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The purpose of this study is to examine the effect of Environmental, Social, and Governance (ESG) disclosure and tax avoidance on the cost of capital, with firm size serving as a moderating variable. The population of this study consists of all companies listed on the Indonesia Stock Exchange (IDX) that have been included in the SRIKEHATI index at least once, focusing on the 2018-2021 period. The sample was obtained through a purposive sampling method, and a total of 121 companies were included in the analysis. The results of the study show that ESG disclosure has a negative effect on the cost of capital, indicating that companies with better ESG practices can reduce their cost of capital. Conversely, tax avoidance was found to have a positive effect on the cost of capital, suggesting that companies engaging in tax avoidance face higher costs of capital due to the perceived risks or uncertainties related to their tax practices. Additionally, firm size was found to strengthen the relationship between ESG disclosure and tax avoidance on the cost of capital, indicating that larger firms experience more pronounced effects of ESG practices and tax strategies on their capital costs. This research contributes to the understanding of how ESG disclosure and tax strategies influence financing costs, especially for larger firms in the Indonesian market. [ABSTRACT FROM AUTHOR]

Cryptography is used by cryptocurrencies to shift money without the intervention of centralized financial institutions. They are decentralized digital assets. On rapidly changing exchanges like those for crypto currencies, it is a tremendously taxing procedure for people to keep track of many simultaneous instantaneous price changes. As a solution to this, computer software that can make fast and objective decisions by constantly observing can replace humans. In this study, the closing price of Bitcoin (BTC), which has the highest volume in the crypto money system, is analyzed. In the study, in which the Gaussian Process Regression (GPR) model and the SMOTE method were used, data belonging to BTC for the period between 25/07/2010 and 05/06/2022 were used as the data set. Opening price, highest-lowest price, volume, dollar index and some indicators used in technical analysis were used as input parameters. The kfold method was followed in the separation of training and test data. The data is divided into 5 subsets with kfold. The mean MAPE value was found to be 1887, and the mean R2 value was found to be 0.99977 in the models with SMOTE. In addition, the GPR model and the GPR model functions that were applied to the SMOTE method were compared by excluding the opening price, which was the price that was highest-lowest, from the data. It was carried out to determine which model performed better. [ABSTRACT FROM AUTHOR]

Promoting the seamless integration of the digital economy with the real economy, mitigating the adverse impacts of widespread corporate tax avoidance, and optimizing tax governance are critical imperatives in the era of digital economy. This study examines all A-share listed companies from 2007 to 2022 as research samples. It utilizes multiple perspectives including signal theory, information asymmetry theory, and the T-O-E (Technology-Organisation-Environment) framework to investigate the primary impacts of digital transformation on corporate tax avoidance, along with the intermediate mechanisms and foundational conditions that influence its effectiveness. After conducting both theoretical and empirical analyses, this paper presents the following conclusions. (1) The implementation of digital transformation significantly reduces corporate tax avoidance, a conclusion supported by rigorous robustness tests. Moreover, digital transformation enhances corporate productivity through the suppression of tax avoidance. (2) Digital transformation diminishes corporate tax avoidance through enhanced innovation and efficiency in resource allocation (technology level), improved quality of internal controls (organization level), and decreased industry competition (environment level). (3) The impact of digital transformation in reducing tax avoidance is significantly greater for enterprises in their growth phase, experiencing lower financing constraints, particularly those situated in the central and western regions. (4) Lower business risk is essential for maximizing the effectiveness of digital transformation and reducing corporate tax avoidance. This is crucial for governments seeking to improve tax administration, guide market and regional development, and enhance the impact of corporate digital transformation on mitigating tax avoidance. [ABSTRACT FROM AUTHOR]

This study investigates the effect of the shadow economy on tax revenue and the moderating effect of mobile phone penetration in Sub-Saharan Africa. Using data on 26 SSA countries over 11 years and employing the system General Method of Moments (GMM) approach, the study reveals that the shadow economy has a significant negative effect on tax revenue in SSA, whereas mobile phone penetration has a significant positive effect on tax revenue. Again, mobile phone penetration plays a moderating role in the shadow economy-tax revenue nexus in SSA. Governments in the SSA region need to update their tax administration systems, construct and enhance infrastructure linked to emerging mobile technology, and implement best practices in tax regulations. Lastly, governments and telecommunications companies should implement some kind of consumer education in the informal sector to raise awareness of the advantages of using mobile phones for business transactions and the simplicity of paying taxes using a mobile device. [ABSTRACT FROM AUTHOR]

The development of technology has led to the widespread use of digital technology in tax enforcement. Using the Chinese digital tax enforcement reform as a quasi-natural experiment, this study shows that digital tax enforcement reduces the risk of debt default by improving accounting information quality and reducing agency costs. Further analysis shows that this impact is more significant in enterprises with poorer external information environments, lower internal control quality, lower customer concentration, and lower digitalization levels. This study enriches the research on the economic consequences of digital tax enforcement. This has practical implications for the government when using information technology to strengthen tax administration. [ABSTRACT FROM AUTHOR]

AbstractAlthough algorithms are imbued with a sense of objectivity and reliability, numerous high-profile incidents have demonstrated their fallibility. In response, many have called for algorithmic governance that mitigates their potential harms. Further, these incidents have inspired studies that consider algorithms as part of wider sociotechnical systems. In this article, we build on such work and focus on how the specific forms of algorithms may facilitate or constrain the ways in which they become embedded within these systems. More specifically, we suggest that (a) algorithms should be understood as models, with (b) divergent forms, and (c) associated representational qualities. We showcase this approach in three critical case studies of algorithmic models used in government: the SAFFIER II model that underpins the Netherlands government’s spending, the Ofqual DCP A-Level grading algorithm that was used (and later abandoned) in lieu of actual secondary school exams in the United Kingdom, and the Risk Classification Model used by the Dutch Tax and Customs Administration to identify social benefit fraud. With the three case studies, we show how the divergent forms of algorithms have implications for their responsiveness and ultimately their solidification in – or dissolution from – socio-technical systems. [ABSTRACT FROM AUTHOR]

