nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2020‒05‒18
seven papers chosen by

  1. Estimating the distribution of household wealth in South Africa By Aroop Chatterjee; Léo Czajka; Amory Gethin
  2. Estonian corporate tax: Lessons for Poland By Dmitri Jegorov; Anna Leszczyłowska; Aleksander Łożykowski
  3. Depreciation allowances in South Africa By Estian Calitz; Eva Muwanga-Zake; Alexius Sithole; Wynnona Steyn
  4. The relationship of the territoriality of corporate taxation and the economy By Jean-Marie Monnier
  5. Elaboration of proposals for the development of electronic trading platforms in the digital economy of Russia By Levashenko, Antonina (Левашенко, Антонина); Girich, Maria (Гирич, Мария)
  6. Grey Zones in Global Finance: the Distorted Geography of Cross-Border Investments By Anne-Laure Delatte; Amélie Guillin; Vincent Vicard
  7. Proving prediction prudence By Dirk Tasche

  1. By: Aroop Chatterjee; Léo Czajka; Amory Gethin
    Abstract: This paper estimates the distribution of personal wealth in South Africa by combining tax microdata, household surveys, and macroeconomic balance sheet statistics. We systematically compare estimates of the wealth distribution obtained by direct measurement of net worth, rescaling of reported wealth to balance sheet totals, and capitalization of income flows. We document major inconsistencies between available data sources, in particular regarding the measurement of dividends, corporate assets, and wealth held through trusts.
    Keywords: Administrative data, households balance sheets, income capitalization, micro-macro gap, national accounts, wealth distribution, wealth surveys
    Date: 2020
  2. By: Dmitri Jegorov; Anna Leszczyłowska; Aleksander Łożykowski
    Abstract: Estonia has Europe’s most transparent tax system (while Poland is second-to-last, in 35th place), and is also known for its pioneering approach to taxation of legal persons’ income. Since 2000, payers of Estonian corporate tax don’t pay tax on their profits as long as they don’t realize them. In principle, this approach should make access to capital easier, spark investment by companies and contribute to faster economic growth. Are these and other positive effects really noticeable in Estonia? Have other countries followed in this country’s footsteps? Would deferment of income tax be possible and beneficial for Poland? How would this affect revenue from tax on corporate profits? Would investors come to see Poland as a tax haven? Does the Estonian system limit tax avoidance and evasion, or actually the opposite? Is such a system fair? Are intermediate solutions possible, which would combine the strengths or limit the weaknesses of the classical and Estonian models of profit tax?
    Keywords: corporate income tax, distributed profit tax, dividend tax, cash flow tax, Estonia
    JEL: H25 H32 M48
    Date: 2020–04–09
  3. By: Estian Calitz; Eva Muwanga-Zake; Alexius Sithole; Wynnona Steyn
    Abstract: Nowadays, tax depreciation allowances are used less as instruments of macroeconomic stabilization and more as long-term measures to stimulate investment. This paper tabulates the types of accelerated depreciation allowances in South Africa and calculates the magnitude of these benefits in addition to standard across-the-board accounting depreciation by companies. Using anonymized tax assessment data from the South African Revenue Service, the analysis generates the aggregate and sectoral composition of tax depreciation and tax investment allowances for 2014?17.
    Keywords: tax depreciation allowances, tax investment allowances, tax expenditures, corporate income tax
    Date: 2020
  4. By: Jean-Marie Monnier (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: The consequence of the revolution of internet and digital is the erosion of taxe bases. The creation of value has shift from the production of tangibles to intangibles. This resulted in the disparition of tax bases. But the recognition of this phenomenon does not imply to radically question the relevance of tax instruments inherited from the fordist period. It may simply lead to the proposition of new rules or new taxes aiming to compensate revenue losses. The first part of the paper is devoted to a review of the economic approaches of the taxation of digital for which the mobility of activities and the erosion of tax bases are essential issues. This immediately puts the tax issue on an international level and raises the question of the taxation of rents massively captured by digital companies. In the second part, and after a brief presentation of the main characteristics of the tax system inherited from the Fordist period, we study the main developments that took place during this period. Finally, we emphasize the main lines of the changes affecting capitalism. They cause the present lack of adjustment between the economic bases of capitalism and the tax system. This new capitalism works by deterritorializing the tax bases.
