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The article titled "WHEN NONPROFIT ORGANIZATIONS DETRACT VALUE FROM SOCIETY: A REJOINDER" by Gamble and Munoz examines the potential negative impact of some tax-exempt nonprofit organizations (TENPOs) on society. The authors identify 12 factors that contribute to this value detraction, including government policies and choices made by TENPO managers. They argue that the benefits of tax-exempt status and tax-deductible donations do not outweigh the lost tax revenues. However, the analysis has some limitations, such as a lack of clarity in defining TENPOs and a failure to estimate the value provided by TENPOs compared to lost tax revenues. The text also critiques the article for not considering the value provided by TENPOs and the impact of corporate tax avoidance and evasion. It emphasizes the importance of diverse approaches to organizing and governing, and acknowledges the valuable work of TENPOs in areas like education, diversity, healthcare, and poverty alleviation. The article concludes by calling for further research and policy changes related to TENPOs and tax exemption. [Extracted from the article]

In the complex landscape of tax and estate planning, a pivotal factor that has rightfully garnered attention recently is the looming sunset of the 2017 Tax Act. The ever-changing nature of tax laws keeps individuals, families, and financial advisors on their toes, and the potential sunset of the estate tax exemption is a subject of considerable interest. As we delve into the nuances of this matter, it becomes apparent that understanding the implications of a changing exemption limit is crucial for effective tax and estate planning. [ABSTRACT FROM AUTHOR]

Copyright of FinanzRundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Tax buoyancy exhibits unique behaviour in nations facing specific challenges. This phenomenon is particularly pronounced in sub-Saharan countries which often implement tax exemptions to boost investment and facilitate trade. This study investigates tax buoyancy in Rwanda. It uses government administrative data and rigorous statistical techniques. The Engle-Granger test for co-integration and Ordinary Least Squares regression techniques were used to assess long-term relationships and models. The study findings revealed that the Gross Domestic Product (GDP) was co-integrated with Direct Taxes while the Total Consumption correlates with Taxes on Goods and Services. The study revealed that there was no sustained correlation between s and international trade taxes in Rwanda. This was attributed to the increasing use of customs tax exemptions for trade facilitation and investment promotion. The GDP emerged as a reliable predictor for international trade taxes. The findings revealed the dynamic tax system in Rwanda was characterized by substantial buoyancy rates. Crucially, the study recommends not relying on import volumes for forecasting international trade taxes, not only in Rwanda but also in other countries adopting similar tax policies. The lessons drawn from Rwanda’s experience offer valuable insight for policymakers confronting similar challenges. [ABSTRACT FROM AUTHOR]

The Dutch government implemented two changes to the taxation of intergenerational transfers aimed at mortgage down payments and prepayments. We identify the effects of these tax exemptions on prepayments and inter vivos transfers separately by taking advantage of the changes in policy design. The policy changes resulted in two expansions of tax‐exempt transfers, which increased the probability of receiving such transfers, translating into a modest increase in prepayments. Initially, the amounts prepaid increased by a similar magnitude, while the second policy change only resulted in an increase in the amounts being transferred but not the prepayments. The macroprudential policy goal was to reduce the number of underwater mortgages, but the policy was too generic and did not help to achieve this. The prepayments triggered by the policy change increased mostly for borrowers with low original loan‐to‐value ratios, implying that most transfers were made from wealthy parents to housing‐rich children. [ABSTRACT FROM AUTHOR]