• Tax penalty collection is a challenge faced by tax administrations worldwide. • We nudge taxpayers in Indonesia to pay their tax penalties on time. • Simplification by providing billing codes outperforms the other nudge letters. • Emphasising deterrence is also effective in increasing timely payment. • The nudge letters prove to be a cost-effective strategy for changing behaviour. We conduct a randomised controlled trial in Indonesia to evaluate the effect of three intervention letters on tax penalty compliance behaviour. Over 10,000 individual taxpayers are randomly assigned to receive either a deterrence, information, or simplification letter, or no letter. Our results indicate that simplification, which makes paying a penalty less burdensome administratively by providing billing codes to pay the penalties, yields the highest probability of timely settlement, increasing compliance by 32% compared to the control group. Deterrence also positively impacts penalty compliance, increasing timely settlement rates by 27%. The least effective intervention is the information letter. Although associated with a 10% increase in timely settlement, this effect is statistically insignificant at the 10% confidence level. Our results suggest that strategic messaging by tax authorities in developing countries can be a cost-effective tool for improving tax penalty payment compliance. [ABSTRACT FROM AUTHOR]

The rise of big data and artificial intelligence technology has put forward higher requirements for the training of tax risk management talents. This paper discusses the influencing factors of the training satisfaction of tax risk control talents based on the practice of the training of tax risk management talents for undergraduates of tax science. The attitudinal perception information of learners was collected through questionnaires, and the structural equation model was used to construct five latent variables: teacher guidance, curriculum setting, professional practice, training method and training satisfaction. The results show that the cultivation of tax risk management ability is not as good as the cultivation of risk awareness and control literacy, the curriculum has a direct and significant impact on the satisfaction of talent training, and there is room for improvement of practical teaching and training methods. According to the results of the survey, the paper puts forward some suggestions on the reform of personnel training: deepen the teaching reform and promote the ideological and political education of curriculum; Carry out practice teaching, improve risk control ability; Use case teaching to promote talent training, strengthen teacher-student interaction, create risk control atmosphere and other teaching reform suggestions. [ABSTRACT FROM AUTHOR]

This article analyses taxation practices in colonial, post-colonial rebel-led, and independent South Sudan and argues that the ethos of taxation in the region has been and remains primarily oriented around predatory and coercive strategies of rule. This overarching pattern endures because the fundamental structure and rationale of revenue-raising practices, which collectively constitute South Sudan's revenue complex, have not changed since at least Anglo-Egyptian occupation of the region in 1899. The paper explains how tax collecting as predation began when the first colonial administration deployed taxes to acquire loyalty from customary authorities such as chiefs and sheikhs, who personally benefitted from their taxation powers. From the early 1960s to 2005, armed groups in the region periodically fought against Khartoum-led rule, and rebels extorted taxes from the population to help fuel their war efforts. Taxes in today's South Sudan, which acquired independence in 2011, are not collected to raise revenue except to pay off the individuals collecting them, and they continue to generate predation. The rise of international aid and windfalls from oil revenues have further diminished taxation's financial significance for the national government and have altered local authorities' coercive demands for payment. The portrait that emerges from the practices of South Sudan's successive war-makers and state-makers is one of taxation wielded as a technology of rule, one of coercion and often extortion, to fulfil the self-interests of tax collectors. The article is based on archival research in Sudanese and South Sudanese national archives, British colonial archives, and 205 interviews conducted in South Sudan. [ABSTRACT FROM AUTHOR]

Motivation: In recent years, research has shown that informal workers and businesses in low‐income countries are increasingly taxed by the state. While rarely a significant revenue source, informal sector taxation in highly informalized economies affects a large proportion of the working population. Under such circumstances the question of whether taxing informal economic activity either improves or undermines state–society relations are still debated, particularly in the case of fragile states whose tax systems tend to be characterized by a high degree of coercion towards poor actors. Purpose: Previous research has tended to focus on tax evasion and how to increase tax compliance in the informal economy. In this article, we aim to explore how informal sector actors in Bamako, Mali, interact with local tax collectors in various ways with varying levels of agency. On this basis, we develop a broader analytical framework for understanding local government–taxpayer relations. Approach and methods: In a case study of Mali, a fragile state with violent conflict and a highly informalized economy, we made use of qualitative research methods with semi‐structured interviews and focus group discussions with different actors in the informal economy. Findings: We find four main modes of interaction: (1) "tax evasion," where individuals evade or minimize their tax obligations; (2) "tax bargaining," where groups with limited political resources negotiate with local authorities; (3) "forced taxation," where disadvantaged groups pay taxes without tangible returns or a voice in protest; and (4) "harsh sanctions" faced by those unable to pay or evade taxes. Informal sector actors show a different capacity for collective action impacting their agency vis‐à‐vis state authorities. Policy implications: The informal sector needs to be unpacked in fragile states, focusing on understanding existing fiscal pressures on different informal actors and their various strategies for navigating tax systems. Tax administrations should promote dialogue and trust‐building measures and avoid strategies that exacerbate social division and undermine state–society relations. [ABSTRACT FROM AUTHOR]

Within the framework of today's modern taxation approach, generally accepted taxation principles are taken into account when taxation is carried out. States plan and implement the tax practices that they include in their tax systems in accordance with the principles of taxation by adhering to certain rules. Various taxation principles have been identified in the public finance literature over time, and the principle of fairness is at the top of these principles. The concept of ability to pay is of critical importance in taxation in accordance with the principle of justice, which envisages the fair and equal distribution of the tax burden among taxpayers. Although the indicators of ability to pay are income, expenditure and wealth, these indicators are insufficient to fully grasp the ability to pay. Therefore, in order to accurately determine the ability to pay in tax systems, in addition to these indicators, the techniques of progressivity, minimum subsistence allowance and the principle of separation are utilized. In this study, in which the aforementioned techniques within the framework of the principle of fairness in taxation are discussed theoretically together with positive and negative opinions, tax practices serving the relevant techniques in our country have been evaluated; in this context, it has been understood that the technique of progressive proportionality has been adopted in different tax types and the separation principle technique has been adopted with the minimum subsistence allowance in wages, which is one of the elements of income.. [ABSTRACT FROM AUTHOR]

