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The article presents a court case in which the federal district court for the Northern District of Alabama affirmed the granting of summary judgments for plaintiffs claiming that the Corporate Transparency Act (CTA) is unconstitutional. In National Small Business United, et. al. v. Yellen, the court supported the Department of the Treasury and the Financial Crimes Enforcement Network (FinCEN) in their enforcement of the CTA.

A limited number of studies have examined the roles of behavioural and social factors, such as authorities' tax services, tax knowledge and trust, on the tax compliance of small and medium-sized enterprises (SMEs). By applying the synergistic climate of the slippery slope framework, this study examines the mechanisms by which tax service quality influences the tax compliance of SMEs in Vietnam via direct, indirect and interaction effects. Data was collected from a sample of 362 SMEs located in Vietnam using a stratification sampling method. The results indicate that tax service quality affects tax compliance directly and indirectly through trust. Furthermore, it was found that tax knowledge negatively moderates the relationship between tax service quality and compliance. The implications of these findings for tax authorities and SMEs operating in Vietnam on enhancing SMEs' tax compliance are discussed. [ABSTRACT FROM AUTHOR]

We examine the role of trust in authorities on voluntary compliance, the power of authorities on enforced compliance and the interaction of legitimate power and trust on voluntary compliance among small and medium enterprises (SMEs) in Uganda. Findings from 386 SME managers provide significant support for the slippery slope framework (SSF) assertions. Coercive power indirectly affects enforced compliance through legitimate power. However, tax fairness can positively affect voluntary tax compliance when there is trust. The interaction between legitimate power and trust shapes voluntary compliance. Lastly, social-psychological factors contribute more to tax compliance. This study contributes to the understanding of the SFF in explaining tax compliance among SME firms. [ABSTRACT FROM AUTHOR]

We undertake the first empirical analysis of profit shifting by U.S. firms during foreign tax holidays. We show that foreign tax holidays have become a prevalent and powerful tax planning strategy among U.S. firms. We find that U.S. firms significantly increase their outbound profit shifting while participating in foreign tax holidays. However, we also find that profit shifting associated with tax holidays comes at the cost of increased tax uncertainty. Our results have important implications for policy making and for understanding firm behavior. [ABSTRACT FROM AUTHOR]

The binary legislative choice between state and federal regulation of a firm's internal affairs is deeply entrenched in the existing literature and policy discussions. Alas, this regulatory menu contains a false and distortive dichotomy. The state-federal dichotomy is false because multistate formation and regulation of business entities are possible as well. This dichotomy is distortive because it deprives policymakers of the advantages of multistate corporations and other business entities. In this Article, we demonstrate that a multistate business entities regime can resolve multiple predicaments that presently bring about unfairness and inefficiencies in both business entities law and business entities taxation. A multistate business entities regime promises to be beneficial for both the participating states and the business entities themselves. For example, by choosing to co-compete, states that have so far lost in the market for corporate charters would be able to generate--and divide among themselves--substantial business and tax revenues by offering the corporations formed under their regime unique tax and corporate law benefits. In this way, for example, a "tri-state" co-op, offered by New York, Connecticut, and New Jersey, could compete with Delaware; and a "rust belt" coalition could retain industry charters within its multistate jurisdiction. The hitherto unnoticed potential for a multistate entities regime aligns with the Framers' vision for state cooperation under the Constitution's Compact Clause. Furthermore, setting up this regime would vastly improve the functioning of the market for both corporate charters and other business entities. This regime would allow states to vigorously compete for both managers and investors, boost stakeholder advocacy, and accomplish environmental, social, and governance (ESG) goals to the benefit of their constituents. [ABSTRACT FROM AUTHOR]

This study examines the impact of outside directors on the association between corporate social responsibility (CSR) performance and tax aggressiveness. Based on a sample of 5,007 firm-year observations over the 2003-2009 period, we find that there is a negative association between the interaction effect of the proportion of outside directors on the board and CSR performance, and tax aggressiveness. Our additional tests confirm the reliability of our main regression results. Overall, our results indicate that the presence of outside directors on the board magnifies the negative association between CSR performance and tax aggressiveness. [ABSTRACT FROM AUTHOR]