Public-private partnerships have long existed in literature, primarily in the construction sector. However, there is a paucity of research on the research and innovation ecosystem. This research aims to develop a framework for promoting public-private partnerships in research and innovation to foster public-private linkages. Primary data was collected from 192 participants selected from public and private sector organizations. The relative importance index was used to rank key elements for promoting public-private partnerships in research and innovations. The best practices include sharing knowledge, engaging in win-win partnerships, and establishing innovation hubs and intellectual property policies. Effective elements include leveraging innovation in geographical proximity, a supportive regulatory framework, joint financing of research equipment and tax incentives for research equipment. Priority sectors include renewable energy, smart agriculture and education. Websites and direct engagements are essential platforms for engaging in collaborations. The research recommends that the government should provide seed funding to support the early phases of the research and extend tax exemptions for research equipment and infrastructure. Research institutions should establish innovation hubs and operationalize intellectual property policies. The study proposes a framework for promoting public-private partnerships in research and innovation in a developing country like Zambia. [ABSTRACT FROM AUTHOR]

Objective: This commentary discusses the New Zealand Labour Party's announcement to remove tax on fresh and frozen fruits and vegetables. It aims to explore its potential impact on the psychological well-being of New Zealanders in the context of the growing global burden of mental illnesses in the current food environment. Conclusions: The proposed tax exemption on fruits and vegetables demonstrates the government's commitment to improving the food environment. While the precise mental health effects of this potential tax change remain unstudied, existing evidence suggests a positive impact on New Zealanders' well-being, marking a pivotal step in addressing broader health issues and fostering a healthier, more equitable food landscape. [ABSTRACT FROM AUTHOR]

Aim: This paper provides an overview of the legal framework for alcohol produced for personal use in European Union (EU) Member States. Methods: We reviewed the national excise duty legislations of EU Member States and conducted an online mapping survey, in which 10 alcohol experts from seven EU Member States plus Iceland participated. Results: We found that the production of alcohol for personal use is tax exempt in 12 jurisdictions, with four countries stipulating a maximum volume of alcohol that can be produced for personal use. The most common alcoholic beverages concerned were beer and wine, while only one country set a tax exemption for spirits. The results were complemented by the alcohol expert mapping survey; tax exemptions were reported for two additional Member States. Conclusion: Legal exemptions for the production of alcohol for personal use were established in every second EU Member State and may therefore contribute to the unrecorded consumption of alcohol in these countries. In light of the detrimental health effects of alcohol, economic interests to support the local small-scale production of alcohol have to be carefully evaluated against public health interests. [ABSTRACT FROM AUTHOR]

This study uses an evolutionary game model to analyze the interplay between Macao residents' willingness to purchase electric vehicles (EVs) and the government's promotion strategies. It assesses the effectiveness of incentives like tax exemptions and price reductions. Despite these initiatives, challenges such as high initial costs, limited vehicle range, and long charging times continue to hinder the widespread adoption of EVs in Macao. Government subsidies increase the appeal of EV purchases, but if not managed carefully, they risk creating dependency. Simulation analysis shows that an active purchasing strategy by Macao residents can stabilize the model's development. However, to achieve wider market penetration and environmental goals, this study highlights the need for the government to align subsidies with market dynamics and for residents to increase their environmental awareness. This study outlines actionable strategies for policy-makers, emphasizing the importance of infrastructure improvements and financial incentives in promoting electric mobility. Policy-makers should focus on expanding the network of charging stations to enhance the convenience and viability of EV usage. Additionally, implementing targeted financial incentives, such as subsidies or tax breaks, can lower the cost barrier for potential EV buyers, thereby increasing the attractiveness and adoption of electric vehicles. [ABSTRACT FROM AUTHOR]

In international cooperation on taxation, countries strive to achieve equality in international taxation and, thus, create the basis for a fair international tax system. Justice exists in an international system of taxation only when states allocate taxing powers among themselves in a manner consistent with dominant views of justice internationally. A fair international tax system will not exist until there is some international consensus on how countries should allocate axing powers among themselves. International cooperation allows countries to improve the coordination of tax policy at the international level. We can talk about several types of coordination. For example, one type aims to make a country's tax system more similar to others - in other words, to harmonize taxes. Other types aim to establish minimum or maximum tax rates to avoid double taxation of cross-border income streams, prevent transfer pricing, coordinate arrangements with competent authorities and limit harmful tax competition. The current official agreements mean business activities through a permanent establishment and give the source country the primary right to tax profits from this operation. The country of residence is obliged to exempt these profits from tax, at least to the extent that they were taxed by the country of source. A tax treaty also often provides for an exemption from taxation of the employee's income from personal services provided the employee is in the country for no more than a specified period of time and the compensation is received by a non-resident employer without a permanent establishment. The treaty usually reduces or eliminates withholding tax on at least some items of investment-type income, such as interest, dividends, rents and royalties, that are not attributable to business carried on through a permanent establishment. The tax treaty also provides that the country of residence can tax capital gains. [ABSTRACT FROM AUTHOR]

