nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2009‒10‒03
seven papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Tax compliance costs: a business administration perspective By Eichfelder, Sebastian; Schorn, Michael
  2. Introducing taxation policy of profit for companies in Romania and other european union member states. By Chirculescu, Felicia Maria; Dobrota, Gabriela
  3. ZEW Corporate Taxation Microsimulation Model (ZEW TaxCoMM) By Reister, Timo; Spengel, Christoph; Finke, Katharina; Heckemeyer, Jost H.
  4. Auditor Expertise: Evidence from the Public Sector By Mark Schelker
  5. Unlocking More Wealth: How to Improve Federal Tax Policy for Canadian Charities By Malcolm Burrows
  6. Monetary Business Cycle Accounting By Sustek, Roman
  7. Impact of tax policy in Romania on budget revenues. By Dobrota, Gabriela; Chirculescu, Felicia Maria

  1. By: Eichfelder, Sebastian; Schorn, Michael
    Abstract: The paper analyses the relationship of tax compliance costs and business strategy. Due to instruments, like information technology, simplified cash accounting or outsourcing compliance activities to tax advisers, private businesses have a set of strategies to optimize their tax compliance cost burden. Under the assumption of rational choice a private business should choose a cost-optimal administration strategy. In spite of that we find empirical evidence for small German businesses using only insufficiently the support of external tax advisers. Therefore, a considerable number of small businesses in Germany could reduce their compliance cost burden by a higher degree of outsourcing tax processes. In contrast, we find no significant evidence for a cost reduction by an electronic data interchange with the tax and social insurance authorities or by a simplified cash accounting method for tax purposes.
    Keywords: Tax complexity,tax compliance costs,bureaucracy costs,tax administration,administration strategy,business strategy,outsourcing,contracting out,e-filing,electronic data interchange, cash accounting
    JEL: H25 H26 L23 L24
    Date: 2009
  2. By: Chirculescu, Felicia Maria; Dobrota, Gabriela
    Abstract: Taking into account the EU enlargement process the problem of establishing the various levels of tax rates of interest in the context of the policy runs the national tax policy states with influence over capital flows. Quantifying corporate tax rates of companies are the most visible attribute of the structure of company taxation in an economy, while being only one factor among many determining the tax, resulting in a significant economic impact in a state.
    Keywords: profit tax; taxation levels; tax harmonization
    JEL: H7 H2
    Date: 2009
  3. By: Reister, Timo; Spengel, Christoph; Finke, Katharina; Heckemeyer, Jost H.
    Abstract: Current political discussions in Germany and other European countries illustrate the importance accorded to revenue and distribution effects of tax reforms. Whereas widely recognized concepts of effective tax measures can provide important insights into the incentives of taxation they do not allow robust revenue estimations or distribution analyses. Hence there is need to supplement existing quantitative tax models by approaches apt for these issues of policy analysis. Against this background, this paper puts forward a corporate microsimulation model allowing an ex-ante evaluation of tax reforms with regard to distributional consequences and revenue effects. Central feature of the model is the processing of financial statements included in the DAFNE data base of the Bureau van Dijk. The firm-level data is supplemented by survey data on tax accounting practices. The focus of the paper is on the documentation of the model set-up. Its application will be addressed in future publications.
    Keywords: Microsimulation Model,Corporate Taxation,Policy Analysis,Firm-Level Data
    JEL: C15 D30 H25 H32 K34
    Date: 2009
  4. By: Mark Schelker
    Abstract: Public Audit Offices are fundamental institutions to supervise government agents. Without accurate information principals would find it hard to make adequate decisions. Since agents face strong incentives to misreport, competent audits of financial information is crucial. This paper is the first attempt to study the relationship between auditor expertise and fiscal performance. More competent auditors are more effective supervisors; they reduce the leeway of agents to misreport and improve fiscal outcomes. The empirical results support this hypothesis. I found that States requiring the auditor to hold a professional degree feature significantly lower expenditures and debts and higher credit ratings.
    Keywords: public auditor; tenure length; term limit; governance
    JEL: H11 D70 H10
    Date: 2009–08
  5. By: Malcolm Burrows (Bank of Nova Scotia)
    Abstract: The landscape of charitable giving in Canada has been altered over the past decade by tax incentives favoring large gifts of capital. Next steps could include tax credits for donations of real estate assets and private company shares.
    Keywords: Charities Papers, charitable giving
    JEL: D14 H2 H5
    Date: 2009–09
  6. By: Sustek, Roman
    Abstract: This paper investigates the quantitative importance of various types of frictions for inflation and nominal interest rate dynamics by extending business cycle accounting to monetary models. Representing a variety of real and nominal frictions as `wedges' to standard equilibrium conditions allows a quantitative assessment of those frictions. Decomposing the data into movements due to these wedges shows that frictions that are equivalent to wedges in TFP and equilibrium conditions for asset markets are essential. In contrast, wedges in equilibrium conditions for capital accumulation and the resource constraint, and wedges capturing distortionary effects of sticky prices, play only a secondary role.
    Keywords: Business cycle accounting; inflation; nominal interest rate
    JEL: E43 E32 E31 E52
    Date: 2009–09–25
  7. By: Dobrota, Gabriela; Chirculescu, Felicia Maria
    Abstract: Using the state fiscal levers in order to influence the economic system and the macroeconomic variables is known from the ancient times. Fiscal policy decisions reflect the related tax system and ensure its functionality in order to obtain the aimed economic effects. Analysis of fiscal policy measures and their effects should follow the level of taxation, the budget deficit, the level of the general consolidated budget revenues in line with GDP. The paper work presents practical aspects of fiscal policy and measures which should be adopted in the Romanian economy.
    Keywords: Fiscal policy budget revenues global domestic product taxation degree
    JEL: E62 E6
    Date: 2009

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