The heavy burden brought by the tax practices during the Second World War increased the reaction against the government on the producing class, the peasants and farmers. This reaction started to rise within the CHP and increased the number and influence of the MPs who formed the opposition group within the party. Post-war statements stating that Turkey was in favor of a liberal economy and multi-party democracy facilitated the establishment of opposition political parties. The Democratic Party showed itself as a strong opposition party in 1946. The party, which received great support especially from peasants and farmers, came to power in the 1950 elections. It has been observed that most of the political parties established against the DP, which based its development policy on agriculture and agriculture-based areas during its rule, could not show their presence in the elections and continued the agriculture-based development policies of the DP. Although opposition political parties established for ideological reasons had different solutions to problems such as agricultural insurance, seasonal unemployment, and migration from rural to urban areas, it was observed that these parties could not show a presence in the elections. In this article, the agricultural practices of the opposition political parties established against the DP government are examined according to their programs and declarations. [ABSTRACT FROM AUTHOR]

The study explores the factors influencing tax compliance behaviour among small and medium enterprises (SMEs) in Malaysia. Its main objective is to examine the relationship between psychological empowerment and tax transparency on tax compliance behaviour. Malaysia continues to struggle with issues of under-reporting. Due to limited resources, the Inland Revenue Board of Malaysia (IRB) cannot fully ascertain the underlying causes of non-compliance. This study is novel in that it proposes a different model for measuring tax compliance behaviour, including the variable of psychological empowerment, which has been limited in previous taxation studies. The study employed SPSS and AMOS for data analysis. Responses from 230 SMEs in the manufacturing sector were collected using stratified random sampling. The results indicate that both psychological empowerment and tax transparency have a positive and significant relationship with tax compliance behaviour. These findings will be valuable for tax authorities and administrators by highlighting key areas that can be managed more effectively to reduce the high number of tax compliance issues in the country. [ABSTRACT FROM AUTHOR]

This study aims to investigate the dynamics of tax evasion and revenue leakage in the Somali customs framework, providing insights into the systemic opportunity structures, tax governance deficiencies, and personal incentive structures that facilitate these practices. By applying agency theory and rent-seeking theory, this research seeks to deepen the understanding of the complex relationship between individual motivations and systemic vulnerabilities in exacerbating corruption and tax evasion in a post-conflict governance context. By employing structural equation modeling (SEM) within the ADANCO-SEM analysis framework, this study analyzes primary survey data. This approach allows for a comprehensive examination of the relationships between systemic, governance, and personal factors contributing to corruption and tax evasion. The findings reveal a significant positive relationship between systemic opportunity structures, tax governance deficiencies, and personal incentive structures and the prevalence of tax evasion and corruption. Specifically, systemic opportunity structures were found to significantly influence both tax governance deficiencies and personal incentive structures, highlighting the intertwined nature of these factors in facilitating corrupt practices and tax evasion in Somali customs. This study underscores the urgent need for comprehensive reforms targeting systemic vulnerabilities, enhancing tax governance frameworks, and aligning personal incentives with the public interest. Practical applications include the adoption of advanced technological solutions for improved monitoring and transparency, as well as the development of targeted training programs for customs officials to foster ethical standards and compliance. This research contributes to the existing body of knowledge by providing a unique empirical examination of corruption and tax evasion in the context of Somali customs, a largely underexplored area in the literature. By integrating agency theory and rent-seeking theory, this study offers novel insights into the mechanisms of corruption and tax evasion, highlighting the importance of addressing both systemic and individual factors in combating these issues. [ABSTRACT FROM AUTHOR]

The present paper provides a comprehensive analysis of the legal framework relevant for the taxation of transactions and activities involving crypto assets in Serbia. In the introductory part, the author provides a classification of crypto assets intended to serve as the methodological framework within which the taxation of various transactions and activities in the crypto domain will be analyzed, taking into account the principle of tax neutrality. The core of the paper elucidates the results of comparative legal research that the author had undertaken in order to identify diverging approaches jurisdictions around the world embraced regarding the taxation of generation, acquisition, holding and disposal of crypto assets. The choices made by the Serbian tax policy makers are juxtaposed to those applicable in comparative jurisdictions and, where appropriate, improvements are suggested. The author concludes by commending the recent trend in the application of Article 9, para. 1 of the Law on Tax Procedure and Tax Administration as a tool that could mitigate the need for recurrent and, ultimately, unsuccessful tailoring of the tax legislation to the novelties in the crypto domain. [ABSTRACT FROM AUTHOR]

This article discusses the debate surrounding the use of notice and comment in developing tax guidance and the court supervision of preambles in regulations. The author argues against the increased use of notice and comment, stating that it does not effectively gather information and may not improve the substance of regulations or increase democratic legitimacy. They also express concern about the scrutiny of preambles by courts, stating that it can lead to uncertainty and potential invalidation of regulations. The author concludes that more attention to the Administrative Procedure Act may not be the best method for improving tax administration. [Extracted from the article]

This article is an interview with Anthony "Tony" Infanti, a professor of law at the University of Pittsburgh School of Law. Infanti discusses how he became interested in tax law and his transition into teaching. He also explains his research on critical tax theory, which focuses on the impact of the tax system on marginalized communities, and comparative tax law, which involves comparing different tax systems to learn from others' experiences. Infanti mentions his upcoming book on taxation and slavery and his current project on the intersection of tax and racism in British Columbia. He advises attorneys interested in academia to understand the full-time commitment required and the importance of research and writing. Infanti emphasizes the importance of maintaining balance for mental health and mentions his hobbies of exercise, cooking, baking, and knitting. [Extracted from the article]

At present, it is observed that individuals significantly increase the value of their assets, in many cases, such increases have no justification, so they omit the payment of their taxes, generating a low tax collection in the country. The objective of this research work was to analyze the criteria that allow the detection of the unjustified increase in wealth of Peruvian individuals. The methodology applied was qualitative, phenomenological design, with a non-probabilistic sampling based on the professional experiences of three experts in tax matters. The result was that the tax administration applies certain criteria, classified under the following headings: financial system, social, informality, auditing and digitalization. The most important criteria during the COVID 19 pandemic were e-commerce and social networks, used to generate income and evade taxes. It is concluded that natural persons incur in unjustified asset growth, due to lack of knowledge, because they do not wish to formalize or because they do not have a technical accounting team to guide them in the aforementioned criteria. It is suggested that the tax administration should supervise the new criteria related to digitalization in order to reduce unjustified capital gains in Peru. [ABSTRACT FROM AUTHOR]