Copyright of FinanzRundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Umsatzsteuer-Rundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Umsatzsteuer-Rundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Human development is an important variable in entrepreneurial activities at all levels both nationally and internationally. In any country, the meaning of human development, which is associated with progressiveness in people's life status, is to be evaluated based on people's livelihood. The government is the core institution responsible for human development in any country through financing, coordinating, and supervising different human development projects. Such development projects include the provision of quality public goods and services such as health, education, housing, and other welfare schemes; all necessary infrastructures relating to the provision of such services like schools and hospitals; and respective experts to facilitate such services like teachers, doctors, and nurses, etc. Tax is regarded as an important tool for governments not only for revenue generation but also for achieving various social and economic reforms for individuals and the economy as a whole, both in developed and developing countries. Most of the current economic discussions from the country level to the international level are about human development, with taxation as the main tool. Thus, economic reforms including tax policies are also made for poverty reduction and other purposes. Among policies include progressive taxation and credit approach; establishment of specific taxes and specific revenue pools for improving human development and reducing inequality; and eliminating tax exemption and reliefs in fighting against poverty. [ABSTRACT FROM AUTHOR]

Copyright of Selcuk Law Review / Selçuk Üniversitesi Hukuk Fakültesi Dergisi is the property of Selcuk Law Review and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This research aims to provide guidelines for the sustainable development of rural tourism by using the future study of target villages for tourism in central Iran, which was carried out with a case study of Saryazd, the target village for tourism in the province of Yazd. The current research is applied in terms of purpose and is in the category of descriptive-analytical research. The research's statistical sample comprises ten experts with more than ten years of related experience selected by non-random snowball sampling. Data were collected through media scanning, written and digital sources, interviews, and questionnaires and were analyzed using MAXQDA software and quantitative content analysis techniques. The research method is based on the TAIDA technique, which will be used in future research and scenario development. The research findings showed that the most crucial strategy at the management level is creating a destination management/marketing organization (DMO) and developing a destination management plan (DMP). At the activity level, the training of the local community and their preparation for participation in rural tourism activities by experts and the creation of facilities by the public sector, such as tax exemption incentives for investors to invest in the village and rural tourism. At the task level, changing the water consumption pattern and familiarizing all stakeholders with new methods of water consumption and modern irrigation techniques are suggested guidelines to reach the desired future scenario. [ABSTRACT FROM AUTHOR]

Tax incentives have been used as tools to encourage investments and tax compliance from businesses. Little is known about the effect of tax incentives on tax compliance of Micro, Small and Medium Enterprises (MSMEs) in Nigeria. The study, therefore, investigated the effect these tax incentives (the Nigerian government tax exemption to MSMEs with income of a particular threshold and low-interest financing) have on the tax compliance of MSMEs in Nigeria. The study adopted quantitative research and administered questionnaires to MSMEs in Nigeria. Guided by the theories of social influence and slippery slope, the study employed the regression technique for the analysis and concluded that tax incentives have a significant effect on the tax compliance of MSMEs in Nigeria. Also, tax exemption and low-interest financing have a significant effect on the tax compliance of MSMEs in Nigeria. The study has contributed to the body of knowledge by showing the effect the government tax policy of tax exemption to MSMEs has on tax compliance. The different incentives of government are not sufficiently communicated to these businesses to take advantage of. It is, therefore, recommended that government policies especially on incentives to MSMEs should be well broadcast through different social media platforms for them to benefit. [ABSTRACT FROM AUTHOR]

