Improvement of Legal Aspects of Regulation Income Tax (original) (raw)
The Accounting Profit's Relevance in Collecting Tax Revenue of Spain
Journal of Legal, Ethical and Regulatory Issues, 2021
The main goal of this research is to study the role of the accounting profit in the Spanish corporate tax collection. For this purpose, it analyses the legal dispositions of Spain, in particular, the Commerce Code-Código do Comercio (CC), the Accounting Law-Plan General de Contabilidad (PGC), and the Corporate Income Tax Law-Ley del Impuesto sobre Sociedades (LIS). The results show that the profit determined under the accounting standards' rules has a crucial role in the Spanish tax jurisdiction. It has express prevision in several business legal norms, and it constitutes an essential element in the determination of business taxation. The accounting standards' discretion and the manipulation of accounting profit can be reasons for the reduced contribution to income corporate tax revenues by societies.
Tax is an economic phenomenon, a pure legal approach remain insufficient to imple-ment the principles of equality and ability to pay, so the necessity to discuss the eco-nomic approach method in the field of tax law rises. The concept of economic ap-proach has a multidisciplinary framework on the basis of the interaction and interde-pendence of tax law and civil law within tax avoidance, evaluation of the taxable event, interpretation, and characterization of facts, proof and design of the legal norms. The lack of clarity and unity on the concept are the main points of criticism on the economic approach. This study aims to examine the characteristics, scope, limits and application of the economic approach in the framework of law and economic doctrines, in the basis of the principles of tax law within statute law and various national and international ju-risprudence such as in the UK "Duke of Westminster", in the US "Gregory v. Helvering” and in Germany "Pfennig Decision". In this study it was also found that economic approach is based in the area of econom-ics and designed in the area of law. It is a method used to characterize the facts and to harmonize the economic and legal methods with each other in the theory and prac-tice of tax law. At national and international level it was seen that the limit of eco-nomic approach is determined by the principle of legality. The application of economic approach can differ by country to country however; its main function is to determine the real economic nature and content of the transactions related to the taxable event. On this framework different terms such as “substance over form” or “economics sub-stance” can be used. In this study it was found that the general objective of the ap-proach is to balance the conflict of interests between taxpayers and the government. In conclusion, the application of the economic approach at national and international levels requires an interdisciplinary work. Thus the principles of legality, equity and ability to pay can be applied rationally in tax law.
The Income's Integration into the Tax Base of Spanish Legal Persons' Tax
Journal of Entrepreneurship Education, 2020
This paper seeks to understand how the corporate income tax law integrates into the tax base the income of Spanish companies. For this purpose, it examines the European Community’s legal dispositions of the Spanish case study. It makes an analysis of several data sources of Spain, mainly, the Accounting law and the Corporate Income Tax Law. Results show that the Spanish Tax System, since 1995, assumes the direct estimation regime as a method of corporate tax base's determination. It means that this jurisdiction assumes the profit determined under the accounting standards as available ability to pay’s the criterion, although subject to law’s adjustments. Thus, the income constitutes a tax base's element; its integration happens due to the acceptance of the accounting profit, where the income also represents one of the components. In this way, corporate income tax legislator does clarify the concept of income referring to the accounting law. This research aids in understanding...
Taxes and tax administration: The courses of reform and certain tax control aspect
Ekonomika preduzeca, 2017
Fiskalna konsolidacija, i pored veoma dobrih rezultata, nije završenajavni dug je izuzetno visok, a fiskalni deficit nije stavljen pod potpunu kontrolu. Pored reforme javnih preduzeća, fiskalni rezultati će u budućnosti zavisiti od prikupljenih javnih prihoda. Potencijalna poreska reformaizmene poreskih stopa-ne bi mogla presudno da utiče na povećanje javnih prihoda i smanjenje sive ekonomije, pošto poreske stope nisu ključna prepreka poslovanju u Srbiji. Ključnu ulogu u suzbijanju sive ekonomije ima Poreska uprava. U radu ukazujemo na osnovne pravce poželjnih reformi u Poreskoj upravi, kao što su promena organizacione strukture, broj zaposlenih i struktura zaposlenosti, izgradnja odgovorajućeg informacionog sistema i drugo. U posebnom delu osvrćemo se na nova regulatorna rešenja iz oblasti inspekcijskog nadzora, koja treba na terenu da omoguće postizanje željenih ciljeva u oblasti prikupljanja javnih prihoda.