According to OECD (2023), "Tax avoidance practices cost countries 100-240 billion USD in lost revenue annually, which is the equivalent to 4-10% of the global corporate income tax." And according to Global Financial Integrity Report (2015), "Indonesia is ranked ninth in Asia concerning the issue of tax losses." One of the tax avoidance practices is thin capitalization. Companies tend to choose debt over equity in their financing in this practice. This is because debt incurs interest expense which can be tax deductible. The Government of Indonesia (GOI) implemented thin capitalization rules to limit the debt shifting practice as a tax avoidance scheme in 2015. This study examines the effect of thin capitalization toward tax avoidance on healthcare companies listed in Indonesian State Exchange (IDX). Tax avoidance is proxied by Effective Tax Rate, while thin capitalization is proxied by Maximum Amount of Debt (MAD). There are two variable controls in this study; they are firm size and profitability. Firm size is proxied by the natural log of total assets, while profitability is proxied by return on assets (ROA). Based on six healthcare companies listed in IDX period 2016-2021, regression results indicate that thin capitalization significantly and positively affect tax avoidance. Companies with high thin capitalization have high effective tax rates. Meanwhile, firm size and profitability do not have a significant effect on tax avoidance. [ABSTRACT FROM AUTHOR]

The article explores the challenges faced by the cannabis industry in California and proposes a solution through AB 374, a bill aimed at revitalizing the industry. It discusses the struggles of cannabis businesses, including high taxes and competition from the illegal market. AB 374 seeks to address these issues by allowing social consumption lounges to expand their activities and by reducing the state excise tax on cannabis sales. The bill is seen as a positive step towards preserving the legal cannabis industry and encouraging consumers to purchase from the legal market. [Extracted from the article]

Does the dissemination of salient information about tax dishonesty, such as high profile tax evasion or avoidance, facilitate the propagation of unethical behaviours, and in what way? We investigate this question in a large scale survey experiment on more than 4000 Italians. We find that how information about greater tax evasion affects dishonesty and perceived tax compliance norms depends on the income of the evaders: Evasion at the bottom of the income distribution weakens the norm among low-income earners, while evasion at the top increases dishonesty among high-income earners. We also uncover negative effects on social trust and on attitudes towards wealth and wealth accumulation, showcasing the detrimental effect of unethical tax practices on social and economic relations. [ABSTRACT FROM AUTHOR]

Enforcement of uncontested or contested fines that have become final following the judicial procedure must be carried out effectively, as the end point of the infringement procedure, in order to fulfil the preventive and punitive roles of the sanction. A fine is the most commonly applied principal penalty for a contravention, with usually generous general and special limits, which allow a fair individualisation of the penalty according to the criteria provided for in Article 21(2) of the Treaty. 3 of GC 2/2001. The person who imposes the fine is usually the official himself, mentioning it in the report, including the possibility for the offender to pay half of the special minimum within 15 days. To the extent that the offender agrees to take advantage of this facility, namely to pay within 15 days half of the special minimum, he does not lose the right to challenge the fine, because payment does not inactivate the presumption of innocence which he enjoys, but only the offender is a prudent and diligent person, who, not being able to know from the outset, objectively, the outcome of a possible legal action, takes the measures that the law recognises in his favour to mitigate as much as possible the future financial loss. Following the two stages of jurisdiction, at first instance and on appeal, the outcome of the infringement complaint may be negative for the offender, if the claim is rejected, or positive, if the fine imposed is re-indexed and a lower fine is definitively imposed, or the fine imposed is replaced by a warning, or the infringement report is annulled on grounds of formal or substantive illegality or unreasonableness. Payment of the fine will be made at the offender's town hall of residence, and it is irrelevant where the offence was committed or where the report was made. The offender can go to the Town Hall, to any Treasury office or to any post office or can choose to pay the fine via the Ghișeul.ro platform or via internet banking. Under Article 165(2) of the Code of Tax Procedure, fines are paid in priority to other taxes owed by the taxpayer. In all cases, if the person sanctioned is a legal person, the communication of final sanctions not voluntarily executed shall be made to the units subordinated to the Ministry of Public Finance – National Tax Administration Agency, in whose territorial district the offender has his tax domicile, as required by Article 39 para. 2 lit. b of OG no. 2/2001. According to Article 230 of the Code of Tax Procedure, enforcement begins with the communication of the summons. If the debt is not extinguished within 15 days of the communication of the summons or if the tax authority is not notified of the intention to initiate the mediation procedure, enforcement measures shall continue. The summons shall be accompanied by a copy of the enforcement order issued by the enforcement body. If this deadline is also ignored by the offender, the enforcement body will proceed to identify the debtor's assets and evaluate them. According to Article 222 of the Code of Tax Procedure, the enforcement body shall carry out the valuation through its own or independent valuation experts. If the fines are small and the offender has regular income, the uncollected fines are covered by distraint, otherwise the offender's assets may be sold. [ABSTRACT FROM AUTHOR]

The administrative cooperation operating at the European level between national tax authorities since 2013 seems to enter a new stage with the adoption of DAC 7 and its implementation in the national legislations of the European Union member states. This trend was initiated at the OECD level with the aim of combating increasingly sophisticated new practices of tax evasion. In this context, the Romanian legislator proceeded to amend the Tax Procedure Code regarding the exchange of information between national tax authorities, as well as joint administrative investigations and financial controls, in order to facilitate the most accurate determination of tax liabilities for all categories of taxpayers. Without offering a solution for all legal issues that may arise during the application of these legal provisions, the work highlights the legislative novelties and the difficulties they will generate, especially regarding aspects such as the territorial competence of national tax authorities conducting tax procedures in the territory of other member states, as well as the opposability of acts issued by them in such circumstances. [ABSTRACT FROM AUTHOR]

