Search results

1 – 10 of over 1000
Open Access
Article
Publication date: 15 February 2024

Davi Bhering

Brazil’s regional inequality is an important topic due to the large and persistent differences in development between states and the high levels of inequality in the country…

Abstract

Purpose

Brazil’s regional inequality is an important topic due to the large and persistent differences in development between states and the high levels of inequality in the country. These variations in development can potentially render survey data inaccurate since the significance of capital income varies across the states. Besides, previous studies incorporating tax and national accounts data globally have mainly focused on measuring the income distribution at the country-level. This approach can limit the understanding of inequality, especially when considering large countries such as Brazil.

Design/methodology/approach

The methodology used to construct these estimates follows the guidelines of the Distributional National Accounts, whose core goal is to provide income distribution measures consistent with macroeconomic aggregates and harmonized across countries and time. The procedure has three main steps: first, it corrects the survey’s underrepresentation of top incomes using tax data. Then, it accounts for national income items not included in the survey or tax data, such as imputed rents and undistributed profits. Finally, it ensures that all components match the national income.

Findings

Compared to survey-based estimations, the results reveal a new angle on the state-level inequality. This study indicates that Amazonas, Rio de Janeiro and São Paulo have a more concentrated income distribution. The top 1\% of earners in these states receives around 28\% of total pre-tax income, while the top 10\% receive nearly 60\%. On the other end, Amapá (AP), Acre (AC), Rondônia (RO) and Santa Catarina (SC) are the states where the income distribution is less concentrated. There were no significant changes in the income distribution across the states during the period analyzed.

Originality/value

This study combines survey, tax and national accounts data to construct new estimates of Brazil’s state-level income distribution from 2006 to 2019. Previous results only considered income captured in surveys, which usually misses a significant part of capital incomes. This limitation may bias comparisons as capital income has different importance across the states. The new estimates represent the income of top groups more accurately, account for the entire national income and enable to compare regional inequality levels consistently with other countries.

Details

EconomiA, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1517-7580

Keywords

Article
Publication date: 2 August 2023

Soumyananda Dinda and Poulomi Khasnobis

This paper examines the role of institution in the combating crime in India. This study also assesses institutions for controlling property crime in India in the post-reform era.

Abstract

Purpose

This paper examines the role of institution in the combating crime in India. This study also assesses institutions for controlling property crime in India in the post-reform era.

Design/methodology/approach

Crime and socio-economic data are taken from National Crime Record Bureau and the Reserve Bank of India, respectively. Twenty major Indian states are selected for the study purpose for the period of 1994–2019. Fixed effect panel data technique is used for analysis purpose.

Findings

Property crime rate declines with economic growth, while it increases with financial development. Findings of fiscal policy instruments are different. Own tax is positively associated with property crime in India, while non-tax fiscal instruments such as fine, penalty, and so on, are inversely related to it. Property crime rate is inversely related to institutional factors like charge sheet and conviction rate.

Research limitations/implications

Further research is needed for other crimes in India. State-level data are used here for analysis purpose; however, spatial or cluster analysis techniques might provide more insights for combating crimes in India.

Practical implications

This study suggests that economic growth and fiscal instrument along with institutional development are essential to control property crime in India.

Social implications

Government should take steps to improve the law-and-order system to control property crime across states.

Originality/value

Impact of non-tax fiscal instrument reduces property crime while that of own tax is increases it in India. These findings are unique and added certain insight in the study. Institutional roles are captured its performances like charge sheet and convict rate, which are significantly reduce property crime in Indian states. Least square dummy variable model is applied to capture individual state effects.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2023-0063

Details

International Journal of Social Economics, vol. 51 no. 3
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 5 January 2024

Astrid Rudyanto

This paper aims to examine whether tax disclosure in Global Reporting Initiative (GRI)-based sustainability reporting mitigates aggressive tax avoidance.