2019
The focus of tax reforms in Ukraine, the development of partnerships between payers and supervisors requires new approaches to tax control. The current state of the functioning of the tax control system in Ukraine shows the necessity and at the same time its unpreparedness to transition to more advanced forms, including horizontal monitoring. The purpose of the article is to substantiate the need for effective interaction between taxpayers and controlling bodies in the context of improving the quality of tax control. The methodological basis of the study, in particular the theoretical positions, is the methods of scientific abstraction, induction, deduction, logical method, etc. For analytical research mathematical methods were used, in particular correlation-regression analysis, methods of comparison and grouping, synthesis, tabular and graphical methods. As a result of the research, it was found that the main factors hindering the implementation of horizontal monitoring in Ukraine are the lack of compliance with the legislative framework, the insecurity of the confidentiality of information on the activities of taxpayers, corruption in the DFS, large amounts of shadow economy in the country, etc. At the same time, the high level of inconsistency of the assessed tax liabilities and a considerable number of disputes as a result of this also confirm the low level of trust and cooperation between the DFS authorities and the payers. The analysis of the state of tax audits and the dynamics of tax debt-the calculation of correlation relationships between these indicators (R 2 =-0,92) and the forecast of tax debt-showed that preventive tax control measures do not discipline payers to pay them tax arrears, the conducted tax inspections have a positive effect on the repayment of the tax debt by the payers. Such research results indicate that there are problems in establishing trusting relationships between 208
Characteristic of Entities Subject to Corporate Tax and Structural Analysis of State Tax Revenues
The Scientific Journal of Bielsko-Biala School of Finance and Law, 2018
Abstract— Today taxes play a very important role, provide financial resources to the state budget and ensure its proper functioning. Taxes are the most important source of state income. In order for the state to develop and fulfill basic obligations towards citizens, it must have financial means at its disposal. The tax system, as a collection of taxes in a given country, must be created in a clear and transparent way so as to facilitate taxpayers' actions. The tax must be set at an appropriate level so that it does not adversely affect taxpayers, and must also provide adequate resources to the state budget. Corporate income tax, on the one hand, is a burden and a barrier to the development of legal persons who run a business, but is also a source of state budget revenue. Corporate income tax was introduced in Poland along with the establishment of a free market economy. This is an income tax that does not take into account the minimum tax-free amount and does not differentiate tax entities. Corporate income tax in Poland has undergone a number of important transformations, especially after the accession of Poland to the European Union. Tax rates have been systematically reduced since the early 1990s. Corporate income tax should be particularly convenient for entrepreneurs, and should not act destructively because the number of entrepreneurs in the state determines the level of economic and industrial development. This is even more important since, after Poland's accession to the European Union, the transfer of a business to another EU member state no longer constitutes a problem.
Tax Relations: Current Thinking and New Realities
E3S web of conferences, 2022
Considering taxes to be the universally recognized regulator of the economy, related ideas on the proper organization of tax relations are being promoted in various scientific papers. The relevance of this problem is caused, firstly, by the choice of a model of tax regulation within the framework of the general economic situation, by thoughts that are about "tax relations", "principles of taxation", "mechanism taxation", "about the nature of the tax", and secondly the within the framework of the tax system operating in the Republic of Uzbekistan, the instruments of tax relations are characterized by high economic inefficiency. The purpose of this research is to generalize the works on tax relations, improve tax regulation, develop the necessary proposals and recommendations to enhance the role of tax regulation mechanisms in the framework of improving tax policy that aimed at ensuring high economic growth. The paper also analyzes theories of tax regulation in the framework of using tax regulation mechanisms in order to ensure the growth of income (profit) of economic entities with a simultaneous decrease in the share of tax revenues in GDP. By defining the economic boundaries of tax policy, it is possible to solve not only the problems of economic growth of the country as whole, but also social issues in changing economic conditions. The paper also analyzes the opinions of various domestic and foreign economists on tax relations.
