|
on Accounting and Auditing |
|
Issue of 2017‒10‒15
ten papers chosen by |
| By: | Juranek, Steffen; Schindler, Dirk; Schjelderup, Guttorm |
| Abstract: | We analyze the implications of OECD methods to regulate transfer pricing and the role of a royalty tax for abusive transfer pricing. We show: (i) Under traditional methods, mispricing of royalty payments does not affect investment, but the Transactional Profit Split Method triggers higher investment to facilitate profit shifting. (ii) Royalty taxation reduces both profit shifting and investment. (iii) A royalty tax rate below the corporate tax rate leads to overinvestment in an ACE tax system. |
| JEL: | H25 H32 F23 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc17:168118&r=acc |
| By: | ZEW |
| Abstract: | The project 'Effective tax rates in an enlarged European Union' is based on the methodology used for the calculation of effective tax rates (ETRs) as set out by Devereux and Griffith (1999, 2003). It extends the scope of the calculation of ETRs conducted under the study on effective levels of company taxation within an enlarged EU (2008). The project includes a focus on the effects of tax reforms in the EU28, FYROM and Turkey as well as Norway, Switzerland, Canada, Japan and the United States for the period 1998-201 and their impact on the level of taxation for both domestic and cross-border investment. |
| Keywords: | European Union, taxation, effective tax, corporate tax, enlarged European Union |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:tax:taxstu:0066&r=acc |
| By: | 金, 鐘勲; 古賀, 裕也 |
| Abstract: | 本稿では、日本の並行開示制度に着目し、IFRS任意適用後のIFRSと日本基準のどちらが株式時価総額ないしは格付への説明力が高いかを分析した。分析の結果、当期純利益に関してはIFRSベースの数値が日本基準ベースの数値よりも価値関連性と格付関連性の両面で統計的に有意に低いことが観察されている。また、IFRSベースの当期純利益は日本基準ベースのそれに比べて格付関連性を増分的に減少させる可能性があることが観察されている。これらの発見事項は、IFRSの適用によって日本企業の当期純利益情報の価値関連性と格付関連性が著しく損なわれている可能性があることを示唆している。, This paper examines which accounting measures (one is accounting measures based on J-GAAP and the other is those based on IFRS) better explain total market capitalizations of firms’ common stock and credit ratings issued by credit-rating agencies. Our results are as follows. First, both value and credit relevance of IFRS-based net income measures are statically significantly lower than those based on J-GAAP. Second, IFRS-based net income measures incrementally lower the credit relevance of accounting information. These results suggest that both value and credit relevance of net income of Japanese firms could become impaired by the adoption of IFRS. |
| Keywords: | IFRS, 日本企業, 任意適用, 会計情報, 価値関連性, 格付関連性, IFRS, Voluntary Adoption, Accounting Measures, Value Relevance, Credit Relevance |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hmicwp:217&r=acc |
| By: | Marisa Agostini (Dept. of Management, Università Ca' Foscari Venice); Riccardo Cella (Università di Verona); Giovanni Favero (Dept. of Management, Università Ca' Foscari Venice) |
| Abstract: | The paper examines accounting practices, institutionsÕ role and the possible ways of defining accounting fraud in pre-modern historical context through the micro-analysis of a Venetian case. The three fraudulent financial statements, investigated in this paper, refer to the years 1781, 1782, and 1783, and regard Geminiano CozziÕs porcelain factory, an enterprise active in Venice in the second half of the eighteenth century. Their preparation was required by a government official (the Inquisitorato alle Arti) that, after the investigation of the statements, issued a report (called ÒRiflessioniÓ), emphasizing the reasons of the accounting fraud. In particular, the Inquisitorato highlighted the wrong evaluation of fixed assets at (historical) cost, arguing that it was far from the market (sale) value of such assets. The present paper examines the accounting criteria sought by the government official and fills part of the gap characterizing accounting history about the Italian peninsula (Zan, 1994). |
| Keywords: | accounting fraud, Venetian Republic, 18th century, pottery |
| JEL: | M41 N83 |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:vnm:wpdman:145&r=acc |
| By: | Alan J. Auerbach |
| Abstract: | This paper describes the Destination-Based Cash-Flow Tax (DBCFT), as proposed in 2016 by Republicans in the US House of Representatives, and its potential economic effects. As a new approach and a major departure from the existing business tax system, the DBCFT and its motivation have been poorly understood by many in government, the business community, and the economics profession. |
| JEL: | F23 H25 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23881&r=acc |
| By: | Andrej Cupák (National Bank of Slovakia); Peter Tóth (National Bank of Slovakia) |
| Abstract: | We estimate a demand system to simulate the welfare and fiscal impacts of the recent value added tax (VAT) cut on selected foods in Slovakia. We evaluate the efficiency of the tax cut vis-a-vis its hypothetical alternatives using the ratio of the welfare and fiscal impacts. Based on our findings, tax cuts tend to be more efficient if demand for a good is price-elastic or if the good has several complements. The results also indicate that cherry-picking from food sub-categories could have improved the efficiency of the recent tax change. Further, we found potential revenue-neutral welfare-improving tax schemes, namely, a reduced rate on foods financed by an increased rate on non-foods improves welfare in case of most food types. The paper contributes to the literature by demonstrating that standard approximate efficiency indicators of VAT reforms are biased compared with simulation-based results for any plausible degree of a tax change. |
