nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2018‒11‒05
three papers chosen by

  1. Audit State Dependent Taxpayer Compliance: Theory and Evidence from Colombia By James Alm; James C. Cox; Vjollca Sadiraj
  2. Assessing the impact of tax administration reforms in Sub-Saharan Africa By Mavungu, Marina Ngoma; Krsic, Nikolina
  3. Съдържателни аспекти на счетоводната политика на сдружения в България от гледна точка на ползвателите на документа By Georgieva, Daniela

  1. By: James Alm; James C. Cox; Vjollca Sadiraj
    Abstract: Colombian tax reforms have been enacted with no estimates of taxpayer compliance responses to policy innovations. We report the results from the first tax compliance experiment run in Colombia. Our data analysis follows from an original dynamic theoretical model of individual compliance choice that is fully consistent with our experimental design and that should have useful applications to other tax compliance experiments. The model distinguishes between compliance conditional on no previous audits and compliance conditional on previous audits one and two periods earlier, which allows us to discriminate between the implications of naïve and static behavior versus sophisticated and forward-looking behavior in our subsequent empirical analysis. Our estimation results indicate that taxpayer reporting increases with an increase in the audit rate and an increase in the fine rate; we find no significant effects of the tax rate on compliance. We also find that compliance depends upon the use of tax payments; that is, taxpayer reporting is greater when aggregate tax payments are donated to a charity.
    Keywords: Tax evasion, experimental economics
    JEL: H26 C91
    Date: 2018–10
  2. By: Mavungu, Marina Ngoma; Krsic, Nikolina
    Abstract: This proposal investigates the impact of adopting tax reforms such as the Value Added Tax (VAT), the Large Taxpayers Unit (LTU), and the Semi-Autonomous Revenue Agency (SARA) on tax revenue performance revenues in Sub-Saharan Africa. Despite the increasing adoption of these reforms, the literature on tax reforms effectiveness in Sub-Saharan is controversial. This proposal adds to the debate by using an Ordinary Least Square Fixed effect model controlling for countries and years fixed effects as well as a set of relevant covariates. We use a panel dataset of 46 countries from 1980 to 2013 and show that, in contrast to existing findings, there is no robust evidence that the three tax reforms increased tax collection performance in Sub-Saharan Africa. We find that controlling for time fixed effects and relevant covariates removes the statistical significance of all the tax reforms. Therefore, we conclude that there is little statistical robustness to support a significance of these reforms on tax collection in Sub-Saharan Africa.
    Keywords: Tax reforms, Tax collection performance, Ordinary Least Square Fixed effect model, Sub-Saharan Africa, VAT, LUT, SARA.
    JEL: H20 N47 O23
    Date: 2017–05
  3. By: Georgieva, Daniela
    Abstract: According to data published in the Sustainability Index for Central and Eastern Europe and Eurasia, 1579 new associations and 370 foundations are registered in 2016 in Bulgaria. As a comparison in 2015 the newly registered associations are 1463, and the foundations - 306. Being active entities at the economic life of our country, not only the number of foundations and associations is increasing, but also the range of their business and non-profit activities are expanding. In this respect, non-profit organizations are involved in the political, economic, spiritual, cultural and social life of Bulgaria. Such an idea undoubtedly has a direct impact on the accountability of these activities. As an appendix to the financial statements, accounting policies provide information regarding the accounting methodology used for preparing the statements and hence are essential for the purposes of interpreting the data by the users. The accounting policies must ensure that the information they contain is cautious, reliable, neutral and impartial. Due to the possibility of certain conflicts of interest between the needs of different users, the data written inside the document is not as transparent and comprehensible as it should be. Based on that a main goal of the report is to present data analysis regarding the main content components of the document and their importance based on the user’s point of view. The subject of the study is the content of the accounting policy of Bulgarian associations. The methodology used for the analysis is a survey conducted among target groups related to the activities of the associations. The data collection period covers the months July 2018 - August 2018. For the analysis of the data, the programs SPSS, ver. 16.0/2007, as well as Microsoft Office Excel 2013 are used. The results from the questionnaire are based on the methods of mathematical statistics. The study of statistical relations and dependencies is done on the basis of a Chi square - analysis (χ2). Cramer’s (V) coefficient is used to measure the strength between the nominal variables. The author’s hypothesis is that users are not aware of the role, functions, and purposes of the accounting policies. In this respect the information they expect to find out in the document is irrelevant to the essence of the accounting policy. The results of the survey would help for better understanding of the accounting policy of associations, its structure and expected content components.
    Keywords: accounting policy, content, elements, associations
    JEL: M40 M41 M49
    Date: 2018–09

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