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1 – 10 of 372
Open Access
Article
Publication date: 15 July 2022

Anna Herculina Anculien Schoeman, Christopher C. Evans and Hanneke Du Preez

Correct registration for the value-added tax (VAT) is a key aspect of tax compliance; it is vital in ensuring adequate tax revenue collection in all countries but particularly in…

2186

Abstract

Purpose

Correct registration for the value-added tax (VAT) is a key aspect of tax compliance; it is vital in ensuring adequate tax revenue collection in all countries but particularly in developing countries such as South Africa. Non-registration hinders sufficient tax revenue collection, stifles economic growth and causes unfair competition with formal businesses. The purpose of this study is to determine whether changes in the VAT rate affect the registration decisions of businesses, ultimately impacting upon tax compliance behaviour and tax revenue collection.

Design/methodology/approach

An online 2 × 2 between-subjects field experiment was conducted, as part of a broader study, to consider compliance with registration requirements by small business entities in South Africa, specifically when there are changes in the VAT rate.

Findings

Although the study establishes that changes in the VAT rate tend not to have a significant impact on the registration decisions of such taxpayers, it nonetheless indicates that the magnitude of the change in the VAT rate may be influential on registration decisions, whether relating to compulsory or voluntary registration. More particularly, the greater the magnitude of the VAT rate decrease (increase), the more likely it is that taxpayers will register (deregister) for VAT purposes, indicating that the magnitude of changes in the VAT rate do have an impact on VAT registration decisions and therefore on tax compliance more generally.

Research limitations/implications

Not only does the study add to the limited knowledge available on registration decisions of small businesses, but also gives valuable guidance to policymakers in terms of determining the VAT rate for the country.

Originality/value

Not only does the study add to the limited knowledge available on registration decisions of small businesses, but it also gives valuable guidance to policymakers in terms of determining the VAT rate for the country.

Details

Meditari Accountancy Research, vol. 30 no. 7
Type: Research Article
ISSN: 2049-372X

Keywords

Open Access
Article
Publication date: 19 November 2018

Mienati Somya Lasmana and Reni Eka Isyatir Rodhiyah

The purpose of this paper is to know the relevance between the changes in non-taxable income with the receipt of Income Tax Article 21, Income Tax Article 25/29, the receipt of…

3539

Abstract

Purpose

The purpose of this paper is to know the relevance between the changes in non-taxable income with the receipt of Income Tax Article 21, Income Tax Article 25/29, the receipt of value added tax and the receipt of luxury sales tax r (PPnBM).

Design/methodology/approach

Changes in non-taxable income have potentially reduced the receipt of Income Tax Article 21, Income Tax Article 25/29 of individual taxpayers, otherwise it increased value added tax and luxury sales tax receipts. This study used the descriptive qualitative approach, by conducting a simple case study based on actual data. Data analysis technique used is descriptive statistics and comparison analysis. Research conducted at the Kantor Wilayah Direktorat Jenderal Pajak Jawa Timur II.

Findings

The results show that the changes of non-taxable income in 2013 and 2015 did not affect the receipt of Income Tax Article 21 but the growth is slowed, while the receipt of Income Tax Article 25/29 increased.

Originality/value

Value added tax and luxury sales tax receipts, increasing every year, slowed down in 2013, but increased higher in 2015.

Details

Asian Journal of Accounting Research, vol. 3 no. 2
Type: Research Article
ISSN: 2443-4175

Keywords

Open Access
Article
Publication date: 31 December 2006

Baasankhuu Ganzorig and Dashnyam Nachin

Despite the worldwide stagnation in FDI, interest in Mongolia on the part of foreign investors, especially those from East Asia, North America, has grown over the last few years…

Abstract

Despite the worldwide stagnation in FDI, interest in Mongolia on the part of foreign investors, especially those from East Asia, North America, has grown over the last few years, mainly in the mining, trade and service sectors. The increase of FDI into Mongolia can be linked with the Mongolian government’s efforts to establish a more favorable external and internal legal environment in order to provide a free and open regime for business, the shifting tendency of world market center from traditional Europe, America to Asia, namely to China, resolving the “big debt” issue between Mongolia and Russian Federation which open new favorable opportunities for intensification of foreign investment inflows, increased domestic private savings and lastly Mongolia’s GDP steady growth rate during last years. The purpose of this paper is to review FDI inflows into Mongolia, detailing the sectors benefiting from this investment and the countries where it originates, based on information gathered in the period up to 2005.