Tax administrations have long grappled with the question of how noncompliant taxpayers should be allowed to correct their tax affairs voluntarily. While many jurisdictions have adopted various voluntary disclosure programs, several countries—including some of the world's largest economies—have not done so. This Article examines the voluntary disclosure practices in twenty-five countries that do not have voluntary disclosure programs. It finds that the tax authorities in these jurisdictions frequently follow informal voluntary disclosure practices that operate as de facto substitutes for formal policies. In some countries, informal voluntary disclosure practices coexist alongside formal schemes. In light of these findings, this Article explores the tax policy considerations concerning the choice between formal and informal voluntary disclosure policies, and shows that formal schemes have several advantages over informal practices. [ABSTRACT FROM AUTHOR]

Motivation: Appropriately taxing the richest is a priority for African governments, which need tax revenues to invest and pay for public services. In Uganda, the revenue authority launched a unit in 2015 to monitor the tax affairs of high‐net‐worth individuals (HNWIs) and very important persons (VIPs), 393 individuals in all. The unit combined persuasion, assistance, and enforcement. Purpose: To establish the extent to which the unit was able to improve tax compliance by the rich. Methods and approach: In collaboration with the Uganda Revenue Authority, this study builds on taxpayer‐level data on tax filing and payment. The analysis employs a standard difference‐in‐difference framework, exploiting the timing of the launch of the unit (September 2015). It also makes use of the existence of the target group of 393 wealthy individuals and a group of another 1,731 potentially wealthy individuals who have been identified but never included in the unit's operations owing to limited resources. We match the groups using a propensity score algorithm. Findings: The unit has been only partially successful. While the unit increased the probability of filing a return, especially by VIPs, taxpayers declared less on different measures, with no impacts on tax liability. On tax payments, only a small and significant positive impact was found, again due to complex offsetting responses across tax categories. This study also measures the spillover effect on companies controlled by the richest—again documenting complex compensating reactions and no meaningful impacts on tax take. Lastly, while deterrence is more effective for HNWIs, taxpayer assistance and public shaming are more relevant for VIPs. Policy implications: This case shows that the rich can be identified and their tax monitored. It also shows the limits of what can be achieved. The Uganda unit lacked staff; it needed twice as many people to monitor the tax of wealthy persons adequately. Moreover, it was hamstrung by the difficulties of sharing data between different departments of the Tax Authority, among government agencies, and between government and key agents such as banks. Ultimately, the unit did not have the staff and data to challenge the tax avoidance schemes deployed by wealthy people and the companies they own. [ABSTRACT FROM AUTHOR]

Tax is the primary source of revenue for governments to finance public expenditures and provide social services that promote growth, stability, and equitable income distribution. However, the administration and enforcement of tax laws and policies often lead to disputes. In a federal system of government like Nigeria's, where the different levels of government can impose taxes, there is a possibility of dispute between these levels of government. This paper aims to examine the various avenues provided under Nigerian law for resolving tax disputes. It adopts the doctrinal research methodology, using relevant statutory provisions, treaties, scholarly journal articles, books, etc. The study found that given the importance of taxation in economic development, Nigeria's current dispute resolution mechanisms need to be revised and aligned with global best practices for dispute resolution. The paper concludes by recommending that Nigeria's tax dispute settlement mechanism be extended to allow the arbitrability of tax disputes to expedite settling tax disputes. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to verify whether the management of taxable income through aggressive tax practices negatively impacts the accuracy of market analysts' forecasts. Originality/value: The central contribution of this study is to relate tax aggressiveness with more significant errors in analysts' forecasts. Thus, the relevance of this paper is in showing that this practice can lead to a greater perception of companies' risks and more significant informational asymmetry, in addition to influencing stock prices and resulting in lower analyst accuracy. Design/methodology/approach: This research paper was developed from regression models with panel data with random effects, also using estimators based on instrumental variables with the application of Jensen's test to verify the validity of the generalized method of moments (GMM) estimation. The data were treated with the winsorization technique at the 1% level. Findings: A sample of companies listed on the B3 between 2010 and 2017 (with a total of 2,805 valid observations) showed that companies with higher tax aggressiveness are subject to a higher analyst forecast error. Thus, it is inferred that, for more aggressive companies, the degree of analyst predictability decreases. With this drop in the quality of analysts' forecasts, the users of their forecasts and reports are more vulnerable to informational asymmetry. [ABSTRACT FROM AUTHOR]

This study empirically examined the effect of corporate attributes on tax aggressiveness in Nigerian listed manufacturing companies. The expo-facto research design was adopted for this study. Secondary data were collected from annual reports of listed manufacturing companies in Nigeria from 2012 to 2021. The analysis was done using the Ordinary Least Square method to test the hypothesis formulated. The results from the study for the hypothesis stated revealed that, a positive relationship exists between firm size (FIS) and tax aggressiveness. The result is significant at the 0.05 level (p < 0.030) which implies that larger firms in Nigerian listed manufacturing companies tend to exhibit higher levels of tax aggression. This study concluded that corporate attributes have a significant effect on tax aggressiveness of listed manufacturing companies in Nigeria. The study therefore recommended that the Federal Inland Revenue Service (FIRS) should strengthen its tax monitoring and enforcement efforts while also implementing robust auditing processes and conducting regular tax compliance checks to identify and deter aggressive tax planning practices among Nigerian companies. Also, Firms with higher leverage ratios were found to be more likely to engage in aggressive tax planning. Therefore, policymakers should offer targeted support or incentives such as tax credits to such firms to reduce their reliance on aggressive tax strategies. [ABSTRACT FROM AUTHOR]

The overlap of crises that most countries in the world are currently facing generates the need to increase tax revenues, so the analysis of the factors that influence tax revenues is useful and important. There are many factors that influence the level of tax revenues, but those related to the activity of the tax administration and the tax behavior of taxpayers are of great importance. The multifactorial linear regression model developed in this paper demonstrates the existence of a direct and positive correlation between tax revenues: % of GDP and the number of tax inspections, the number of tax penalties and the degree of tax compliance, and a direct and negative correlation between tax revenues: % of GDP and the cost of tax revenue collection. The developed model offers the possibility to make predictions for approaching tax administration strategies aimed at increasing tax compliance and streamlining the activity. [ABSTRACT FROM AUTHOR]