Copyright of Umsatzsteuer-Rundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

An impetus towards the electrification of mobility is crucial for India. However, the adoption rates of electric two-wheelers remain low, and hence, for fruitful penetration of electric two-wheelers in India, this study analyses the factors affecting the adoption behaviour of electric two-wheelers using discrete choice models. This study uses data collected from 1375 potential electric two-wheeler buyers of Bengaluru, India, to study the influence of various vehicle attributes such as purchase price, operating cost, charging time, driving range, charging infrastructure and exhaust emissions on the intention to adopt electric two-wheelers. In addition, the impact of important policies such as free and reserved parking, access to priority lanes and toll tax exemption for electric two-wheeler owners is also analysed and discussed in this study. Apart from the vehicle attributes, this study also studies the effect of socio-demographic variables, travel variables and certain attitudinal latent variables such as environmental enthusiasm, technological enthusiasm, and perceived social image on the electric two-wheeler adoption behaviour. The results reveal purchase price, operating cost and charging time to have a significant negative impact and driving range and density of the charging infrastructure network to have a significant positive impact on the intention to adopt electric two-wheelers. • Explores the influence of vehicle attributes, policies and travel attitudinal variables on electric two-wheeler adoption intention. • Purchase price and charging time are major hindrances to widespread adoption of electric two-wheelers. • Improvement in driving range and charging infrastructure will aid in the adoption of electric two-wheelers. • Policy initiatives and incentives for electric vehicles can further induce acceptance of electric two-wheelers. [ABSTRACT FROM AUTHOR]

Copyright of Umsatzsteuer-Rundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Umsatzsteuer-Rundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Federal tax treatment matters to churches, the term the IRS uses for all types of religious congregations, including synagogues, mosques, and temples. The federal tax provisions most significant for churches and certain entities closely related to them, however, are not those that the public and commentators often assume. Exemption from income tax and the ability of donors to deduct contributions, the benefits that receive the most public attention, in fact provide surprisingly little benefit either to churches in the aggregate or to most individual churches. Their status as organizations taxexempt under section 501(c)(3) of the Internal Revenue Code, moreover, imposes a variety of burdens on them. The burdens include limitations on lobbying and the prohibition on any intervention in campaigns for public office. At the same time, churches enjoy special tax benefits not afforded to other section 501(c)(3) organizations, not even other kinds of tax-exempt religious organizations. These special benefits make church status appealing. Such benefits include exemption from filing with the IRS Form 990, an annual information return that, with the exception of the names and addresses of major donors, is also publicly available. In addition, the IRS cannot begin any audit of a church unless it complies with several procedures. Further, unlike other section 501(c)(3) organizations, churches are not required to file an application for recognition of exemption, although many choose to do so. These advantages limit oversight of churches by the IRS, the media, and the public. They create an incentive for religious organizations that share some traits commonly found in churches to seek status as a church. Two recent IRS grants of church or association of churches status have attracted sharp criticism from the media and members of Congress. At the same time, a number of developments, such as loss of membership, expansion of virtual worship, and recent Supreme Court Free Exercise jurisprudence, have created new challenges for churches and their tax treatment. In response to all these developments, this article recommends changes to the longstanding IRS approaches for defining "church" and certain church-affiliated entities. These changes would substitute a definition for church developed by courts and limit the definition for conventions or associations of churches to those of a single denomination. The definitional changes will clarify the distinction between non-church religious organizations and churches. Updating the understanding of "church" to reflect the twenty-first century realities of virtual participation and the increasing diversity of faith communities will also improve IRS oversight. This article also recommends that the GAO undertake a renewed study of campaign intervention by section 501(c)(3) organizations generally. This study will clarify whether all section 501(c)(3) organizations, including churches, are in fact violating this prohibition in ways that go beyond sporadic, minor, and usually inadvertent footfalls. In the authors' view the recommended changes would benefit churches and the public because they take into account both current realities and current concerns. In so doing, they would not only give churches welcome guidance but also increase public trust that churches are not abusing the special privileges they enjoy under federal tax law. [ABSTRACT FROM AUTHOR]