This Article explains how the United States regulates the fantasy sports industry, fifteen years after the passing of the Unlawful Internet Gambling Enforcement Act of 2006. In particular, this Article delves into the subtle but important shift in the connotation of the term "fantasy sports," which has come to subsume, and arguably be engulfed by, "daily fantasy sports." In addition, this Article explores new state laws for licensing and taxing fantasy sports operators, the Internal Revenue Service's recent efforts to apply a federal wagering tax to daily fantasy sports transactions, concerns about market consolidation and antitrust risk within the industry, and emerging industry concerns about cybersecurity, customer identification, and consumer privacy protection. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association 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.)

The Sarbanes–Oxley Act of 2002 (SOX) permits the provision of tax services by auditors and restricts other major non-audit services previously provided by auditors for their audit clients. This article examines the relation between auditor-provided tax fees and audit fees after SOX. The results, using a tax fee model and an audit fee model with a larger set of non-overlapping independent variables in both models, show a positive relationship between tax and audit fees, after controlling for factors that could drive both fees. An additional test shows that firms that employ (do not employ) their incumbent auditors also for tax service are likely to pay higher (lower) audit fees than in the case when they only (also) employ their auditors for audit service. The results of other tests are also consistent with the suggestion that auditors cross-sell their non-audit services to their audit clients. [ABSTRACT FROM PUBLISHER]

The article focuses on an agreement in business partnerships on economic sales and tax debtor. It discusses a VAT (value added tax) Directive on economic activity carried in partnership or independently. It also highlights a VAT Directive on debtor of VAT and on allocation of economic sales from one partner to another business partners, as of the year 2021.

It has recently been argued in the international tax literature that the OECD Base Erosion and Profit Shifting project (BEPS) reflects and effectuates full taxation, namely an international norm that would suggest that all of a company's income should be taxed in places where it has real business activities, representing a modern approach to the single-taxation paradigm. This Article builds upon the concept of full taxation and argues that although rhetorically attractive, the concept is still conceptually inconsistent, particularly because it is incapable of providing any hints as regards where and who should finally be taxed. Moreover, it adopts an overinclusive and instrumental approach, the purpose of which appears to be only to legitimatise the use of coordinated provisions whose rationale attends exclusively to avoid the complete absence of taxation in cross-border transactions. This approach, innocuous at first sight, suggests however the unprincipled purpose of taxation just for the sake of taxation, putting at risk countries wishing to attract real economic activities and stigmatising the outcome of double non-taxation in a permanent way. [ABSTRACT FROM AUTHOR]

Copyright of Historia Contemporanea is the property of Historia Contemporania 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.)

The article provides information on the introduction of a tax compliance management systems (TCMS) including framework of value added taxation in companies, tax assessment and new regulation of taxation in the public sector. Topics include assessment of business transactions, systematic and complete sales tax law and implemented tax training measures.

New Zealand's tax regime is distinct in offering a specific entity targeted towards closely held companies, the look-through company ('LTC'). One of the stated policy intents of the LTC regime is reducing compliance costs. This research sought the views of tax practitioners as to uses for the LTC regime, advantages of the LTC regime, disadvantages of the LTC regime and the complexity of the LTC regime. Notably, practitioners viewed the LTC regime as being complex and giving rise to increased compliance costs for those that use the regime. Part of this complexity arose from the now repealed loss/deduction limitation rule, however, other drivers of complexity still exist. To this end, further overhauls are recommended. [ABSTRACT FROM AUTHOR]

The article examines the extent of corporate level implicit taxes, or the cross-sectional variations in pre-tax market returns which offset explicit tax variations and equalize the risk-adjusted, after-tax returns rate in the U.S., and also examines the effect of the Tax Reform Act of 1986 (TRA86) on implicit taxes. Topics discussed include a decline in implicit taxes after the tax reform law was implemented and prior research on implicit taxes at the corporate level. The article also mentions empirical studies in economics that focus on the incidence of corporate income tax.

