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on Public Economics |
| By: | Vanhala, Mikko; Viertola, Marika |
| Abstract: | In this paper, we describe the evolution of effective tax rates (ETR) of Finnish corporate groups and firms over time. Using detailed corporate tax return data from 2000-2015, we document a decreasing time trend in effective tax rates, particularly for Finnish-owned multinational enterprises. We do not observe a significant decreasing trend for domestic firms, consistent with a broad tax base and limited means of tax avoidance. Complementing our results with unconditional quantile regression, we also observe heterogeneity in the time trend across the ETR distribution. Finally, we link multinational enterprises to their foreign subsidiaries and find that multinationals with tax haven subsidiaries report zero taxable profits more often than non-haven affiliated ones. Our results show that the financial crisis had a lasting legacy on Finnish firms, creating large loss carry-forwards that were deduced in the following years. |
| Keywords: | effective tax rate, tax avoidance, corporate taxation, Business taxation and regulation, H25, H26, fi=Verotus|sv=Beskattning|en=Taxation|, |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:fer:wpaper:174 |
| By: | Subhayu Bandyopadhyay; Sugata Marjit; Santiago Pinto; Marcel Thum |
| Abstract: | We investigate the delicate balance policymakers have to strike between raising tax revenues for public good provision and controlling the distortionary effects of taxes on (i) tax evasion, (ii) total work hours, and (iii) the allocation of work hours to illegal activities. These distortions lower the constrained optimal tax rate and result in the under-provision of the public good. This under-provision problem is mitigated when surplus from the audit agency is seamlessly transferred to the taxing authorities. Extensions of the basic model incorporate agent heterogeneity and a more general specification of the concealment cost function for infringements. |
| Keywords: | taxation; evasion; compliance; illicit activities; public goods; externalities |
| JEL: | H2 H4 K10 |
| Date: | 2025–03–19 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedlwp:99706 |
| By: | Mr. Irving Aw; Brendan Crowley; Mr. Cory Hillier; Rose A Nyongesa; Ms. Lydia E Sofrona; Mr. Christophe J Waerzeggers |
| Abstract: | Fair and effective tax collection is critical to the success of any tax system in raising revenue and should be properly legislated. Voluntary payment of taxes by taxpayers is always preferred and should be encouraged and supported by the tax procedure legal framework. However, the law should also provide for protective measures to prevent taxpayers from frustrating tax collection efforts by taking either themselves or their assets out of the tax administration’s reach. As a last resort, the tax administration should be able to compel the recovery of outstanding tax debts from taxpayers or certain third parties through different legislative measures. Such powers should however be complemented by adequate safeguards for taxpayers. This note focuses on the key issues that should be taken into consideration in designing tax law provisions to support fair and effective tax collection. |
| Keywords: | Tax Collection; Legislation; Protective Measures; Compelled Recovery; Tax Liens; Installment Arrangements; Crisis Events; clearance mechanism; penalties regime; tax procedure; tax law provision; clearance certificate; tax rulings regime; IT system; Tax administration core functions; Tax arrears management; Tax law; Collateral |
| Date: | 2025–03–18 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imftlt:2025/001 |
| By: | World Bank |
| Keywords: | Macroeconomics and Economic Growth-Taxation & Subsidies |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:41543 |
| By: | World Bank |
| Keywords: | Macroeconomics and Economic Growth-Taxation & Subsidies Law and Development-Tax Law Macroeconomics and Economic Growth-Fiscal & Monetary Policy |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:41871 |
| By: | Sekumbo, Karia; Manda, Noela Ringo Constantine |
| Abstract: | This study investigated the distributional effects of a controversial tax that was instituted on mobile money withdrawals in 2021. The lowest taxable amount of TZS 1, 000 (USD 0.0023) was taxed at the highest rate of 1% on every withdrawal while the largest taxable bracket (starting from TZS 3 million equivalent to USD 1, 304.35) was taxed at a rate of 0.33% on every withdrawal. Almost immediately after its introduction, transaction volumes across mobile money platforms declined substantially. The countrys policy-makers revised this tax multiple times before removing it altogether. Given this turnaround, we investigated how the burden of tax affects different consumer groups. Our data sources for this analysis comprised aggregated transaction- level data obtained from the Bank of Tanzania alongside nationally representative survey data. Relying on survey data answer choices, we constructed regression models assessing how social determinants contributed to mobile money use. Our findings revealed salaried respondents based in urban areas as being more likely to reduce consumption of mobile money services because of this transaction tax. We also observed gender dynamics at play as being female was associated with receiving less mobile money from friends and family. These results suggest that less wealthy respondents in rural areas with fewer substitutes were forced to contend with this tax while wealthier urban respondents substituted into different financial services. The results are consistent with those from other African countries such as Kenya, Ghana, Malawi and Uganda, which also attempted to introduce similar taxes on mobile money and faced similar outcomes. |
