nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2016‒07‒09
eleven papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Atteindre l'émergence : Les défis fiscaux de la Côte d'Ivoire By OCDE
  2. The ethics of tax accounting. Is there a conflict? By TOMA, LOREDANA OANA
  3. A Review of critical issues on tax design and tax administration in a global economy and developing countries. By Mattéo Godin; Jean Hindriks
  4. Shifting the Burden of Taxation from the Corporate to the Personal Level and Getting the Corporate Tax Rate Down to 15 Percent By Harry Grubert; Rosanne Altshuler
  5. Short-run and Long-run Effects of Capital Taxation on Innovation and Economic Growth By Chen, Ping-ho; Chu, Angus C.; Chu, Hsun; Lai, Ching-Chong
  6. The Funding of State and Local Pensions: 2015-2020 By Alicia H. Munnell; Jean-Pierre Aubry
  7. Firm Employment Growth, R&D Expenditures and Exports By Marco Di Cintio; Sucharita Ghosh; Emanuele Grassi
  8. Firm investment and financial conditions in the euro area: evidence from firm-level data By Hiona Balfoussia; Heather D. Gibson
  9. Current status and prospects of development of the tax system and insurance scheme of the Polish agriculture By Pawłowska-Tyszko, Joanna; Soliwoda, Michał; Pieńkowska-Kamieniecka, Sylwia; Walczuk, Damian
  10. The Influence of School Ability Measures on Accounting Competencies: A Path Analysis By Cimafranca, Jan Linster; Capuyan, Beverly; Cabilla, Fabien; Cansancio, Angelique; Villaflor-Balacy, Garnette Mae
  11. Working Paper 03-16 - The fiscal treatment of company cars in Belgium: effects on car demand, travel behaviour and external costs By Benoît Laine; Alex Van Steenbergen

  1. By: OCDE
    Abstract: La Côte d’Ivoire s’est fixé comme objectif d’atteindre le statut d’économie émergente d’ici 2020. Cependant, les recettes fiscales de la Côte d’Ivoire sont insuffisantes au regard de ses besoins croissants d’investissements publics en matière d’infrastructure, d’éducation et de santé. La politique fiscale n’est pas qu’une question de ressources : la Côte d’Ivoire devra également chercher à réformer un système qui génère de nombreuses distorsions dans le comportement des acteurs économiques, qui ne joue qu’un rôle limité dans la redistribution et l’inclusion et qui manque de transparence. Pour cela, les priorités devront être d’évoluer vers une structure fiscale où les impôts qui créent le plus de distorsions, tels que les droits de douane, sont progressivement remplacés par des impôts plus neutres ; d’élargir le filet fiscal à un plus grand nombre de contribuables afin d’éviter que la charge fiscale ne pèse que sur un nombre limité d’acteurs du secteur formel ; de simplifier et d’accroître la cohérence du système fiscal ; de rationaliser les nombreuses exonérations, particulièrement en matière de TVA, d’impôt sur les sociétés et d’impôt sur le revenu; de renforcer les règles en matière de fiscalité internationale pour tendre à ce que les entreprises multinationales paient leur juste part d’impôts ; de renforcer les capacités de l’administration fiscale ; et de promouvoir le « civisme fiscal ». La Côte d’Ivoire ne pourra pas se contenter de réformes partielles mais a besoin d’une réforme fiscale de fond mise en oeuvre de façon graduelle pour répondre à ses besoins d’économie émergente. From a Developing to an Emerging Economy: Côte d'Ivoire's Tax Policy Challenges Côte d’Ivoire aims at reaching emerging country status by 2020. However, Côte d'Ivoire's tax revenues are not sufficient to finance its growing needs for public investment in infrastructure, education and health. Tax policy is not just a question of resources—Côte d’Ivoire will also have to attempt to reform a tax system which distorts behaviour in many parts of the economy, which plays only a limited role in redistribution and inclusiveness, and lacks transparency. The authorities will have to prioritise a shift in the tax mix that gradually replaces the most distortive taxes, such as customs duties, with more neutral taxes; cast the tax net more widely to prevent that a limited number of taxpayers in the formal sector bear most of the tax burden; make the tax system simpler and more coherent; rationalise the many exemptions, especially in VAT, corporate tax and personal income tax; strengthen international tax rules to encourage multinationals to pay their fair share of taxes; increase the capacity of tax authorities; and enhance tax morale. Côte d’Ivoire cannot settle for partial reforms—it needs to phase in a comprehensive tax reform to meet its needs as an emerging economy.
    JEL: H2
    Date: 2016–07–01
    Abstract: Until the last century, the business environment use a variety of tax engineers in order to distort the tax base. The starting point in calculating taxes are accounting information but in accounting, ethics standards are based on integrity, fairness and impartiality. Can be considered taxation the main factor of accounting truth distortion or the engine of creative accounting? In such cases the present paper provide a framework with which to evaluate these situations. This paper also presents a summary of the different study that analyses the history of ethics and morality in accounting and is based on account qualitative methods.