We can define a tax inspection as the procedure by which the competent tax authority orders a tax inspection of a taxpayer. The hypothesis considered in this material mainly concerns the period of time during which the tax inspection can be carried out and, more importantly, the consequences to which the tax authority is subject in the event of failure to comply with the mandatory legal provisions concerning the maximum period of time during which the tax inspection can be carried out, given that this procedure can be suspended at the request of the tax authority to obtain additional information necessary for the control activity. Thus, this paper will take as a starting point brief considerations on how to conduct this procedure, taking as a point of reference the legislation in force at the time, following mainly the method of calculating the maximum duration in which the tax authority can conduct this procedure and the consequences of noncompliance with mandatory relevant legal provisions. [ABSTRACT FROM AUTHOR]

This study explores the complex relationship between trust, corruption, and tax compliance in fragile states. It examines factors influencing public trust in three government branches: the ruling party (a proxy for the executive), the parliament, and the local government, and examines whether trust in these arms of government impacts tax compliance. We conducted this investigation using Afrobarometer survey data from Guinea, Mali, Sudan, and Zimbabwe as case studies. The study found that restoring public trust and promoting tax compliance are tangible outcomes arising from a steadfast commitment to electoral integrity, transparency, and accountability. This interplay becomes more vital within the framework of state fragility, where institutions are highly strained. The study highlighted that the existence of rampant corruption reduces trust in the ruling party, parliament, and local government council. Furthermore, the joint interaction between corruption and lack of trust significantly undermines the willingness of taxpayers to adhere to tax administration laws. These insights emphasise that combating corruption becomes not only a governance step but also vital to state stability. Thus, African governments should prioritise electoral integrity and combat corruption through enhanced accountability to pave the way for improved governance, enhanced trust, and a more stable path toward a global powerhouse. [ABSTRACT FROM AUTHOR]

In an environment with extensive corruption where much of the population evades paying their full taxes due, we tackle the question of optimal taxation when constituencies with conflicting objectives (the poor and the rich) push tax policy in different directions. We think in terms of a government policy maker here called the tax administrator (TA) and rent-seeking lobbying efforts by poor and rich constituencies. We recognize the taxpayers' inter-dependency as reflected in increased evasion likelihood when others are thought to be evading. Thus our modeling incorporates elements from the theory of information cascades (herding) into a standard model of tax evasion. The poor and rich undergo a rent-seeking contest seeking to influence the TA in setting policy so that their constituency is favored. The TA maximizes an objective function that is a weighted average of expected social welfare, their own interests, and investment in better tax administration. With these building blocks we examine the functioning of the economy. Our results include those that are expected, counterintuitive and surprising. For example, we learn that lower taxes on the rich does not mean the TA cares more about the public interest. Instead, it may result from the TA caring less about the public welfare of others in society, i.e., less about both the poor and the rich. Furthermore, with an increase in perceived inequality society's optimal tax rate rises. On the other hand, high tax levels lead to high herding and greater herding decreases investment by the poor and the rich attempting to affect the tax level set by the TA. Thus, a TA who only cares about their own self will enact lower tax levels than if they cared about others in the society. [ABSTRACT FROM AUTHOR]

The cryptocurrency mining sector in Kazakhstan has witnessed remarkable expansion, attracting global miners due to favourable conditions. However, this growth has underscored the country’s energy scarcity, leading to the enforcement of stringent regulations by the government. This article seeks to offer a thorough comprehension of the regulatory framework governing cryptocurrency mining in Kazakhstan. Examining diverse aspects such as the legal status of mining, licensing structures, tax considerations, and the impact on energy infrastructure, the study utilizes international experiences and stimulus materials. Through the analysis of media representation and examination of primary trends, it is revealed that while the government has addressed legal gaps and instituted transparent tax procedures, taxing digital mining may discourage foreign investments, given the industry’s current fragility due to excessive regulations. The article provides insights into the regulatory landscape, emphasizing challenges and opportunities. [ABSTRACT FROM AUTHOR]

The article, titled "Phone A Friend"-Helping Grow the Tax Section's Membership," discusses the benefits of being a member of the ABA Tax Section and encourages readers to share their positive experiences with others to increase membership. The article highlights the various benefits of membership, such as access to high-quality continuing education, networking opportunities, and the chance to contribute to pro bono and diversity initiatives. It also mentions upcoming events and recent achievements of the Tax Section, including successful fundraising campaigns and productive meetings with IRS officials. The article concludes by urging readers to invite others to join and participate in the Tax Section. [Extracted from the article]

This article is an interview with Jonathan R. Black, an associate with Caplin & Drysdale in the Tax Disputes & Tax Litigation and Complex Litigation practice groups. Prior to private practice, Mr. Black worked as an attorney with the Office of Chief Counsel for the Internal Revenue Service. He discusses his background, including growing up in a rural suburb of Boston and his time studying and working in China. Mr. Black also talks about his path to law school, his experience working at the IRS Chief Counsel, and his transition into private practice. He shares insights into his tax litigation practice and the challenges and tools available to tax practitioners. Additionally, Mr. Black mentions his personal achievements, including getting married and raising a puppy named Bento. [Extracted from the article]

Throughout this article, the author tries to establish the implications that tax policies have for entrepreneurs, from the perspective of systemic thinking. To do so, it is necessary to consider the Venezuelan economic reality, which currently appears somewhat complex. . There are various elements that are linked and that explain the behavior of the national economic system, however, many of these elements are integrated and exposed through statistical indicators, which, in the case of Venezuela, turn out to be not so benevolent based on what that establish the theories of current capitalist economies.This crisis calls for a resignification of State policies with respect to economic activity, promoting the approximation of the public and private environments, respecting and promoting social diversity.In this context, systemic thinking comes to the fore as a comprehensive perspective, which lays the epistemic foundations to understand and understand the situation in Venezuela linked to tax policies and how entrepreneurs can benefit from them.From this position, it is important to highlight that to achieve a business environment that supports these productive initiatives, promoting sustainability and long-term progress, legislators and economic policy developers are required to consider preferential or special tax regimes that offer their beneficiaries a lower tax rate, simplification of tax procedures and the elimination of bureaucratic barriers, these measures can encourage entrepreneurs to invest in new projects and expand their businesses. [ABSTRACT FROM AUTHOR]