Abstract

Purpose

This paper aims to examine whether tax disclosure in Global Reporting Initiative (GRI)-based sustainability reporting mitigates aggressive tax avoidance.

Design/methodology/approach

This study uses a multiple regression method for 714 nonspecially taxed firms listed on the Indonesia Stock Exchange in 2014–2018.

Findings

The findings demonstrate that disclosing tax payments in GRI-based sustainability reports reduces aggressive tax avoidance. Additional analysis indicates that the number of GRI-based sustainability reports positively affects aggressive tax avoidance. However, disclosing tax payments in multiple GRI-based sustainability reports negatively affects aggressive tax avoidance.

Originality/value

Recent prior studies demonstrate that aggressive tax avoidance does not indicate an organizational culture that devalues corporate social responsibility. This paper argues that firms cannot find the link between tax and corporate social responsibility when tax payments are not incorporated in sustainability reports. GRI considers tax a sustainability issue and seeks to institutionalize this concept by recommending that firms disclose taxes in their sustainability reports. This research analyses whether disclosing taxes in GRI-based sustainability reports may serve as a form of soft law by convincing firms that tax is a sustainability issue, thereby reducing their tax avoidance. This topic has received little attention in previous research.

Details

Journal of Global Responsibility, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2041-2568

Keywords

Expert briefing
Publication date: 12 February 2024

That followed a primary surplus equivalent to 0.5% of GDP in 2022. The negative result in 2023 was partly caused by exceptional circumstances, notably the early payment of…

Details

DOI: 10.1108/OXAN-DB285159

ISSN: 2633-304X

Keywords

Geographic
Topical
Expert briefing
Publication date: 31 January 2024

The new rules, which include steeper taxes on foreign purchases of existing domestic properties, are part of a Labor strategy intended to free up more housing stock. The…

Details

DOI: 10.1108/OXAN-DB284915

ISSN: 2633-304X

Keywords

Geographic
Topical
Article
Publication date: 24 October 2023

Cyrine Khiari, Imen Khanchel and Naima Lassoued

This study aims to investigate the impact of pollution control bonds (PCBs) on overinvestment within utility firms.

Abstract

Purpose

This study aims to investigate the impact of pollution control bonds (PCBs) on overinvestment within utility firms.

Design/methodology/approach

This empirical study analyzes a data set comprising 215 US energy firms observed from 2011 to 2021, using the ordinary least square regression with standard errors adjusted for firm-level clustering.

Findings

The study reveals a negative relationship between PCBs and overinvestment, indicating that PCBs are an effective tool in curbing excessive investment. Additionally, it demonstrates that chief executive officer (CEO) overconfidence diminishes the influence of PCBs on overinvestment. These findings remain robust across various metrics for measuring overinvestment and CEO overconfidence, as well as when alternative estimation methods are used. These results align with insights derived from agency theory and upper echelon theories.

Research limitations/implications

Regulators are encouraged to actively promote the use of PCBs as a financing tool for environmentally focused initiatives. To achieve this, regulatory bodies should enhance their presence within the utility sector, particularly in regions grappling with higher pollution levels. This requires the implementation of strategic policies and regulatory frameworks aimed at mitigating excessive investments. Simultaneously, policymakers should take proactive measures to introduce financial instruments designed to optimize investment efficiency, thus facilitating eco-friendly projects.

Originality/value

To the best of the authors’ knowledge, this paper holds the distinction of being the first to examine the impact of a specific type of green bond, namely, PCBs, on overinvestment. Furthermore, it contributes to the literature on personality traits, particularly within the context of the upper echelon theory, by investigating the moderating influence of CEO overconfidence.