The article presents commentary from Jana Smith Raedy of the University of North Carolina on a paper in the current issue by Ayers, Jiang, and Laplant (AJL) entitled "Taxable Income as a Performance Measure: The Effects of Tax Planning and Earnings Quality." The author discusses hypotheses developed by AJL, their research design, and avenues for future research suggested by their work. In the author's view AJL have presented a strong argument for their assertion that the connection between a firm's taxable income and market return has an inverse relationship with the noise in taxable income.

Too many closely held businesses retain and accumulate assets far beyond the reasonable needs of the business. Not only does this expose the assets to a much greater degree of business risks, it also complicates business succession planning and estate tax planning. This article reviews the problems and risks presented by excess accumulation of wealth in a closely held business including an analysis of the limitations of creditor protection benefits provided by corporations. The case is made that numerous business and personal planning objectives can be more easily met if wealth is routinely and systematically withdrawn from the business. Further, a thorough analysis of the provisions of the Internal Revenue Code that are specifically designed to discourage excess accumulations of wealth in the closely held business are presented. The tax implications and characterization of withdrawals of wealth are also be examined. The article concludes with an examination of specific techniques that can be used to keep the value of the family business commensurate with its business needs and how this can facilitate estate planning and equalization issues. [ABSTRACT FROM AUTHOR]

This study examines analyst forecast revisions after the disclosure of firms' deferred tax adjustments following the U.S. Omnibus Budget Reconciliation Act of 1993 (OBRA), which raised the corporate income tax rate from 34 percent to 35 percent. This deferred tax adjustment was a one-time item, and should have had no effect on analyst estimates of future earnings. However, we find that forecast revisions issued after the disclosure of an income-decreasing deferred tax adjustment were positively related to the amount of the adjustment. The complexity of the deferred tax adjustment and the newness of SFAS 109 (which required the adjustment) may have contributed to the failure of analysts to properly interpret this one-time item when revising their earnings forecasts. [ABSTRACT FROM AUTHOR]

This study uses a new data set to assess whether capital structure theory is portable across countries with different institutional structures. We analyze capital structure choices of firms in 10 developing countries, and provide evidence that these decisions are affected by the same variables as in developed countries. However, there are persistent differences across countries, indicating that specific country factors are at work. Our findings suggest that although some of the insights from modern finance theory are portable across countries, much remains to be done to understand the impact of different institutional features on capital structure choices. [ABSTRACT FROM AUTHOR]

Microeconomics assumes that business firms respond to changing costs and prices. Taxes impose costs of businesses, and tax breaks help industries grow. This paper discusses the dynamics of government actions, drawing on the end of the Bell System in the 1970s, and then reviews the history of tax breaks to a variety of large industries, from the oil industry to finance and real estate. It closes by placing the whole discussion in the framework of corruption as it should be defined, not as the Supreme Court defines it now. [ABSTRACT FROM AUTHOR]

The article discusses various factors that help in bringing about the digitization of the taxation procedure in Germany in general and the external tax audit of companies in particular. Topics include the use of the digital taxpayer data in conducting external tax audit for companies; evaluation of the data to generate questions in individual cases; and the use of procedures and processes of business informatics and business intelligence for the analysis of companies.

The article focuses on a court case wherein the plaintiff shareholder has accused pharmaceutical company CG GmbH over the false calculation of tax. Topics discussed include tax evasion in Germany, relationship between incoming and outgoing sales, differential taxation and quarterly performance of the companies.

