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on Accounting and Auditing |
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Issue of 2024‒08‒19
five papers chosen by |
| By: | Christos Kotsogiannis; Luca Salvadori; John Karangwa; Innocente Murasi |
| Abstract: | Difficult to find another policy shift that has promised as much for tax compliance in developing countries as digitalization. Yet the evidence on its impact is scant. Using the universe of tax filings in Rwanda over the period 2012-2019, this paper investigates the extent to which digitalization (in the form of e-invoicing) has impacted on VAT compliance and, in particular, the effectiveness of tax audits. The evidence suggests that while e-invoicing adoption per se has increased firms’ net VAT payments, this impact is quantitatively limited, as firms seem to re-adjust their expenses so to keep VAT payments low. Interestingly, e-invoicing had a sizable compliance impact on net VAT liabilities re- ported by audited firms, with this impact being attributed to tax audits becoming more efficient, rather than to VAT registered firms becoming more cautious following their participation in the e-invoicing mechanism. |
| Keywords: | tax audit evaluation, technological change, digitalisation initiatives, tax administration, Tax evasion, tax compliance |
| JEL: | H25 H26 H32 O17 O33 D02 D22 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:bge:wpaper:1454 |
| By: | Alessandro Chiari (Institute of Economic Studies, Charles University, Prague, Czech Republic) |
| Abstract: | This study examines whether the use of tax haven subsidiaries by U.S. multinational corporations (MNCs) is associated with more intense use of share buybacks and with improvement in management's ability to generating revenues. I find that MNCs' more intensive tax haven subsidiary use is positively associated with a higher management score, a higher buyback ratio, and a higher level of free cash flow. I also find a higher increase in the buyback ratio of U.S. companies following the sales of U.S. stocks from entities located in tax havens. In cross-sectional analyses, I identify channels through which the positive association between tax haven intensity and share buybacks is more pronounced. I also test the share buyback execution of U.S. MNCs affected by recent legislation promulgated in the U.S. (2017 corporate tax cut, 2017 repatriation tax). Our findings reveal a higher sensitivity to this legislation by MNCs with more presence in tax havens. |
| Keywords: | Tax Havens, Subsidiaries, U.S. Multinational Corporations, Share Buybacks |
| JEL: | G23 G28 G32 G35 H26 K34 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:fau:wpaper:wp2024_25 |
| By: | Ozili, Peterson K |
| Abstract: | The objective of this article is to discuss the role of financial inclusion in combating financial crime. It was found that financial crime is a challenge in society. Financial crime is any action or omission that leads to unlawful or illegal financial dealings. Many countries are seeking ways to combat financial crime. Many ideas have been considered on how to combat financial crime. Financial inclusion is a possible solution for combating financial crime. Financial inclusion involves granting access to basic formal financial services to all segments of society. I show that financial inclusion makes the work of investigators easier by leaving an audit trail whenever financial crime is committed in the formal financial system. It helps investigators to detect fraud or financial crime that has occurred in the formal financial system. |
| Keywords: | financial inclusion, financial crime, fraud detection |
| JEL: | G21 G28 M42 M48 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121566 |
| By: | Nathalie Etchart-vincent (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Marisa Ratto (LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique); Emmanuelle Taugourdeau (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Our experimental study investigates the impact of information about others' tax behaviour on the subjects' subsequent tax decisions. A novel framework allows us to test the taste for social conformity and behavioural convergence hypothesis. Two kinds of individual information are introduced, namely information about the income reported on average, within the whole subject's group and within a subgroup, made of either peers or non peers and chosen by the subject. Our main results are fourfold. First, we replicate usual results as regards the influence of tax morale, probability of audit and redistribution on tax compliance. Second, our data show that many subjects are more interested in non-peers' than peers' tax behaviour. Third, with regard to our main point, our data display a huge variety of behavioural responses at the individual level. Roughly 50% of the subjects, most of whom are full tax compliers, are insensitive to others' tax behaviour, thereby exhibiting strong intrinsic preferences towards taxes. At the same time, our data provide strong evidence of behavioural convergence towards others' average behaviour, and a taste for social anti-conformity is also found for a minority of subjects. Finally, the kind of information appears to matter, and we find some asymmetry in upward and downward behavioural variations. |
| Keywords: | Tax compliance, Information, Tax morale, Peer effects, Social norms, Behavioral contagion, Social conformity, Artefactual field experiment |
| Date: | 2024–07–05 |
| URL: | https://d.repec.org/n?u=RePEc:hal:cesptp:hal-04635966 |
| By: | KOBAYASHI Yohei; UCHIYAMA Yu; KAWASE Hitoshi; ODANI Yuki |
| Abstract: | Recently, the UK government has been promoting such policies as utilising the results of evaluation in policymaking and budget allocation and planning ex-post policy evaluation before implementation. While Evidence-Based Policy Making (EBPM) in the UK has been centred on ex-ante evaluation such as cost-benefit analysis in business cases, it is now starting to refer to causal evidence in ex-ante evaluation and to build ex-post evaluation into policymaking. This paper examines these developments focusing on the Evaluation Task Force (ETF), which was established in 2021 as an organisation to advise HM Treasury and other departments on evaluation. Firstly, we demonstrate the current situation of EBPM in the UK government based on a National Audit Office report. Secondly, we deal with the Analysis Function that encompasses government analysts and the Magenta Book, which contains guidance on evaluation. Thirdly, we examine the organization and activities of the ETF mainly based on the results of the interview with its head. Lastly, we show the implications for Japan obtained from the British experiences. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:eti:rpdpjp:24008 |