nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2023‒09‒25
four papers chosen by
Alexander Harin, Modern University for the Humanities


  1. Digitalisation and Subnational Tax Administration in Nigeria By Mas’ud, Abdulsalam; Mohammed, Sani Damamisau; Gimba, Yusuf Abdu
  2. The immeasurable tax gains by Dutch shell companies By Lejour, Arjan; Möhlmann, Jan; Riet, Maarten van ’t
  3. Offshore tax evasion and wealth inequality: Evidence from a tax amnesty in the Netherlands By Leenders, Wouter; Lejour, Arjan; Rabate, Simon; Riet, Maarten van ‘t
  4. Can Policy Packaging Help Overcome Pigouvian Tax Aversion? A Lab Experiment on Combining Taxes and Subsidies By Gøril L. Andreassen; Steffen Kallbekken; Knut Einar Rosendahl

  1. By: Mas’ud, Abdulsalam; Mohammed, Sani Damamisau; Gimba, Yusuf Abdu
    Abstract: Recently, there has been an expansion in the deployment of digital systems and digital IDs among taxing authorities. However, little is known about the extent to which such technologies are being adopted, or about whether the data from them is being used strategically to improve tax administration. Even less is known about this in the context of subnational tax administration, although this could be very relevant in some contexts, such as Nigeria. This study investigates the extent of the adoption and strategic usage of data from e-tax systems and digital IDs among state internal revenue services (SIRSs) in Nigeria. Data was collected through qualitative interviews conducted within the SIRSs – one from each of the country’s six geopolitical zones, and within the Federal Inland Revenue Service (FIRS). The qualitative data from the interviews was evaluated using thematic analysis. The findings revealed that there is scope for improvement in the adoption and usage of data from e-tax systems and digital IDs among the SIRSs. It was also found that the extent of adoption and strategic data usage from e-tax systems by SIRSs likely improves states’ per capita internally generated revenue (IGR), but similar insights on the impact of digital IDs have not been obtained. Lastly, it was found that there are some lessons SIRSs could learn from FIRS in terms of strategic use of data from e-tax systems and digital IDs. Specifically, SIRSs need to integrate an audit risk engine and machine learning for performing analytics into their e-tax systems, and also automate the estimation of annual credits for withholding tax suffered, tax refunds and penalties, as well as tax audit management including case selection, allocation of auditors and generating audit reports. Some policy recommendations are offered that are consistent with these findings.
    Keywords: Finance,
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:idq:ictduk:18075&r=acc
  2. By: Lejour, Arjan (Tilburg University, School of Economics and Management); Möhlmann, Jan; Riet, Maarten van ’t
    Date: 2022
    URL: http://d.repec.org/n?u=RePEc:tiu:tiutis:164d66f5-6f5e-41be-ac22-4c0dad731695&r=acc
  3. By: Leenders, Wouter; Lejour, Arjan (Tilburg University, School of Economics and Management); Rabate, Simon; Riet, Maarten van ‘t
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:tiu:tiutis:dc537319-6adc-4b3a-8f9f-525161d428e2&r=acc
  4. By: Gøril L. Andreassen; Steffen Kallbekken; Knut Einar Rosendahl
    Abstract: Tax aversion makes it politically challenging to introduce Pigouvian taxes. One proposed solution to overcome this resistance is to package policies. Using an online lab experiment, we investigate whether combining a tax and a subsidy is perceived as more acceptable than the tax or the subsidy alone. The purpose of the policies is to reduce demand for a good with a negative externality to the socially optimal level. We find that support for a combination of a tax and a subsidy equals the simple average of support for the two instruments alone. Combining a tax and a subsidy therefore does not reduce tax aversion, other than through lower tax rates in the combinations. We also examine potential mechanisms behind the tax aversion. Participants hold more pessimistic beliefs about what share of the tax revenue they will receive when the tax is implemented alone than when it is combined with a subsidy. Furthermore, we find that the participants expect the tax to be more effective in reducing demand for the good with a negative externality than both the subsidy alone and the combinations of tax and subsidy. This belief does not, however, translate into support for the tax.
    Keywords: Pigouvian taxes, policy packaging, public support, lab experiment, tax aversion
    JEL: D72 H23 Q54 Q58
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_10610&r=acc

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