Compared to C corporation banks, S corporation banks and credit unions are considered tax-exempt institutions, with credit unions receiving the greatest tax benefit. Institutions can choose to pass this benefit onto customers in the form of higher deposit rates and lower loan rates. We test this hypothesis by analyzing a dataset of 11 distinct deposit and loan products over 15 years and compare interest rates offered by depository institutions partitioned into three size groups. Overall, our results indicate credit unions offer higher deposit and lower loan rates compared to commercial banks, particularly for timed deposits (CDs), money market accounts, auto loans, and fixed unsecured loans. In contrast, S banks and C banks offer similar interest rates on most deposit and loan products. These findings generally hold across all size groups and differences become more pronounced when comparing larger credit unions to commercial banks. Notably, credit unions in the large size group offer better interest rates to customers for all products analyzed. [ABSTRACT FROM AUTHOR]

What are the differences in how public and private institutions of higher education, with religious schools as a subset of private colleges and universities, approach on-campus protests in a framework of civic engagement? Unfortunately, public, private, and religious schools have all restricted opportunities of speech, assembly, and protest, despite in many cases state and federal courts ruling that this is against the law. With the goal of increasing the civic capacities of students at all institutions of higher education, we propose a mechanism of partial revocation of tax exemptions at universities that do not currently uphold a robust understanding of civic engagement opportunities for all students, which will apply to any college or university receiving federal funding, consistent with the constitutional tradition of free speech still exemplified by Brandenburg v. Ohio and the "national policy" test of Bob Jones University vs. United States. In doing so, we build on the critique of exemptions in the recent work of Vincent Phillip Munoz on religious liberty. By opting only for incentives and by not even incentivizing private institutions that continue to restrict civic engagement but that do not accept federal dollars, we affirm and support a mutually beneficial ongoing dialogue among public, private, and religious schools. This dialogue, as it is sharpened and maintained in place by our recommended policies, is also consistent with pluralism as conceptualized by Jacob Levy. [ABSTRACT FROM AUTHOR]

The goal of this paper is to discern whether environmental policy stringency discourages inbound tourism in the G7 countries. The analysis is based on second-generation panel data methods in consort with the panel quantile regression approach. The findings document that environmental policy stringency plunges inbound tourism across all quantiles. Moreover, the impact of environmental policy stringency is relatively strong at higher quantiles compared to middle and lower quantiles, while the analysis reports that per capita global GDP escalates inbound tourism at all quantiles, whereas both inflation and the real effective exchange rate plunge inbound tourism. Finally, this study proposes certain policy recommendations to promote tourism. The results also survive certain robustness tests. They also imply that the countries under consideration need to adopt special measures to promote tourism, apply strict environmental control measures, while tourists should be given incentives to offset the detrimental impact of environmental regulations. Finally, the tourism-related firms should be given higher emissions permits through an emissions trading scheme, which lowers the cost of tourism, as well as tax exemptions on their imports. [ABSTRACT FROM AUTHOR]

Copyright of Umsatzsteuer-Rundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

For many years Norway has been in the forefront of promoting electromobility. Today, Norway has the world's highest per capita fleet of plug-in electric cars. In 2021, 1.6% of the cars in the EU fleet were plug-in electric vehicles, whereas their share was 21% in Norway. Part of the successful market take-up rate is due to wide-ranging tax exemptions. Increasing plug-in electric vehicles numbers causes tax revenue losses, making exemptions unsustainable. Norway has the ambitious goal that from 2025, all newly registered cars shall be zero-emission vehicles. Keeping tax exemptions in place might be crucial for this goal. The objective of this paper is to provide information to solve this dilemma. Tax exemption reduction and abolition paths which offer a compromise between minimal effects on the development of zero-emission vehicles and tax revenues have been identified. An updated and re-calibrated version of the stock-flow-model SERAPIS was used to simulate and assess different scenarios. Results show that a controlled tax phase-in allows Norway to reach its environmental targets of 100% zero emission vehicles by 2025 and a 55% decrease of CO2-emissions in 2030 relative to 2005 while simultaneously increasing public revenues significantly. [ABSTRACT FROM AUTHOR]

