It was incurred by the taxpayer; in the final stage it must be covered by taxpayers' funds. It is final (actual); the taxpayer was not reimbursed in any way for the cost incurred.
Common consolidated corporate tax base: fundamental assumptions
It follows that the tax costs are deducted in the tax year in which they are incurred. Support for research and development is one of the basic objectives of the mentioned directive.
Corporate finance and capital structure vs. CCCTB concept
According to the theory developed by Modigliani and Miller, both goodwill and weighted average cost of capital (WACC) do not depend on the capital structure in the world without taxes. The importance of tax-deductible expenses associated with debt utilization in the opinion of Polish companies (0, insignificant, 5, significant) (i.
Conclusions
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International Aspects of Corporate Income Taxes and Associated Distortions
- Introduction
- Tax competition theory
- Empirical evidence of tax competition
- Trends in corporate income taxes
- Tax rates and foreign direct investment
- Distortionary effects of differential tax regimes
- Distortionary effects of corporate income tax
- Tax avoidance
- The revenue loss estimates of base erosion and profit shifting (BEPS)
- Conclusions
Clearly, the key point of the basic tax competition model (as well as the extensions that reinforce its conclusions) is that tax competition is harmful and leads to inefficient under-provision of public services. On the other hand, some of the extensions to the basic model suggest that tax competition may be desirable as it limits the unnecessary expansion of public budgets.
Acknowledgements
Tax competition can reduce tax revenues and lead to inefficient provision of public services. Tax planning by firms and tax competition by governments: Is there evidence of changes in behaviour.
Taxes and Their Impact on the Business Sector in Slovakia
- Macroeconomic indicators of taxes
- Tax rates of direct taxes in Slovakia
- Limit on tax return
- Tax indicators in Slovakia
- Impact of taxes to business sector
- Summary
The amount of the tax base is related to the amount of the non-taxable portion. Non-taxable portion of the tax base for contributions to supplementary retirement savings (third pillar). The development of a non-taxable portion of the tax base is based on the development of the subsistence level.
The level of the minimum wage in euros per month is rounded to the nearest 10 euro cents (Table 8) [11].
Taxation and Economic Growth in a Resource-Rich Country: The Case of Nigeria
Why taxation?
Although tax structures vary considerably between countries, the main objective of any tax structure is to achieve maximum revenue and economic growth with minimum distortions. 4] argued that different uses of the state's total expenditures have different effects on growth, and the same applies to the way tax revenues are collected. On his part [7], he argued that different uses of total public expenditure have different effects on growth, and a similar argument applies to the way tax revenues are collected.
However, they suggested that tax structure could change over time to maximize economic growth.
Taxation–theoretical underpinnings
The model assumes the existence of one social good and two taxpayers - A and B whose demand curves are represented by a and b respectively; where a + b is the total demand. The supply curve 'a + b' implies that the social goods are produced at increasing costs. But economic theory holds that the cost of producing social goods is equal to the value of private goods foregone; i.e. 'a + b' is also the demand curve of private goods.
The intersection of the cost and demand curves at B therefore provides a determination of how a given national income is to be divided between social and private goods - OE social goods and EX private goods - according to the taxpayer's wishes.
What ails the Nigerian tax system?
The role of taxation in promoting economic growth in Nigeria has therefore not been optimally felt due to the deficient tax policy framework and administrative mechanisms. Specifically, we want to examine the role of oil profit tax in promoting economic growth in Nigeria; determine the contribution of companies. Income Tax for Economic Growth in Nigeria; to determine the impact of customs and excise duties on economic growth in Nigeria; determine the factors responsible for the persistent low tax drive in Nigeria; and recommend plausible policy proposals to enhance optimal and efficient tax administration in Nigeria.
We also present a cross-country analysis of tax efforts in Nigeria and a selected group of African countries.
A review of the Nigerian tax system
- Policy, legal, and institutional reforms: a historical overview
- Taxation laws and regulations: who taxes what?
- A review of national tax policies
The Taxes and Duties (Approved List for Collection) (Ordinance, 1998) gives federal, state and local authorities responsibility for the collection of taxes and duties set out in Parts I, II and III of the Schedule to the Ordinance. The State Government is empowered to impose tax on all items in the Concurrent List as well as on remaining matters, but to the extent such laws are consistent with the laws of the National Assembly. However, the federal government controls most of the vibrant tax levers, accounting for 99% of tax revenue.
Tax policy formulation in Nigeria is the responsibility of FIRS, Customs Services, Nigerian National Petroleum Corporation (NNPC) and other government agencies but under the guidance of the National Assembly.
Methodological approach
- Review of the literature
- Model specification and estimation technique
- Evaluation criteria and data sources
The results of the regression analysis show that VAT has a significant effect on GDP; and also on total tax revenue. They are taxes on the country's imports that are levied either as a percentage of the value of the imports or as a fixed amount that is contingent on quality. PPT = Petroleum Profit Tax; CED = Customs and Excise; and U = Stochastic error term, while a0− a3, are parameters of the model.
