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on Accounting and Auditing |
| By: | Keshav Choudhary; Bhanu Gupta |
| Abstract: | Traditional tax audits are effective at raising revenue but are costly to scale. Can third-party auditors enhance compliance, or are they prone to collusion due to inherent conflicts of interest? We study a policy reform in India that introduced unanticipated changes in the revenue threshold for mandatory third-party audits. Using a combination of bunching and difference-in-differences methods on administrative data, we estimate that third-party audits can increase tax payments by around 45%, on average. However, firms with income or expenses already subject to third-party reporting exhibit smaller responses to private audits, reflecting a lower scope for manipulation. Our findings suggest that extending third-party audit requirements to smaller firms below the current threshold may be a cost-effective approach to increasing compliance in low state capacity settings. |
| Keywords: | Third-party audit, Corporate tax, Evasion, Bunching |
| JEL: | H26 H32 M42 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:mpi:wpaper:tax-mpg-rps-2025-04 |
| By: | Sauer, Radek (Central Bank of Ireland, CESifo) |
| Abstract: | This paper analyzes the macroeconomic impact of corporate taxation. The analysis is conducted in a quantitative two-country model. First, the paper describes the long-run effects of corporate taxation. A reduction in the corporate-income tax rate increases GDP, wages, consumption, investment, and business density. The trade balance is at the same time negatively affected. Firms headquartered in a country which lowers its corporate tax become internationally less active and instead focus more on their domestic market. Next, the paper examines transitional dynamics that are induced by a corporate-tax reform. The short-run response of the economy can substantially differ from the long-run response. Finally, the paper investigates the effects of international profit shifting in high-tax and low-tax jurisdictions. |
| Keywords: | corporate taxation, macroeconomy, heterogeneous firms, multinationals, international spillovers, profit shifting. |
| JEL: | E62 F42 H25 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:cbi:wpaper:12/rt/25 |
| By: | Jörgen Levin; Emmanuel Orkoh |
| Abstract: | Determining the optimal tax burden that maximizes compliance and revenue remains a major challenge in developing countries, partly due to the literature's focus on linear tax-compliance relationships. Using firm-level data from Ghana and an instrumental variable approach, this paper finds a nonlinear relationship: compliance rises with higher taxes up to a threshold of 45%, beyond which it declines. This threshold, more than double the average tax burden of 21%, varies by firm size and formality—medium-large firms (30%), micro (46%), small (49%), formal (41%), and semi-formal (46%). |
| Keywords: | Taxation, Tax compliance, Tax evasion, Ghana |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:unu:wpaper:wp-2025-91 |
| By: | Brun Lidia (European Commission - JRC); Stoehlker Daniel (European Commission - JRC); Pycroft Jonathan; Van't Riet Maarten |
| Abstract: | "We assess the welfare implications of the Global Minimum Tax (GMT) on corporate income in a multi-country macroeconomic model. The objectives of the GMT are to mitigate harmful tax competition and to curb wasteful profit shifting. The theoretical literature suggests that the welfare effects of the GMT are ambiguous. It contributes positively to welfare by improving tax revenues and limiting profit shifting; however, it may also raise firms' capital costs, exerting a contractionary effect on the economy. Using our applied model, we combine all these effects to produce numerical welfare results, creating what we believe is the first comprehensive and quantitative welfare assessment of the GMT. We simulate the implementation of a GMT of 15 percent by all countries in our model, which are the 27 EU Member States, the US, the UK, Japan, and a tax haven. We measure the welfare change in two scenarios. In the first, additional corporate income tax (CIT) revenues are redistributed as direct transfers to households. This produces mixed welfare results across countries, while the global welfare impact is slightly positive. In the second, additional CIT revenues are redistributed back to firms as lower CIT rates, provided that the rate remains at or above the GMT rate. In most countries, the reduction in the cost of capital from a lower CIT rate more than offsets the increase caused by reduced profit shifting, stimulating economic activity. Positive welfare outcomes are widely, though not universally, experienced, leading to a modest increase in global welfare. We investigate the impact of alternative GMT rates, finding that a 16 percent GMT rate yields the highest level of global welfare in our model." |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:taxref:202504 |
| By: | Stephen I Miran |