    Abstract: La révolution de l'internet et du numérique provoque l'érosion des bases taxables. Le déplacement de la création de valeur des biens tangibles vers des productions intangibles ou immatérielles aboutit à la disparition de l'assiette de l'impôt. Mais l'identification de ce phénomène ne débouche pas nécessairement sur une mise en cause radicale de la pertinence des instruments fiscaux hérités de la période fordiste. Elle peut aussi conduire simplement à la proposition de règles nouvelles ou de prélèvements nouveaux compensant les pertes de recettes. La première partie de l'article est consacrée à une revue des approches économiques de la fiscalité du numérique pour lesquelles la mobilité des activités et l'érosion des bases taxables sont un enjeu essentiel. Cela place immédiatement la question fiscale à un niveau international et interpelle sur la taxation des rentes massivement captées par les entreprises du numérique. Dans une seconde partie et après une rapide présentation des caractéristiques de l'architecture des prélèvements obligatoires héritées de la période fordiste, on étudie les principales évolutions intervenues au cours de cette période. Enfin on distingue les caractéristiques majeures de la mutation du capitalisme en cours qui contribuent à l'actuel défaut d'ajustement entre les nouvelles bases économiques du capitalisme et le système fiscal. Ce nouveau capitalisme fonctionne par déterritorialisation des bases taxables.
    Keywords: Digital economy,Corporate taxation,Global taxes,Taxable bases,New capitalism,Economie numérique,Impôt sur les sociétés,Taxes globales,Assiette taxable,Nouveau capitalisme
    Date: 2019–05–01
  5. By: Levashenko, Antonina (Левашенко, Антонина) (The Russian Presidential Academy of National Economy and Public Administration); Girich, Maria (Гирич, Мария) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: In the framework of this work, aspects of the legal regulation of electronic trading platforms were analyzed, in particular, regulatory standards within the framework of international organizations, including the OECD, WTO, UNCITRAL, WIPO, the Council of Europe, as well as standards in countries with the largest volume of electronic commerce, including the USA, China , India, EU countries (France, Germany), Australia. The result of the work was the formation of proposals for regulating the operation of electronic trading floors in Russia, including registration and reporting, defining the boundaries of responsibility of electronic trading floors, taxation, protecting consumers' rights, protecting personal data, currency control, customs regulation, regulating advertising and spam, protecting intellectual property, antitrust regulation, financial and information support measures, currency regulation, etc.
    Keywords: e-commerce, electronic trading platforms, OECD, consumer protection, personal data protection, taxation, advertising and spam, competition
    Date: 2020–03
  6. By: Anne-Laure Delatte; Amélie Guillin; Vincent Vicard
    Abstract: Tax avoidance schemes generate artificially complex cross-border financial structures inflating measured international investment stocks in tax havens. Using a standard gravity framework, we estimate that about 40% of global assets (FDI, portfolio equity and debt) are `abnormal' – unexplained – stocks. Abnormal stocks are increasing over time and concentrated in a limited number of jurisdictions. Six jurisdictions including three European countries are the largest contributors: Cayman, Bermuda, Luxembourg, Hong Kong, Ireland and the Netherlands. Interestingly, the Luxleaks in 2014 do not appear to have diverted cross-border investments away.
    Keywords: Cross-Border Investments;Capital Openness;Tax Havens;Gravity Equation
    JEL: F23 G21 H22 H32
    Date: 2020–05
  7. By: Dirk Tasche
    Abstract: We study how to perform tests on samples of pairs of observations and predictions in order to assess whether or not the predictions are prudent. Prudence requires that that the mean of the difference of the observation-prediction pairs can be shown to be significantly negative. For safe conclusions, we suggest testing both unweighted (or equally weighted) and weighted means and explicitly taking into account the randomness of individual pairs. The test methods presented are mainly specified as bootstrap and normal approximation algorithms. The tests are general but can be applied in particular in the area of credit risk, both for regulatory and accounting purposes.
    Date: 2020–05

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