Assessment of Income Taxation of Performers of Economic Activities
Latgale National Economy Research, 2018
In the changing economic situation of nowadays, flexible forms of employment become more popular, and a performer of economic activities is one of them. They have to face the inconstant tax policy of Latvia, be able to choose a payment regime from earned income, which is most suitable for them. The authors believe it is worthwhile to find out the opinions of performers of economics activities and to assess tax liabilities, which is an important requirement for the planning and development of their activities. The goal of the research is to assess the taxable income regimes for performers of economic activities in Latvia and to find out their opinion on their satisfaction with the tax policy. The approaches of the research are: the monographic and descriptive methods, document analysis, logically construction, statistical analysis, and a sociological research method – a pilot survey. The research resulted in the assessment of taxable income regimes and their application in various ...
STUDY ON THE IMPACT OF TAX REGULATIONS ON A COMPANY’S FINANCIAL EXPENSES
2010
Fiscality is a reality of nowadays' economic life, an important factor in the management of a company's revenues and expenses, appearing under the form of taxes, fees and contributions paid by a company to public budgets. For these reasons, all owners or managers are interested in managing their tax flows and tax accounting so that the costs required thereby are minimal and tax law is not violated. Considering the above, this paper aims at determining and showing the way how tax regulations in force influence the financial expenses of Cerealcom S.A. Dolj and, hence, the level of the company's main performance indicators.
Modernization of the Tax Science: Methodology and New Paradigms
International Journal of Multidisciplinary and Current Research
The article is devoted to the study of the development of the science of taxation, and the worldview of various authors on this aspect of the financial category is considered and cited. Also, a comparative characteristic of the tax burden of different countries, an analysis of the reduction of the tax burden in Uzbekistan for different categories of enterprises was carried out. The outcome was the conclusions about changing the very style of natural scientific thinking about tax in Uzbekistan, and also that the principle of self-organization or self-regulation should be the basis of the paradigm of thinking about tax.
THE CONCEPT OF CORPORATE TAX, TAX REFORM AND COMPARISON OF CORPORATE TAX RATES IN SOME COUNTRIES
This paper presents information and research on the corporate tax to help better understand and evaluate arguments presented in the tax reform debate. This report first reviews the structure of the corporate income tax. Data on which companies pay the corporate tax and the international comparison of corporate tax rate are also being discussed on this paper. And the comparison of the three countries Iraq, USA and Malaysia will be discussed and Next, the economic effects of the corporate tax are reviewed, including a discussion of the purpose of the corporate tax, and how to evaluate alternative corporate tax systems. The paper views broad reform options and concludes with some recommendation for better tax system.Many countries impose corporation tax or company tax on the income or capital of some types of legal entities. A similar tax may be imposed at state or lower levels. The taxes may also be referred to as income tax or capital tax. Entities treated as partnerships are generally not taxed at the entity level. The Ralph Review of Business Taxation represented a major event in corporate tax reform (Cooper et al., 2002, p. 20; Gilders et al., 2004, p. 16). Most countries tax all corporations doing business in the country on income from that country. Many countries tax all income of corporations organized in the country. The tax generally is imposed on net taxable income. Net taxable income for corporate tax is generally financial statement income with modifications, and may be defined in great detail within the system. The rate of tax varies by jurisdiction. The tax may have an alternative base, such as assets, payroll, or income computed in an alternative manner. Some systems provide a mechanism whereby groups of related corporations may obtain benefit from losses, credits, or other items of all members within the group. Mechanisms include combined or consolidated returns as well as group relief (direct benefit from items of another member). Comparing tax systems is important for economic agents since taxes affect their decisions. When locating or doing business, companies assess tax consequences of their actions. Most surveys approach the question by comparing statutory corporate tax rates. Nevertheless, given the complexity and the diversity of elements composing the tax base, this approach has been deemed to be unsatisfactory. the political process in their favor, engage in tax-planning and organize their activities to achieve optimal tax savings (Siegfried, 1972, pp. 32–36). Statutory rates do not perfectly reflect the tax burden of companies and economists had to come up with measures of effective corporate taxation. Effective corporate tax rates are important for different reasons. First, comparing statutory and effective tax rates gives an idea of tax incentives given by authorities. These incentives can be either a lower tax base or a lack of enforcement. Second, the comparison of effective tax rates across countries gives indications whether there are substantially different tax treatments of companies with the same characteristics but located in different countries.