Most analyses of tax evasion examine individual behavior, not firm behavior, given obvious and recognized data issues. We use data from the Business Environment and Enterprise Performance Survey to examine tax evasion at the firm level, focusing on a novel determinant of firm tax evasion: the financial constraints (or credit constraints) faced by the firm. Our empirical results indicate across a range of alternative specifications that more financially constrained firms are more likely to be involved in tax evasion activities, largely because evasion helps them deal with financing issues created by financial constraints. We further show that the effects of financial constraints are heterogeneous across firm ownership, firm age, and firm size. Lastly, we present some suggestive evidence on the possible channels through which the impact of financial constraints on firm tax evasion may operate, including a reduction of information disclosure through the banking system, an increase in the use of cash for transactions, and an increase in bribe activities in exchange for tax evasion opportunities. [ABSTRACT FROM AUTHOR]

The role of the state in regulating the business environment is high and there are situations where the state must promote the suspension of the company's business and liquidation of the company, if it results in the improvement of the business environment. The research aim is to analyze the State Revenue Service (SRS) impact on taxpayer's business directly or partly directly by using enactments and as a result the impact on the company's liquidation. The author compiled statistics from the SRS public reports about the SRS activities to put the business environment in order and promote fair competition in business using tools for taxpayer operation-restricting measures. And also schematically presented the provisions of the regulatory enactments regarding the suspension and renewal of the taxpayer's economic activity, as well as exclusion from the Register of Enterprises in case if the violation does not relate to the employment of employees without a contract. Used methods: the monographic method, statistical methods, logical analysis and synthesis, the graphics method, the logical and constructive methods were used in analyzing results and making judgments. The present research used the author's previously made research, the Latvian enactments The Commercial Law and The Law on Taxes and Duties, the annual reports of the State Revenue Service of the Republic of Latvia and their statistics. Starting from 2013 in the average for 11073 taxpayers per year the SRS suspend their economic activity. Started from 2014 the SRS terminated the taxpayer activity in 29321 cases and from this amount the 27076 taxpayers were registered in the Register of Enterprises and mostly are limited liability companies. According to the statistical data author concludes that SRS is very active to put the business environment in order and it affects on the number of excluded entities from Registers of Enterprises too. During 2012 - 2017 were registered 83121 entities and excluded 53645 entities in the Register of Enterprises, and in the same time of period (2012 - 2017), SRS suspended 50335 taxpayer's economic activities but renewing the economic activities only 4.93% of them. [ABSTRACT FROM AUTHOR]

The section 704(b) allocation Regulations contain a highly complex safe harbor, the substantial economic effect rules. If an allocation fails to comply with the safe harbor, it will only survive scrutiny if it is in accordance with the "partners' interests in the partnership" (PIP). Given the complexity of the safe harbor, one might expect the PIP Regulations to be similarly complex, but nothing could be further from the truth. The PIP Regulations are, by tax standards, concise and straightforward. Some have argued that the PIP Regulations do not provide enough guidance, and that a more complex and comprehensive set of regulations would be preferable. In this Article, I argue that judges have made successful use of the PIP Regulations, and that a more complex set of PIP Regulations would achieve little and indeed might cause more problems than they solve. Accordingly, I argue against any substantial amendment to the PIP Regulations, though I would provide a safe harbor for target allocations. [ABSTRACT FROM AUTHOR]

Given the recent emphasis on effective tax rates by policy makers and accounting researchers, this study investigates the relation between firm size and corporate tax burdens on a yearly and an industry basis. The analysis is conducted using five effective tax measures employed in previous studies in order to determine the degree to which inferences between size and tax burden are robust across these different effective tax measures. The results indicate that the relation is fairly robust across measures and, in instances in which the relation is not upheld by our analysis, sample composition explains differences in the observed relation between firm size and corporate tax burden. [ABSTRACT FROM AUTHOR]

This article comments on an argument by Halperin and Maindiratta which explains how taxes affect the parties' choice of organizational form. It appears that the tax authorities impose constraints on the contractual arrangements that are possible under each form. These constraints imposed by the tax authorities are what drive the authors' results. Under the authors' assumptions, even in a world without taxes, the parties will be indifferent about the way they organize their relationship. A firm can be usefully be thought of as a collection of physical assets, with the owner or owners of the firm having residual rights of control over these assets, that is, the right to use these assets in any way not covered by an initial contract. In a world where initial contracts are necessarily incomplete because of the existence of transaction costs, these residual control rights affect agents' bargaining power and hence the ex-post division of surplus in an economic relationship. This in turn influences the willingness of agents to make ex-ante investments specific to the relationship. According to this view, the parties to a relationship will choose an organizational form--to be more precise, a structure of asset ownership--so as to mitigate the consequences of this unwillingness to invest, that is, to maximize the total surplus from their relationship.

