nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2013‒03‒16
ten papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Організація бухгалтерського обліку у суб'єктів малого підприємництва By Makarova , Oksana
  2. Rational choice of itemized deductions By Wrede, Matthias
  3. Are financial advisors useful? Evidence from tax-motivated mutual fund flows By Cici, Gjergji; Kempf, Alexander; Sorhage, Christoph
  4. Baseline results from the new EU27 EUROMOD (2007-2010) By Sutherland, Holly; Jara Tamayo, Holguer Xavier
  5. Average Personal Income Tax Rate and Tax Wedge Progression in OECD Countries By Dominique Paturot; Kirsti Mellbye; Bert Brys
  6. Taxation of Goods and Services from 1862 to 2010 By Stenkula, Mikael
  7. Short and Long-term Effects of Environmental Tax Reform By Walid Oueslati
  8. International Taxation and Cross-Border Banking By Harry Huizinga; Johannes Voget; Wolf Wagner
  9. Generalized Social Marginal Welfare Weights for Optimal Tax Theory By Emmanuel Saez; Stefanie Stantcheva
  10. A History of Tax Legislation in the Federal Republic of Germany By Matthias Uhl

  1. By: Makarova , Oksana
    Abstract: Along with continuing changes in the tax law, the requirements to the organization of small business accounting are changing, too. The article provides the analysis of normative legal documents governing small business accounting. The accounting requirements for small businesses of general and simplified tax accounts have been systematized. The necessity and essentiality of drawing primary documents has been grounded. The list and order of making tax registers and preparation of financial statements according to the chosen form of accounting organization have been considered.
    Keywords: small businesses, general system of taxation, simplified tax system, primary documents, chart of accounts, accounting records, reporting
    JEL: M41
    Date: 2013–02–01
  2. By: Wrede, Matthias
    Abstract: This paper analyzes the effect of standard deductions on itemized deductions. Using German income tax data, it shows that the distribution of itemized deductions above the level of the standard deduction is positively skewed, with the mode lying somewhat above the standard deduction. This pattern of claimed tax allowable expenses could be easily explained by the rational minimization of tax payments in excess of the costs of reporting these deductions. An alternative explanation, namely tax aversion, is unable to replicate this pattern, as tax aversion would predict bunching of taxpayers directly above the lump-sum deduction. --
    Keywords: tax compliance,tax allowable expenses,itemized deductions,simplification
    JEL: H24 H26
    Date: 2013
  3. By: Cici, Gjergji; Kempf, Alexander; Sorhage, Christoph
    Abstract: This study shows that financial advisors provide useful tax advice to their clients, being the first to provide evidence of tangible benefits delivered by financial advisors in the U.S. We find that investors who purchase mutual fund shares through financial advisors exhibit a stronger tendency of avoiding taxable distributions than investors who buy shares directly. This differential is more pronounced for distributions that have large tax implications and are hard-to-predict. Furthermore, the differential gets stronger in December but only when investors face large capital losses, consistent with financial advisors helping the former investors engage in tax-loss selling. --
    Keywords: mutual funds,taxable fund distributions,financial advisors,after-tax returns
    JEL: G11 G24 H24
    Date: 2013
  4. By: Sutherland, Holly; Jara Tamayo, Holguer Xavier
    Abstract: This paper provides a description of the latest public release of EUROMOD (version F6.0++), a tax-benefit microsimulation model for the EU. First, we briefly report the process of constructing and updating EUROMOD. We then present indicators for income inequality and risk of poverty using EUROMOD and discuss the main reasons for differences between these and EU-SILC based indicators. We further compare EUROMOD indicators across countries and over time between 2007 and 2010. Finally, we provide estimates of marginal effective tax rates (METR) for all 27 EU countries in order to explore the effect of tax and benefit systems on work incentives at the intensive margin. Throughout we highlight both the potential of EUROMOD as a tool for policy analysis and the caveats that should be borne in mind when using it and interpreting results.
    Date: 2013–03–05
  5. By: Dominique Paturot; Kirsti Mellbye; Bert Brys
    Abstract: The statutory progressivity of the income taxes paid by wage earners, net of the standard cash benefits they receive, depend on the design and interaction of personal income taxes, social security contributions (SSCs) and cash benefits. In order to capture their combined impact, this paper presents statutory tax progressivity indicators for the 34 OECD member countries on the basis of average effective income tax rates and tax wedges which are calculated using the OECD’s Taxing Wages framework. The analysis shows a decreasing pattern of tax progressivity across income levels. In some countries, the tax system becomes regressive when the SSC ceiling has been reached. Also, child benefits increase progressivity (especially at low income levels) and their effect is larger than the flattening impact of SSCs, except at top income levels. Reductions in SSCs targeted at low-incomes and dependant spouse allowances increase progressivity in some OECD countries. Income-splitting systems typically have the opposite effect.<P>Progression des taux moyens de l'impôt sur le revenu des personnes physiques et du coin fiscal dans les pays de l'OCDE<BR>La progressivité légale des impôts sur le revenu payés par les salariés, après déduction des prestations en espèces qu’ils perçoivent, dépend de la conception des impôts sur le revenu des personnes physiques, des cotisations de sécurité sociale (CSS) et des prestations en espèces ainsi que de leurs interactions. Afin de déterminer leur effet combiné, cette étude présente des indicateurs de la progressivité légale des impôts pour les 34 pays membres de l’OCDE, en s’appuyant sur les taux moyens effectifs de l’impôt sur le revenu et sur les coins fiscaux calculés en utilisant le modèle établi par la publication de l’OCDE « Les impôts sur les salaires ». L’analyse révèle que la progressivité diminue à mesure que les niveaux de revenu augmentent. Dans certains pays, le système fiscal devient régressif lorsque le plafond des CSS est atteint. De même, les allocations familiales augmentent la progressivité (surtout pour les bas revenus), et leur incidence est supérieure à l’effet d’atténuation des CSS, sauf pour les hauts salaires. Les réductions de CSS ciblant les bas revenus et les indemnités pour conjoint à charge augmentent la progressivité dans certains pays de l’OCDE. En général, le régime du quotient familial produit l’effet inverse.