| Date: | 2025–11–19 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgsq:102128 |
| By: | Grazyna Wiejak-Roy |
| Abstract: | Real estate valuation, despite using well defined methods and techniques, is often referred to as arts. The valuers use specific property and market characteristics and valuation is a mere result of the quantification of the impact of such characteristics. While the real estate market transparency is improving with the availability of reliable data (JLL, 2024; Ache et al., 2024), the current mainstream standards and guidelines on the quality of inputs used for valuation are still inconsistent creating confusion around how to deal with the lack or poor quality of market data. This research provides a comprehensive review of key resources available to valuers that provide details on the degrees of reliance on various types of inputs. These resources include standards and guidelines published by the International Valuation Standards Council, the Royal Institution of Chartered Surveyors, The European Group of Valuer’s Associations, the International Accounting Standards Board and the European Insurance and Occupational Pensions Authority. The research identifies gaps and inconsistencies across the various resources and provides recommendations on how they could be addressed to minimise ambiguities and ensure consistency in real estate valuation. |
| Keywords: | hierarchy of evidence; inputs; Standards; Valuation |
| JEL: | R3 |
| Date: | 2025–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2025_9 |
| By: | Batabyal, Amitrajeet |
| Abstract: | In this note, we provide the first game-theoretic analysis of taxation and tax shifting when tanneries in Kanpur, India, that produce leather and pollute the Ganges River are taxed. We model the n≥2 tanneries as a Cournot oligopoly and a specific tax τ>0 is imposed on each unit of leather produced by the polluting tanneries. We first determine the symmetric Nash equilibrium output of leather and its price with the tax. Second, we show that the rate of tax shifting by the polluting tanneries is constant. Third, we discuss how increasing either the number of tanneries or the price elasticity of demand affects the tax shifting that takes place. Finally, we comment on the policy implications of constant tax shifting such as the predictability of the incidence of the tax burden. |
| Keywords: | Ganges River, Tannery, Specific Tax, Tax Shifting, Water Pollution |
| JEL: | H22 H23 Q25 |
| Date: | 2025–02–09 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:126594 |
| By: | Ghulam Mustafa (Pakistan Institute of Development Economics) |
| Abstract: | Reforming Pakistans Tax Policy is one of the key instruments to make URAAN Pakistans goal of a trillion-dollar economy happen through internal resource mobilization. It is widely discussed that Pakistan`s tax policy suffers from a narrow base, relying heavily on regressive indirect taxes while elites evade payments. Weak enforcement allows widespread informality (50 percentof GDP) to escape taxation. Complex federal-provincial overlaps and frequent ad-hoc changes deter compliance and investment. Low progressivity (only 2 percentfile income tax) worsens inequality instead of redistributing wealth. Given such limitations of tax system, there is a dire need for conducting a study to gather evidence based on widespread literature available for Pakistan`s tax policy. The underlying piece of research maintains focus on two objectives: (i) evaluating the Pakistan`s tax system whether it is effective and flexible through a comprehensive literature review, and (ii) to reveal the contributions and research gaps by local researchers and organisations. The overall findings of the all- reviewed research papers demonstrate that in the short run, the estimates of elasticity and buoyancy were greater than unity for overall taxes and tax heads. Nonetheless, in long- run, all estimates went declining and characteristics of the system to work automatic stabilisers failed to work. Due to the system`s inability to respond positively and lowering resilience power, the country drowned in the vicious trap of debt and unsustainable economic growth. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pid:wpaper:2025:9 |
| By: | Eric Fabri |
| Abstract: | Abstract Why and how should we tax inheritances, gifts, and bequests? This article examines the political theory debate on inheritance taxation and identifies four main arguments and three objections in favor of and against it. It reviews the most common forms of inheritance taxation in OECD countries and proposes an alternative: a lifetime capital accessions tax. This alternative is broadly delineated to compare it with the “average inheritance tax” and assess which of these two options better meets the requirements of the arguments and objections previously stated. The analysis shows that the capital accessions tax is normatively superior to the average inheritance tax. It better satisfies the reasons we have for taxing intergenerational wealth transfers and offers strong replies to three classical objections to inheritance taxation. Discussing the details of the accessions tax allows us to show how it can respond to popular objections to inheritance taxation and gain popular support. |
