nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2022‒04‒18
six papers chosen by

  1. The Wealth Tax and the Tax Mix By Boadway, Robin; Pestieau, Pierre
  2. Trends and Patterns of Tax Expenditures on Union Taxes in India. By Mukherjee, Sacchidananda
  3. Not so sweet: The impact of the Portuguese soda tax on producers By Goncalves, Judite; Merenda, Roxanne; dos Santos, João Pereira
  4. The new development model and public management control in Morocco By Mohammed Eddaou; Mohammed Hafiane
  5. Albania: Technical Assistance Report-Tax Policy Reform Options for the MTRS By International Monetary Fund
  6. Zimbabwe: Technical Assistance Report-Basel Pillar III Implementation By International Monetary Fund

  1. By: Boadway, Robin; Pestieau, Pierre (Université catholique de Louvain, LIDAM/CORE, Belgium)
    Abstract: The objective of this paper is to study the role of wealth taxes as a component of the overall tax mix. In particular, wealth taxes are one of many potential taxes that apply to assets and asset income, so the question is whether wealth taxes should substitute, complement, or neither other taxes on assets and their income. More specifically, our purpose is to consider how well the Canadian tax system fares in taxing asset income, asset wealth and asset transfers with aview to judging whether wealth taxation would be a useful adjunct to the existing system. Despite the advantages that wealth taxation has compared to the existing capital tax system, we suggest that rather than incurring the administrative costs of introducing a wealth tax, a more satisfactory approach would be to reform the tax treatment of capital income and inheritances instead.
    Keywords: Wealth tax ; capital income tax ; inheritance tax
    JEL: H21 H23
    Date: 2022–02–10
  2. By: Mukherjee, Sacchidananda (National Institute of Public Finance and Policy)
    Abstract: The Union government foregoes revenue on account of various tax exemption/incentive schemes promoted for various purposes. The Constitution of India assigns power of taxation of broad-based taxes to the Union (Federal) government (e.g., Corporate Income Tax, Personal Income Tax, Union Excise Duty, Customs duty). Like the Union government, provincial (or State) governments also provide tax incentives (within the scope and coverage of their taxation power) but revenue impacts (or foregone) of those tax exemption schemes at the state level are not assessed yet. Comprehensive assessment of tax expenditures is important especially after the introduction of Goods and Services Tax (GST). Given the data limitations, the present paper assesses the trends and patterns (structure) of tax expenditures of Union taxes during 2005-06 to 2019-20. Overall tax expenditures of the Union government declined from 8.15 per cent of GVA (Gross Value Added) in 2008-09 to 1.69 per cent in 2019-20. It was possible mainly on account of continuous reduction of tax expenditures on indirect taxes. Tax expenditures on direct taxes (on account of CIT and PIT only) also declined from 32.7 per cent of direct tax (CIT PIT only) collection in 2008-09 to 22.4 per cent in 2019-20. The tax expenditures related to Union Excise Duty (UED) and Customs Duty (CD) declined from 152 per cent in 2008-09 to 12.6 per cent of tax collection on account of UED and CD in 2019-20. Post Global Financial Crisis (GFC) successive Union budgets raised standard rate of excise duty gradually to pre-GFC level, pruned down the exemption list and consolidated rate structure of excise duty (or CenVAT) to prepare for introduction of GST. This helped the government to contain tax expenditures on indirect taxes.
    Keywords: Tax Expenditures ; Tax Incentives ; Tax Policy ; Federal Government ; Union Taxes ; India
    JEL: H25 H24 H61 H11 D72
    Date: 2022–04
  3. By: Goncalves, Judite; Merenda, Roxanne; dos Santos, João Pereira
    Abstract: In February 2017, Portugal implemented a tax on sugar-sweetened beverages (SSBs), under which producers were to be taxed according to the amount of sugar contained in the drinks they manufactured. We exploit administrative accounting data covering the universe of Portuguese firms between 2012 and 2019 to assess the causal impact of this tax on the behavior and performance of producers of SSBs. Our identification strategy relies on event study specifications, using producers of bottled water as counterfactual. Our findings indicate that SSBs producers became significantly less profitable in the post-tax period, vis-à-vis water bottlers, which was driven by a significant decrease in domestic sales. The soda tax hindered firms' capacity to convert receivables into cash and financial health deteriorated as liabilities grew. SSBs producers did not respond to this negative shock by cutting jobs or modifying their labor force towards relatively more skilled labor or higher R&D capacity.
    Keywords: Firm-level impacts,policy evaluation,Portugal,public health,sugar-sweetened beverages tax
    JEL: D22 H25 I18 L66
    Date: 2022
  4. By: Mohammed Eddaou (Université Mohammed Premier [Oujda]); Mohammed Hafiane
    Keywords: New development model,vertical view of the organisation,horizontal view of the organisation,public management control,public audit
    Date: 2022–02–25
  5. By: International Monetary Fund
    Abstract: Albania is preparing a Medium-Term Revenue Strategy (MTRS) to finance its development spending of an estimated 2.2–3.0 percent of GDP over five years. Revenue mobilization will be supported by comprehensive tax policy and administration reforms. International and regional comparisons suggest that there is room for additional revenues as well as improvement in the composition of tax revenues. This report presents options for tax policy reform to raise at least an additional 1.34 percent of GDP in revenues over five years and to improve the quality and efficiency of the tax system, that will enable the mobilization of further domestic revenues.
    Keywords: IMF resident representative office; Reform proposal; IMF's Fiscal Affairs Department; c-efficiency ratio; VAT revenue; value-added tax; Value-added tax; Personal income tax; Corporate income tax; Social security contributions; Central and Eastern Europe; Europe
    Date: 2022–02–17
  6. By: International Monetary Fund
    Abstract: As a follow-up to the 2019 FSSR, a remote TA mission supported the RBZ with the implementation of Basel III liquidity standards. The mission reviewed the RBZ drafts of the LCR and NSFR frameworks, discussed identified material gaps with the BSD management and relevant supervisors, and provided many recommendations on enhancing the drafts of liquidity regulations, monitoring tools, reporting templates, and disclosure. Further actions for implementing Basel III liquidity standards were agreed with the RBZ.
    Date: 2022–03–02

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