nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2014‒05‒24
seven papers chosen by
Alexander Harin
Modern University for the Humanities

  2. Imports of Goods on its Own with Payment at Sight Analyzed from an Accounting Perspective By Paliu-Popa, Lucia
  3. Population Aging, Policy Reforms, and Lifetime Net Tax Rate in Japan: A Generational Accounting Approach By Shimasawa, Manabu; Oguro, Kazumasa; Masujima, Minoru
  4. Tax Me if You Can! Optimal Nonlinear Income Tax between Competing Governments By Etienne Lehmann; Laurent Simula; Alain Trannoy
  5. Taxation and Economic Growth in Latin America By Gustavo Canavire-Bacarreza; Jorge Martínez-Vázquez; Violeta Vulovic
  6. Tax Reforms in Latin America in an Era of Democracy By Carlos Scartascini
  7. The Power Politics of International Tax Cooperation. Why Luxembourg and Austria accepted automatic exchange of information on foreign account holders’ interest income By Lukas Hakelberg

  1. By: Gérald Lobo (Houston - Houston); Luc Paugam (ESSEC Business School - ESSEC Business School); Lana Zhang (Houston - Houston); Jean-François Casta (DRM - Dauphine Recherches en Management - CNRS : UMR7088 - Université Paris IX - Paris Dauphine)
    Abstract: A partir d'un échantillon de sociétés en France, où la loi exige deux auditeurs, nous examinons l'effet de la composition des paires d'auditeurs sur des mesures générales du conservatisme non-conditionnel et conditionnel, ainsi que sur une mesure spécifique du conservatisme conditionnel : la charge d'impairment. Nous nous appuyons sur la théorie des jeux pour démontrer que les paires d'auditeurs Big 4-Big 4 soumis aux mêmes intérêts, sont susceptibles d'avoir un degré d'indépendance plus faible, conduisant à un degré de conservatisme plus inférieur. Inversement, les paires d'auditeurs Big 4 et non-Big 4 augmente l'intérêt de l'auditeur Big 4 d'être plus conservateur. Nous mettons empiriquement en évidence que les paires Big 4-Small sont associées à plus de conservatisme non- conditionnel et conditionnel en utilisant le ratio market-to-book et la mesure de Basu (1997), et que les paires Big 4-Small enregistrent davantage de dépréciations adéquates et sont plus transparentes. Nos résultats sont intéressant pour les régulateurs à travers le monde qui envisagent le co-commissariat afin d'accroître la qualité de l'audit
    Keywords: Co-commissariat - Reconnaissance adéquate des pertes - Dilemme du prisonnier - Qualité de l'audit
    Date: 2013–05–31
  2. By: Paliu-Popa, Lucia
    Abstract: Although the permanent diversification of international trade and the development of commercial transactions show the constant concern of entities working in this area to provide new ways of promoting foreign trade transactions, businesses that combine in a single transactional mechanism elements of export, import, intra- Community acquisitions and supplies, service provision etc., so as to contribute to the increase of profit of such companies, the author intends to carry out an accounting analysis of imports of goods by foreign trade companies on their own account, a scientific approach in close connection, on the one hand, with the tax treatments specific to such transactions and, on the other hand, with the specificities related to the economic and financial regime. However, the accounting procedures will be made in congruence with the foreign price level and structure, the delivery term of the goods and the settlement term of debts or receivables, as appropriate, always making a connection between them and the accounts where they are reflected, so that the accounting and fiscal analysis made should enable us to draw relevant conclusions that will help guide the management decisions of foreign trade companies (FTC) to adopt those forms to carry out foreign transactions that are deemed to be the best.
    Keywords: transactions, import, accounting techniques, analysis, decision
    JEL: M41
    Date: 2013–11
  3. By: Shimasawa, Manabu; Oguro, Kazumasa; Masujima, Minoru
    Abstract: We employed the Generational Accounting model in estimating the generation-specific lifetime (both past and the future) benefits/burdens and income and evaluating their values as of 2010, thus estimating the lifetime net burden ratio (= lifetime net burden/lifetime income). As a result, the following points were elucidated: 1) Among the current living generations, the lifetime net burden ratio of the 0-year-old generation is about 25 percentage points higher than that of the current 90-year-old generation; 2) The lifetime net burden ratio of the future generations is about 31 percentage points higher than that of the 0-year-old generation; 3) The net burden of the current generations would have to be increased in order to narrow the generational gap between the current generations and the future generations, which would inevitably lead to an expansion of the intragenerational gap of the current generations; and 4) In order to prevent conflict of interest between the current generations, in particular the younger generations and future generations, and at the same time, narrow the intergenerational gap, it is desirable to increase the income of the current generations, in particular that of the younger generations, by achieving a high economic growth rate and implementing macroeconomic policy management that would inhibit increase in the risk premium included in the interest rate.
