nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2019‒02‒04
seven papers chosen by

  1. Revenue Implications of Destination-Based Cash-Flow Taxation By Shafik Hebous; Alexander Klemm; Saila Stausholm
  2. Bad Sovereign or Bad Balance Sheets? Euro Interbank Market Fragmentation and Monetary Policy, 2011-2015 By Gabrieli, Silvia; Labonne, Claire
  3. Tax transition in developing countries: Do VAT and excises really work? By Adandohoin, Kodjo
  4. How Taxes Affect the Incentive to Invest in New Intangible Assets By Congressional Budget Office
  5. Property Tax in African Secondary Cities: Insights from the Cases of Kisumu (Kenya) and M’Bour (Senegal) By Cirolia, Lisa R.; Mizes, James C.
  6. Design and implementation of Student Dormitory Management solution on the 1C:Enterprise 8.3 platform By Tsaplin Oleg
  7. Fixed Sample Size as an Internal Control By Meirini, Dianita; Andari, Atik Tri; Aalin, Elmi Rakhma

  1. By: Shafik Hebous; Alexander Klemm; Saila Stausholm
    Abstract: We estimate the revenue implications of a Destination Based Cash Flow Tax (DBCFT) for 80 countries. On a global average, DBCFT revenues under unchanged tax rates would remain similar to the existing corporate income tax (CIT) revenue, but with sizable redistribution of revenue across countries. Countries are more likely to gain revenue if they have trade deficits, are not reliant on the resource sector, and/or—perhaps surprisingly—are developing economies. DBCFT revenues tend to be more volatile than CIT revenues. Moreover, we consider the revenue losses resulting from spillovers in case of unilateral implementation of a DBCFT. Results suggest that these spillover effects are sizeable if the adopting country is large and globally integrated. These spillovers generate strong revenue-based incentives for many—but not all—other countries to follow the DBCFT adoption.
    Keywords: tax revenue, destination-based cash flow tax, border adjustment tax
    JEL: H25 H87
    Date: 2019
  2. By: Gabrieli, Silvia (Banque de France); Labonne, Claire (Federal Reserve Bank of Boston)
    Abstract: We measure the relative role of sovereign-dependence risk and balance sheet (credit) risk in euro area interbank market fragmentation from 2011 to 2015. We combine bank-to-bank loan data with detailed supervisory information on banks’ cross-border and cross-sector exposures. We study the impact of the credit risk on banks’ balance sheets on their access to, and the price paid for, interbank liquidity, controlling for sovereign-dependence risk and lenders’ liquidity shocks. We find that (i) high non-performing loan ratios on the GIIPS portfolio hinder banks’ access to the interbank market throughout the sample period; (ii) large sovereign bond holdings are priced in interbank rates from mid-2011 until the announcement of the OMT; (iii) the OMT was successful in closing this channel of cross-border shock transmission; it reduced sovereign-dependence and balance sheet fragmentation alike.
    Keywords: interbank market; credit risk; fragmentation; sovereign risk; country risk; credit rationing; market discipline
    JEL: E43 E58 G01 G15 G21
    Date: 2018–07–12
  3. By: Adandohoin, Kodjo
    Abstract: This paper investigates the role of Value Added Tax (VAT) and excises as first wave tax transition tools in developing countries. Focusing on a sample of 96 developing countries over the period 1985-2013, we investigate whether the adoption of VAT enable developing countries to increase the likelihood of succeeding tax transition. Results indicate that having a VAT, allow developing countries to increase the probability of succeeding tax transition by near 10%. We further investigate the extent to which VAT and excises offset trade tax revenue losses of trade liberalization in these countries. Our estimates reveal that VAT is offsetting by 67% trade tax revenue losses in developing countries with an U relationship, while this effect holds for excises duties with an U inverted relationship. The study also points out heterogeneities (while VAT tax transition effect is robust to African and Asian countries, it seems not for Latin American countries), as well as asymmetries (the revenue collection of VAT and excises didn’t increase the period over which developing countries face an increase in trade tax). Overall, the study concludes that, first wave tax transition even strengthened by these instruments, seems not irreversible. It suggests to take with more close attention VAT and excises as performant first wave tax transition tools in developing countries.
