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Though there are a number of data and studies about the impact of tax incentives on investment, research and development, no detailed and systematic analysis has been elaborated on the effectiveness of taxation of profit to the financial performance of businesses in general. Businesses avoid corporate income tax to get more net profit. Evasion leads to economic stagnation. It is time to call for changes of the corporate income tax system and introduce tax suspension - tax only shared profit. The aim of the research is to assess the impact of corporate income tax suspension on retained corporate income. The research extends applicable theoretical foundation and comprehension of elements and factors affecting firms’ behaviour. The results show that the corporate income tax reform would change capital structure of businesses and improve company’s sustainability. The findings also give grounds for the development of an applicable model that would help government authorities choose the most effective way of taxation of corporate income.

There is a large value added tax fraud in the European Union. The current value added tax system is universal as tax is applied to all parties involved in the chain transactions, thus creating a risk of tax losses if one of the parties involved in the chain transaction does not pay tax in good faith. There is the action plan to introduce the definitive value added tax to prevent tax fraud in intra-community transactions. However, in order to ensure normal value added tax administration in all member states, a number of measures are needed to be done. It is necessary to develop a mutual settlement mechanism in cases of intra-community transactions. The aim of this research is to develop a possible solution for the management of tax payments under the definitive value added tax regime. The results of the research show that to manage tax payments, several payment management systems can be used. However, as a solution, a special clearing system could be introduced. Quantitative research methods such as statistical methods were used in order to analyze the situation of tax fraud in EU and its main causes, as well as mathematical modeling methods to analyze the definitive VAT system and to calculate the balance between countries in an example for clearing mechanism.

There are significant losses in tax revenues across the European Union (EU). National governments lose billions of euros in the revenues from non-paid taxes and other illegal activities. The fight against aggressive tax planning, tax fraud and illegal activities is on the agenda of the EU, OECD and all the national governments. However, due to the size of tax losses it should not be treated just as tax evasion, but rather as tax terrorism! Therefore, the author has set criteria when tax evasion should be named as “tax terrorism” as well as designed the principles for tackling tax terrorism and other ways of non-payment of taxes. The tax evasion could be treated as “tax terrorism” in case of international evasion from taxes by organized groups of persons for criminal purposes as well as when it creates significant losses in government revenues. The term “tax terrorism” would have impact to communication and cause response of society and politics, therefore it would have more social and political consequences.

Transport has a significant contribution to climate change and many post-Soviet republics, including Latvia, struggle to decrease these emissions to reach carbon neutrality by 2050. In this paper, we have focused on the assessment of environmental taxes (energy, transport) as the most important economic instrument used in Latvia's environmental policy to reduce transport-related emissions and predict road transport decarbonisation pathways using the regression analyses. The results show that existing environmental taxes in Latvia reduce transport emissions and also have a significant fiscal impact. The research confirms that fuel consumption has the most significant effect on transport emissions. To achieve a decarbonisation target, a significant reduction in fossil fuel consumption is required. This can be achieved by increasing taxes on fuel, supporting environmentally friendly infrastructure as well as increasing motivation for electric car use and social innovation (e.g. modal shift, car-pooling, teleconferencing) to decrease the demand for mobility. [ABSTRACT FROM AUTHOR]

Restaurant services are one of the most demanded tourism products with high competition in terms of price and quality. However, the high incidence of labor taxes and value added tax directly impacts the final price of goods, forcing restaurants to operate in a shadow economy to keep their prices lower. The aim of the research is to assess how value added tax incidence is related to labor costs, specifically the impact of value added tax on restaurants, as one of the examples of a labor-intensive industry. The research concludes, that value added tax has a more negative impact on labor-intensive companies, because in-put value added tax (from purchased goods and services) is deducted proportionately less, as it is not charged and, therefore, deductible from labor costs. As a result, restaurants have a higher value added tax incidence than other less labor-intensive industries. The high value added tax incidence stimulates tax non-compliance and overall loss to the national economy. The research suggests that, in order to minimize the negative impact of value added tax incidence, a reduced value added tax rate may be applied to the final services provided by restaurants. [ABSTRACT FROM AUTHOR]

Key account management is a major process of driving any business. However, many good principles are ignored in the management of the public sector. The basic aim of this research is to set recommendations for the main common principles of key account management in tax administration. The tasks to achieve the aim are as follows: to study essential findings from researches about client relationship management and, specifically, about key account management; to analyse current segmentation, registration and tax revenues of taxpayers from different groups; and to set basic guidelines for key account management in tax administration. The best practice of the client relationship management in business should be adjusted and implemented in the public sector, also in the tax administration. Several important stages are to be used in the key account management process including planning, actions, survey and analysis. The client survey is one of the most important parts of key account management process. Moreover, the personal performance and development plan should be set for key account manager and each team member as well, as regular evaluation must be made. [ABSTRACT FROM AUTHOR]

Transportation and storage industry in Latvia generates a rough 10% of national GDP and therefore has a significant impact on the economy. Overall, more than 70 thousand people are employed in the transit and logistics sector. Underlying railway sector contributes more than EUR 100 million in taxes each year. For specific goods and destinations railway transport is a more sustainable, environmentally effective and economically efficient transport mode in comparison to the road transport and therefore should be promoted, which is in line with one of the transport policy priorities of the EU development strategy 'Europe 2020' - to make carriage by rail more competitive than road transportation. To help implementation of this strategy, the railway sector is in need of governmental help, either in form of state aid or alternatively revision of national excise duty policy on fuel used in railway transportation. One example is to redistribute the revenue from excise duty on diesel used in rail transport to finance maintenance and development of railway infrastructure. [ABSTRACT FROM AUTHOR]

The dataset represents a collection of real estate announcements published in 2018 in the Latvian leading advertisement website www.ss.com [1]. In the Latvian case, mentioned advertisement website is alternative information source in contrast with several (5-7) large real estate agencies. The mentioned advertisement website has no important competitors in Latvia, closer competitor reklama. lv [2] is 4-5 times smaller. Advertisement website www.ss.com represents information from small and medium size agencies, as well from individuals, who want to take part in the real estate market. The collected dataset reflects the observation dynamics of 12 months during 2018, including in total 238 thousand observations. Dataset has 24 dimensions, such as in announcement mentioned price for real estate, deal types, dimensions of location of real estate, such as region, district, address; characteristics of real estate, such as real estate type (land, flat and so on), size and main characteristics for each real estate type, such as land area or bad rooms in apartments. The dataset is hosted in Data Archiving and Networked Services (DANS) repository [3]., (© 2020 The Authors.)