    Keywords: tax, accounting, ethics, morality
    JEL: D2 D21 M14 M41
    Date: 2016–06–22
  3. By: Mattéo Godin (CRED, University of Namur); Jean Hindriks (CORE, Université Catholique de Louvain)
    Abstract: The mobilization of domestic tax resource has become a key issue for developing countries. In this report, we provide some facts and figures on the levels and structures of taxation around the world with special attention to Low Income Countries, (LICs). We use the new ICTD database covering 203 countries with 40 tax items over the period 1980-2010. We discuss some principles of tax design in a global economy that are relevant for LICs. We also review some critical issues on corruption and compliance to see how they relate to growth and tax evasion. We then provide a benchmark framework to assess the overall performance of the government tax collection. We use the tax effort index that measures the gap between the potential tax and the actual tax. The novelty of this tax effort index is twofold. First it takes into account spatial variables to capture the geographic dependence. Second it breaks down the tax effort analysis into different tax items to capture the possible tax shift. We conclude with a full ranking of tax effort for all countries and some suggestions of tax reform for a subset of countries that are targeted by the Belgian Development Cooperation.
    Keywords: Corporate taxation, efficient tax administration, tax enforcement, source-based and destination based taxation, origin and destination principles
    JEL: C72 H23 H70
    Date: 2015–06
  4. By: Harry Grubert (Office of Tax Analysis, The U.S. Department of the Treasury, Washington, DC, USA); Rosanne Altshuler (Department of Economics, Rutgers University, New Brunswick, NJ, USA)
    Abstract: We consider three plans for shifting the tax on corporate income to the personal level to achieve a significant reduction in the corporate tax rate. One plan eliminates the corporate tax and taxes dividends and the annual change in the value of publicly traded financial assets at ordinary rates. The second integrates corporate and shareholder taxes. The third lowers the corporate tax rate to 15 percent and taxes dividends and capital gains as ordinary income. To prevent large reductions in capital gains realizations and dividend payouts, an interest charge on taxes deferred during the holding period would be imposed when an asset is sold. We conclude that the third alternative is more robust than the other two.
    Keywords: tax reform, corporate income taxation, corporate tax integration
    JEL: H24 H25 H32
    Date: 2016–06–28
  5. By: Chen, Ping-ho; Chu, Angus C.; Chu, Hsun; Lai, Ching-Chong
    Abstract: In this note, we examine the effects of capital taxation on innovation and economic growth. We find that capital taxation has drastically different effects in the short run and in the long run. An increase in the capital income tax rate has both a consumption effect and a tax-shifting effect on the equilibrium growth rates of technology and output. In the long run, the tax-shifting effect dominates the consumption effect yielding an overall positive effect of capital taxation on steady-state economic growth. However, in the short run, the consumption effect becomes the dominant force causing an initial negative effect of capital taxation on the equilibrium growth rates. These contrasting effects of capital taxation at different time horizons may provide a plausible explanation for the mixed evidence in the empirical literature on capital taxation and economic growth.
    Keywords: Capital taxation; economic growth; R&D; transition dynamics
    JEL: H2 O3 O4
    Date: 2016–05
  6. By: Alicia H. Munnell; Jean-Pierre Aubry
    Abstract: The funded status of state and local pension plans based on the Governmental Accounting Standards Board’s traditional rules (GASB 25) increased slightly in 2015. The main reason is that, despite the poor stock market performance in 2015, returns over the last five years have been strong. Conversely, the funded status based on the new GASB 67 rules, with assets at market value, showed a slight decline in the funded rate primarily due to the subpar 2015 returns. In 2015, most plan sponsors continued to maintain the traditional GASB rules (with smoothed assets and expected long-run returns for discounting) in their actuarial reports for the purposes of funding. For reporting in their financial documents, however, all plans adopted the new GASB rules of valuing assets at market, and 10 plans in the Public Plans Database also used a blended discount rate to account for a projected exhaustion of assets. This brief focuses more on the data in the actuarial reports used for funding purposes, because they provide the basis for historical comparisons and for funding decisions. The discussion is organized as follows. The first section reports that the ratio of assets to liabilities for the 160 plans in the Public Plans Database increased slightly from 73 percent in 2014 to 74 percent in 2015. The second section shows that the required contribution, for the sample as a whole, increased to 18.6 percent of payrolls, while the percentage of required contribution paid increased to 91 percent from 86 percent in 2014. Given the controversy about the appropriate discount rate, the third section revalues liabilities and recalculates funded ratios using a variety of discount rates. The fourth section briefly examines the plans that, for reporting purposes, use a blended discount rate under the new GASB standards. The fifth section projects reported funded ratios for our sample plans for 2016-20 under the assumption that plans meet their expected returns and under an alternative assumption that they realize the substantially lower returns projected by many investment firms. The final section concludes that, if plans realize their assumed returns, the public pension landscape should continue to improve over the next few years; but if returns fall short, funded levels will deteriorate.
