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on Accounting and Auditing |
| By: | António Martins (University of Coimbra - School of Economics); Cristina Sá (Polytechnic Institute of Leiria - School of Technology and Management) |
| Abstract: | The purpose of this paper is to analyse the accounting and legal basis that justify the application of presumptions in the taxation corporate income.The connection between errors on recording transactions by the financial accounting system and the use of presumptions by tax authorities will be highlighted. The paper contributes to the literature by offering a systematic analysis of the criteria used by Portuguese tax courts to decide when accounting data can be disregarded by tax authorities and presumptions can therefore be used as a tax computation tool. Given that the general rule is to base taxable income on accounting records (albeit with adjustments established in Corporate Income Tax Code) presumptions are a striking exception to this well established rule. As such, tax researchers, tax authorities and taxpayers have a significant interest in knowing how do courts validate or deny tax authorities’ approach when using presumptions. |
| Keywords: | Accounting errors, taxation and presumptions, financial fraud |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:por:obegef:034&r=acc |
| By: | Giampaolo Arachi (Department of Management, Economics, Mathematics and Statistics; University of Salento); Valeria Bucci (Department of Management, Economics, Mathematics and Statistics; University of Salento) |
| Abstract: | If assets write-downs are tax-deductible from the corporate income tax base, companies could discretionally use them to reduce their tax burden. This paper aims at investigating whether and to what extent taxes affect the firmÕs discretionary choice to write-down long term equity investments. The analysis is based on panel data for Italian companies. In the period 1998Ð2006 the Italian corporate income tax was reformed several times. In particular, the tax deductibility of write-downs of equity investment was repealed in 2004. The paper exploits the ensuing high cross-sectional and timeseries variation in the marginal tax rate (measured before the decision to write-down equity investments) in order to identify tax effects. The econometric analysis delivers strong evidence that taxes affect the decision to write-down. The paper also provides evidence of an interaction between tax minimization, financial reporting costs and agency costs. |
| Keywords: | corporate taxation, asset impairments, write-downs of equity investments, tax planning, financial reporting, agency relationship |
| JEL: | H25 H32 K34 M41 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:lcc:wpaper:ec0002&r=acc |
| By: | Óscar Afonso (University of Porto, CEF.UP and OBEGEF); Nuno Gonçalves (University of Porto, CEF.UP and OBEGEF); Hélder Ferreira (EAPN-Portugal) |
| Abstract: | The purpose of this paper is to analyse the accounting and legal basis that justify the application of presumptions in the taxation corporate income. The connection between errors on recording transactions by the financial accounting system and the use of presumptions by tax authorities will be highlighted. The paper contributes to the literature by offering a systematic analysis of the criteria used by Portuguese tax courts to decide when accounting data can be disregarded by tax authorities and presumptions can therefore be used as a tax computation tool. Given that the general rule is to base taxable income on accounting records (albeit with adjustments established in Corporate Income Tax Code) presumptions are a striking exception to this well established rule. As such, tax researchers, tax authorities and taxpayers have a significant interest in knowing how do courts validate or deny tax authorities’ approach when using presumptions. |
| Keywords: | Accounting errors, taxation and presumptions, financial fraud |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:por:obegef:038&r=acc |
| By: | Decoster, André; Perelman, Sergio; Vandelannoote, Dieter; Vanheukelom, Toon; Verbist, Gerlinde |
| Abstract: | Belgium has seen major changes in its tax-benefit system over the past twenty years. These changes have, to a large extent, co-determined the evolution of disposable incomes of Belgian households on one hand, and their incentives to work on the other. In this paper we assess equity and efficiency aspects of changes in tax-benefit policies over the full course of 1992-2012. By simulating effects of current and past tax-benefit policies using the microsimulation model MEFISTO-EUROMOD, we summarize the shifts in policy orientation over this period using two summary measures of redistribution and work incentives.Our three main findings are: 1) the changes in the tax-benefit system have to a large extent been pro-poor, and redistribution has been increased; 2) the introduction of an earned income tax credit and the lowering of personal income taxes has contributed to improve work incentives, but this effect was partially eroded by an increase in unemployment benefits since 2000; 3) the results crucially depend on whether one chooses as ‘no policy change’ counterfactual indexation with inflation or indexation with nominal wage growth. |
