites and women more than men, mainly due to the position these groups occupy in the income distribution. Direct taxation, which has a greater impact on men and whites, is not able to completely mitigate the concentrated effect of indirect taxation, which penalizes blacks and women more. On the other hand, social spending on cash transfers is pro-poor, pro-women and pro-black, fulfilling its expected redistributive role. [ABSTRACT FROM AUTHOR]

This study tests the asymmetric impact of the tax burden structures under the forms of direct, indirect, and social contributions, upon the shadow economy. For this purpose, a panel dataset analysis of the 27 European Union (EU) Member States is conducted over the 2005–2018 time period. Our study supports the existence of a U-shaped relationship between tax burden and shadow economy only for the case of direct taxes, while for indirect taxes and social contributions, an inverted U-shaped relationship is validated. We also highlight different values of the resilience thresholds for all categories of taxes and contributions among the new EU members compared to the old ones. For direct taxes, the threshold beyond which the level of shadow economy increases is 2.61 times lower for new EU countries than for the old countries. In addition, both for the new and old EU countries, a level of indirect taxes beyond a threshold of 15.04% and 16.52%, respectively, would determine a decrease in the level of the shadow economy. The robustness checks performed using many control variables consolidate our results. Our findings are important for policy-makers to find the level of resilience of various states under different types of tax burden structures. [ABSTRACT FROM AUTHOR]

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Taxes are the major source of revenue for a country to run its administration while upholding its sovereignty. In India, revenue is collected through direct and indirect taxes with due adherence to the laws. With a revolution in the sphere of indirect taxation in India in 2016, there came the Goods and Services Tax (GST) Act of 2017. It subsumed all the existing indirect taxes under one single umbrella, i.e., GST, with the motto of establishing a ‘One Nation, One Tax’ policy. The basic intention behind such reform was to make the tax burden lighter on the taxpayer by removing the cascading effect and introducing a better and easy compliance mechanism that ultimately focused on enhancing the tax base for the government. Alongside, it also incorporated provisions relating to search, seizure, arrest, and bail with regard to indirect tax evasion in the country. This paper is an analytical study of the provisions pertaining to arrest and bail with conditions precedent as specified under the GST Act and the corresponding impact so far as the implementation of the Act is concerned. The paper also draws inferences from the judicial pronouncements in this regard. [ABSTRACT FROM AUTHOR]

This study generalises the tax progressivity index given in Kakinaka and Pereira (2006), which is unlike the traditional measures of tax progressivity that rely on the idea of the Lorenz curve, Gini coefficient, tax burdens and income distributions, can be computed on the basis of time series aggregate data on taxes and GDP. The extended version proposed here is decomposable into the tax progressivity indices for various components of tax and satisfies a number of desirable properties, including additivity, inclusiveness, unit independence, monotonicity, homogeneity, transfer principle and the principle of addition. The proposed index is applied to Pakistan's data over the 60 years period of 1960-2020 to investigate the nature of progressivity in the tax system. The results show overall tax structure has remained progressive during the entire period of analysis, but the degree of progressivity has declined over the years. The relatively more progressive taxes are sales and direct taxes other than income tax, while the regressive or less progressive taxes are federal excise and customs duty. [ABSTRACT FROM AUTHOR]

This paper aims to investigate the effects of various fiscal policy measures for small and open economies by analysing the implications of fiscal shocks in the Baltic countries based on data for the period from 1995 to 2018. For this purpose, we have chosen structural VAR estimation methods following Blanchard, O., & Perotti, R. (2002). An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output. The Quarterly Journal of Economics, 117(4), 1329–1368, approach and relied on local projections for robustness checks. We find that the impact on growth of direct taxes, government consumption and public investment is strong and persistent in the analysed cases. Although the responses of FDI to fiscal shocks are less consistent as compared to output, in most cases, we get strong and persistent negative reactions in FDI to increasing tax burden. [ABSTRACT FROM AUTHOR]

This article presents the financial overhaul and tax reform of the Polish Second Republic that occurred between 1924 and 1925 in order to show how the state expands, to what ends, and how society responds to this increase in state power. During this short period, we can observe the introduction of new policies and the strengthening of institutions. This reform program was based upon fundamental changes to the way that Poland taxed the economy, namely, relying much more on direct taxation that required interaction between citizens and their state. The state gathered information on business activity and demanded citizens surrender their income to the treasury. As the narrative below will display, taxing the society necessitated state building in the institutional sense, and the execution of these policies led to an expansion of state power in the minds of citizens as they were compelled to comply without a direct threat of coercion. But this was not without consequence. Citizens, especially Jewish merchants, reacted negatively to what was perceived as an unfair process of tax assessment and an outsized tax burden. Precisely at these moments of conflict between state and society, the state emerges and becomes legible. Building on earlier scholarship examining the ways in which states make their territory and citizens legible, this article also shows how the state becomes legible to its citizens. [ABSTRACT FROM AUTHOR]