    Date: 2016–06
  7. By: Marco Di Cintio (Department of Economics, Management, Mathematics and Statistics, University of Salento); Sucharita Ghosh (Department of Economics, The University of Akron); Emanuele Grassi (Department of Economics, Management, Mathematics and Statistics, University of Salento)
    Abstract: This paper studies firms’ decisions to export and invest in R&D and their effects on employment growth and labor flows for a sample of Italian SMEs operating in the manufacturing industry. After accounting for the under-reporting of R&D in SMEs, our quantile regressions reveal that (i) R&D is associated with higher employment growth rates, higher hiring rates and lower separation rates; (ii) R&D-induced exports are negatively related to employment growth and accessions and positively related to separations; and (iii) pure exports are not a driver of employment growth and labor flows.
    Keywords: Exports, R&D, Firm Growth, Quantile Regression
    JEL: J63 M51 O31 F14
    Date: 2016–06
  8. By: Hiona Balfoussia (Bank of Greece); Heather D. Gibson (Bank of Greece)
    Abstract: We explore whether the sensitivity of firm-level investment to cash-flow, typically associated with an external financing premium, is time-varying and in particular whether it varies with overall financial conditions. We find that financial conditions have indeed played a significant role in corporate investment decisions over recent years, rendering financing constraints even more binding. This finding appears to be robust to a number of control variables and robustness tests. Moreover, the impact of credit conditions is not uniform across firms, but rather it varies depending on firm size and leverage, with constrained firms being substantially more likely to condition their investment decisions on overall credit conditions. Our results cast new light on the interplay between financial and real cycle downturns and underline the need for monetary, fiscal and macroprudential policy to be countercyclical with respect to financial conditions.
    Keywords: investment;financial conditions; euro area firms
    JEL: E22 E44 E50
    Date: 2016–06
  9. By: Pawłowska-Tyszko, Joanna; Soliwoda, Michał; Pieńkowska-Kamieniecka, Sylwia; Walczuk, Damian
    Abstract: Agriculture taxation in Poland. Income taxation in agriculture – review and assessment of solutions. Suggestions for income taxation in Polish agriculture and their assessment. Social security in agriculture. Current and proposed changes in economic insurance in agriculture.
    Keywords: agriculture taxation, Poland, income taxation, agriculture, Polish agriculture, social security, economic insurance, Agribusiness, Agricultural and Food Policy, Agricultural Finance,
    Date: 2015
  10. By: Cimafranca, Jan Linster; Capuyan, Beverly; Cabilla, Fabien; Cansancio, Angelique; Villaflor-Balacy, Garnette Mae
    Abstract: This study aimed to assess the level of school ability measures and accounting competencies of fourth year BS in Accounting Technology students of UM Digos College. It also investigates which of the two school ability measures such as verbal and non-verbal significantly influence to accounting competencies. Quantitative correlational research was used, and primary data were gathered through the use of Accounting Competency Test questionnaire distributed to 32 fourth year BSAT students for the school year 2015-2016 who had took the Otis-Lennon School Ability Test at UMDC Guidance and Testing Center. Frequency and relative frequency, mean, statistical correlation, and multivariate regression analysis were used as statistical method to address the problem in the study. The findings revealed that the fourth year respondents are overall low in terms of school ability with a below average of verbal ability while average in terms of non-verbal ability. They were also found to be competent enough in accounting. Results also showed that among the school ability measures, only verbal ability has significant influence on accounting competencies. Furthermore, the two dimensions such as verbal comprehension and reasoning were significant predictors. On the other hand, the non-verbal ability, in terms of figurative reasoning and quantitative reasoning, is a non-significant predictor of accounting competencies.
    Keywords: school ability, verbal ability, non-verbal ability, Accounting competency, path analysis
    JEL: M00 M41 Z00
    Date: 2015–12
  11. By: Benoît Laine; Alex Van Steenbergen
    Abstract: This paper seeks to understand how the current tax subsidy for the ownership and use of employer-provided cars influence behaviour by its recipients. We first seek to clarify how it affects the choice about cars, i.e. the number of cars a household owns, their engine size and their value. Second, we study the impact of the subsidy on the propensity to use a car for commuting and the number of kilometres driven for commuting and for other, private purposes. The analysis has been made on the basis of the BELDAM survey, a rich dataset on mobility behaviour in Belgium.
    JEL: D62 H24 R41
    Date: 2016–02–24

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