The problem of reforming the organizational and legal framework for the functioning of the provincial state chambers and the newly established tax inspection on the Left Bank of Ukraine in the second half of the 19th century and early 20th century is examined. Considerations of the need to unify the state apparatus and optimize the management of direct taxes were significant during this period. The reforms recorded that, having lost their economic and control functions, the state chambers became fiscal administrative institutions, managing the treasuries of the Ministry of Finance and administratively monitoring the accrual of state revenues and the issuance of state expenditures. This was accompanied by the strengthening of the power within the treasury chamber of the chairman, and the transition from a collegial treasury chamber to a complete bureaucratic institution. The transformations gave the provincial treasury chambers a qualitatively new level of powers in the field of tax administration in the provinces, ensuring that the role played by the chambers in the local state apparatus did not diminish. The creation of a tax inspection significantly improved the practice of financial authorities of the Russian Empire, particularly in the Ukrainian provinces of the Left Bank of Ukraine. At the end of the 19th century and the beginning of the 20th century, normative acts of higher power more clearly regulated the job responsibilities of the tax inspection ranks. The studied practice of the tax inspection revealed that trade supervision, particularly by officials of the tax inspection and state chambers in the Kharkiv, Poltava, and Chernihiv provinces, aimed more at preventing violations rather than prosecuting and punishing. It was concluded that the tax reform only partially led to serious changes in the structure of the state chamber, and the local financial management perceived tax inspectors as an additional resource to address urgent issues. The transformations led to a qualitatively new level of tax administration in the provinces, providing the state chambers with the opportunity to move to physical control over the progress of tax cases. Overall, as a result of changes in the structures of the state chambers and the tax inspection, the local administration of the Ministry of Finance significantly increased its presence in the territory of the Left Bank of Ukraine. It was revealed that on the Left Bank of Ukraine there was a broad social base for small business, but extensive fiscal policy was one of the reasons for slowing down the process of entrepreneurship as a taxable class in the Left Bank of Ukraine. Low salaries caused an outflow of officials. It has been suggested that staff shortages in the state chambers and the tax inspectorate led to the recruitment of more liberal regulations to the central and local staff of the Ministry of Finance, including persons who did not have the relevant ranks or had no ranks at all, provided they had higher education. [ABSTRACT FROM AUTHOR]

Marine Value Zone assessed a breakthrough for marine cadastre and tax administration. This can be used to determine the Sales Value of Tax Object on Land and Buildings, particularly around sea areas. This research further (1) explains the drivers and barriers of the Marine Value Zone, (2) increases the Sales Value of Tax Objects through the Marine Value Zone, and (3) identifies variables at sea through characteristics. This is qualitative research by interpreting the object of research through a descriptive approach. The results show that the drivers and strengths in the implementation of the Marine Value Zone in Indonesia are being able to increase the Sales Value of Tax Objects, and the opportunities are the formation of laws and regulations relating to marine cadastre. Regarding the barriers, weaknesses indicate that the Marine Value Zone may cause tax inequality/injustice, and threats indicate the loss of the imaginary sea boundary. The results provide recommendations for determining the Sale Value of Land and Building Tax Objects (NJOPBB) using the mapping of the Sea Value Zone (ZNL). Second, there was a significant increase in the percentage of the Sales Value of Tax Objects and Land and Building Tax in the Marine Value Zone of 2438% and 5216%, respectively, in Malang Regency. [ABSTRACT FROM AUTHOR]

Analysis has been made on whether the presidential administration of Mexico, which began in December 2018 with anti-neoliberal economic policies, has had an impact and to what extent whit respect to the collection of the payroll tax in the state of Quintana Roo and, as a contrast variable, the international passengers. The adjustment variable, identify the distribution in order to represent the magnitude of the changes. To find out if there is some independence from the government management, it's been realized independence test in different presidential terms. It is note that there were significant changes in the collection of the payroll test, however, the Independence test suggest that despite them where unrelated to the presidential management. [ABSTRACT FROM AUTHOR]

The paper deals with several current issues related to the transfer to the auton)omous regions of the competences for the application of fully assigned taxes. It deals, in particular, with the problem of the regulatory powers of the autonomous regions in relation to tax procedures, following Ruling 65/2020 of the Constitutional Court, of 18 June 2020. Likewise, we analyse the implications that the introduction of the reference value as a taxable base for ISD and ITPAJD has on the distribution of delegated powers between the State and the autonomous regions, considering it necessary to reform Law 22/2009, particularly with regard to the revision. Finally, we refer to some of the recommendations contained in the reports of the General Inspectorate of the Ministry of Finance on the exercise of delegated powers incorporated annually in the State Budget. These reports state very relevant differ)ences in the means and way of acting of the different autonomous community administra)tions in the application of the assigned taxes, considering it necessary to move towards an integrated tax administration. [ABSTRACT FROM AUTHOR]

This article elucidates the more recent developments concerning the role and mandate of tax administrations and the consequential contemporary challenges that these events pose to democracy, in particular the separation of powers. In some jurisdictions, there has been a noticeable evolution whereby tax administrations have moved from being the executive branch, stated differently, enforcing tax laws, and collecting tax revenues, towards being part of the legislative branch. The Covid-19 pandemic and the emergency mandates that were enacted amidst it facilitated various governmental agencies, such as the tax administration, to gain greater numbers of mandates and to operate without boundaries due to the ongoing crisis. However, the extension of the mandate given to tax administrations was already noticeable in some jurisdictions before the pandemic with Sweden being one good example, a pre-existing process that the author argues has been enabled and exacerbated by the last three decades of international tax developments at the OECD and EU levels in connection to the regulation of international tax competition and harmful tax practices. Sweden is used as a case study, but the findings are applicable to a multitude of jurisdictions given the nature of the topic and subsequent discussions. [ABSTRACT FROM AUTHOR]