Most of the literature on tourism taxation focuses on indirect taxes, on their use as a policy to promote tourism or as a system for collecting and controlling revenue. This document addresses an issue which has thus far remained almost unexplored; the direct taxation of tourism through the corporate tax borne by companies in the sector. The proposed objectives are twofold: first, to verify whether direct taxation leads to an additional tax on the tourism sector, which compensates for the lower collection due to the application of reduced rates in indirect taxation; and second, to ascertain whether there are differences between the different subsectors of the tourism sector in this regard. For this, a random sample of 16,266 Spanish companies for the period 2014–2018 is used, taken from the SABI (Iberian Balance Analysis System) base. Results show that Spanish tourism companies are taxed above average, although less than most subsectors of the services sector, such that it cannot be said that there is compensation for the lower VAT tax burden. However, the exception is travel agencies, who bear a much higher levy on corporate tax whilst at the same time enjoying a special VAT regime. [ABSTRACT FROM AUTHOR]

The aim of this study is to investigate the effect of taxes on democracy. In the study, 37 OECD countries were taken as a sample and the data between 2010-2019 were used annually. The study was conducted using panel regression method. In the study where two different models were created, the effect of both tax burden and tax structure on democracy was investigated. According to the results, the effect of tax burden on democracy was found to be statistically significant and positive. In terms of tax sutructures, while the effect of indirect taxes on democracy was found to be statistically significant and negative, the effect of direct taxes on democracy was found to be significant and positive. [ABSTRACT FROM AUTHOR]

In the current period, most EU countries are trying to significantly consolidate public finances. Increasing attention is focused on public revenue dedicated to efficient tax collection and tax evasion. In these times of high capital mobility, states have to face the possibility of outflows of capital abroad and act as competitors to each other in terms of attracting investment from abroad. Some countries try to attract foreign investors by offering them little or no tax burden. These situations are the subject of tax evasion investigations and the possibilities of reducing such tax evasion in direct and indirect taxes are also being investigated to a large extent. If they are reduced, higher tax revenues can be achieved without the need to raise tax rates. Tax administration includes the institutions directly responsible for collecting taxes in the state, and it is clear that the proper functioning of these authorities can have a significant impact on the extent of tax evasion. It is this issue that is addressed in this paper. [ABSTRACT FROM AUTHOR]

Direct taxation is characterized by the differentiation of the tax burden according to the size of income and/or wealth and the personal situation of each payer, with direct influence in the degree of their collection In the case of Romania, the share of the tax revenues administered by the National Agency for fiscal Administration, derived from the collection of direct taxes in the formation of public financial funds, has been decreasing in the last 10 years, because of reduction of the income tax rate from 16% to 10%, the transfer of the tax burden of compulsory social contributions obligations due from the employer to the employee. The last quarter of each year shows increases in the collection rate compared to the other annual quarters.The purpose of this paper defines the influence that economic developments, social decisions and fiscal policy, have on the collection of direct taxes. [ABSTRACT FROM AUTHOR]

In the European communities, the need for tax harmonization has begun to commence since the beginning of integration efforts in the 1960s. The first attitudes to tax harmonization were very ambitious. The plan was not only structural harmonization but also harmonization of tax rates. The paper examines the nature and course of the direct tax harmonization process, describes its advantages and disadvantages as well as the positive and negative effects of tax competition. The paper aims to examine the development and volume of selected income taxes collected in the Member States of the European Union. It tells whether the harmonization of income taxes is still a stagnant process. Cluster analysis deals with looking for similarities of multidimensional objects. Two clustering methods were used – hierarchical agglomeration clustering and non-hierarchical clustering. Cluster analysis aimed to achieve groups of states that would have some homogeneity. Cluster analysis sorted the data into sets with the highest possible similarity within the group and the most significant difference between the groups. Analysis of tax burden and income tax rates confirmed significant differences in these indicators across the EU. On the other hand, cluster analysis revealed similar developments in tax systems in terms of their geographical location in Europe. Cluster analysis can be used to suggest possible steps to co-operate in harmonizing Member State taxes in the future. The authors of this article propose the possibility of harmonizing taxes and cooperating gradually within clusters rather than trying to apply uniform rules in all EU Member States at the same time. The conclusion of the article raises problems in the field of harmonization of direct taxes in the EU. The possibility of preserving autonomy in deciding on tax burden in the country is left to the many Member States because they see that autonomy as a competitive advantage, particularly in the field of investment. [ABSTRACT FROM AUTHOR]