Copyright of Umsatzsteuer-Rundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Two federal district courts in Maryland and California have ruled that private schools are subject to Title IX of the Education Amendments of 1972 because their tax-exempt status under Section 501(c)(3) of the Internal Revenue Code counts as federal financial assistance. This major development in the interpretation of Title IX threatens to subject tax-exempt private schools not only to Title IX, but to a number of other statutes and regulations that apply to recipients of federal financial assistance. This would be a significant economic and administrative burden to small schools whose limited resources make it difficult or even impossible to afford compliance. But there is clear evidence that the decisions of the district courts were misguided. While case law on the matter is sparse, the legislative and executive branches have indicated in a variety of ways that they do not consider tax-exempt status to be federal financial assistance. Further, the conduct of private schools who choose to opt out of receiving federal funds to avoid having to comply with Title IX and similar federal laws demonstrate a widespread public understanding that it is possible for a tax-exempt organization to not be subject to Title IX. This Note examines the evidence that 501(c)(3) tax-exemption is not federal financial assistance under Title IX and urges the legislative and executive branches to clarify this fact for the sake of schools that would be adversely affected by a wider acceptance of a contrary interpretation. [ABSTRACT FROM AUTHOR]

The article examines charitable tax-exempt status and religious exemption from Title IX for religious colleges that discriminate against lesbian, gay, bisexual, transgender and queer (LGBTQ+) students and its potential application in Bob Jones University v. United States. Topics discussed are government funding and tax-exempt status for private religious colleges, inapplicability of Title IX to colleges controlled by religious organization, and conflict between religious tenets and Title IX.

Copyright of Umsatzsteuer-Rundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of FinanzRundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In developing economies, which aim to join the European Union in the upcoming future, entrepreneurial endeavors are important and defining for their economic growth. Most of the time, potential investors are incentivized to choose a particular market through tax benefits, tax exemptions, streamlined registration procedures, tax systems and less red tape. By means of panel data modeling, we investigated the relationship between entrepreneurship and taxation-related matters on a sample of six economies from the Western Balkans region during the period 1991‒2021. Overall, empirical results showed that increasing registration costs hindered the creation of new businesses in the region. Still, if other taxes payable by businesses increased while authorities provided substantial tax reliefs, the creation of new companies would continue. At national level, we found that taxation often fuels entrepreneurship and improves new business density rates. Relevant policy implications are also addressed. [ABSTRACT FROM AUTHOR]

The paper analyses the effect of location-based tax incentives on rural non-farm small business performance in Armenia. It uses administrative panel data for the population of the registered taxpayers in the areas concerned, and the vast tax exemptions are granted for businesses operating in the selected set of border communities. Using an 'event study'-style difference-in-differences fixed effects estimator we initially find a negative effect of tax exemptions on the reported gross income of the affected enterprises and a positive effect on employment, mainly driven by a smaller subset of non-trade firms. To uncover these inconsistent results, we consider a possible channel for decreased reported revenues – changes in audit probabilities for the exempt businesses. Indeed, introducing controls for predicted audit probability eliminates the negative effects on gross revenues, while the positive effect on the number of employees persists, with even increased magnitudes. Gross income under-reporting incentives could emerge in the supply chain where the suppliers might be inclined not to report their sales thus inducing the exempted businesses to under-report their incomes as well. Given the short pre-treatment data, the long-term development common trend of treated and control communities is verified using satellite data on night-time illumination. [ABSTRACT FROM AUTHOR]