Baltic Journal of Economic Studies, 2020
Today, almost every state feels the impact of the financial crisis and is looking for ways to overcome it. It is obvious that the development of economic relations of any state is influenced by taxation, and through taxes, the state has an impact on the property of individuals and legal entities. At the same time, establishing the optimum level of taxation for both taxpayers and the state is an important factor for economic uplift, ensuring the balance of public and private interests in tax and legal regulation, under which there is a proper financial support for the performance of the tasks and functions by the public authorities with reasonable and justified interference of the state in the right of private ownership of persons by means of the taxes. The construction of the tax system, the amount of taxes and their rates should not depend solely on the funds necessary for the state. This process is also influenced by other factors that find their objectification in the relevant principles, because taxation should be reasonable. The purpose of the article is to characterize certain economic principles, which should be the basis of taxation and which should be defined in tax legislation. This will be performed with the dogmatic method, the methods of analysis and synthesis, the systemic method and the case study method. The basis for building the tax system, determining the amount of taxes, the size of their rates, is in the economic factors, which should be taken into account to ensure the effectiveness of taxation and tax regulation as a whole. They have their reflection in the relevant principles as the initial provisions of taxation, acting as fundamental in regulating tax relations. The range of economic principles, which taxation is based on, and the content of which is currently debated in scientific circles, is as follows: proportionality (taxability), cost-effectiveness of taxation, fiscal sufficiency, economic basis of tax, economic justification for tax. They do not exist in isolation from each other, but constitute a clear system, in which their logical connection and influences are traced. Results. Proportionality as a principle of taxation is determined by analyzing the payer's financial position, the actual ability to pay taxes, and the economic benefit he/she receives in the course of paying taxes and fees (the economic result of the payer). The principle of cost-effectiveness of taxation means that the establishment of taxes and fees should be such that the amount of revenues from their payment to the budget exceeds public expenditure and leads to effective taxation (the economic result of the state). The principle of tax sufficiency provides a reasonable restriction on those public needs that need to be met through taxpaying, since these needs cannot be absolute. The principle of the economic basis of the tax indicates source for its payment, which is formed by the corresponding taxation of transactions or other taxable objects. The principle of economic justification for the tax determines the set of relevant factors that allow to approach the characteristics of taxation in different ways, taking into account certain economic indicators, by ensuring that the balance of private and public interests in tax and legal regulation is achieved. In fact, it combines an assessment of compliance with the principles of proportionality (taxability), costeffectiveness of taxation, tax sufficiency, and the economic basis of tax. The results obtained are original, they will allow to improve the normative provisions before consolidating the principles of taxation in tax legislation.
Tax Control - Prevention and Control of Tax Evasion
2011
In this paper the author highlights the ways of preventing and combating tax evasion. For this purpose are highlighted the ways Tax Administration acts in the Romanian business environment to attract additional funds to the state budget.