| Keywords: | Capital accesions tax; Philosophy of taxation; Wealth Transfers; Inheritance; Gift; Bequest; John Stuart Mill; Inheritance taxation |
| JEL: | H20 D31 H29 |
| Date: | 2025–11–01 |
| URL: | https://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/396620 |
| By: | Justin Benefield; Matt Flynn; Sean Salter |
| Abstract: | Using REITs as a laboratory to isolate the advisory role of the board of directors, we determine that directors with executive or governance experience in finance and accounting create significant value. Adding “high-value” directors is associated with an increase in monthly returns of between 1.1% and 2%, along with a 50-basis point increase in risk-adjusted return. Cumulative abnormal returns indicate that high-value directors are added to underperforming REITs, and results hold when controlling for endogeneity. High-value board members increase capital use efficiency, sell underperforming properties, and focus future investments on outperforming submarkets, while having higher pay-to-performance sensitivity and shorter tenure than average directors. |
| Keywords: | Corporate Governance; Real Estate Investment Trusts; Real Estate Operating Companies; Textual Analysis |
| JEL: | R3 |
| Date: | 2025–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2025_76 |
| By: | Atanasov, Atanas |
| Abstract: | As sustainability increasingly shapes business strategy and stakeholder expectations, integrating sustainability information across the value chain has become essential. This paper examines the role of sustainability disclosures as a mechanism for integrating environmental, social, and governance (ESG) information within the wood-based industries in light of new reporting requirements. We analyze how value chain disclosures contribute to transparency, accountability, risk management, and sustainability performance. Companies that adopt a comprehensive approach to sustainability disclosure tend to demonstrate higher levels of stakeholder engagement and long-term strategic alignment with sustainability goals. However, challenges persist, including data fragmentation, limited supplier collaboration, and a lack of standardization in reporting formats. The paper also highlights the challenges faced by wood-based industries in maintaining effective supply chain collaborations and the need for innovative solutions to overcome barriers to sustainability. It advocates for a holistic approach that encompasses product design, recycling technologies, and waste management strategies to maximize resource utilization and minimize waste. Overall, the paper provides valuable insights into how wood-based industries can integrate sustainability information through value chain disclosures to achieve long-term sustainability and competitive advantage. |
| Keywords: | value chain disclosures, sustainability information, CSRD, CSDDD, wood-based industries |
| JEL: | M41 Q56 |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:126626 |
| By: | Kauhanen, Antti; Ropponen, Olli |
| Abstract: | Abstract High-skilled immigration has consistently demonstrated positive effects on firm performance, innovation, and productivity, while generally avoiding adverse impacts on native wages or employment. Consequently, many countries offer preferential tax schemes for highly skilled migrants. Recent research from the Netherlands provides compelling evidence on the impact of such schemes. In 2012, the Dutch system underwent reform, replacing a subjective “scarce skills” eligibility criterion with a transparent and relatively low income threshold. This reform significantly increased migration among mid-level earners, illustrating that migration reacts strongly to increased net-of-tax income and underscoring the importance of clear, predictable rules. We suggest that Finland should extend tax relief for highly skilled immigrants beyond the highest earners and consider implementing graduated rates. |
| Keywords: | Skilled Immigration, Preferential Tax Scheme, Migration Elasticity, Key Employee Act, Finland, Netherlands |
| JEL: | J61 J31 D24 O31 |
| Date: | 2025–11–18 |
| URL: | https://d.repec.org/n?u=RePEc:rif:briefs:168 |
| By: | Jianhao Su; Yanliang Zhang |
| Abstract: | The information released to investors in financial markets has various forms. We refer to range information as information about the upper and lower bound which the payoff of a risky asset may reach in the future. This study develops rational expectation models to explore the market impacts of disclosure of range information. Our model shows that its disclosure can decrease the sensitivity of market price to private signal and increase market liquidity. The market impact of its disclosure depends on the position and precision of the disclosed range. When the linear combination of private signal and noise trading volume is distant from the disclosed range, the reaction of price to a variation in private signal will almost vanish, whereas a movement of the disclosed range can affect the price efficiently. If the midpoint of the disclosed range is higher (lower) than a criterion which is specified in this study, the disclosure will reduce (raise) asset premium. |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2511.11405 |
