nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2010‒12‒11
six papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Financial Sector Taxation By European Commission
  2. Auditor and Audit Committee Independence in India By Jayati Sarkar; Subrata Sarkar
  3. Itemised deductions: a device to reduce tax evasion By Amedeo Piolatto
  4. Distributional and Welfare Effects of Germany's Year 2000 Tax Reform By Richard Ochmann
  5. From Learning to Rationalization: the Roles of Accounting in the Management of Parisian Great Exhibitions from 1853 to 1902 By Karine Fabre; Céline Michaïlesco
  6. The Public-Sector Pension Bubble: Time to Confront the Unmeasured Cost of Ottawa's Pensions By Alexandre Laurin; William Robson

  1. By: European Commission
    Abstract: The European Commission services published a staff working document assessing the Financial Transactions Tax (FTT) and the Financial Activities Tax (FAT).
    Keywords: European Union; taxation; financial transaction tax; financial activities tax; financial institutions
    JEL: G20 H21 H22 H23 H25 H27
    Date: 2010–11
  2. By: Jayati Sarkar; Subrata Sarkar (Indira Gandhi Institute of Development Research)
    Abstract: This article reviews the regulations and governance reforms carried out in India with respect to auditor and audit committee independence. In doing so it critically compares them with the regulations existing in the US. This is followed by a discussion of the existing research on the effectiveness of audit committees and audit independence in corporate governance. Recent trends in audit committee and auditor characteristics for a sample of large listed companies in the Indian corporate sector are then discussed. The article concludes by suggesting some governance reforms that may be considered to further strengthen auditor independence and the functioning of audit committees in India.
    Keywords: Corporate governance, India, auditor independence, audit committee independence
    JEL: G34 G38
    Date: 2010
  3. By: Amedeo Piolatto (Universidad de Alicante)
    Abstract: Direct incentives and punishments are the most common instruments to fight tax evasion. The theoretical literature disregarded indirect schemes, such as itemised deductions, in which an agent has an interest in that other agents declare their revenue. Itemised deductions provide an incentive for consumers to declare their purchases, and this forces sellers to do the same. I show that, for any level of taxation, it is possible to increase tax proceeds by choosing the proper level of itemised deduction: the cost for the government on the consumers' side is more than compensated by the extra proceeds on the sellers' side.
    Keywords: tax evasion, itemised deductions, substitutes goods, quantity competition.
    JEL: H00 H20 H26 H30
    Date: 2010–11
  4. By: Richard Ochmann
    Abstract: This paper empirically investigates distributional and welfare effects of Germany's year<br /> 2000 income tax reform. The reform is simulated in an ex-ante behavioral microsimulation approach. Dead weight loss of changes in capital income taxation is estimated in a structural model for household savings and asset demand applied to German survey data. Significant reductions in tax rates result in income gains for most of the households. Gains are found greater for households in higher tax brackets, whereby income inequality increases, slightly greater in East- than in West-Germany. Moreover, households increase savings and alter the structure of asset demand as a result of shifts in relative asset prices. As a consequence, utility losses reduce welfare effects for almost all households.
    Keywords: Capital income taxation, household savings, asset demand, welfare effects
    JEL: C35 G11 H31
    Date: 2010
  5. By: Karine Fabre (DRM - Dauphine Recherches en Management - CNRS : UMR7088 - Université Paris Dauphine - Paris IX); Céline Michaïlesco (DRM - Dauphine Recherches en Management - CNRS : UMR7088 - Université Paris Dauphine - Paris IX)
    Abstract: During the second half of the nineteenth century, five Great Exhibitions took place in Paris. The French state was highly involved in their financing and management which led to the implementation of public finance rules. Because of specific managerial constraints, public accounting systems and practises were adapted to meet project management purposes. This research focuses on the roles that can be fulfilled by this accounting system. For this purpose, the classification system of organizational roles of accounting by Burchell et al. (1980) is used and the potential roles of accounting change over time according to political background and parliamentary control are considered.
    Keywords: Great Exhibitions; public finance; accounting practises; accounting system roles; France; nineteenth century
    Date: 2010–03–01
  6. By: Alexandre Laurin (C.D. Howe Institute); William Robson (C.D. Howe Institute)
    Abstract: Fair-value accounting reveals Ottawa’s employee pension obligations to be larger and more volatile than official figures, a problem shared by European and US state governments. This exposes taxpayers to an unmeasured $65 billion funding shortfall. To keep pace with benefit accruals and stop the gap from growing, contributions in the latest fiscal year would have had to be almost double what was actually paid in. Taxpayers risk finding that the responsibility to back-fill the funding hole falls to them – and potentially finding that fears of sovereign defaults by governments with opaque balance sheets and big exposure to public employee pensions will drive up the cost of borrowing.
    Keywords: Pension Papers, fair-value accounting, Canadian public-sector pensions, defined-benefit (DB) plans
    JEL: H55
    Date: 2010–11

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