Details

Journal of International Logistics and Trade, vol. 4 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 18 February 2022

Mohammed Muneerali Thottoli

The purpose of the paper is to examine current companies’ compliance with value-added tax (VAT) and the evolving role of the compliance officer in the listed companies at Muscat…

2440

Abstract

Purpose

The purpose of the paper is to examine current companies’ compliance with value-added tax (VAT) and the evolving role of the compliance officer in the listed companies at Muscat Stock Exchange (MSX), Oman.

Design/methodology/approach

The study has collected various compliance measures set by Capital Market Authority (CMA) from 2011 to 2019. On top of the websites of CMA, MSX, Oman Tax Authority and other related websites, the paper has considered real data of specific compliance or disclosure measures set by CMA on all companies listed under MSX. The focused period from 2011 to 2019 is where CMA has provided disclosure data as part of mandatory disclosure requirements.

Findings

This paper identified that there is a lack of timely compliance by companies under the existing law, and these companies may face pressures for compliance with VAT enforcement in Oman. Therefore, to comply with the disclosure requirements of listed companies, there is a growing need to appoint a full-time compliance officer and do a compliance audit.

Practical limitations/implications

The results of the study indicate the value of full-time compliance officers and compliance audits. The findings are able to aid in the appraisal of VAT accounting, compliance audit research, and in the selection of proper assessment methods and criteria.

Originality/value

This paper reviews the literature and provides new empirical analysis that are possibly beneficial for both scholars and accounting practitioners.

Details

Public Administration and Policy, vol. 25 no. 1
Type: Research Article
ISSN: 1727-2645

Keywords

Open Access
Article
Publication date: 3 October 2023

Binh Tran-Nam

This paper attempts to develop a simple, static model of tax administration that is capable of explaining the widespread collusive petty tax administration corruption observed in…

Abstract

Purpose

This paper attempts to develop a simple, static model of tax administration that is capable of explaining the widespread collusive petty tax administration corruption observed in developing countries.

Design/methodology/approach

This paper utilizes a positivist research framework and adopts a theoretical method of analysis, although secondary data will also be mentioned to support theoretical arguments whenever it is appropriate to do so.

Findings

A high rate of collusive tax corruption is inevitable in developing countries.

Research limitations/implications

The model is static and needs to be extended into a dynamic model.

Practical implications

Traditional enforcement tools such as higher audits or a higher penalty regime against tax evasion do not work. Tax simplification can lessen the incidence of tax corruption.

Social implications

Fighting tax corruption requires significant changes in the attitudes of taxpayers and tax auditors.

Originality/value

This paper combines the literature on Kantian economics and tax compliance in an innovative fashion.

Details

Fulbright Review of Economics and Policy, vol. 3 no. 2
Type: Research Article
ISSN: 2635-0173

Keywords

Open Access
Article
Publication date: 15 August 2022

Shengfeng Lu, Sixia Chen, Yongtao Cang and Ziyao San

This study examines whether and how government fiscal pressure influences corporate charitable giving (CCG).

Abstract

Purpose

This study examines whether and how government fiscal pressure influences corporate charitable giving (CCG).

Design/methodology/approach

The authors exploit sub-national tax revenue sharing changes as exogenous variations to government’s fiscal pressure at the city level and then construct a quasi difference-in-differences (DiD) model to conduct the analysis based on a sample that consists of 14,168 firm-year observations in China during the period of 2003 to 2012.

Findings

The authors found that firms increase charitable donations when local governments face higher fiscal pressure. Such effects are more pronounced for firms that have stronger demand for political connectedness in the sample period. Furthermore, this study’s findings suggest that the timing strategy of donating helps firms to lower the effective tax rate and to build stronger political connections. In addition, donating firms outperform non-donating firms in terms of bank loan access and market reputation.