The article discusses the support of financial accounting choices to aggressive tax positions in public and private financial institutions. The management of financial institutions may choose financial accounting methods which conform to tax choices that will increase their tax savings, should the U.S. Internal Revenue Service allow it. However, managers do not always choose to conform because the immediate expensing of costs instead of capitalizing can lower reported net income and increase nontax costs.

This paper considers some issues surrounding the role of bankruptcy costs in models of capital structure. Evidence on the direct costs of corporate bankruptcy is presented for a number of railroad firms which were in bankruptcy proceedings under Section 77 of the Bankruptcy Act between 1933 and 1955. Elsewhere, I have examined the risk and return characteristics of defaulted debt claims of firms in the railroad industry; the railroad firms whose bankruptcy costs are discussed here are a subsample of the firms whose bond returns were the subject of those studies. [ABSTRACT FROM AUTHOR]

This article focuses on Alan Macnaughton's paper on fringe benefits and employee expenses titled "Fringe Benefits and Employee Expenses: Tax Planning and Neutral Tax Policy." The author criticizes the work as essentially irrelevant because he feels there can never be true neutrality; that tax policy is always aimed at achieving a specific purpose resulting in one sector being favored over another. However, he does praise Macnaughton's stimulating analysis and considers his work a valuable contribution to the literature on the subject.

This paper constructs a decision model for fringe benefits and employees' work-related expenses that considers the tax positions of both the employer and the employee. The analytical results obtained can be used to guide tax planning in this area. The decision model is also used to derive tax rules that neither subsidize the provision of fringe benefits nor penalize employees for incurring work-related expenses. Based on results from the economic theory of rationing, the paper shows that the information required to implement these rules can be obtained from econometric estimates of consumer demand functions. [ABSTRACT FROM AUTHOR]

The article summarizes the findings of a theoretical study designed to discover the incentive effects of unemployment insurance (UI) tax on individual firms as it is being operated in most U.S. states. The theoretical analysis that underlies the research is confined to the incentive effects of the UI tax on an individual firm that treats its market environment as exogenous. It is noted that the tax base of the UI tax is called the taxable payroll. The incentive effects of the UI tax implied by the taxable payroll will be examined on the assumption that the firm's tax rate is exogenous. The effects of the tax on net permanent layoffs, on labor turnover and on the optimum combination of hours and employment are discussed.

The double taxation of corporate income should discourage firms from incorporating. We investigate the extent to which the aggregate allocation of assets and taxable income in the United States between corporate and noncorporate firms responds to the size of this tax distortion during the period 1959-1986. In theory, profitable firms should shift out of the corporate sector when the tax distortion is large, and conversely for firms with tax losses. Our empirical results provide strong support for these forecasts, and imply that the resulting excess burden equals 16 percent of business tax revenue. [ABSTRACT FROM AUTHOR]

In 1936, the Federal Government unexpectedly imposed a tax on undistributed corporate profits. Despite the direct costs of the tax, its announcement produced a positive revaluation of corporate equity, particularly among lower-payout firms. We interpret this as evidence of a divergence between managerial and shareholder preferences regarding dividend payout policies, consistent with the presence of agency costs. We also find that despite the incentives created by the tax, the actual growth in dividends during 1936 was lower among firms judged more likely to be subject to higher agency costs after controlling for liquidity, debt, and the growth in earnings. [ABSTRACT FROM AUTHOR]

The article looks at business tax provisions of the 1962 and 1964 U.S. Revenue Acts. The provisions affecting business investment decision are focused on, including a curtailing of the lives of depreciable assets and a tax credit equivalent to 7 percent of durable equipment outlays. The author broadly interprets business taxation to incorporate changes in personal income tax. Corporate decisions on employee compensation patterns are affected by both corporate and personal income tax changes as well as restricted stock option provision changes.

