nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2019‒03‒25
eight papers chosen by

  1. Multilateral tools for the automatic exchange of information: the benefits and risks for Russia By Levashenko, Antonina (Левашенко, Антонина); Koval, Alexandra (Коваль, Александра)
  2. Taxation of personal income received from operations with financial instruments in the EAEU By Kornienko, Natalia (Корниенко, Наталья); Minina, Elena (Минина, Елена); Korolev, Georgiy (Королев, Георгий); Mitrofanova, Ekaterina A. (Митрофанова, Екатерина А.)
  3. Progressive tax reforms in flat tax countries By Barrios, Salvador; Ivaškaitė-Tamošiūnė, Viginta; Maftei, Anamaria; Narazani, Edlira; Varga, Janos
  4. Determinants of Personal Financial Literacy among Young Adults in Malaysian Accounting Firms By Kwee Kim Peong
  5. The Impact of the CCTB on the Effective Tax Burden of Corporations: results from the Tax Analyzer Model By ZEW
  6. Nash Equilibrium in Tax and Public Investment Competition By Sharma, Ajay; Pal, Rupayan
  7. Exchange rate dynamics, balance sheet effects, and capital flows. A Minskyan model of emerging market boom-bust cycles By Karsten Kohler
  8. Annex - Taxation and the Future of Work: How Tax Systems Influence Choice of Employment Form By Anna Milanez; Barbara Bratta