| Date: | 2024–07–17 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:0b200bf8-0fb3-45ed-829a-2b8ecfc7157b |
| By: | Asta Zviniene; Tsukada Raquel |
| Keywords: | Social Protections and Labor-Pensions & Retirement Systems |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:41521 |
| By: | Sri Hari Nayudu A. (National Institute of Public Finance and Policy); Chakraborty, Lekha (National Institute of Public Finance and Policy) |
| Abstract: | Against the backdrop of Public Finance Management (PFM) reforms, we analyse the issues related to budgetary processes and fiscal transparency issues in India, at the national and subnational levels of government in India. The fiscal codes are built on the premise that fiscal transparency is crucial for financial stability, and the information asymmetries are a significant cause of financial-fiscal failures. The study identified various data gaps in the budgetary preparation and dissemination processes, and the need for the revised fiscal rules, and a comprehensive accounting and reporting processes. These inferences have policy implications for the recently constituted 16th Finance Commission. We suggest that constituting a Fiscal Council can improve fiscal transparency, efficiency and consistency. |
| Keywords: | Budget Systems ; Fiscal Transparency ; public expenditure management ; fiscal rules |
| JEL: | M4 E6 E62 H50 H61 H70 H71 H72 H76 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:npf:wpaper:25/424 |
| By: | Cornelius Fleischhaker; Daniel Navia; Heron Rios |
| Keywords: | Macroeconomics and Economic Growth-Taxation & Subsidies Environment-Carbon Policy and Trading Energy-Fuels |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:42063 |
| By: | Frane Banić (Croatian National Bank, Croatia); Milan Deskar-Škrbić (Croatian National Bank, Croatia); Maroje Lang (Croatian National Bank, Croatia) |
| Abstract: | The aim of this paper is to explain the main features of the latest reform of the EU fiscal framework and to illustrate the differences between the new and old EU fiscal rules, using Croatia's experience during the Excessive Deficit Procedure (EDP) activated in 2014. Our results suggest that the new rules provide greater flexibility, allow for a longer fiscal adjustment, and mitigate the potential pro-cyclical nature of fiscal consolidation. The main limitation of our analysis are the difficulties related to the construction of a hypothetical scenario that would fully capture the political, economic, and institutional context surrounding the activation of the EDP in Croatia, or assumptions regarding the behaviour of fiscal policymakers in such a scenario. The paper nevertheless contributes to the ongoing debate on the implications of the reform of EU fiscal rules at both academic and policy levels. |
| Keywords: | fiscal policy, fiscal rules, fiscal governance, debt sustainability analysis, Croatia, EDP |
| JEL: | E62 F42 H60 H61 H62 H63 |
| Date: | 2025–03–18 |
| URL: | https://d.repec.org/n?u=RePEc:hnb:survey:42 |
| By: | Wiman, Laua |
| Abstract: | This working paper is a tentative, solutions-oriented response to concerns that pensions would not work without economic growth. It aims to concretize post-growth visions, but also validate post-growth thinking to those who consider it too far outside the mainstream. To the contrary, this analysis begins from mainstream policy aims and economic concerns, and as its result proposes institution types that are already widespread. A pension system can be widely acceptable if it promotes three 'provisioning aims': poverty alleviation, income maintenance, and voluntary provisioning. Without economic growth, possible 'adverse economic conditions' of pension systems include low earnings; low, negative, or volatile interest rates; high inflation; and demographic aging. Additionally, even financially sustainable pension funds can have 'adverse social effects'if their interest income is extractive, exploitative, or inequality-amplifying. I argue that three broad institution types could constitute a post-growth pension system: non-contributory (governmentfinanced) minimum/basic pensions, contributory pay-as-you-go pensions, and collective pension funds. Together they promote all three provisioning aims. The provisioning aims make tradeoffs against each other and their institutions have different weaknesses regarding adverse economic conditions and social effects. Still, even without economic growth, most wealthy economies could probably promote at least poverty elimination and income maintenance without paradigmatic reforms. To close, I anticipate four interesting aspects of post-growth pensions governance: benefit protection versus cost control, distribution versus redistribution, challenging of economic individualism, and property rights within funded pension schemes. |
| Keywords: | growth dependence, eco-social policy, sustainable welfare, inequality, financialization, provisioning |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:penwps:313652 |
| By: | World Bank |
| Keywords: | Social Protections and Labor-Pensions & Retirement Systems Social Protections and Labor-Social Funds and Pensions Social Protections and Labor-Employment and Unemployment Social Protections and Labor-Social Protections & Assistance |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:41578 |