The coefficients of all the explanatory variables are expected to be either positive or negative depending on the peculiarity of the country's tax structures.
Regression results and analysis of taxation trends
- Results and discussions
- Analysis of tax trends in Nigeria and selected African countries
We performed unit root test at 5% level of significance to determine the stationarity of the time series data. The coefficient of determination (R2) was estimated to capture the proportion of the total variation in the dependent variable, Real GDP growth rate, that can be explained by the explanatory variables explicitly captured in the model. The adjusted R2 of the estimated regression model shows that only approximately some of the changes in real gross domestic product growth rate (RGDPgr) can be explained by the explanatory variables explicitly captured in the regression model, implying that the regression model has a poor fit. .
Based on the students' T-test for each of the parameters in the model, the coefficient Customs and Taxes is statistically significant at the 5% significance level, while the coefficients for Corporation Tax and Petroleum Profits Tax are not statistically significant at the 5% significance level.
Conclusions and policy recommendations
Also, international comparisons of Nigeria's tax performance with the tax performance of selected African countries show that the country lags behind other African countries in terms of tax effort, i.e. tax revenue as a percentage of GDP. Therefore, policies that improve both tax revenue and tax capacity should be adopted to generate more revenue to positively stimulate economic growth. He hoped that ongoing tax policies and institutional reforms, as well as strategies aimed at diversifying and changing the economy from over-dependence on the oil and gas sector, will not only improve the relative position of non-oil-related tax revenues , but also the overall tax effort, so that taxation can become an important instrument of fiscal policy, ensuring macroeconomic stability and steady economic growth.
Specifically, the Nigerian government should introduce an adequate tax system that emphasizes broadening the tax base and, in some cases, an upward review of tax rates to increase the contribution of taxation to economic growth and development.
UK Taxes and Tax Revenues: Composition and Trends
- The composition of UK tax revenues
- UK tax revenues by type of tax
- Tax revenues by country within the UK
- International comparisons
- International comparisons in tax composition
- Trends in UK tax revenues
- Forecasting UK tax revenues
- Local taxes
- Conclusions
The composition of Malaysian tax revenue is almost entirely different from that of the UK. Personal income tax in the UK is roughly double the share of tax revenue as that in Malaysia (14% compared to 27% in 2014). The tendency is for the real value of tax revenue to grow slowly and slightly i.
To further explore trends in UK tax revenue, this study examined monthly tax receipts for these three major taxes.
How Does a Welfare State achieves Fiscal
Sustainability? A Study of the Impact of Tax Equity 1
Theoretical background
- Existing research on determinants of fiscal sustainability
- Limitations of existing studies and approaches of this study
In the first instance, the welfare state's fiscal sustainability is related to economic growth [13-16]. In the previous study, the fiscal sustainability of the welfare state has been replaced by the level of the primary balance or the level of government debt. Therefore, the level of the tax burden in the form of public revenue should be discussed in relation to the fiscal sustainability of the welfare state.
Against this background, a strengthening of tax progressivity can hinder the fiscal sustainability of the welfare state.
![Figure 1. Determination of debt limit from Ostry et al. [56]: 8; Ghosh et al. [57]: F11.](https://thumb-ap.123doks.com/thumbv2/1libvncom/9201878.0/104.918.135.778.793.1156/figure-determination-debt-limit-ostry-et-al-ghosh.webp)
Research method
- Analysis target and timing
- Method of analysis
- Operational definition of variables 1. Dependent variables
As mentioned above, each aspect of equity in the tax structure can have different impacts on the fiscal sustainability of the welfare state. This study constructs simultaneous equations to test for the inverse causal relationship between welfare spending and fiscal sustainability by examining the effects of tax structure on the fiscal sustainability of the welfare state. The first dependent variable is the fiscal sustainability of the welfare state and is measured by each year's fiscal space for each welfare state.
Therefore, fiscal space can be a useful tool to examine the fiscal sustainability of the welfare state.
Determinants of fiscal sustainability in welfare state
Specifically, the gap in the tax base, especially the gap between labor tax and consumption tax, hinders the fiscal sustainability of the welfare state in terms of horizontal equity. In other words, if the tax burden is not fairly distributed between the tax base (labour, capital and consumption), it is difficult to guarantee the fiscal sustainability of the welfare state. Second, the effect of the level of vertical equity on the fiscal capacity of the welfare state is mixed.
It is important to point out the relationships between the ability to pay principle and the fiscal sustainability of the welfare state.
Conclusion
As indicated in this study, ensuring fiscal fairness contributes to the fiscal sustainability of the welfare state. The following aspects of the tax structure can make a positive contribution to the fiscal sustainability of the welfare state. First, in terms of the means-to-pay principle, achieving equity between the tax base and improvements in progressivity can play a positive role in the fiscal sustainability of the welfare state.
Finally, diversifying the financial basis of the welfare state by combining the ability to pay principle and the benefit principle is beneficial for the fiscal sustainability of the welfare state.