  1. By: Levashenko, Antonina (Левашенко, Антонина) (The Russian Presidential Academy of National Economy and Public Administration); Koval, Alexandra (Коваль, Александра) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The paper analyzed new tools for the automatic exchange of tax information created at the OECD site. The authors analyzed the regulatory framework of Russia for the implementation of the requirements established in the Multilateral Agreement of Competent Authorities on the Automatic Exchange of Financial Accounting Information 2014 (CRS MCAA) and the Multilateral Agreement on the Exchange of Intercountry Reports 2016 (CbC MCAA). The work resulted in the formation of proposals for the use of tools for international automatic exchange of tax information created at the OECD site, as well as the development of recommendations for improving Russian legislation in the field of tax administration and tax exchange.
    Keywords: international tax exchange, OECD, General Reporting Standard CRS, MNC, automatic exchange.
    Date: 2019–03
  2. By: Kornienko, Natalia (Корниенко, Наталья) (The Russian Presidential Academy of National Economy and Public Administration); Minina, Elena (Минина, Елена) (The Russian Presidential Academy of National Economy and Public Administration); Korolev, Georgiy (Королев, Георгий) (The Russian Presidential Academy of National Economy and Public Administration); Mitrofanova, Ekaterina A. (Митрофанова, Екатерина А.) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The availability of the latest international financial instruments to individuals means that in the coming years they will be used on a massive scale, and it is necessary to improve the taxation system and legal regulation of turnover in order to achieve both fair taxation and provision of budget revenues from tax revenues. Financial instruments are widely used to transfer capital abroad, which leads to the loss of the corresponding tax revenues of Russia and the EAEU countries.
    Date: 2019–03
  3. By: Barrios, Salvador; Ivaškaitė-Tamošiūnė, Viginta; Maftei, Anamaria; Narazani, Edlira; Varga, Janos
    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 creditsÂ
    Date: 2019–03–07
  4. By: Kwee Kim Peong (Faculty of Business, Multimedia University, Malaysia Author-2-Name: Kwee Peng Peong Author-2-Workplace-Name: Faculty of Business, Multimedia University, Malaysia Author-3-Name: Kwee Peng Peong Author-3-Workplace-Name: MLK Management Services, Jalan TTC Taman Teknologi Cheng, 75250 Malacca, Malaysia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: Objective - In the twenty-first century, financial competencies are an essential tool in understanding the connection between financial behaviour and knowledge of individual financial problems. High financial knowledge may encourage young adults to carry less debt, increase their wealth and have a better financial retirement plan. According to Wolla (2017), less than one-third of youths have basic financial knowledge. This will have an impact to their lifelong financial well-being. Hence, this research intends to explore the personal financial literacy of young adults in Malaysian accounting firms. Methodology/Technique - The study examines 150 young working adults between the ages of 18-35 years old, working in accounting firms in Malacca, Malaysia. Stratified sampling and convenience sampling techniques were used to distribute questionnaires. Descriptive statistics, Pearson correlation coefficient and multiple regression analyses were also employed. Findings - The empirical findings show that geographical locations and family characteristics are significantly related to the personal financial literacy of young adults in accounting firms in Malacca. However, financial education and financial experience do not influence young adults in their financial decision making. Novelty - The results of this study suggest that the relevant authority should take an appropriate action to improve the financial well-being of young adults in Malacca, Malaysia.
    Keywords: Financial Literacy; Financial Education; Financial Experience; Family Characteristics; Geographical Location.
    JEL: M40 M41 M49
    Date: 2019–02–21
  5. By: ZEW
    Abstract: The aim of this study is to evaluate the impact of the introduction of the CCTB draft Council Directive from October 2016 on the effective corporate tax burdens in the 28 EU Member States and to assess the relative importance of single elements of the harmonised tax base. Furthermore, the impact of the CCTB introduction is estimated for R&D corporations and the tax effects of the 2016 CCTB draft Council Directive and the original draft Council Directive as of 2011 are compared.
    Keywords: Corporate Tax, Effective Tax Rates, Tax harmonisation, European Union
    JEL: H25 H87
    Date: 2019–03
  6. By: Sharma, Ajay; Pal, Rupayan
    Abstract: We analyze Nash equilibrium in fiscal competition with tax and public investment between symmetric regions. We show that given the opposite strategic nature of tax (strategic complement) and public investment (strategic substitute), there is possibility of multiple equilibria. We find that if strategic substitute effect dominates strategic complement effect, then both regions have first mover advantage in a timing game and simultaneous move Nash equilibrium (early, early) emerges; otherwise sequential move equilibria-(early, late) and (late, early) emerges. Also, sequential move Nash equilibria are Pareto improving than simultaneous move outcome. Lastly, race-to-the-bottom in taxes is restricted in sequential move equilibria.
    Keywords: Capital taxation; Public investment; Tax competition; Joint strategic substitutes; Joint strategic complements
    JEL: F21 H25 H41 H73 R5
    Date: 2019–03–12
  7. By: Karsten Kohler
    Abstract: The paper provides a dynamic Minskyan open economy model of endogenous boom-bust cycles in emerging market economies, which explains the empirically observed procyclicality of exchange rates and the countercyclicality of the trade balance. It highlights the interaction of exchange rate dynamics and balance sheets. Currency appreciation makes firm balance sheets with foreign currency debt more solid. Throughout the resulting boom phase, the current account position worsens. Pressures on the domestic exchange rate mount until the currency depreciates. Contractionary balance sheet effects then set in as domestic firms face a drop in their nominal net worth. If capital inflows are driven by exogenous risk appetite, these fluctuations can assume the form of shock-independent endogenous cycles. An exogenous increase in risk appetite increases the volatility of the cycle. We find that financial account regulation can help reduce macroeconomic volatility and that the larger the risk appetite, the more financial account regulation is required to achieve this.
    Keywords: Business cycles, boom-bust cycles, emerging market economies, Minsky
    JEL: E11 E12 F36 F41
    Date: 2019–03
  8. By: Anna Milanez; Barbara Bratta
    Abstract: This annex details the tax treatment of standard employees and self-employed workers in eight countries: Argentina, Australia, Hungary, Italy, the Netherlands, Sweden, the United Kingdom and the United States. The accompanying paper models and discusses the labour income taxation, inclusive of social contributions, of standard employees and then of self-employed workers. The aim is to understand whether countries’ tax systems treat different employment forms differently, before approaching the broader question of whether differential treatment has merit when evaluated against tax design principles.
    Keywords: future of work, gig economy, gig work, labour tax, labour taxation, non-standard work, self-employment, tax, taxation
    JEL: H2 H24 J2 J21 J08
    Date: 2019–03–21

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