| By: | Frank, Stefan; Dettmann, Ullrich; Piayda, Arndt; Seidel, Ronny; Amiri, Elaheh; Bamberger, Saskia; Heidkamp, Arne; Heller, Sebastian; Holzträger, Sylvia; Kuwert, Malina; Lakeberg, Silvana; Laqua, Sharon; Minke, Merten; Nagel, Stefan; Oehmke, Willi; Schemschat, Bernd; Simon, Carolin; Wittnebel, Mareille; Wywias, Holger; Tiemeyer, Bärbel |
| Abstract: | Moorböden (vereinfacht für Moor- und weitere organische Böden) sind durch einen hohen und vulnerablen Vorrat an organischem Kohlenstoff (C org) gekennzeichnet. Änderungen des Corg-Vorrats sowie Emissionen der weiteren Treibhausgase (THG) Methan und Lachgas müssen im Rahmen der jährlichen Emissionsberichterstattung berichtet und angerechnet werden. Zur Berechnung der THG-Emissionen müssen deren Steuergrößen und die Verteilung der Moorböden in Deutschland bekannt sein. Das Bundesministerium für Landwirtschaft, Ernährung und Heimat (BMLEH) hat das Thünen-Institut mit dem Aufbau eines deutschlandweiten Moorbodenmonitorings beauftragt, wobei das Monitoring im Offenland durch das Thünen-Institut für Agrarklimaschutz und das Monitoring im Wald durch das Thünen-Institut für Waldökosysteme durchgeführt wird. Ziele des Moorbodenmonitorings sind die Einrichtung eines repräsentativen Monitoring-Netzwerks für alle landesweit vorkommenden Landnutzungen sowie für Flächen mit THG-Minderungsmaßnahmen. Darüber hinaus sollen die Voraussetzungen für eine langfristige Bewertung der Klimawirksamkeit geschaffen und die relevanten Steuergrößen erfasst werden. Ein weiteres Ziel ist die Weiterentwicklung der am Thünen-Institut bestehenden Regionalisierungsansätze und die Integration dieser in die Emissionsberichterstattung. Das Moorbodenmonitoring im Offenland beruht auf einem clusterbasierten Ansatz, d.h. die Monitoringflächen verteilen sich auf 45 Cluster, die typische Charakteristika der Moorböden abbilden sollen. Die Monitoringflächen werden dabei nach der Bodenkategorie, der Landnutzung sowie der Hydrologie in zwei bis drei Ebenen stratifiziert. Langfristig soll das Monitoring-Netzwerk 150 Monitoringflächen umfassen. Bisher wurden 118 Monitoringflächen mit Unterstützung der Flächeneigentümer*innen und Flächenbewirtschafter*innen eingerichtet. Alle Arbeiten auf den Monitoringflächen wurden nach einheitlichen und veröffentlichten Methoden in den Bereichen Boden, Hydrologie, Vegetation und Geländehöhen durchgeführt. Über Fragebögen und Schlagkarteien erfolgte zusätzlich eine Abfrage wesentlicher Managementinformationen. [...] |
| Abstract: | Peat soils, encompassing peat and other organic soils, store large and vulnerable amounts of soil organic carbon (SOC). Changes in these SOC stocks must be reported annually within greenhouse gas (GHG) inventories. Accurate national reporting and accounting requires knowledge of both the magnitude of stock changes and the controlling factors, as well as the distribution of peat soils across Germany. The Federal Ministry of Agriculture, Food and Regional Identity (BMLEH) tasked the Thünen Institute to establishing a nationwide peat soil monitoring program. Monitoring in open landscapes is conducted by the Thünen Institute of Climate-Smart Agriculture, while forest monitoring is handled by the Thünen Institute of Forest Ecosystems. The program aims to establish a representative monitoring network that captures the national distribution of land use on peat soils and areas with GHG mitigation measures. In addition, the program aims to create the basis for a long-term assessment of climate effects and to capture the relevant driving factors. Another objective is to further develop the regionalization approaches already established at the Thünen Institute and integrate them into emission reporting. The monitoring network is based on a cluster approach, i.e., the monitoring sites are distributed in 45 cluster representing characteristic peatland areas. The monitoring sites are stratified according to soil type, land use, and hydrology. To date (10/2025), 118 sites have been established across Germany, with standardized measurements of soil, hydrology, vegetation, and surface motion, supplemented by management surveys. Long-term monitoring aims to include 150 sites. [...] |
| Keywords: | Moorboden, organische Böden, organische Bodensubstanz, Kohlenstoffvorrat, Stickstoffvorrat, Hydrologie, Geländehöhen, Monitoring, Landnutzung, Treibhausgasemissionen, Emissionsberichterstattung, peatland, organic soils, soil organic matter, carbon stock, nitrogen stock, hydrology, surface motion, monitoring, land use, greenhouse gas, emission reporting |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:jhtire:331864 |