nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2015‒04‒19
twelve papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Economic consequences of the adoption of the International Financial Reporting Standards: evidences in the research literature By Irina-Doina Pãºcan; Ramona Neag
  2. The impact of selected variables on the VAT gap in the Member States of the European Union By Ingrid Majerová
  3. Are PILOTs Property Taxes for Nonprofits? By Fan Fei; James R. Hines Jr.; Jill R. Horwitz
  4. Tax structure and macroeconomic performance By Giampaolo Arachi; Valeria Bucci; Alessandra Casarico
  5. South Africa: Financial Sector Assessment Program-Detailed Assessment of Implementation on the IOSCO Objectives and Principles of Securities Regulation By International Monetary Fund
  6. Tax incentives for innovation By Joanna Stryjek
  7. Approaches to the Administration of Vat in the European Union and its Implications for the Customs Union By Malinina, Tatiana
  8. Directions of Improvement of Russian Tax Legislation in the Part of Taxation of Capital Gains of Assets By Gromov, Vladimir; Malinina, Tatiana
  9. Electronic Fiscal Devices (EFDs) An Empirical Study of their Impact on Taxpayer Compliance and Administrative Efficiency By Peter Casey; Patricio Castro
  10. Reporting Process Standardization in B2B System By Monika Lobaziewicz
  11. United States: Financial Sector Assessment Program-Detailed Assessment of Observance on the Basel Core Principles for Effective Banking Supervision By International Monetary Fund
  12. Can Islamic Banking Increase Financial Inclusion? By Sami Ben Naceur; Adolfo Barajas; Alexander Massara

  1. By: Irina-Doina Pãºcan (Petru Maior University of Tîrgu Mureº); Ramona Neag (Petru Maior University of Tîrgu Mureº)
    Abstract: Along with the economic globalization, the international accounting regulation bodies faced the need to issue internationally accepted global accounting standards. The effect was the issuance and the widespread of the International Financial Reporting Standards (IFRS). At European level, the IFRS gained legitimacy in 2002, when the European Parliament and Council have decided that all European publicly traded entities must prepare their consolidated financial statements in accordance with IFRS starting with January 1st, 2005. The regulation from 2002 on the application of the international standards in EU summarizes the benefits emerging from the adoption and use of IFRS, related to: a high degree of transparency and comparability of financial statements and, as consequence, an efficient functioning capital market. However, the achievement of these expected benefits is based on the assumption that the application of these standards contributes to the increase in the quality of accounting data reported in the financial statements. In this context, our main objective is to summarize, based on the research literature, the economic consequences that emerge from the publication of higher quality accounting data in accordance with IFRS.
    Keywords: Economic consequences; International Financial Reporting Standards; listed entities; quality of financial information; stakeholders
    JEL: G14 M41
    Date: 2015–04
  2. By: Ingrid Majerová (Silesian University in Opava, School of Business Administration in Karvina)
    Abstract: One of the most serious problems of fiscal character is the issue of the tax gap. The tax gap is defined as the amount of tax liability faced by taxpayers that is not paid on time. The tax gap comes from three main areas of non-compliance with the tax law – firstly from underreporting of income, secondly from underpayment of taxes and thirdly from non-filling of returns. The tax evasions in the area of value added tax form one of the largest groups of tax gap. This article describes the current situation in the field of tax gap in selected countries of the European Union, namely the VAT gap. The aim of this paper is to determine a dependence of the VAT gap on three variables, the Corruption Perception Index CPI, GDP growth rate and the basic VAT rate. A method of the regression analysis has been used, performed on data in the years 2000-2011. In spite of the fact that it could be assumed that tax burden will affect the VAT gap the most, the highest dependence was shown in the case of the Corruption Perception Index.