Despite the heated debate on the negative consequences of posting in host countries, the profile and impact of this phenomenon have not yet been mapped in detail. For example, to date there is no further breakdown of the subsectors in the industries where the workers are posted. The question is also whether posting causes a shift in internal jobs in each sub-sector. At the same time, information on economic entities using posted workers' services, which is the profile of internal labor force companies vs. the profile of those who prefer posted workers. The European Union has developed employment protection or job creation policies but it has not yet been possible to harmonize fiscal policies with a view to the application by all Member States of a unified fiscal policy on direct taxation. Tax reforms differ from one Member State to another in scope and depth, but their main objective is to reduce the tax burden, especially for low wage staff. In this paper is highlight the necessity of a harmonization regarding the posting in EU, and I hope that this study will help the company and its accountants to understand better the fiscal interpretation of posting from Romania in another country from European Union. [ABSTRACT FROM AUTHOR]

This paper solves the question of the Czech households’ tax burden and its trend during the period from 2005 to 2015. Authors identified three groups of model Czech households based on the Czech Statistical Office data. The consumer basket structures, the median income, direct and indirect taxes rates were the parameters covered by the analyses. The weighted VAT tax rates were calculated for the consumer basket items valid for the year 2015. The year 2015 was used as the reference one for the rest of the period. The results show the estimated cumulative tax burden including direct and indirect taxation in 2015 and the previous years. The paper identified the changes and the trend of taxation level relating the Czech households. [ABSTRACT FROM AUTHOR]

El objetivo de este artículo es incorporar la dimensión de género en el análisis de la incidencia tributaria. Para ello se calculan los efectos de los impuestos directos e indirectos en la distribución del ingreso según el género en la Argentina, con miras a establecer el grado de progresividad de los impuestos y su efecto en la equidad de género conforme la clasificación de los hogares. Los resultados muestran que mientras el sistema tributario es moderadamente progresivo y la mayor carga recae sobre los hogares con hombres como perceptores de ingreso, surgen diferencias al considerar impuestos indirectos y directos por separado. Los primeros son fuertemente regresivos y los hogares con mujeres como perceptoras de renta soportan la mayor carga por estar concentrados en los tramos de ingreso más bajos. Los hogares con niños soportan la mayor carga de impuestos directos, particularmente aquellos en los que existen hombres perceptores y perceptores duales. [ABSTRACT FROM AUTHOR]

Aim/purpose - The purpose of this article is a presentation of the principles of tax law equality with the aim of establishing the significance of these rules for the system of direct taxation in Poland. Only forms of taxation have been selected to conduct this analysis because they offer the most transparent and variegated picture of the real tax burden. Design/methodology/approach - The article follows the method of economic comparative analysis and offers a review of available literature on the subject. Findings - This analysis proves that the choice of different types of income taxation for natural persons conducting business activity has influence on tax burden. Research implications/limitations - The system of direct taxation in Poland has problems with equality rules because of different tax rates and tax returns which are available in Polish law. Originality/value/contribution - This article presents the problem of tax law equality in the context of economic theories developed by selected economists. [ABSTRACT FROM AUTHOR]

The Czech Parliament approved a wide-ranging reform of direct taxes in 2011. Absent other legislative changes, the reform will come into force on January 1, 2015. We evaluate its impacts on the tax burdens and the average and marginal tax rates in a representative sample of Czech individuals and households. The main impact of the reform is a reduction in the average tax rates for the self-employed in the 5th through 10th income deciles, most frequently by 4.4 percentage points. The variation in the change in the average tax rates among the self-employed in low incomes deciles is large and varies between minus 5 to plus 5 percentage points. The reform would reduce the taxes for most employees only slightly but it would increase the average tax rate by up to 5 percentage points for employees with earnings exceeding four times the average wage. The effective marginal tax rates faced by the self-employed would drop most commonly by either 4.4 or 10-11 percentage points, while the effective marginal tax rates faced by employees would remain unchanged. The impacts on the households are highly heterogeneous depending on the share of income from self-employment in the household's total income. The reform would reduce the budget revenues by approximately CZK 19 billion. [ABSTRACT FROM AUTHOR]