    Keywords: Generational Accounting, falling birthrates and aging population, fiscal sustainability, government debt
    JEL: H61 E62 B41
    Date: 2014–05
  4. By: Etienne Lehmann (CREST and CRED (TEPP) Universite Panth ´ eon-Assas); Laurent Simula (Uppsala Center for Fiscal Studies & Department of Economics, Uppsala University); Alain Trannoy (Aix-Marseille Universite (Aix-Marseille School of Economics) CNRS EHESS)
    Abstract: We investigate how potential tax-driven migrations modify the Mirrlees income tax schedule when two countries play Nash. The social objective is the maximin and preferences are quasilinear in consumption. Individuals differ both in skills and migration costs, which are continuously distributed. We derive the optimal marginal income tax rates at the equilibrium, extending the Diamond-Saez formula. We show that the level and the slope of the semi-elasticity of migration (on which we lack empirical evidence) are crucial to derive the shape of optimal marginal income tax.
    Keywords: optimal income tax, income tax competition, migration, labor mobility, Nash-equilibrium tax schedules
    JEL: D82 H21 H87
    Date: 2014–05–14
  5. By: Gustavo Canavire-Bacarreza; Jorge Martínez-Vázquez; Violeta Vulovic
    Abstract: Tax policy is among the most common and relevant instruments in the toolkit of policy-makers when thinking about promoting growth, yet there is not compelling evidence regarding its effect in Latin American countries. Using a variety of approaches, we estimate the effects on growth of the most important taxes for the region, namely personal income tax, corporate income tax, general taxes on goods and services, including value added and other sales taxes, and revenues from natural resource. We evaluate the effect of these tax instruments on growth for Argentina, Brazil, Mexico, and Chile using vector autoregressive techniques, and for close to the entire region and a worldwide sample of developing and developed countries using panel data estimation. We find that, for the most part, personal income tax does not have the expected negative effect on economic growth in Latin America, which is largely explained by the small collections in the region. For corporate income tax, our results suggest reducing tax evasion and greater reliance on collection may boost economic growth in the region as a whole and especially for natural resource exporting countries. But, we also find small negative effects of corporate income tax on growth for individual countries, specifically Argentina, Mexico, and Chile. Finally, our results suggest that greater reliance on consumption taxes has significant positive effects on growth in Latin American in general, although we again find slight negative effects in some of the selected countries. On the other hand, natural resource revenues do not seem to contribute to growth.
    Keywords: Fiscal Policy, Investment, Social Security, taxation, growth, Latin America, personal income tax, corporate income tax, goods and sales tax, natural resources tax.
    Date: 2013–08
  6. By: Carlos Scartascini
    Abstract: The literature on taxes and public finance generally focuses on revenues, an easily observable and generally available variable, as the observable measure of tax policy. Still, revenues depend on many determinants other than the political will and policy objectives of the government. It is therefore important, when studying the politics of taxation, to evaluate specific changes to the tax code such as rates, bases and exemptions. With the underlying goal of exploring the political process and the determinants of tax policy, this paper compiles a novel and highly comprehensive database of tax reforms for Latin America between 1990 and 2004. The paper presents a description of the database as well as the stylized facts of tax reforms in Latin America. Examples of the database's uses are discussed, as is motivation for future research.
    Keywords: Revenue, Tax administration, Tax reform
    Date: 2013–12
  7. By: Lukas Hakelberg
    Abstract: Theories of tax competition predict that small countries competing with large countries benefit, as they find it relatively easy to substitute revenue lost in a tax cut with revenue gained from incoming foreign tax base. If small countries can only lose from tax co-operation, why are Luxembourg and Austria bound to agree to a revised EU Savings Tax Directive that will oblige them to automatically provide information on foreign account holders’ interest income to residence countries? Putting emphasis on the neglected issue of power, I show that Luxembourg and Austria were first coerced into bilateral agreements on automatic exchange of information by the United States, which then activated a most-favored nation clause contained in the EU Directive on Administrative Co-operation in Tax Matters. As a result, the two countries were under a legal obligation to also extend greater co-operation to EU partners.
    Keywords: tax competition; tax policy
    Date: 2014–03–04

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