| Date: | 2015–07–02 |
| URL: | http://d.repec.org/n?u=RePEc:ese:emodwp:em10-15&r=acc |
| By: | Céline Antonin (OFCE); Vincent Touze (OFCE) |
| Abstract: | Cet article explore le sujet de la fiscalité du capital. Trois niveaux d’analyse sont privilégiés. Le premier niveau concerne les multiples façons de taxer le capital (revenu ou valeur du capital, imposition proportionnelle ou progressive et temporalité de la taxe) et présente les particularités françaises dans un contexte européen hétérogène. Le second axe d’étude s’intéresse aux principales propriétés dynamiques induites par cette fiscalité : principe d’équivalence avec une taxe sur la consommation, double taxation si taxation du revenu nominal, neutralité de l’impôt sur la valeur du capital si taxation homogène, risque de taxation confiscatoire si déconnection entre taxation de la valeur et revenu. Pour terminer, le dernier niveau d’analyse dresse un bilan du débat sur le niveau optimal de taxation du capital en s’appuyant sur les enseignements de la littérature. Les débats sont regroupés en huit thèmes : (1) la double taxation, (2) la croissance optimale, (3) la propriété, (4) la concurrence fiscale, (5) les arguments tutélaires, (6) la mesure de la plus-value, (7) la complexité et (8) la stabilité fiscale. |
| Keywords: | Fiscalité; Epargne; Accumulation de capital |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/6dlop5v2co8m8blcf4te2huk2f&r=acc |
| By: | Debra Bloch; Falilou Fall |
| Abstract: | There is no single “best” indicator for analysing general government debt. This paper examines the various issues in defining and measuring debt, and explores other data which could be useful, both within and beyond the general government debt concept, to better track and analyse fiscal risks and sustainability issues. Measures from the broadest view of debt – gross financial liabilities – to the most comprehensive accounting of asset and liability positions – net worth – are all helpful metrics. So, too, are narrower data on specific issues, such as future pension liabilities, government guarantees and debt composition. Better data reporting, including more complete metadata and broader data collection, are needed to allow for an arsenal of comparable debt concepts to better anticipate future fiscal pressures.<P>Indicateurs de dette publique : comprendre les données<BR>Aucun indicateur n’est meilleur que les autres pour analyser la dette publique. Ce document passe en revue les différentes questions qui se posent pour définir et mesurer la dette, et analyse d’autres données qui pourraient être utiles, dans le périmètre de définition de la dette des administrations publiques et au-delà, pour mieux identifier et analyser les risques budgétaires et les questions de viabilité à long terme. Les mesures de la dette, dans son acception la plus large – engagements financiers bruts – jusqu’à la comptabilisation la plus exhaustive des positions créditrices et débitrices – situation financière nette –, sont tous des indicateurs utiles. Comme le sont également les données plus ciblées sur certaines questions précises comme les engagements futurs au titre des retraites, les garanties de l’État ou la composition de la dette. Il convient d’améliorer la transmission de données, y compris de métadonnées plus complètes, et d’élargir la collecte de données pour élaborer tout un arsenal de définitions comparables de la dette afin de mieux anticiper les tensions futures sur le budget. |
| Keywords: | public debt, contingent liability, general government, national accounts, net worth, government guarantee, comptabilité, dette publique, administration publique |
| JEL: | E01 E62 H6 |
| Date: | 2015–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1228-en&r=acc |
| By: | Didier Brandao,Tatiana; Levine,Ross Eric; Schmukler,Sergio L. |
| Abstract: | How many and which firms issue equity and bonds in domestic and international markets, how do these firms grow relative to non-issuing firms, and how does firm performance vary along the firm size distribution? To evaluate these questions, a new data set is constructed by matching data on firm-level capital raising activity with balance sheet data for 45,527 listed firms in 51 countries. Three main patterns emerge from the analysis. (1) Only a few large firms issue equity or bonds, and among them a small subset has raised a large proportion of the funds raised during the 1990s and 2000s. (2) Issuers grow faster than non-issuers in assets, sales, and employment, that is, firms do not simply use securities markets to adjust their financial accounts. (3) The firm size distribution of issuers evolves differently from that of non-issuers, tightening among issuers and widening among non-issuers. |
| Keywords: | Access to Finance,Economic Theory&Research,Debt Markets,Microfinance,Emerging Markets |
| Date: | 2015–07–02 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7353&r=acc |