Fundamentals of Taxation: Introduction to Tax Policy. Tax Law and Tax Administration
Fundamentals of Taxation, 2019
The main purpose of this book is to promote the dissemination of the basic notions of taxation from a policy, legal and administrative perspective, offering its readers a balanced view of rights and obligations connected with the levying of taxes. The book sets out current principles of taxation from both an economic and legal perspective, explains taxation in different legal systems, outlines considerations for substantive and procedural tax law design and deals with sanctions in tax law. The book explains the fundamentals of taxation in a simple manner and without reference to a specific legal system. This method allows the book to set out fundamental considerations beyond the boundaries of any actual tax system whilst emphasizing that taxation is always rooted in a legal regime, policy considerations and administrative practice. The book aims to strengthen awareness of taxation beyond technical circles and was written for the most diversified categories of users in civil society and beyond. People who can benefit from this book may range from university students to tax practitioners and members of civil society from both developed and developing countries who seek a clearer view of current fundamental issues regarding the levying of taxes in a global setting. Furthermore, the book provides basic notions of taxation required for building a theoretically responsible understanding of the operation and challenges of international taxation.
Taxes and their Effects on Business Environment
Academic Journal of Interdisciplinary Studies, 2015
The paper is focused on the category of public finances , taxation , the description of the meaning , definition of their development and their role in business , goals , reasons for their collection , the basis on which it is made taxes , tax rates , classification , tax principles and effects and their impact on the analysis of taxes in general. Theory of tax analysis is defined by simplicity of economic development of a country, meeting the needs and demands of the citizens of that country in analogous manner, and determining the amounts of budget entry into that state. Taxes aimed at accumulating the necessary tools for the implementation of public expenditure. They vary from time to time and from place to place, they are numerous and varied where strategically are involved all classes of society. The importance of taxes has increased more and more in their historical development, the results have been expressed in the permanent extension of tax taxpayers, the number of tax types and growth of tax load.
Guarantees within tax legal relations: challenges of the present day
Cuestiones Políticas, 2021
The purpose of the research is dedicated to modern challenges related to the implementation of legal guarantees within tax legal relationships. Legal guarantees within tax legal relations are the embodiment of the constitutional and legal guarantees of human and civil rights and, at the same time, act as an integrated intersectoral tool, covering both the administrative, financial and tax spheres respectively. The methodological basis of the article consisted of a set of general and special methods of scientific knowledge that, when applied, provide the opportunity to achieve the stated objective and ensure the scientific reliability and validity of the theoretical conclusions obtained. It is concluded that, to implement the potential to ensure taxpayers' choice of alternative methods of taxation, it is necessary to create conditions for commercial entities to perform the appropriate calculations and make the appropriate decisions. Entrepreneurs should receive government help in...
Income tax: the relationship between accounting and taxation
Eastern European Journal of Regional Studies, 2023
The present research focuses on the study of income tax through the lens of accounting and the lens of taxation by establishing the interdependence links that are formed. The taxation of entities' income and profits is a particularly important component of any tax system, but also of how it is determined, calculated, recorded, and reported (by accounting) for each entity. In this context, this research addresses the relationship between accounting and taxation with regard to income tax, starting from the principles on which it is based, the reporting period, and the regulatory framework.
Rules of Taxation of Controlled Foreign Companies: A Comparative Study
This article is aimed at generalization of foreign practices of taxation of Controlled Foreign Companies in order to solve a problem of capital outflow to low-tax jurisdictions and at further elaboration of recommendations on reforming a concept of tax residence in the Russian Federation. The article summarizes elements of national taxation rules set in such countries as France, Great Britain, Germany, USA, China and Brazil. The article detects shortcomings of the Russian rules concerning Controlled Foreign Companies and suggests ways of their remedy. It makes a conclusion that taking into consideration the Russian environment the rules concerning CFC being elaborated require careful revision with regard to recommendations of Organization of Economic Cooperation and Development which will be made in 2015 within the framework of a " Base Erosion and Profit Shifting " program.