Details

Journal of Financial Reporting and Accounting, vol. 22 no. 1
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 11 August 2021

Yunlong Duan, Yan Liu, Yilin Chen, Weiqi Guo and Lisheng Yang

This study aims to focus on the impact of multi-level knowledge sharing between and within organizations on the risk control of rural inclusive finance. The paper presents…

Abstract

Purpose

This study aims to focus on the impact of multi-level knowledge sharing between and within organizations on the risk control of rural inclusive finance. The paper presents a synergistic risk control system integrating external and internal factors for rural inclusive finance by constructing different knowledge-sharing platforms in an environment, which is full of many uncertainties.

Design/methodology/approach

This study is based on survey methods. To achieve the research objectives, the authors adopt a single case study approach. For data collection, the authors apply a wide variety of methods such as semi-structured interviews, field visits, second-hand databases and official websites.

Findings

The results emphasize that using multi-level knowledge sharing such as the inter- and intra-organizational level, can facilitate the risk control of rural inclusive finance during the post-COVID-19 era. Furthermore, it is also noted that achieving knowledge sharing at different levels by building diverse knowledge-sharing platforms can promote the risk control of rural inclusive finance from the individual-organization level to the chain level of multi-organization collaboration, which contributes to the formation of symbiotic risk control ecology.

Research limitations/implications

The authors have formed the “Chinese wisdom” to deal with inclusive financial risks and to promote in-depth development in relation to the “last mile” practice of inclusive finance, which means the final and the most important phase of a project. The conclusions contribute to enriching the outcomes regarding the risk control of rural inclusive finance, provide experiences to its sustainable development and offer a reference to other countries with their risk control of rural inclusive finance.

Originality/value

Drawing on the knowledge-sharing approach, this study creatively resolves the persistent problems in the risk control of rural inclusive finance, which forms a powerful supplement to the extant literature. Meanwhile, the paper combines the two contextual factors of the post-COVID-19 era and emerging economies, which can be deemed as a novel attempt.

Details

Journal of Knowledge Management, vol. 28 no. 3
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 13 July 2023

Saida Dammak and Manel Jmal Ep Derbel

The present work aimed to present the perception of Tunisian professionals towards companies engaged in social responsibility practices and describe the tax evasion strategies of…

Abstract

Purpose

The present work aimed to present the perception of Tunisian professionals towards companies engaged in social responsibility practices and describe the tax evasion strategies of socially responsible Tunisian companies following the coronavirus disease 2019 (COVID-19) pandemic (COVID-19) shock.

Design/methodology/approach

A survey was sent to 119 Tunisian tax administration auditors. Data analysis methods principal component analysis (PCA) and regression analysis were used. The data were collected through a questionnaire after the general containment of Tunisia from September 2020 to February 2021. These quantitative data were analysed using processing software (STATA).

Findings

Professionals of the tax authorities, particularly those in charge of the audit mission, aim for corporate profitability from the perspective of stakeholders that seek to integrate ethics and social responsibility into companies and consider employee morale a top priority. The results show that highly ethical and socially responsible professionals are far from practising aggressive strategies. Thus, an auditor from the tax administration is far from engaging in social responsibility to justify fraudulent acts. During the COVID-19 period, the role of these professionals was to prevent and detect fraud in the tax sector to fight corruption and investigate taxes based on sound regulations.

Research limitations/implications

The results are consistent with optimal taxation theory, which postulates that a tax system should be chosen to maximise a social welfare function subject to a set of constraints. Professionals seek to make taxation much simpler for taxpayers by providing advice and consultation to manage tax obligations. The minimisation of tax or the play of tax values requires expertise in the field to respect legal constraints. Therefore, these professionals play a crucial role in tax collection, as the professionals' advice and suggestions can influence taxpayers' decision-making.

Practical implications

In recent years, academic researchers, policy makers and the public have become increasingly interested in corporate tax evasion behaviour. At the same time, companies are under increasing pressure to integrate CSR into the companies' decision-making processes, which has led to increased academic interest in CSR. Opportunistic tax minimisation reduces state resources and funds needed for government programmes to improve the social welfare of the entire community. This study represents an overriding concern not only for legal and tax authorities and companies, but also for shareholders and stakeholders.

