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on Accounting and Auditing |
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Issue of 2019‒01‒07
ten papers chosen by |
| By: | David Masclet (Univ Rennes, CNRS, CREM - UMR 6211, F-35000 Rennes, France and CIRANO); Claude Montmarquette (Centre interuniversitaire de recherche en analyse des organisations (CIRANO), Montréal, Québec (Canada)); Nathalie Viennot-Briot (Centre interuniversitaire de recherche en analyse des organisations (CIRANO), Montréal, Québec (Canada)) |
| Abstract: | There are many ways of tackling tax evasion. The traditional strategies implemented by tax authorities fight fiscal fraud through audit and penalties. However, there also exist a plethora of unconventional methods, such as whistleblower programs. Although there is a rich economic literature on tax evasion, auditing and penalties, tax agencies’ heavy reliance on whistleblower programs has mostly been ignored. We ran an experiment in which taxpayers can punish tax evaders by reporting them to the authorities, even though it is costly for them to do so and despite the lack of any material benefit from doing so. Information on other taxpayers' compliance rates together with the opportunity to report tax evaders has a positive and a very significant effect on the level of income reported. Observing the compliance rates of other participants alone does not suffice to increase tax revenues, while the mere threat of being reported significantly increases revenues. |
| Keywords: | fiscal fraud, whistleblowers, ambiguous risk, laboratory experiment |
| JEL: | H26 H31 C91 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:2018-11&r=all |
| By: | Atanasov, Atanas |
| Abstract: | Bulgarian: В настоящата публикация се споделя тезата, че в съвременните икономически условия ролята на капитала като основа за пазарните оценки на предприятието в неговия традиционен смисъл, т.е. под формата на финансов и материален капитал, постепенно намалява и се допълва и замества от нарастващата роля на нематериалните активи. Ето защо се счита, че съвременните корпоративни отчети трябва да осигуряват информация не само по отношение на финансовото състояние на предприятието, разглеждано в традиционния му смисъл, а и по отношение на стратегическите цели, използването на ресурсите, интелектуалния капитал, социално-отговорните практики и т.н., което става посредством прилагането на концепцията за интегрираното отчитане. По този начин ползвателите ще могат да обезпечат значително по-високите си информационни и комуникационни нужди, отколкото са имали преди години и това да им позволи в крайна сметка да си обяснят модела, по който предприятието създава стойност. Ключови думи: интелектуален капитал, счетоводна стойност, пазарна стойност, интегрирано отчитане Abstract This paper shares the view that in the current economic context, the role of capital as a basis for the company's market assessments in its traditional sense, in the form of financial and tangible capital, is gradually decreasing and supplemented and replaced by the growing role of intangible assets. That is why we believe that modern corporate reports should provide information not only about the financial situation of an enterprise in its traditional sense, but also about strategic goals, resource use, intellectual capital, socially responsible practices, and through the implementation of the concept of integrated reporting. In this way, users will be able to deliver significantly higher information and communication needs than they had years before, and ultimately allow them to explain the model in which the business generates value. |
| Keywords: | intellectual capital, book value, market value, integrated reporting |
| JEL: | M21 M41 |
| Date: | 2018–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:90780&r=all |
| By: | Caiumi, Antonella; Majewski, Ina; Nicodème, Gaëtan |
| Abstract: | Despite sharp reductions in corporate income tax (CIT) rates worldwide, CIT revenues have not fallen dramatically in the last two decades. This paper investigates the recent developments in CIT in the European Union, by taking a closer look at the potential driving forces behind this puzzle. Using a unique dataset of national sectoral accounts, we decompose the CIT revenue to GDP ratio for the EU and find that while the decrease in the statutory rates has driven down tax collection, the effect was more than offset by a broadening of the taxable base and a slight increase in the size of the corporate sector. However, this result holds for the period 1995-2015 but not for the last decade where base broadening has not been able to match further cuts in rates. |
| Keywords: | corporate tax; European Union; Implicit Tax Rate; Incorporation; Tax Reforms |
| JEL: | E62 H25 O52 |
| Date: | 2018–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13385&r=all |
| By: | International Monetary Fund |
| Abstract: | As part of the Regional Harmonization Project on External Sector Statistics (RHPESS) of the Central America, Panama, Dominican Republic Regional Technical Assistance Center (CAPTAC-DR) member countries, a technical assistance (TA) mission on Financial Account Topics visited the Central Bank of the Dominican Republic (BCRD) on March 16–26, 2015. The objective of the TA mission was to assist the BCRD in further improving the external sector statistics (ESS). The BCRD is responsible for compiling the balance of payments (BP), international investment position (IIP), and external debt statistics (EDS). The mission focused on following up on the recommendations provided to the BCRD on the Coordinated Direct Investment Survey (CDIS) and the Coordinated Portfolio Investment Survey (CPIS) during previous a TAmission. The mission work included review/revision of (i) direct investment questionnaires; (ii) memorandum data received from the Banking Superintendence on banking portfolio assets; and (iii) debt information from business surveys. |
| Keywords: | Dominican Republic;Western Hemisphere; |
| Date: | 2018–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:18/323&r=all |
| By: | Salvador Barrios (European Commission - JRC); Viginta Ivaskaite-Tamosiune (European Commission - JRC); Anamaria Maftei (European Commission - JRC); Edlira Narazani (European Commission - JRC); Janos Varga (European Commission - ECFIN) |