The work of the G20 and OECD in relation to Base Erosion and Profit Shifting (BEPS) 1.0, and more recently with BEPS 2.0, has shown unprecedented levels of cooperation between revenue authorities globally. While the work to date has increased the sharing of information and improved cooperation on cross-border investigations, it has also led to enhancements (some currently at the policy refinement stage) that expand the tax base (such as new taxing rights for jurisdictions where value has been added), and buttress existing core tax concepts (such as residence and source). This article, taking the form of a case study, examines and reflects upon how these policy developments are impacting revenue authorities, with a focus on New Zealand. It traverses the administrative direction and political influences over the last six to eight years, within the wider context of Inland Revenue's Business Transformation project (BT) that was completed in 2022. Digitalisation has been critical to the way Inland Revenue has navigated the challenges it faces, many of which are common to tax administrations globally. In general terms, New Zealand is a 'strong supporter' of the work of the G20/OECD with respect to BEPS but would not be considered to be a leader. Being a small jurisdiction, New Zealand is less impacted by BEPS issues, but nevertheless it faces its fair share of administrative challenges, including the ongoing impact of COVID fiscal reforms on tax administrations. [ABSTRACT FROM AUTHOR]

The Economic Survey of India of 2017-18 and OECD data show that the Indian Income Tax Department (ITD) loses more than two-thirds of the income tax appeals litigated before the Income Tax Appellate Tribunal (ITAT), the High Courts, and the Supreme Court in India. However, reasons for the ITD's subpar performance, which may adversely impact revenue collection and the ability of the government to fund public services, are unknown. This study applies grounded theory methodology to case law, interview, and survey data to develop a theoretical model to explain the ITD's low success rate in income tax litigation. The study shows that Indian bureaucratic culture, which is characterised by poor accountability, ineffective performance management, and a trust deficit, contributes to the ITD's low success rate in income tax litigation before the ITAT and the courts. Inadequate accountability and ineffective performance management in turn contribute to the poor quality of income tax assessments and the ITD filing meritless or frivolous appeals. Factors that lead to such sub-standard quality of income tax assessments and ITD filed appeals include revenue targets imposed on income tax officials by the ITD, inadequate supervision of tax officials with regard to their assessment of tax, and tax officials disregarding precedent in the process of making assessments and filing appeals. The inferior quality of income tax assessments and ITD filed appeals consequently results in the low success rate of the ITD in tax litigation. In addition, poor accountability and ineffective performance management perpetuate inadequate representation of the ITD before the appellate fora, adding to the ITD's losses in litigation. Further, trust deficit, which underlies Indian bureaucratic culture, fosters a mindset of tax officials that reflects prejudice against taxpayers and a fear of audit and investigation. Trust deficit also leads to officials abdicating their responsibility to make objective decisions in favour of taxpayers. This trust deficit therefore adds to the poor quality of tax assessments and appeals filed by the ITD, further compounding the ITD's losses in income tax litigation. By explaining reasons for the low success rate of the ITD in income tax litigation as well as the poor quality of income tax assessments made and income tax appeals filed by the ITD, the theory of Indian bureaucratic culture provides insights for reforming Indian tax administration. Further, the use of grounded theory methodology to develop a theory based on multiple sources of empirical evidence is a unique contribution to the field of taxation and to the literature on tax administration, especially, the literature on Indian tax administration. [ABSTRACT FROM AUTHOR]

In 2017, the Gulf Cooperation Council (GCC) member countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates (UAE)) ratified the Unified Value Added Tax (VAT) Agreement, which set out the general principles for imposing VAT and mandated each GCC member state to introduce a VAT by January 2018. Four GCC countries have so far introduced VAT, namely, Saudi Arabia, UAE, Bahrain and Oman. None of these countries possess a mature tax system. In fact, they also lack a well-defined tax culture and tax morale, and their tax administrations are not yet well developed. Thus, the introduction of VAT could give rise to a serious issue regarding VAT compliance burden. In this context, this article aims (i) to examine the new VAT in the four GCC countries, and (ii) to compare qualitatively the likely VAT compliance burden among these four countries, and relative to other VAT-imposing countries, specifically member countries of the Forum on Tax Administration (FTA). We adopt the VAT Diagnostic Tool approach, which has been developed by an Australia-based research team and applied successfully to assess VAT compliance burden in FTA countries. The findings of the article suggests that while the four GCC countries belong to the medium VAT compliance burden group, they compare very favourably with FTA countries. More specifically, they perform above the FTA average in minimising compliance burden that arises from VAT policy complexity and administration complexity, but below FTA average in terms of revenue capabilities in meeting taxpayer service and compliance needs. A small number of policy recommendations are proposed with a view to maintaining or improving the good performance of GCC countries in terms of VAT complexity. They include: (i) formal recognition of the importance of tax system simplicity; (ii) use of VAT Diagnostic Tool Factors/indicators in guiding the design or simplification of VAT policy and administration; (iii) restraint from making VAT policy and administration changes without supporting evidence, and (iv) capacity building in tax administration. [ABSTRACT FROM AUTHOR]

Managers can take advantage of the flexibility of accounting choices to act opportunistically through financial aggressiveness and/or tax aggressiveness. The higher the complementary level of financial and tax aggressiveness, the higher the risk arising from the levels of error or fraudulent reporting carried out by such firms (fraud risk). This study aims to examine the impacts of the complementary level of financial and tax aggressiveness on the cost of debt. We estimate these relationships with a two-stage estimator method using 7 200 firm-year samples from East Asia and Europe for the period 2014 to 2016. In the first stage, a binary logistics model is used to examine the factors that influence the complementary level of financial and tax aggressiveness. Then in the second stage, we use a regression model to examine the effect of the complementary level of financial and tax aggressiveness on the cost of debt. We find that the complementary level of financial and tax aggressiveness has a positive and significant effect on the cost of debt, meaning that the higher the complementary level of financial and tax aggressiveness, the higher the cost of debt faced by firms. Creditors perceive the practice of financial and tax aggressiveness as a significant firm risk, thus tending to increase the cost of the debt they provide. [ABSTRACT FROM AUTHOR]