    Keywords: tax gap; value added tax; Corruption Perception Index; GDP growth; VTTL model; regression
    JEL: H26 H32
    Date: 2015–04
  3. By: Fan Fei; James R. Hines Jr.; Jill R. Horwitz
    Abstract: Nonprofit charitable organizations are exempt from most taxes, including local property taxes, but U.S. cities and towns increasingly request that nonprofits make payments in lieu of taxes (known as PILOTs). Strictly speaking, PILOTs are voluntary, though nonprofits may feel pressure to make them, particularly in high-tax communities. Evidence from Massachusetts indicates that PILOT rates, measured as ratios of PILOTs to the value of local tax-exempt property, are higher in towns with higher property tax rates: a one percent higher property tax rate is associated with a 0.2 percent higher PILOT rate. PILOTs appear to discourage nonprofit activity: a one percent higher PILOT rate is associated with 0.8 percent reduced real property ownership by local nonprofits, 0.2 percent reduced total assets, and 0.2 percent lower revenues of local nonprofits. These patterns are consistent with voluntary PILOTs acting in a manner similar to low-rate, compulsory real estate taxes.
    JEL: H25 L31
    Date: 2015–04
  4. By: Giampaolo Arachi; Valeria Bucci; Alessandra Casarico
    Abstract: This paper reassesses the relationship between tax structure and long run income, using as indicators of tax structure both a new series of implicit tax rates based on Mendoza et al. (1997) and tax ratios, adopting a dynamic panel estimation strategy, and explicitly accounting for cross-section dependence in the panel. When implicit tax rates are used, the paper shows, the link between tax structure and long run income per capita is not robust to the adoption of different assumptions on observable and unobservable heterogeneity across countries. When tax ratios are used, there is some evidence of a negative impact of labour taxation on long run income, but this result is shown to capture non-fiscal effects coming from the evolution of the labour share. Turning to the short run, the research presented here finds strong evidence of a positive effect on per capita income of a tax shift from labour and capital taxation towards consumption taxation, which provides support for fiscal devaluations.
    Keywords: long run income, tax structure, fiscal devaluation, cross-section dependence
  5. By: International Monetary Fund
    Abstract: This paper discusses findings of the Detailed Assessment of Implementation on the IOSCO (International Organization of Securities Commissions) Objectives and Principles of Securities Regulation in South Africa. Although South Africa’s level of implementation of the IOSCO principles is complete in several areas, there is room for enhancement. The legal framework is robust and provides the authorities with broad supervisory, investigative, and enforcement powers. There are arrangements for on-site and off-site monitoring of regulated entities. The powers to cooperate with domestic and foreign counterparts are extensive. Accounting and auditing standards are high, as is the disclosure regime that applies to listed companies in practice.
    Keywords: Financial Sector Assessment Program;Securities markets;Securities regulations;Reports on the Observance of Standards and Codes;South Africa;
    Date: 2015–03–03
  6. By: Joanna Stryjek (Warsaw School of Economics)
    Abstract: Tax incentives for innovation, including in particular the incentives for R&D investments, are universally used policy tools. Their availability and generosity have significantly increased over the past three decades. The observed proliferation of R&D tax incentives raises the question of the effectiveness (as well as other potential unknown advantages) of these policy instruments. The purpose of this paper is to carry out an analysis of the reasons (1) why R&D tax incentives became such a popular policy tool and (2) why there was an increase in generosity of this kind of incentives in recent years. As far as the theoretical base for the analysis is concerned, the paper refers particularly to (1) the inter-jurisdictional competition theories relating to tax competition and (2) the (quasi-) public-good nature of knowledge and innovation. The analysis is carried out with the use of the existing data and research on the subject. The results indicate that these are the changes (processes taking place) in the international environment that have considerably stimulated the proliferation and the increase in generosity of R&D tax incentives.
    Keywords: innovation; R&D; tax incentives; tax credit; tax competition
    JEL: O31 O38 H21
    Date: 2015–04
  7. By: Malinina, Tatiana (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: This paper concerns the basic rules of and the approaches to tax administration in the VAT system of the European Union, addresses the future scenarios for this system and discusses the suitability of approaches used in the EU for Eurasian Economic Union. Special attention is paid to taxation of electronic services.
    Keywords: Value added tax, European Union, Single market Intra-Community supplies, Intra-Community acquisition, Missing-trader fraud, Electronic commerce
    Date: 2015–04
  8. By: Gromov, Vladimir (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Malinina, Tatiana (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: The study is devoted to research and development of solutions of actual taxation problems in the area where a source of a taxpayer’s economic benefit is increase in value of assets. The main attention is paid to the analysis of theoretical, methodological and practical aspects of setting and calculation of a tax on capital gains in domestic and foreign practice.
