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on Accounting and Auditing |
| By: | Sebastian Eichfelder (University of Wuppertal - Schumpeter School of Business and Economics); Chantal Kegels |
| Abstract: | The compliance costs of private taxpayers are not only affected by the tax law itself but also by its implementation through the tax authorities. In this paper we analyze the effect of the tax authorities on the burden of complying with tax regulations. Using survey data of Belgian businesses and controlling for potential endogeneity, we find empirical evidence that tax authority behavior is an important cost driver. According to our estimate, a customer-unfriendly tax administration increases the average compliance costs by about 25 %. Our outcome has interesting implications for tax compliance research. First of all, taxpayer services do not only affect “soft” factors like fairness and trust, but also “hard” aspects like costs. Furthermore, there may be an inherent ability of the administration to “punish” non-cooperative businesses by in-creased cost-burdens. |
| Keywords: | Tax compliance costs, Red tape, Tax administration, Tax compliance, Tax evasion, Tax authority behavior |
| JEL: | H26 H25 H83 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:schdps:sdp12005&r=acc |
| By: | Germana Giombini (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo"); Désirée Teobaldelli (Department of Law, Università di Urbino "Carlo Bo") |
| Abstract: | This paper analyzes the joint impact of tax evasion and the inefficiency of the legal system on firms’ financial constraints. We find that both variables have a statistically significant effect on the difficulties that firms encounter when trying to access financing and this effect is nonlinear. In particular, tax evasion and the inefficiency of the legal system are substitute as they mitigate each other’s effects on firms’ credit constraints. It means that the negative impact of tax evasion on financial constraints faced by firms decreases in the presence of a lower efficiency of the legal system. |
| Keywords: | Financial constraints, Tax evasion, Legal system efficiency. |
| JEL: | D2 G3 H26 K4 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:urb:wpaper:12_07&r=acc |
| By: | Francesco Figari (University of Essex & University of Insubria); Alari Paulus (University of Essex); Holly Sutherland (University of Essex); Panos Tsakloglou (Athens University of Economics and Business); Gerlinde Verbist (University of Antwerp); Francesca Zantomio (Ca� Foscari University of Venice) |
| Abstract: | Imputed rental income of homeowners is tax exempt in most countries, despite the long-standing arguments recommending its inclusion in the tax base, on both equity and efficiency grounds. The current fiscal crisis revived interest towards this form of taxation. The paper investigates the fiscal and distributional consequences of including homeowners� imputed rent, net of mortgage interest and maintenance costs, in taxable income as any cash income source that extends consumption opportunities. Three scenarios are analysed in six European countries: in the first imputed rent is included in the taxable income of homeowners, while at the same time existing mortgage interest tax relief schemes and taxation of cadastral incomes are abolished. In two further revenue-neutral scenarios, the additional tax revenue raised through the taxation of imputed rent is redistributed to taxpayers, either through a proportional rebate or a lump-sum tax credit. Results show how including net imputed rent in the tax base might affect inequality in each of the countries considered. Housing taxation appears to be a promising avenue for raising additional revenues, or lightening taxation of labour, with no inequality-increasing side-effects. |
| Keywords: | Housing taxation; imputed rent; income distribution; inequality; microsimulation |
| JEL: | D31 H23 I31 I32 |
| Date: | 2012–04–08 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:1209&r=acc |
| By: | Massimiliano Mazzanti; Francesco Nicolli |
| Abstract: | We analyse the process of landfill diversion and separated collection, two pillars of a waste related performance in a country, by embedding the dynamics in a frame where economic, geographical and policy variables enter the arena. We aim at investigating in depth what main drivers may be responsible for such a phenomenon. In addition to structural and economic drivers we primarily investigate the role of landfill taxes. Notwithstanding the Italian landfill tax dates back to 1996, there is a lack of effectiveness assessment, which primarily derives from the absence of a full coherent dataset covering all regions. In fact, the implementation is delegated to each region, a case study of real decentralisation, and the opposite for example of the UK situation, where the tax is set and administered by the Treasury. We first provide a descriptive analysis of the regional trends over the years on the basis of an original landfill tax dataset covering all Italy that we constructed through a scrutiny of regional bills, and web and telephone contacts. We exploit this peculiar and original aggregation of tax related information to test whether the tax has been effective in supporting landfill diversion. We test the hypothesis on the basis of an integrated dataset that merges economic, waste, policy variables together, at regional level and over the period 1999-2008. We check for results sensitivity the effect of the landfill regional tax by using provincial dataset over the same period. Panel regressions show that the effect of tax is significant, complementary to structural factors, population density and related opportunity cost among others. Spatial effects seem instead negligible. This is the first evidence on a large panel dataset that introducing and increasing landfill taxes over time is an effective way to cope with waste disposal. Regions that have increased such taxes over time have achieved better waste disposal performances. Landfill taxes are not the only instrument but they show to a relevant ‘must have’ in the policy package. |
| Keywords: | Landfill Taxes; Landfill Diversion; Recycling; Decentralized Policy; Regional Performance |
| JEL: | C23 Q38 Q56 |
| Date: | 2012–04–10 |
| URL: | http://d.repec.org/n?u=RePEc:udf:wpaper:201205&r=acc |
| By: | Diewert, Erwin; Fixler, Dennis; Zieschang, Kimberly |
| Abstract: | The paper considers some of the problems associated with the indirectly measured components of financial service outputs in the System of National Accounts (SNA), termed FISIM (Financial Intermediation Services Indirectly Measured). The paper utilizes a user cost and supplier benefit approach to the determination of the value of various financial services in the banking sector. The present paper also attempts to integrate the balance sheet accounts in the SNA with the usual flow accounts. An empirical example of various nominal output concepts that could be applied to the U.S. commercial banking sector is presented. |
| Keywords: | User costs, banking services, deposit services, loan services, production accounts, System of National Accounts, FISIM, Financial Intermediation Servi |
| JEL: | C43 C67 C82 D24 D57 E22 E41 |
| Date: | 2012–04–04 |
| URL: | http://d.repec.org/n?u=RePEc:ubc:bricol:erwin_diewert-2012-14&r=acc |
| By: | Eliana Balla; Morgan J. Rose |
| Abstract: | This paper examines how the tightening of accounting constraints associated with the SunTrust bank decision in 1998 impacted the loan loss reserve policies of banks differently based on ownership structure. The SunTrust case, the result of an SEC inquiry over possible overstating of loan loss reserves, represented a strengthening of accounting priorities, which stress the importance of the reserve account for financial statement objectivity and comparability, relative to supervisory priorities, which emphasize the role of reserves for bank solvency through changing economic environments. The evidence presented indicates that publicly held banks, which fall directly under the SECs purview, reduced their loan loss reserve and provisions relative to privately held banks. Evidence also indicates that the positive relationship between bank earnings and provisions weakened, consistent with a reduction in either earnings management or early recognition of losses. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedrwp:11-09&r=acc |
| By: | Jacky Mallett |
| Abstract: | This paper presents a description of the mechanical operations of banking as used in modern banking systems regulated under the Basel Accords, in order to provide support for a verifiable and complete description of the banking system suitable for computer simulation. Feedback is requested on the contents of this document, both with respect to the operations described here, and any known national, regional or local variations in their structure and practice. |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1204.1583&r=acc |