Originality/value

The authors contribute to at least three lines of literature: first, extend the understanding of timing strategies of corporate charitable behaviors; second, contribute to the literature studying the “crowd out” effect between government-provided charitable funds and private donations; finally, contribute to the emerging literature exploring the financial interests associated with corporate donation strategy (Claessens et al., 2008; Cull et al., 2015).

Details

China Accounting and Finance Review, vol. 25 no. 2
Type: Research Article
ISSN: 1029-807X

Keywords

Open Access
Article
Publication date: 18 May 2021

Wasseem Waguih Alexan Rizkallah

The purpose of this study is to investigate the relationship between fiscal policy (tax revenues and government expenditure) and economic happiness. The panel data are used from…

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Abstract

Purpose

The purpose of this study is to investigate the relationship between fiscal policy (tax revenues and government expenditure) and economic happiness. The panel data are used from 2012 to 2016 for 18 countries of the Middle East and North Africa (MENA) region.

Design/methodology/approach

The study adopted the Barro (1990) model of endogeneity growth to characterize the relationship between fiscal policy and economic happiness. The study estimated the model by using the pooled ordinary least squares method, the fixed effects method and the random-effects method. In addition, the study used the dynamic estimate of this relationship rather than the conventional static estimate through the generalized method of moments’ method. This leads to overcoming the endogeneity problem between the dependent variable and the independent variables.

Findings

The main findings indicated that there is a negative and statistically significant relationship between nondistortionary taxes and economic happiness. Also, there is no relationship between public expenditure and economic happiness, whether productive or nonproductive. The results confirmed a positive and significant relationship between other revenues and economic happiness. The current study recommended the diversification of other public revenue sources to increase its contribution to public expenditure financing and the restructuring of the tax system, particularly nondistortionary taxes. These taxes must be replaced by other revenues or by distortionary taxes to increase economic happiness.

Research limitations/implications

The research represents a strong starting base that can help researchers to conduct more studies on economic happiness by using different measures and comparing their results to find out the determinants of happiness. The relationship between economic happiness and fiscal policy with its different aspects requires more studies, especially the relationship between taxes and economic happiness in our region. The study of the relationship between public expenditure and economic happiness according to economic activities can guide decision-makers to direct the expenditure toward economic activities that achieve the happiness of their citizens. Enriching this study requires the availability of fiscal data for the entire MENA region for longer periods, which allow us to divide the countries of the region into petroleum and nonpetroleum countries, but the scarcity of data is one of the limitations of the study.

Practical implications

The governments of MENA countries should diversify other public revenue sources to increase the financing public expenditure by the expense of tax revenues, especially nondistortionary taxes, which would increase the economic happiness of their citizens.

Originality/value

This study is one of the rare studies that investigate the relationship between fiscal policy and economic happiness at the global level. This study contributed to filling the gap of this issue in the MENA region and enriching global literature through the experience of the MENA region. Moreover, this study investigated all aspects of fiscal policy, in contrast to other studies that focused on one of its aspects. The weakness in these studies is because of the lack of correlation between the sources of revenues and the face of their spending.

Details

Review of Economics and Political Science, vol. 8 no. 4
Type: Research Article
ISSN: 2356-9980

Keywords

Open Access
Article
Publication date: 22 December 2020

Jie Meng and Fenghua Wu

As a crucial institutional form established since the Chinese economic reform, the system of competitive local governments has been shaping the characteristics of China's…

1002

Abstract

Purpose

As a crucial institutional form established since the Chinese economic reform, the system of competitive local governments has been shaping the characteristics of China's socialist market economy to a considerable degree.

Design/methodology/approach

This study not only adopts the view of existing studies that attribute the economic motive of local governments to rent and consider land public finance as a means through which local governments carry out strategic investment but also attempts to further develop the view within a Marxist analytical framework.

Findings

As a result, the local governments have helped to maintain an incredibly high investment rate over a considerable period of time, facilitating the continuous, rapid growth of the Chinese economy.

Originality/value

This study concludes that China's local governments function as the productive allocator and user of rent in the strategic investment based on land public finance and thereby embed themselves in the relative surplus-value production initially arising from competition amongst enterprises, forming the dual structure of relative surplus-value production unique to China's economy.