| Keywords: | Consumer behavior; Demand system; QUAIDS; Value added tax; Tax reform; Efficiency; Optimal taxation; Slovakia |
| JEL: | D12 E21 H21 I31 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:svk:wpaper:1047&r=acc |
| By: | Samphantharak, Krislert (University of California San Diego); Schuh, Scott (Federal Reserve Bank of Boston); Townsend, Robert M. (Massachusetts Institute of Technology) |
| Abstract: | We present a vision for improving household financial surveys by integrating responses from questionnaires more completely with financial statements and combining them with payments data from diaries. Integrated household financial accounts—-balance sheet, income statement, and statement of cash flows—-are used to assess the degree of integration in leading U.S. household surveys, focusing on inconsistencies in measures of the change in cash. Diaries of consumer payment choice can improve dynamic integration. Using payments data, we construct a statement of liquidity flows: a detailed analysis of currency, checking accounts, prepaid cards, credit cards, and other payment instruments, consistent with conventional cash-flows measures and the other financial accounts. |
| Keywords: | surveys; diaries; payments; financial statements; cash flows |
| JEL: | D12 D14 E41 E42 |
| Date: | 2017–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedbwp:17-7&r=acc |
| By: | Panagiotis Delimatsis; Bernard Hoekman |
| Abstract: | Can a WTO Member discriminate against foreign suppliers of services located in jurisdictions that refuse to share information with a government to permit it to determine if its nationals engage in tax evasion? Does it matter if the Member uses standards developed by an international body as the criterion for deciding whether to impose measures? In Argentina—Financial Services the WTO Appellate Body held that services from jurisdictions that share financial tax information may be different from services provided by jurisdictions that do not cooperate in supplying such information. It overruled a Panel finding that measures to increase taxes on financial transactions with non-cooperative jurisdictions were discriminatory. We argue that the AB reached the right conclusion but that an important opportunity was missed to clarify what WTO Members are permitted to do to enforce their domestic regulatory regimes, and how international standards could have a bearing on this question. By giving consideration to arguments that the likeness of services and service suppliers may be a function of prevailing domestic regulatory regimes, the AB increased the scope for confusion and future litigation. |
| Keywords: | tax evasion, tax havens, international regulatory cooperation, information exchange, transparency |
| JEL: | F51 G28 H26 H87 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2017/42&r=acc |
| By: | Langenbucher, Katja; Tröger, Tobias H.; Milione, Lara L.; Roth, Andreas |
| Abstract: | This study provides a graphic overview on core legislation in the area of economic and financial services. The presentation essentially covers the areas within the responsibility of the Economic and Monetary Affairs Committee (ECON); hence it starts with core ECON areas but also displays neighbouring areas of other Committees' competences which are closely connected to and impacting on ECON's work. It shows legislation in force, proposals and other relevant provisions on banking, securities markets and investment firms, market infrastructure, insurance and occupational pensions, payment services, consumer protection in financial services, the European System of Financial Supervision, European Monetary Union, euro bills and coins and statistics, competition, taxation, commerce and company law, accounting and auditing. Moreover, it notes selected provisions that might become relevant in the upcoming Article 50 TEU negotiations. |
| Keywords: | EU economic and financial services legislation |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:safewh:49&r=acc |
| By: | Francis Annan (Columbia University, School of International and Public Affairs, 420 West 118th Street, New York, NY 10027, USA) |
| Abstract: | Potential fraud can limit the promise of innovative mobile financial markets like Mobile Money, yet little is known about its existence, especially among the poor. In a randomized control trial across 6 low-income communities in Ghana, I evaluate the extent of fraud—overcharged transactions—on Mobile Money and explore the mechanisms underlying the results. Trained auditors visited vendor points, seeking to make actual Mobile Money transactions: either send or receive cash. Approximately 22% of transactions go fraudulent. Additional experiments indicate that fraud is higher for large amount transactions. Consumers who are financially sophisticated are less likely to suffer fraud, but market competition appears to have no effect on this. |
| Keywords: | mobile money; financial fraud; audit study |
| JEL: | O16 G21 G23 D14 G28 |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:net:wpaper:1716&r=acc |