    Keywords: Capital gain, Taxation of capital gains, Cost basis of assets, Adjustment of cost basis, Holding period
    Date: 2015–04
  9. By: Peter Casey; Patricio Castro
    Abstract: Several administrations have adopted electronic fiscal devices (EFDs) in their quest to combat noncompliance, particularly as regards sales and the value-added tax (VAT) payable on sales. The introduction of EFDs typically requires considerable effort and has costs both for the administration and for the taxpayers that are affected by the requirements of the new rules. Despite their widespread use, and their considerable cost, EFDs can only be effective if they are a part of a comprehensive compliance improvement strategy that clearly identifies risks for the different segments of taxpayers and envisages measures to mitigate these risks. EFDs should not be construed as the “silver bullet†for improving tax compliance: as with any other technological improvement the deployment of fiscal devices alone cannot achieve meaningful results, whether in terms of revenue gains or permanent compliance improvements.
    Keywords: Tax administration;Tax compliance;Value added taxes;Tax collection;Revenue administration;Technological innovation;Tax administration, electronic fiscal devises, noncompliance, VAT
    Date: 2015–03–30
  10. By: Monika Lobaziewicz (Poland, Institute of Economics and Management)
    Abstract: Reporting understood as a process provides the output in a form of data and information presentation, which is one of the important aspects of a business management system. The effectiveness of processes and decision making by a management depends on the access to actual and relevant data, provided in the form of transparent reports. This also has an impact on the effectiveness of cooperation with business partners in the B2B model. Therefore, the challenge for most companies is to convert unstructured data to understandable information that can later be used in the process management. There is little reporting tools, which functionality not only allows to download data from the relevant systems, but also for their conversion to a format suitable for users. As a result, enterprises are often forced to make quickly reports based on data imported from a variety of applications. The aim of this paper is to present the results of analysis the possibilities of standardizing the data reporting process in the B2B system, which was carried out in one of the stages of a project "Development of a modern and advanced B2B system based on Internet technologies as a result of R&D." As a result, it was recommended the reporting tool for the B2B system optimal for the user. The basic analytical criteria for the development of process standards were: tool efficiency, facility for a user, data formats for which the tool exports data.
    Keywords: reporting, business process standardization, B2B system, data management
    JEL: M
    Date: 2015–04
  11. By: International Monetary Fund
    Abstract: The U.S. federal banking agencies (FBAs1) have improved considerably in effectiveness since the previous FSAP. In response to global and domestic reforms, particularly the Dodd-Frank Act (DFA), the FBAs have stepped up their supervisory intensity, especially of large banking organizations, putting emphasis on banks’ capital planning, stress testing and corporate governance. To match, the FBAs have also enhanced their supervisory capacity, adding significantly to their staffing numbers and skills base.
    Keywords: Financial Sector Assessment Program;Banking sector;Basel Core Principles;Bank supervision;Reports on the Observance of Standards and Codes;United States;
    Date: 2015–04–02
  12. By: Sami Ben Naceur; Adolfo Barajas; Alexander Massara
    Abstract: The paper analyses existing country-level information on the relationship between the development of Islamic banking and financial inclusion. In Muslim countries—members of the Organization for Islamic Cooperation (OIC)—various indicators of financial inclusion tend to be lower, and the share of excluded individuals citing religious reasons for not using bank accounts is noticeably greater than in other countries; Islamic banking would therefore seem to be an effective avenue for financial inclusion. We found, however, that although physical access to financial services has grown more rapidly in the OIC countries, the use of these services has not increased as quickly. Moreover, regression analyis shows evidence of a positive link to credit to households and to firms for financing investment, but this empirical link remains tentative and relatively weak. The paper explores reasons that this might be the case and suggests several recommendations to enhance the ability of Islamic banking to promote financial inclusion.
    Keywords: Islamic banking;Financial services;Commercial banks;Bank credit;Bank deposits;Household survey data;Cross country analysis;Islamic banking, financial inclusion, Financial Possibility Frontier
    Date: 2015–02–13

This nep-acc issue is ©2015 by Alexander Harin. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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