nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2013‒05‒24
seven papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Making the Property Tax Work By Roy Kelly
  2. Taxing the Small: Fostering Tax Compliance Among Small Enterprises in Developing Countries By William F. Fox; Matthew Murray
  3. Who participates in corporate income tax consolidation? Evidence from Japan By Kazuki Onji
  4. Environmental Taxation Evolution in Ukraine: Trends, Challenges and Outlook By Shkarlet, Serhiy; Petrakov, Iaroslav
  5. Foreign Advice and Tax Policy in Developing Countries By Richard M. Bird
  6. A green reform is not always green By Fosgerau, Mogens; Jensen, Thomas C.
  7. The market effects of the German two-tier enforcement of financial reporting By Hecker, Renate; Wild, Andreas

  1. By: Roy Kelly (Duke Center for International Development Sanford School of Public Policy, Duke University)
    Abstract: As with any reform, making the property tax work requires visionary leadership, an appropriate policy framework, strong administrative capacity, and appropriate incentives to mobilize the political, administrative and popular support needed to enhance property tax revenues, equity and efficiency. This paper focuses on these requirements for successful property tax reform, identifying the key policy and administrative components and possible strategies needed to make the property tax work. Part 1 outlines the broader public sector reform environment needed to facilitate and support sustainable property tax reform. Part 2 identifies the policy and administration determinants affecting the realization of property tax revenue, equity and efficiency outcomes. Part 3 focuses on the ingredients needed to design a successful reform implementation strategy, while Part 4 summarizes the key recommendations for making the property tax work, especially in transitional and developing countries.
    Date: 2013–04–07
  2. By: William F. Fox (Center for Business and Economic Research and Department of Economics, University of Tennessee.); Matthew Murray (Baker Center for Public Policy, Center for Business and Economic Research and Department of Economics, University of Tennessee)
    Abstract: We first discuss a more nuanced view of the tax compliance game from the evolving perspective of behavioral economics. This discussion is followed by a more traditional analysis of issues related to taxation of the small drawing on recent insights and policy interventions. Our discussion generally blends issues of tax structure with various facets of tax administration and enforcement. In most instances the tax instrument in question is the VAT since it is the dominant revenue source in most developing countries, though we recognize there are compliance problems with all revenue instruments.
    Date: 2013–04–07
  3. By: Kazuki Onji
    Abstract: When a group of affiliated corporations have the option to file a single tax return based on a combined income, what types of groups would take up the option? This study empirically analyses decisions to participate in a single-jurisdiction consolidated tax filing. The data consists of 2,782 Japanese corporate groups headed by publicly-traded corporations observed over 2002-2007. Results indicate higher likelihood of participation among groups characterised by low correlation in returns among group members, high variance in returns, large number of subsidiaries, and losses accumulated in parents. The significant influence of variance and covariance of returns suggests that a consolidation scheme improves the efficiency of corporate income tax through reducing profit shifting.
    Keywords: corporate group, profit shifting, survival analysis
    JEL: G34 H25 K34
    Date: 2013
  4. By: Shkarlet, Serhiy; Petrakov, Iaroslav
    Abstract: Recent development trends of environmental taxation in Ukraine in context of the 2011 Tax Reform are analysed. Institutional, fiscal and security challenges for green taxes evolution during economic downturn and recession are summarized. Further modernization outlook for environment-oriented fiscal instruments in Ukraine considering European experience is suggested.
    Keywords: environmental taxes, fiscal instruments, trends, challenges
    JEL: H23 O13 O44 P28 P48 Q53 Q56 Q58
    Date: 2013–01–15
  5. By: Richard M. Bird (University of Toronto)
    Abstract: Fifty years of experience tells us that the right game for tax researchers and outside agencies interested in fostering better sustainable tax systems in developing countries researchers is not the short-term political game in which policy decisions are made. The right game for them is instead the long-term one of building up the institutional capacity both within and outside governments to articulate relevant ideas for change, to collect and analyze relevant data, and of course to assess and criticize the effects of such changes as are made. Tax researchers in developing countries can and should play an active role in all these activities. To do so, however, they often need considerably more and more sustained support from academic institutions abroad as well as from international agencies than is now available. Such long-term ‘institution-building’ activities are seldom immediately rewarding. They appear at present to be out of fashion with international agencies concerned with development, where most efforts at present seem to focus on designing and implementing ever more rigorous ‘benchmarking’ schemes. Nonetheless, the long-term institution-building approach seems still to provide the most useful way in which foreigners may perhaps be able to assist in the formidable and on-going task of achieving more efficient, equitable, effective, and sustainable tax systems in developing countries.
    Date: 2013–04–07
  6. By: Fosgerau, Mogens; Jensen, Thomas C.
    Abstract: This paper analyses a tax reform, explicitly conceived by policy makers to be climate-friendly, that partly replaces a high vehicle registration tax by road user charging and allows for differentiation of the remaining registration tax by fuel efficiency. A microeconomic framework is proposed to analyse such a reform. For the case of Denmark, the analysis shows that the reform is likely to yield a significant and robust welfare gain. However, it seems not unlikely that CO2 emissions from passenger cars may increase as a result of the reform.
    Keywords: Congestion; Road user charging; Tax reform; CO2; Welfare economics; Registration tax
    JEL: H2 R41
    Date: 2013
  7. By: Hecker, Renate; Wild, Andreas
    Abstract: This study contributes to the literature by analyzing the potential market penalties due to financial reporting violations detected by the German enforcement regime. Event study results provide evidence that official error announcements lead to significant negative (cumulative) abnormal returns. Investigating the variation between the cumulative abnormal returns, the cross-sectional analysis indicates that companies are able to dilute the (negative) capital market reaction by releasing other (positive) information simultaneously. The negative stock market reaction is less pronounced for profit-decreasing errors. The cumulative abnormal returns are more negative for companies that have been listed for a longer period of time. --
    Keywords: German two-tier enforcement regime,quality of financial accounting,erroneous financial reports,Federal Financial Supervisory Authority (BaFin),Financial Reporting Review Panel (FREP)
    JEL: G14 M41
    Date: 2012

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