One common feature of the current literature on corruption, especially the empirical contributions to it, is the emphasis on the exogenous determinants of corruption, which are generally beyond the direct control of governments. To date, little is known about how the design of government policy potentially affects the level of corruption in a country, even though there is growing recognition that the design and administration of tax and spending policies play important roles in promoting or discouraging corrupt practices. Using a large sample of countries over the 1995-2009 period, this paper fills the gap by conducting the first analysis in the literature to examine the significance of the tax structure, as measured by both tax mix and tax complexity, in determining corruption. Our results suggest the following: (1) countries relying more heavily on direct taxes tend to exhibit less corruption than countries that rely more heavily on indirect taxes, and (2) countries with more complex tax systems tend to be more corrupt than countries with less complex tax systems. These results are robust across alternative measures of corruption and tax structure and alternative estimations with and without correcting the potential endogeneity issue of the tax structure variables. [ABSTRACT FROM AUTHOR]

In 2007, the Uruguayan government implemented a tax reform which introduced a new progressive labour income tax and a flat capital income tax, and reduced some indirect taxes, with the objective of improving fiscal balance, income distribution and economic growth. This article evaluates the impact of such tax reform on equity and efficiency on the basis of data derived from the Encuesta Continua de Hogares (ECH) for 2006 and 2009. Using a Difference-in-Differences technique, it shows that the new system reduced inequality by 2 Gini points without producing any discernible disincentive effect, suggesting that suitably designed reforms of direct taxation can simultaneously promote equity and efficiency. [ABSTRACT FROM AUTHOR]

This article provides a study of the theoretical and applied aspects of the relationship between tax burden and innovation activities.The hypothesis of the transmission mechanism between tax burden and innovation activities might be illustrated by the following logical chain:Tax burden -> Tax incidence -> … -> Innovation activities. It is reasonable to interpret tax burden and tax incidence relationship in terms of the approach of «losses-benefits».This approach creates a theoretical basis for explaining not only the reversed, but also the direct link - a situation where the increase of tax burden (up to a certain optimal amount) does not limit innovation activities.An attempt is made to evaluate the closeness of this relationship between tax burden and innovation activities in EU countries and Ukraine. For the calculation based on panel data from 27 EU countries we used the information of eight parameters, six of which are indicators of tax burden, and the last two - indicators of innovation activities.The tax burden in the EU, as defined by the percentage of all collected taxes to GDP, and the share of direct taxes are closely related to two innovation activities indicators - innovation activities index and the share of expenditure on innovation activities in GDP. Our findings in the area of the relationship between indicators of tax burden and innovation activities in Ukraine give grounds to draw the following conclusions: this relationship is unlikely to exist or, if it exists, it is inverse, i.e. an increase in the tax burden, (as the share of total taxes in GDP and as the share of indirect taxes in GDP) limits the volume of innovation activities.The conclusions stress the importance of the investigation of the relationship between tax burden and innovation activities for the Government tax management decisions. [ABSTRACT FROM AUTHOR]

The paper shows through comparison, in the first phase, the main features of the tax system focusing on direct and indirect taxes, in Finland and Romania, and then presents an analysis of the evolution of the structure and level of taxes in both countries. Last but not least, is presented an analysis of the level of tax burden and also the factors that influenced the pressure in these two countries. The diversity of the fiscality in Finland and Romania reflecting the political choice of a given moment and is the result of the economic and social structure of each country. [ABSTRACT FROM AUTHOR]

The Government of Jamaica imposes a variety of taxes on the earnings of labor. Jamaica's direct taxes and charges on labor income include the pay-as- you-earn (PAYE) income tax and five payroll taxes. In total, these taxes generate nearly one-third of the total tax revenues of the government in fiscal year 2002-2003, with the PAYE itself responsible for more than one-fifth of total revenues. This article uses unique micro-level data to analyze the vertical and, especially, the horizontal equity of these taxes. The authors find that the taxes are generally progressive in their overall pattern of incidence but that they also introduce significant horizontal inequities due to their uneven coverage and their many special provisions. [ABSTRACT FROM AUTHOR]

The article focuses on the right tax system for Australia's future is most likely to stimulate productivity and economic growth. It mentions the Tax Institute endorses the pursuit of a tax system with lower, simpler and fairer taxes. It also mentions that uniformity in state and territory legislation should be pursued, as well as simplification of the administrative burden.

