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on Accounting and Auditing |
| By: | Dyck, Daniel; Kourouxous, Thomas; Lorenz, Johannes |
| Abstract: | We investigate how tax authorities use joint tax audits as a coordinated enforcement tool in cross-border transactions of a multinational firm. Joint tax audits aim to resolve potential tax disputes early, before such disputes escalate into costly and time-consuming resolution procedures that may not fully eliminate double taxation. Employing a game-theoretic model, we identify settings in which we expect joint audits to occur and investigate their effect on the firm's expected tax payments and tax audit efficiency. We find that the occurrence of joint audits critically depends on the double taxation risk in the absence of joint audits. Unless tax rules are consistently applied, joint audits can occur more often when this risk is higher. The reason is that the firm changes its income-shifting strategy to reduce its expected tax payments, and thereby also enables tax authorities to better target tax disputes via joint audits that would otherwise escalate. However, we identify conditions under which joint audits are then detrimental to tax audit efficiency, particularly when the firm prefers them most. Our results imply that cost-sharing arrangements for joint audits should be tailored to the level of double taxation risk, with firm involvement having the potential to improve efficiency when this risk is high. |
| Keywords: | joint tax audits, double taxation, dispute prevention, income shifting |
| JEL: | H26 H87 F23 M42 C72 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:arqudp:324870 |
| By: | Yuan, Weipeng; Macve, Richard |
| Abstract: | How far did the indigenous accounting of China's historically successful economy parallel Western double-entry bookkeeping (DEB)? We propose a scheme for classifying stages of bookkeeping that approach full DEB, review recently available nineteenth century Chinese accounting manuals and re-examine how far their recommendations reflect practice to be found in original account books contained in the archives of the Zigong brine wells for 1916-1917 (which have been argued to be essentially unchanged from the nineteenth century Qing era and perhaps earlier) and in the surviving accounts of the Fēngshèngtài salt traders of Henan province spanning 1854-1881. We introduce the accounting records we have now discovered from merchanting businesses in Anhui province, which span 300 years and survive from the 1590s onwards. These are all more sophisticated than the ‘merchant-banking' accounts in the vast archive of Tŏng Tài Shēng covering 1798-1850, and in the case of the Anhui merchants' accounts comprise ‘balance sheets' that include monetary values for physical as well as monetary assets, matching their owners' ‘capital'. We tentatively conclude, on the basis of the evidence now emerging, that despite its variety of forms indigenous Chinese style accounting practice may in some cases have captured the structural essentials of DEB’s content and functions and might be labelled ‘Chinese-style double-entry bookkeeping' ('CDEB'), over which Western bookkeeping had no conceptual advantages. |
| Keywords: | comparative international accounting history; Chinese accounting archives from Ming to late Qing era; Chinese business history; double-entry bookkeeping (DEB); Chinese-style double-entry bookkeeping (CDEB) |
| JEL: | M41 N25 |
| Date: | 2024–02–22 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:121029 |
| By: | Kimiko Terai (Faculty of Economics, Keio University) |
| Abstract: | This study investigates interjurisdictional tax competition aimed at attracting foreign creditors' portfolio investments in sovereign bonds and corporate loans. In each of two jurisdictions with lower and higher capital, governments seek to maximize workers' expected utility by determining the volume of sovereign bond issuance to fund public inputs, the tax rate on creditors' interest income, and the extent of compliance with bilateral treaty provisions concerning the exchange of information on creditors' income. Under a bilateral treaty mandating only information exchange, the jurisdiction with initially lower capital tends to set a lower tax rate and exhibits less compliance effort, effectively functioning as a tax haven. Conversely, the jurisdiction with higher capital imposes a higher tax rate and demonstrates greater compliance, benefiting from the residence principle due to its substantial global interest income. Alternatively, under a bilateral treaty that includes provisions of both information exchange and withholding tax at the source for foreign creditors, the jurisdiction with lower capital sets a higher tax rate on domestic creditors and allocates more resources to public inputs than its wealthier counterpart, even at the risk of increasing sovereign default potential. These findings suggest that the specific design of international tax cooperation agreements significantly influences jurisdictions' fiscal behaviors, leading to divergent outcomes despite a shared objective of implementing residence-based taxation. |
| Keywords: | tax haven, interest income tax, sovereign default, Tax Information Exchange Agreement, Double Taxation Agreement |
| JEL: | H26 H54 H63 H73 |
| Date: | 2025–07–18 |
| URL: | https://d.repec.org/n?u=RePEc:keo:dpaper:dp2025-016 |
| By: | Claire Li; David Freeborn |
| Abstract: | This study explores how AI-powered digital innovations are reshaping organisational accountability in a transnational governance context. As AI systems increasingly mediate decision-making in domains such as auditing and financial reporting, traditional mechanisms of accountability, based on control, transparency, and auditability, are being destabilised. We integrate the Technology Acceptance Model (TAM), Actor-Network Theory (ANT), and institutional theory to examine how organisations adopt AI technologies in response to regulatory, ethical, and cultural pressures that transcend national boundaries. We argue that accountability is co-constructed within global socio-technical networks, shaped not only by user perceptions but also by governance logics and normative expectations. Extending TAM, we incorporate compliance and legitimacy as key factors in perceived usefulness and usability. Drawing on ANT, we reconceptualise accountability as a relational and emergent property of networked assemblages. We propose two organisational strategies including internal governance reconfiguration and external actor-network engagement to foster responsible, legitimate, and globally accepted AI adoption in the accounting domain. |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2507.00288 |
| By: | Blums, Ivars; Weigand, Hans (Tilburg University, School of Economics and Management) |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:tiu:tiutis:3e5c6114-b94e-4793-b4df-b33dc15ca0f7 |
| By: | Ren\'eee Men\'endez; Viktor Winschel |
| Abstract: | We develop a monetary macro accounting theory (MoMaT) and its software specification for a consistent national accounting. In our money theory money functions primarily as a medium of payment for obligations and debts, not as a medium of exchange, originating from the temporal misalignment where producers pay suppliers before receiving revenue. MoMaT applies the legal principles of Separation and Abstraction to model debt, contracts, property rights, and money to understand their nature. Monetary systems according to our approach operate at three interconnected levels: micro (division of labor), meso (banking for risk-sharing), and macro (GDP sharing, money issuance). Critical to money theory are macro debt relations, hence the model focuses not on the circulation of money but on debt vortices: the ongoing creation and resolution of financial obligations. The Bill of Exchange (BoE) acts as a unifying contractual instrument, linking debt processes and monetary issuance across fiat and gold-based systems. A multi-level BoE framework enables liquidity exchange, investments, and endorsements, designed for potential implementation in blockchain smart contracts and AI automation to improve borrowing transparency. Mathematical rigor can be ensured through category theory and sheaf theory for invariances between economic levels and homology theory for monetary policy foundations. Open Games can structure macroeconomic analysis with multi-agent models, making MoMaT applicable to blockchain economic theory, monetary policy, and supply chain finance. |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2506.21651 |