Search results for "Indirect tax"
showing 10 items of 19 documents
Perspectives of tax reforms in Croatia: expert opinion survey
2014
In order to shape tax reform it is necessary objectively to assess the current stateof-the- art of and of the outlook for the tax system. After having reviewed all previous reforms in the light of the consumption-based (interest- adjusted) concept of direct taxation, which was almost systematically implemented in Croatia in 1994, we present the results of a broad expert opinion survey about the Croatian tax system. The most interesting results suggest the maintenance/(re)introduction of different tax incentives and reduced VAT rates, rejection of a flat tax as well as decrease of tax brackets, an increase in alcohol and tobacco duties, the introduction of a financial activities tax, a furth…
Coordinates of the Relationship Between Taxation and Competitiveness in the European Union
2018
Through specialized studies and research, from the analysis of the specific fiscal indicators is demonstrated the role of taxation for growth and economic development. Since the progress and development of a country is closely related to the level of competitiveness, through this article we will identify the main coordinates of the relationship between taxation and competitiveness. Starting from the structure of the Global Competitiveness Index pillars we will identify the fiscal and budgetary components found directly or indirectly in the construction of the index. Without claiming an exhaustive approach, taking into account the specificity of the fiscal policy of the European Union, we wi…
The financial autonomy of the municipalities and the Valencian Parliament
2009
In the first half of the fourteenth century and on countless occasions, the Crown granted the leaders of the City of Valencia authorization to collect indirect taxes as a means of collecting the subsidies allocated to its military needs. The ratification of fiscal autonomy can be related to the Crown's interest in gaining control of municipal resources as a way of demanding donations in order to accomplish its policies. The main reason for the royal privilege to raise taxes in favour of the cities was the extensive expenses caused by the conquest of Corsica and Sardinia during the reign of James II. The Kingdom and the city of Valencia came to the aid of the monarch because they were intere…
Tax Liability and Tax Evasion in a Competitive Labor Market
2005
In a competitive labor market, a change in the legal incidence of a tax on labor will not alter employment if tax obligations are fulfilled. However, this irrelevance result may no longer apply if taxes can be evaded. In particular, a shift from payroll to income taxes will lower employment. This will be the case if workers exhibit constant absolute risk aversion, have a utility function, which is strongly separable in income and the disutility from working, and the penalty for evasion is not proportional to the amount of taxes evaded. Accordingly, tax evasion opportunities can make the legal incidence of a tax on labor an important determinant of its economic incidence.
Efficiency of Corporate Income Tax Reliefs for the Investment Promotion in Latvia
2014
Corporate income tax rate in Latvia is one of the lowest in the European Union and is favourable for business. However, the government additionally uses numerous CIT reliefs to stimulate investments, to promote specific industries and investors. Total costs of these tax reliefs are high, but many of the goals declared by their introduction are not reached, suggesting that tax relief efficiency could be questioned. The efficiency of the existing and potential CIT reliefs should be regularly evaluated. The suggested criteria for such examination are – clear objective, type of taxable rent, existence of positive externality, appropriate design and potential for tax planning, costs in revenue f…
Penalties in the Theory of Equilibrium Tax Evasion: Solving King John’s Problem
2010
The authors characterize equilibria of an income reporting game with bounded returns and no commitment where detected tax evaders are charged the maximally feasible amount. Introducing partial commitment to punishment relief eliminates multiplicity of equilibria. The authors identify a unique limit equilibrium where the poorest citizens evade, intermediate citizens are honest, and the richest citizens are indifferent between evading and truth telling. For small tax rates and auditing cost, committing to a discretionary punishment relief scheme increases expected tax revenue.
The Case for a Local Net Value-Added Tax for Municipalities
1987
In this paper the case made by the Advisory Council of the Federal Ministry of Finance for reform of the local business tax in Germany is outlined. The criteria for a good local tax are described, and the proposals deriving from the Council are presented. The proposed reform is to introduce a local value-added tax of the income type. This tax would be defined on the base of business payroll, profits, interest paid, and rent. It would include businesses, professions, and administrative bodies. The reform is outlined and possible criticisms are assessed. With appropriate definitions of tax base and an enlargement of the group of taxpayers, the value-added tax is argued to be the best approac…
Tax evasion, tax progression, and efficiency wages
2004
Abstract More progressive taxes raise employment in imperfect labour markets. However, this prediction is not robust. For example, any employment effect vanishes in a constant profit efficiency wage economy. It is demonstrated that tax evasion opportunities can re-establish positive employment effects of higher tax progression.
Tax Evasion and Tax Progressivity
2003
In a pure tax evasion framework in which the monetary penalty is a function of the evaded tax, more progressive income taxes will reduce tax evasion if income has to be declared. However, if tax payments have to be declared, higher tax progressivity will have no effects. Thus, the relationship between tax evasion and tax progressivity depends on whether income or taxes have to be divulged to tax authorities. If the fine is a function of undeclared income, higher tax progressivity will always raise evasion.
Corporate hedging under a resource rent tax regime
2010
Accepted version of an article in the journal: Energy Economics. Published version available on Science Direct: http://dx.doi.org/10.1016/j.eneco.2009.10.009 In addition to the ordinary corporate income tax, special purpose taxes are sometimes levied to extract abnormal profits arising from the use of natural resources. Such dual tax regimes exist in Norway for oil and hydropower, where the corresponding special purpose tax bases are unaffected by any derivatives payments. Dual tax firms with hedging programs therefore face the risk of potentially large discrepancies between the tax bases for corporate income tax and special purpose tax. I investigate how this tax base asymmetry influences …