Originality/value

The authors' study contributes to the existing literature by determining the state of play on corporate social responsibility (CSR) practices amongst Tunisian tax authorities' professionals. In Tunisia, an executive of the tax authorities in charge of the verification mission is required to verify the proper application of the accounting and tax legislation in force, follow up on tax control operations on declared taxes and validate the sincerity of the accounts. This study focussed on the tax evasion of companies engaged in social responsibility practices according to the judgements of Tunisian tax authorities' auditors during the global COVID-19 pandemic.

Details

Journal of Applied Accounting Research, vol. 25 no. 2
Type: Research Article
ISSN: 0967-5426

Keywords

Open Access
Article
Publication date: 29 March 2024

Runze Ling, Ailing Pan and Lei Xu

This study examines the impact of China’s mixed-ownership reform on the innovation of non-state-owned acquirers, with a particular focus on the impact on firms with high financing…

Abstract

Purpose

This study examines the impact of China’s mixed-ownership reform on the innovation of non-state-owned acquirers, with a particular focus on the impact on firms with high financing constraints, low-quality accounting information or less tangible assets.

Design/methodology/approach

We use a proprietary dataset of firms listed on the Shanghai and Shenzhen Stock Exchanges to investigate the impact of mixed ownership reform on non-state-owned enterprise (non-SOE) innovation. We employ regression analysis to examine the association between mixed ownership reform and firm innovation.

Findings

The study finds that non-state-owned firms can improve innovation by acquiring equity in state-owned enterprises (SOEs) under the reform. Eased financing constraints, lowered financing costs, better access to tax incentives or government subsidies, lowered agency costs, better accounting information quality and more credit loans are underlying the impact. Additionally, cross-ownership connections amongst non-SOE executives and government intervention strengthen the impact, whilst regional marketisation weakens it.

Originality/value

This study adds to the literature on the association between mixed ownership reform and firm innovation by focussing on the conditions under which this impact is stronger. It also sheds light on the policy implications for SOE reforms in emerging economies.

Details

China Accounting and Finance Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1029-807X

Keywords

Article
Publication date: 10 February 2023

Deen Kemsley, Sean A. Kemsley and Frank T. Morgan

The purpose of this study is to determine whether income tax evasion also constitutes money laundering if Financial Action Task Force (FATF) Recommendations are strictly applied…

Abstract

Purpose

The purpose of this study is to determine whether income tax evasion also constitutes money laundering if Financial Action Task Force (FATF) Recommendations are strictly applied, including cases where an offender evades tax on lawful income.

Design/methodology/approach

Apply FATF conditions for money laundering to the tax evasion facts in United States v. Walter Anderson. In this case, the USA alleges that Anderson attempted to evade $200m of taxes on lawful income.

Findings

Anderson’s tax evasion actions met all the FATF’s conditions for money laundering. FATF Recommendations imply that tax evasion, even on lawful income, is a form of money laundering. Tax evasion produces criminal tax savings and simultaneously launders those criminal proceeds.

Practical implications

The FATF effectively classified all tax evasion as money laundering when it designated tax evasion among predicate offenses thereto. The FATF stopped short of explicitly stating this result. The FATF should seriously consider taking the next step: formally recognize tax evasion as one form of money laundering, and thus codify a single crime that covers both offenses. A single-crime approach may be unfamiliar to prosecutors, but it could enable a more effective multiagency approach to fighting financial crime. It could simplify prosecution, eliminate overlapping statutes and reduce concerns over double jeopardy.

Originality/value

To the best of the authors’ knowledge, this is the first tax case analysis to indicate that tax evasion completely incorporates money laundering within the FATF framework.

Details

Journal of Financial Crime, vol. 31 no. 1
Type: Research Article
ISSN: 1359-0790

Keywords

1 – 10 of over 1000