The article discusses issues related to the conceptual foundations of net national product and net national income. The measures of net income have attracted much scholarly interest in national income economics. The author claims the income measurement as both product and factor prices has statistical support, which makes it an effective measure of real income. He concludes by stating that the full value of government production should be reflected in the single measure of net income and production.

The article presents commentary and criticism on the address "Competition from Tax-Exempt Business," by Harry G. Guthmann, including within the issue. An overview of tax exemption as a tool for economic control and adaptation in government policy is provided. The legal structures of the U.S. Internal Revenue Code concerning business income taxation are discussed towards the further analysis of the broader economic impact of such exemption policies, suggesting that exemption in fact leads to disadvantages.

This Article will address tax law's inconsistent treatment of gains and losses--focusing in particular on certain instances in which a taxpayer is prevented from shifting a built-in loss to another taxpayer but would be allowed to shift a built-in gain to another taxpayer. The article will explore whether any legitimate justification can explain the inconsistency. Finding no such legitimate justification for at least some of the examples, this Article will conclude that lawmakers ought to have also addressed gains and the failure to do so results from lawmakers crafting an overly narrow response that addressed only the most recent, high-profile gimmick in engineering transactions to reduce tax liability. [ABSTRACT FROM AUTHOR]

Abstract: This study examines whether the determinants of dividend payout ratios between Multinational (MCs) and Domestic corporations (DCs) vary across Australia, U.S., Japan, U.K. and Malaysia. Results show: (i) Australian, UK and Malaysian MCs pay significantly less dividends than their Domestic counterparts; however, the opposite holds for the U.S. firms; (ii) the factors that significantly explain the difference between DCs’ and MCs’ payout ratios vary across countries; (iii) firms operating in an imputation tax system and in a common law environment pay comparatively higher dividends relative to firms operating in a classical tax system and civil law regime. [ABSTRACT FROM AUTHOR]

Increases in globalisation, trade and technology have meant that it is now common for Australians to have assets and business interests in multiple jurisdictions and to be based overseas for extended periods of time, making them non-residents for tax purposes. Due to the nature of international law, potential conflicts of laws, different taxation rules in each country and (in some instances) double tax agreements, it is generally no longer possible for one adviser to provide holistic advice in relation to all aspects of international estate planning. Given the complexity in the laws in different jurisdictions, best practice is generally achieved by advisers developing a methodical, checklist-based approach and engaging with specialist foreign advisers to advise on specific aspects of an international or cross-border estate plan. [ABSTRACT FROM AUTHOR]

Illegal phoenix activity generally involves closing one debt-laden company and continuing its business through another company minus those debts. Its propensity to cause losses of federal revenue has recently been highlighted by the Australian Government Treasury announcement of a suite of measures to combat it. However, there is already an extensive array of legislative and administrative tools that are available against illegal phoenixing. This article considers both the existing and proposed measures and makes some practical suggestions to improve the recovery of tax. However, solutions are not found exclusively in tax law and its administration. Since illegal phoenix activity is facilitated by the creation and demise of companies and their controllers are regulated by the Corporations Act 2001 (Cth), suggestions are made regarding corporate law and its administration by the Australian Securities and Investments Commission. [ABSTRACT FROM AUTHOR]

Предложена концепция моделирования влияния налогообложения на развитие малого предпринимательства в Украине. В ее основу положена идея применения когнитивного, имитационного и рекурсивного моделирования. Практическая значимость концепции заключается в предоставлении возможности принимать управленческие решения по совершенствованию налоговых инструментов в рамках обеспечения интересов, как налогоплательщиков, так и государства. Достигнутый баланс интересов в долгосрочной перспективе обеспечит стабильность развития малых предприятий. [ABSTRACT FROM AUTHOR]