| Abstract: | Much of the literature on flat tax reforms has highlighted the benefits of introducing flat personal income tax systems in transition economies. The advocated benefits of flat tax systems range from their simplicity, higher compliance and lower distortionary effects on growth and employment. These arguments have often been cited to support policy recommendations favouring the adoption of flat tax systems in Central and Eastern European (CEE) countries in the 1990s and the 2000s. However since income inequality is notoriously high in these countries, the question of introducing some progressivity in the tax system has come to the fore in both policy and academic circles. In this paper, we analyse the fiscal, redistributive and macroeconomic impact of (re-) introducing progressivity in a number of CEE countries with flat tax systems. Combining microsimulation and macro models, we find that a significant reduction in income inequality can be achieved by moving from a flat to a progressive tax system with positive, albeit negligible, macroeconomic and employment impact. The magnitude of these effects depends on country-specificities and tax system characteristics, due in particular to the existence of tax allowances and tax credits. |
| Keywords: | Flat tax, microsimulation model, DSGE model, inequality progressivity, employment, growth |
| JEL: | H24 H31 I32 D63 |
| Date: | 2018–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:taxref:201802&r=all |
| By: | Marie Bjørneby; Annette Alstadsæter; Kjetil Telle |
| Abstract: | Third-party reporting and employers’ tax withholding are powerful compliance mechanisms, as long as the employer and employee do not collude to evade. Using data from randomly assigned on-site audits among 2,462 Norwegian firms, we provide evidence of collusive tax evasion. We find that firms assigned to be audited increased their subsequent wage reporting on behalf of their employees by 18 percent relative to firms assigned to the control group. The effect is more pronounced among small firms with few employees. Our results document the limitations of third-party reporting, but also that these limitations can be counteracted by relatively inexpensive on-site audits. |
| Keywords: | collaborative tax evasion, collusive tax evasion, random audits, undeclared work, third-party reporting |
| JEL: | E26 H26 H32 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7381&r=all |
| By: | Bertoni, Fabio; Colombo, Massimo G.; Quas, Anita |
| Abstract: | This paper provides a policy-oriented summary of the econometric study commissioned by the European Court of Auditors, in the context of its audit of EU-funded loan guarantee instruments.2 The study assesses the real performance effects of EU-guaranteed loans to SMEs disbursed in France during the years 2002 to 2016. The study estimates the average treatment effect of guaranteed loans over a 10-year period around disbursement, using a combination of difference-in-difference estimation, coarsened exact matching and propensity score analysis. On average, French SMEs benefitting from EU-guaranteed loans experienced additional 9% asset growth, 7% sales growth, and 8% employment growth compared to the control group. The economic significance of the effect is typically stronger for smaller and younger firms. Beneficiary SMEs also experienced 5% lower default rates. The study also estimates the effects of guaranteed loans on SME productivity. Consistent with earlier works, the analysis finds a short-run dip in productivity, accompanied by a medium-run recovery and a long-run positive effect, signalling the presence of adjustment costs in the production function following loan-induced investments. The study concludes by discussing potential implications for policy makers and further research. |
| Keywords: | EIF,credit guarantees,credit constraints,real effects,small and medium-sized enterprises |
| JEL: | G2 H25 O16 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:eifwps:201852&r=all |
| By: | Zykov, Alexander (Зыков, Александр) (The Russian Presidential Academy of National Economy and Public Administration (North-West Institute of Management of RANEPA)); Petrov, Vladimir (Петров, Владимир) (The Russian Presidential Academy of National Economy and Public Administration (North-West Institute of Management of RANEPA)); Oleg, Tsaplin (Олег, Цаплин) (The Russian Presidential Academy of National Economy and Public Administration (North-West Institute of Management of RANEPA)) |
| Abstract: | The article examines the experience in implementing of the Integrated Automated Management System of the University using the platform “1C: Enterprise 8” on the example of the educational process automation in the North-Western Institute of Management — branch of the Russian Academy of National Economy and Public Administration under the President of the Russian Federation. |
| Keywords: | automated system, new information technologies, automation of educational process, information processing, accounting system, functional module |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:ppaper:111804&r=all |
| By: | Alula Nerea |
| Abstract: | The objective of this study was to investigate the impact of Illicit Financial Flow (IIF) on economic growth of Ethiopia. The study used secondary data, particularly from 2000 to 2015 years. It has also employed varies internationally recognized estimation models (Hot Money Narrow and Trade miss-invoicing) to get the magnitude of Illicit Financial Flow in Ethiopia. Moreover, it employed error correction model to get a short and long run velocity and magnitudinal effect of IFF on Gross Domestic Product (GDP). The study found that IFF has significant and negative impact on GDP. Based on research findings, establishing controlling and auditing mechanisms for trans-boundary trade activities in Ethiopia, creating effective institution and building collaborative approach are recommended to curb the magnitude of IFF and its impact on economic growth. |
| Keywords: | IFF; HMN; ECM;Trade Miss-invoicing |
| JEL: | C22 C53 F32 O47 |
| Date: | 2018–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:udf:wpaper:2018107&r=all |
| By: | Rastin Matin; Casper Hansen; Christian Hansen; Pia M{\o}lgaard |
| Abstract: | Corporate distress models typically only employ the numerical financial variables in the firms' annual reports. We develop a model that employs the unstructured textual data in the reports as well, namely the auditors' reports and managements' statements. Our model consists of a convolutional recurrent neural network which, when concatenated with the numerical financial variables, learns a descriptive representation of the text that is suited for corporate distress prediction. We find that the unstructured data provides a statistically significant enhancement of the distress prediction performance, in particular for large firms where accurate predictions are of the utmost importance. Furthermore, we find that auditors' reports are more informative than managements' statements and that a joint model including both managements' statements and auditors' reports displays no enhancement relative to a model including only auditors' reports. Our model demonstrates a direct improvement over existing state-of-the-art models. |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1811.05270&r=all |