This article shows how effective state sales and income tax rates are affected by the U.S. federal income tax system and vice versa. The analysis has been conducted in the contexts of both the status quo and the president's proposal. In the discussion of the method for doing the calculations, researchers were careful to stress its limitations. At this juncture, they would like to note again one of these limitations-the calculations are "static" in the sense that they do not take into account possible behavioral reactions by governments and households. People may not believe that' federal marginal tax rates will stay at the levels in the president's proposal. A federal income tax base including state and local taxes may ultimately lead to higher tax burdens than are possible under the status quo. Perhaps some people who are against the proposal anticipate that it would generate substantial pressure to lower state and local government expenditures, and they view these expenditures as particularly desirable from a social point of view. Alternatively, opposition to the removal of deductibility may be coming from those who have a special interest in the existence of large state and local public sectors-elected officials, civil servants, public sector union leaders, et al.

The article focuses on current discussions of federal tax policy in the U.S. that center around the development of instruments for general price control. Taxes are being sought which are capable of producing large amounts of revenue, which are flexible-i.e., responsive to rate changes administratively feasible, and under which collections would follow hard upon the enactment of the tax. Although a number of suggestions along these lines were made when the last revenue bill was under consideration, one proposal seemed to achieve far and away the most general support among professional economists. This was a tax imposed on personal net income and collected at the source. Distributional considerations play a major role in this judgment. The net income tax is viewed as the "just tax" par excellence. Current theories of incidence seem to show that this form of taxation alone permits the exemption of small incomes as well as the nice adjustment between the size of the tax and the amount of the income received, which contemporary attitudes on the question of equity in taxation seem to require.

The article examines the divisions of the tax burden among income groups in the United States in 1936. The questions of who pays our taxes and who should pay them are perennial. Economists have long discussed the question of tax shifting to explain why certain taxes are or are not a burden upon the immediate payers thereof. In the studies referred to, there were five different assumptions regarding tax shifting. These assumptions were, personal income tax, death and gift taxes, business net income and capital stock taxes, stock transfer tax and mortgage tax. The next problem was to combine the estimates for farm incomes of $500, $1,000, and $2,000 with the wage-earner incomes of $1,000 and $2,000 to get representative figures for income receivers in the country as a whole. At the $5,000 level the merchant and salaried employee estimates of the Twentieth Century Fund (TCF)also had to be correlated and then from the combined figures interpolations were required to fill the gaps between the representative incomes chosen. From the tax burden estimates of the TCF study Lorenz curves were plotted for each of the New York and Illinois hypotheses and figures for the seven interpolated incomes were read. With these basic data in hand, the tax burden of the representative (median) case by the number of cases was multiplied to get the total tax burden of the group. These results are compiled in the article.

Tax directors are scrutinising their cash-flow models, while some large businesses are outsourcing more of their tax functions to the Big Four accounting firms to help with incoming tax and legal changes in the US, UK, and EU. [ABSTRACT FROM AUTHOR]

The study applies a multi-sector multi-household static computable general equilibrium (CGE) tax model to assess the economy-wide impacts of taxes in Vietnam. It examines two tax reform scenarios based on the tax reform plan proposed by the Vietnam Ministry of Finance. The first scenario is increasing the value-added tax (VAT) rate to 12% from the current 10% rate. The second scenario relates to setting a competitive corporate income tax (CIT) rate to the lowest rate in ASEAN (Associations of South East Asian Nations) countries by reducing it from 20% to 17%. Correction of current tax distortions will have positive impacts on labour supply, utility, consumption, output, and welfare of households as they reallocate resources from more to less productive sectors of the economy. The CGE model allows for the finding of the macroeconomic and sectoral effects on prices and outputs, as well as on welfare of households. While this study contributes to the literature on the CGE model for the Vietnam economy, it is a small step for finding the optimal tax structure in Vietnam. It recommends that the Vietnam government should increase the standard VAT rate to 12% and reduce CIT rate to 17% to shift the tax burden from capitalists to consumers. [ABSTRACT FROM AUTHOR]

This article deals with the issue of taxation in the common market countries of European Economic Community (EEC). The Treaty Establishing the European Economic Community provides for the "harmonization" of the systems of indirect taxation of the members and for the reform of direct taxing which "distorts the conditions of competition." As customs and exchange barriers disappear, the economic variations remaining among the six countries, including their internal tax systems, will assume increasing importance. Taxation is relatable to many general provisions of the EEC Treaty designed to promote the free flow of goods, "persons, services and capital." Taxes imposed on sales range from a low of 2% on each stage of transfer in Luxembourg to a high of 20% in France. Payroll related taxes borne by the employer to support social insurance and benefits of various forms range from 1.2% of the payroll in Luxembourg to 50% in France and Italy. With the progressive relaxation of barriers to the free flow of capital and labor, certain economic movements may be expected to compensate for the inequalities, which exist. Capital will be induced away from France and Italy and toward the Benelux countries and Germany.