nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2016‒06‒18
seven papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Implementing the ‘destination principle’ to intra-EU B2B supplies of goods By EY
  2. The concept of tax gaps - Report on VAT Gap Estimations By Fiscalis Tax Gap Project Group
  3. Expected service lives and depreciation profiles for capital assets. Evidence based on a survey of Norwegian firms By Terje Skjerpen; Nina Barth; Ådne Cappelen; Steinar Todsen; Thom Åbyholm
  4. House Prices and Immovable Property Taxes: Evidence from OECD Countries By Tommaso Oliviero; Agnese Sacchi; Annalisa Scognamiglio; Alberto Zazzaro
  5. The Power to Tax in Sub-Saharan Africa: LTUs, VATs, and SARAs. By Christian EBEKE; M MANSOUR; Grégoire ROTA-GRAZIOSI
  6. Shadow Cross-Border Capital Flows: Contemporary Concepts, Principles and Information Base of Accounting and Measurement By Abroskin A.S.; Abroskina N.A.
  7. Assessment of the application and the impact of the VAT exemption for importation of small consignments By EY

  1. By: EY
    Abstract: The European Commission has identified two fundamental issues with the current model of taxation: namely the additional compliance costs borne by businesses that conduct cross-border trade when compared to those businesses that only trade domestically and the occurrence of VAT fraud. The European Commission has commissioned EY to conduct a study of five policy options designed to enable the implementation of a destination based VAT system across the EU that to some extent addresses these issues. As part of the study, EY has gathered information from businesses, tax experts, Member States’ Tax Authorities and additional sources in order to make a comparison against the current “As Is” taxation model and also determine the impact of the implementation of each of the five proposed policy options. This information aims to assess the impact of the five policy options from both a qualitative and quantitative perspective. To this end, information has been obtained on business compliance costs, tax administration costs, cash flow costs, VAT fraud implications, legislative implications and aspects of practical implementation for each of the five proposed policies. In addition to the collection and analysis of this information, EY has provided a conclusion as to whether the policy options have a potential to address the two fundamental issues and what (if any) impact there will be on the European economy as a whole
    Keywords: European Union, taxation, VAT, VAT fraud, compliance cost
    Date: 2015–07
  2. By: Fiscalis Tax Gap Project Group
    Abstract: Effective collection of taxes is a cornerstone of a fair taxation system. Taxes that remain unpaid cause revenue loss in the budget of Member States and may lead to an excessive burden on the honest taxpayers who correctly fulfil their tax obligations. Furthermore, effective collection of taxes is essential for level playing field and avoids economic distortions. Tackling the issue of unpaid taxes is therefore a collective responsibility which starts with understanding the scale and the scope of the issue. Tax gap estimations are rough indicators of revenue loss. In the past decades several methods have been developed by national (tax) administrations and international institutions to estimate revenue loss. In order to pool knowledge and share experience in existing tax gap estimations, the Tax Gap Project Group (TGPG) was established under the Fiscalis 2020 Program. The TGPG consisted of national experts of 15 Member States and its work was coordinated by the European Commission.
    Keywords: European Union, VAt gap, tax gap, Member states, VAT, tax revenue
    Date: 2016–03
  3. By: Terje Skjerpen; Nina Barth; Ådne Cappelen; Steinar Todsen; Thom Åbyholm (Statistics Norway)
    Abstract: In the Norwegian national accounts, as in many other countries, it is quite common to use information on depreciation rates and profiles based on studies from the US, Canada and the Netherlands due to a lack of national studies. We present new results based on a survey of Norwegian firms concerning their perception of the expected economic service life of different types of capital assets and their assessments of the most realistic depreciation profiles. For some capital categories, information on acquisition prices and second-hand market prices were also collected, together with information on the age of capital assets when they were sold in second-hand markets. We present the companies’ answers about expected service lives and depreciation profiles, and carry out an econometric analysis for two types of capital where second-hand markets exist, Machinery and equipment for mining and manufacturing, and Tools, instruments, furnishings etc. For the first group, the expected service life is estimated to be between 9 and 10 years, while, for the second group, the estimate is about 8 years. According to the descriptive analysis, the reported mean expected service lives are around 10 and 7 years, respectively. Our results are quite similar to those obtained in the literature.
    Keywords: Depreciation; Capital Stock; Service Lives; Survey
    JEL: C23 C81 D24 E22
    Date: 2016–05
  4. By: Tommaso Oliviero (CSEF, Università di Napoli Federico II); Agnese Sacchi (Universitas Mercatorum (Italy) and GEN (Spain).); Annalisa Scognamiglio (CSEF, Università di Napoli); Alberto Zazzaro (University of Naples Federico II (Italy), Polytechnic University of Marche (Italy), MoFiR (Italy) and CSEF (Italy).)
    Abstract: In this paper we study the impact of changes in immovable property taxation on the growth rate of house prices by analyzing a panel of 34 OECD countries over the period 1970-2014. We show that there is a negative relationship, robust to the inclusion of other cyclical determinants of house prices, country and year fixed effects. Furthermore, we do not find evidence of a stabilizing role of immovable property taxes on the variability of house prices: boom-bust cycles in housing markets are, in fact, not correlated with the levels of such a tax.
    Keywords: House prices, Immovable property tax.
    JEL: E62 H20 R21 R31
    Date: 2016–06–10
  5. By: Christian EBEKE; M MANSOUR; Grégoire ROTA-GRAZIOSI (Centre d'Etudes et de Recherches sur le Développement International(CERDI))
    Abstract: In the context of achieving the new Sustainable Development Goals, revenue mobilization is a high priority in developing countries and in Sub-Saharan Africa, where governments’ ability to tax remains limited. Using a unique revenue dataset spanning the period 1980-2010, we analyze three important tax reforms: the Large Taxpayers Unit (LTU), the Value Added Tax (VAT), and the Semi-Autonomous Revenue Agency (SARA). We propose an ex-post impact assessment of these tax reforms in SSA countries based on propensity-score matching methodology (PSM) and synthetic control method (SCM). VAT and SARA are found to have an unambiguously large and positive effect on non-resource taxes, while the impact of LTU is insignificant—LTU seems however an important precondition for the adoption of the first two reforms. We conclude also that VAT and SARA display some synergy, and their positive effects strengthen several years after their adoption.
    Keywords: Tax reforms, Africa, Revenue mobilization, Causality.
    JEL: C1 O55 O23 H2
    Date: 2016–06
  6. By: Abroskin A.S. (Russian Presidential Academy of National Economy and Public Administration (RANEPA), Gaidar Institute for Economic Policy); Abroskina N.A. (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: Subject areas of the research are the issues of illicit cross-border capital flows accounting and measurement methodology. In the research are studied the modern concepts of cross-border capital turnover, accounting and measurement of its illicit components principles, are analyzed the main information sources using in international statistics in the estimates of cross-border capital flows in global economy.
    Keywords: cross-border capital flows, measurement methodology
    Date: 2016–03–21
  7. By: EY
    Abstract: Study evaluates to which extent the VAT exemption for importation of small commercial and private consignments is having an impact on EU businesses, including on small and medium enterprises (SMEs). The study has four main objectives: to report on and assess the situation in each Member State as regards the implementation of the VAT exemption for small consignments. to assess the existing procedures used by each Member State and by stakeholders in dealing with the importation of small consignment; to present statistics on the importation of small consignments in each Member State and at EU level for a specific period; to provide an analysis on the distortion of competition created by the small commercial consignment exemption
    Keywords: European Union, taxation, VAT, small consignments
    Date: 2015–05

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