    Keywords: Tax transition, VAT, Excises, Developing countries.
    JEL: H20
    Date: 2018–10–19
  4. By: Congressional Budget Office
    Abstract: In this report, CBO extends its analysis of the tax burden on income from investments to include investments in intangible assets, whose value is not derived from physical attributes—for example, software, chemical formulas arising from research and development, and literary works.
    JEL: H25
    Date: 2018–11–15
  5. By: Cirolia, Lisa R.; Mizes, James C.
    Abstract: This working paper adopts an urban lens on property tax. It focuses specifically on how property tax operates in two African secondary cities, Kisumu (Kenya) and M’Bour (Senegal). The paper identifies three factors shaping the low levels of property tax collection in the two case cities. These are the misalignment between the spatial scale of property tax collection and the utilisation of funds; constrained resources and capacity for collection; and tax administrators’ own perceptions of the legitimacy of property taxation. These factors have tangible effects on the everyday workings of property taxation. The cases also demonstrate that tax administrators make sustained efforts to improve taxation. While the same types of challenges are evident in the cities of Kisumu and M’Bour, how administrators respond reflects the unique and particular context of each place and the perspective of the administrators who work there. This finding confirms that local tax administrators are not simply the recipients of tax policy, but are active agents in shaping how policies operate in practice. Overall, improving property taxation requires interventions to address alignment, capacity, and legitimacy. However, rather than attempting top-down reform, this research suggests that building on the perceptions and practices of tax administrators will offer a more effective pathway to incrementally improving property tax in Africa’s smaller urban centres.
    Keywords: Finance, Governance,
    Date: 2019
  6. By: Tsaplin Oleg (The Russian Presidential Academy of National Economy and Public Administration (North-West Institute of Management of RANEPA))
    Abstract: The article reviews the author’s solution for automation of student dormitory activities accounting and the results of its implementation in the North-West Institute of Management – branch of the FSBEI HE "The Russian Presidential Academy of the National Economy and Public Administration", Saint Petersburg.
    Keywords: industry solution, automated system, information technology, information processing, accounting system, dormitory management, educational institution management
    Date: 2019–01
  7. By: Meirini, Dianita; Andari, Atik Tri; Aalin, Elmi Rakhma
    Abstract: This study aims to analyze the effectiveness of internal control on two existing Community Banks in Tulungagung. According to Bank Indonesia rank, Tulungagung occupies the 1st position of the highest NPL in 2016. The effectiveness analysis of internal control is performed on the second Community Bank crediting system that includes qualitative and quantitative aspects analysis. Qualitative aspect analysis is based on Audit Standard applicable in Indonesia (AS) Section 319 Consideration of Internal Control in Audit of Financial Statements paragraph 07. Quantitative aspect analysis using Fixed Sample Size with a 95% confidence level and fault tolerance / DUPL (Desired Upper Precision Limit) = 5%. The result of the qualitative aspect shows the internal control system in both Community Banks is effective. It’s based on conformity between AS Section 319 and its implementation on both Community Bank. Total 20 questions for conformity analysis, 1st Community Bank for the next called BPR A is 80% appropriate, 2nd Community Bank for the next called BPR B is 60% appropriate. The rest questions are used as an attribute on quantitative analysis. The result of the quantitative aspect shows the internal control system in both Community Banks is not effective. This is because the AUPL (Achieved Upper Precision Limit) from three attribute samples analyzed exceed specified DUPL, that is: a) Authorization of credit approval documents AUPL = 18%, b) Completeness of supporting documents attached AUPL = 28%, and c) Verification of transaction correctness and correctness of ceiling calculation AUPL credit = 29%.
    Keywords: internal control; mixed method; fixed sample size
    JEL: E58 G21
    Date: 2019–01–05

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