Details

China Political Economy, vol. 3 no. 2
Type: Research Article
ISSN: 2516-1652

Keywords

Open Access
Article
Publication date: 20 October 2022

Raghuveer Negi, Muthusamy Arumugam, Abuzar Nomani and Shetty Deepa Thangam Geeta

The impact of Goods and Service Tax (GST) on the motor and pump exports in the Coimbatore region is measured in this study using various parameters and scales. The data collected…

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Abstract

Purpose

The impact of Goods and Service Tax (GST) on the motor and pump exports in the Coimbatore region is measured in this study using various parameters and scales. The data collected from exporters were used to identify the pros and cons of GST, stating their opinions on variables considered by the researchers through extensive literature on GST and exports.

Design/methodology/approach

The data were collected from 220 motors and pump exporters through a field survey from the month of January to September 2021. The impacts have been measured using principal component analysis (PCA) and confirmatory factor analysis (CFA). The factor analyses and CFA will derive the positive and negative impact of GST determined through critical empirical evidence in this study. Also, the problems faced by the exporters allied to GST, which the authors could not include in the questionnaire due to certain reasons, are concisely apportioned and discussed.

Findings

The study depicts the major advantages of GST, such as harmonized system, long-run performance, reduction in logistics cost, check-post operation, bonds and ease of doing business. Also, it highlights the disadvantages of GST, such as biases in the indirect tax system, the reimbursement of duty drawback being late or pending and document filing was still a tedious job under the GST regime.

Originality/value

The unavailability of considerable literature on the impact of GST on Indian exports signifies the novelty of this research. So far, this is the first empirical attempt to measure the impact of GST on exports which is a unique and original attempt to highlight the problem that lies under the GST regime and the necessary reforms the tax structure needs in the context of Indian exports.

Details

Business Analyst Journal, vol. 43 no. 2
Type: Research Article
ISSN: 0973-211X

Keywords

Open Access
Article
Publication date: 21 November 2018

Peiyong Gao and Jiang Zhen

More and more statistics have repeatedly shown that as the economic development has entered the New Normal, the Chinese fiscal system has experienced tremendous changes. Although…

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Abstract

Purpose

More and more statistics have repeatedly shown that as the economic development has entered the New Normal, the Chinese fiscal system has experienced tremendous changes. Although chance cannot be ruled out, much of those changes indicate trends, and they can even be said to be the result of the law of economic development. These trends and changes have repeatedly demonstrated that, as a reflection and an inevitable result of the economic developing speed shift, structural adjustment and energy conversion, the Chinese fiscal system, far from the conventional operating state, has progressed on a new path. The paper aims to discuss this issue.

Design/methodology/approach

This paper systematically analyzes several new trends and changes in the Chinese fiscal system under the New Normal. First, revenue growth has experienced a sharp downward trend, while the tax elasticity coefficient has declined rapidly. Second, fiscal expenditure has risen against the tendency, while the rigidity of expenditure has kept on increasing.

Findings

Considering the present fiscal and taxation system reform with the analysis above, it can be seen that if the reform’s progress for the past two years is slower than expected – thus, preventing the effects of all aspects from a timely achievement – then, in the recent period, the agreement on the fiscal and taxation system reform will be reached and challenges entirely different from the past, including sharp slowdown in revenue growth rate, fiscal expenditure rising against trend and increases in fiscal deficit and government debts will be faced. The factors encouraging the reform are gathering gradually. The growth of the strength to push the reform forward is speeding up. And the pace of the reform in relevant areas is quickening.

Originality/value

In the face of those trends and changes, on the one hand, the authors should deeply understand and accurately grasp them through a comprehensive summary and systematic analysis. On the other hand, a series of conventional ideas, thoughts and strategies should be adjusted comprehensively and duly. Taking a train of new ideas, thoughts and strategies, the authors ought to actively adapt to and initiate a new Chinese fiscal structure under the New Normal of China’s economy.

Details

China Political Economy, vol. 1 no. 1
Type: Research Article
ISSN: 2516-1652

Keywords

1 – 10 of 372