    Keywords: personal income tax, tax progressivity, social security contributions, progressivité de l’impôt, cotisations de sécurité sociale, impôt sur le revenu des personnes physiques
    JEL: H24 H55
    Date: 2013–02–20
  6. By: Stenkula, Mikael (Research Institute of Industrial Economics (IFN))
    Abstract: This paper presents annual Swedish time series data on consumption taxes, i.e. the indirect taxation of goods and services, between 1862 and 2010. As a share of total state tax revenues, consumption taxes were very high at the beginning of the period, though as a share of GDP it was rather low. At this time, customs duties and specific consumption taxes on alcohol and sugar were the most important tax revenues. The importance of consumption taxes decreased during the World Wars, in particular during World War I. However, between the Wars the consumption taxes were still important and vehicle taxation as well as tobacco taxation now also contributed significantly to the tax revenues. After World War II and the 1940s, the tax revenues from consumption taxes has increased slightly again. However, as a share of GDP it increased sharply. On the other hand, importance of specific consumption taxes and, in particular, customs duties has fallen dramatically. The mix of the specific consumption taxes has also changed with and increased emphasis on energy and environmental taxes. A permanent general consumption tax was introduced in 1960 and its importance has increased sharply since then.
    Keywords: Consumption taxes; Taxation of goods and services; Excise duties; Customs duties; VAT
    JEL: H20 N43 N44
    Date: 2013–02–20
  7. By: Walid Oueslati (Centre for Rural Economy, Newcastle University)
    Abstract: This paper examines the macroeconomic effects of an environmental tax reform in a growing economy. A model of endogenous growth based on human capital accumulation is used to numerically simulate the growth effects of different environmental tax reforms and compute their impact on welfare in the short and the long-term. Our results suggest that the magnitude of these effects depends on the type of tax reform. Thus, only environmental tax reform that aims to use the revenue from environmental tax to reduce wage tax and increase the proportion of public spending within GDP, enhances both growth and welfare in the long-term. However, the short-term effect remains negative.
    Keywords: Tax reform, Endogenous Growth, Human Capital, Environmental Externality, Transitional Dynamics, Welfare cost
    JEL: E62 I21 H22 Q28 O41 D62
    Date: 2013–01
  8. By: Harry Huizinga (CentER and EBC, Tilburg University and CEPR); Johannes Voget; Wolf Wagner (CentER and EBC, Tilburg University, Duisenberg School of Finance)
    Abstract: This paper examines empirically how international taxation affects the volume and pricing of cross-border banking activities for a sample of banks in 38 countries over the 1998-2008 period. International double taxation of foreign-source bank income is found to reduce banking-sector FDI. Furthermore, such taxation is almost fully passed on into higher interest margins charged abroad. These results imply that international double taxation distorts the activities of international banks, and that the incidence of international double taxation of banks is on bank customers in the foreign subsidiary country. Our analysis informs the debate about additional taxation of the financial sector that has emerged in the wake of the recent financial crisis.
    Keywords: Cross-border banking, International taxation, Interest margins
    JEL: G21 F23 H25
    Date: 2012
  9. By: Emmanuel Saez; Stefanie Stantcheva
    Abstract: This paper proposes a theory of optimal taxation using the tax reform approach and generalized social marginal welfare weights to capture social preferences for redistribution. A tax system is optimal if no budget neutral small reform can increase a weighted sum of (money metric) gains and losses across individuals. However, the weights used for aggregating gains and losses are not derived from a standard social welfare function based on individual utilities but instead directly specified to reflect society's views for justice. Optimum tax formulas take the same form as standard welfarist tax formulas by simply substituting standard marginal social welfare weights with those generalized marginal social welfare weights. We show how the use of suitable generalized social welfare weights can help resolve most of the puzzles of the traditional welfarist approach while retaining constrained Pareto efficiency. In contrast to the welfarist approach, generalized welfare weights can be specified to (1) provide a rich theory of optimal taxation even absent any behavioral responses, (2) treat differently ``deserved income'' vs. ``undeserved income,'' (3) treat differently ``deserving transfer beneficiaries'' vs. ``free loaders'', (4) rule out the use of tags unless they can make a Pareto improvement. We show how the most prominent alternatives to utilitarianism such as Libertarianism, Rawlsianism, Equality of Opportunity, Fair Income Taxation, Poverty alleviation, can be re-cast within our theory. Hence, generalized welfare weights can be derived from social justice principles, leading to a normative theory of taxation. Generalized welfare weights can also be derived from estimating actual social preferences of the public, leading to a positive theory of taxation. We use a simple online survey to illustrate this latter approach.
    JEL: H21
    Date: 2013–02
  10. By: Matthias Uhl (University of Marburg)
    Abstract: This paper presents a historical account of legislated tax changes in the Federal Republic of Germany from 1964 to 2010, thus establishing a database appropriate for the macroeconometric analysis of the fiscal policy transmission mechanism. Ninety-five quantitatively important pieces of tax legislation are identified and characterized along several dimensions: Tax changes are classified as “endogenous” or “exogenous” with regard to current macroeconomic conditions, and their revenue impact and timing is reported. The evolution of tax acts is described, capturing changes in tax measures and associated revenue impacts over the whole legislative process. The exposition is also a comprehensive qualitative description of major tax changes and the motivation behind them over the last four decades.
    JEL: E62 H20 K34 N00
    Date: 2013

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