Do tax decision support systems affect the accuracy of tax compliance decisions?

Tax complexity has increased over the years as laws and regulations have been consistently added to the existing code sections. This complexity directly affects taxpayer compliance; complexity reduces taxpayer compliance. Along with the rise in complexity has come an increased use of tax preparation software such as TurboTax to combat the rising intricacy. This software is designed to help users properly complete a tax return and, as a result, increase taxpayer compliance. These software packages represent sophisticated tax decision support systems (TDSS) used by both professional tax preparers and individual taxpayers alike. While the availability and use has risen dramatically over the past few years, little research has been conducted to determine the impact of TDSS on tax preparers' decisions. The purpose of this study is to examine whether tax preparers manually preparing a tax return make the same decisions as tax preparers aided by a TDSS. The Theory of Technology Dominance suggests (1) that less experienced users will not be able to adequately use the TDSS and will make inferior decisions when compared to more experienced users and (2) that more experienced decision-makers using a TDSS will make better decisions than their counterparts preparing a return manually. The results support the propositions of the theory and show that less experienced tax preparers using a TDSS make inferior decisions when compared to more experienced tax preparers. The less experienced tax preparers report higher taxable income and higher tax liability. The results also indicate that using a TDSS can help both experienced and novice tax preparers make better decisions even though the novices cannot perform at the level of experienced tax preparers. This study concludes tax compliance is improved with the use of a TDSS.     

An Investigation of Some Factors Affecting Taxpayer Non-compliance

A growing concern in almost every nation today is the amount of ‘tax gap’ (i.e. the difference between the taxes actually paid and what would be paid if all taxpayers filed complete and accurate returns and paid all the taxes they owe). Because the tax gap is often quite substantial, the problem of taxpayer non-compliance is one that requires careful scrutiny. This article addresses the problem of taxpayer non-compliance in an international context. The article briefly presents three of the main factors said to affect taxpayer non-compliance (rate structure, tax complexity, and control system). Next some estimates of the extent of non-compliance in seven countries (Sweden, Japan, Netherlands, United Kingdom, France, Italy and the United States) are reported and an examination made of the three factors in each country's tax system. It concludes with a discussion of how each factor analysed affects taxpayer compliance.     

西方国家碳税收入使用政策比较及其启示

碳税收入使用政策是西方国家碳税制度设计的一项重要内容,其主要基于税收中性原则,将税收收入或投资于环保节能项目,或以税式支出方式降低纳税人负担,确保碳税收入的循环,实现节能减排的目标。在我国碳税制度设计的构想中,应借鉴西方国家税制经验,结合本国现实情况,科学合理地设计碳税收入使用政策,确保碳税调节功能的充分发挥,将碳税发展成培育战略性新兴产业的重要政策工具之一。     

Spillover effects of VAT Self-enforcement properties: Evidence based on the replacement of business tax with VAT reform

In accordance with the purchasing tax-deduction method and the receipt-based value added tax (VAT) system, the same transaction can be recorded by two firms, which creates self-enforcement properties, thereby restraining tax avoidance. Using the Replacement of Business Tax with VAT reform in China, this paper adopts a difference-in-differences design to investigate the spillover effects of VAT self-enforcement properties on corporate income tax avoidance by manually collating information about suppliers/clients of listed firms. As the listed firms' suppliers/clients switch from paying business tax to paying VAT, there is a striking decline in their corporate income tax avoidance behavior. This effect is pronounced in firms with closer upstream and downstream correlations, higher information complexity and stronger incentives for tax avoidance.     

SMEs' tax compliance costs and IT adoption: the case of a value-added tax

The objective of this study is to examine the factors behind the adoption of a tax-compliant accounting system among small and medium-sized enterprises (SMEs) using the technological–organizational–environmental (TOE) framework, particularly the role of tax compliance costs in fostering the adoption of this system. This study makes a novel contribution by attempting to link the influence of tax compliance costs to the information technology (IT) adoption literature. Questionnaires were distributed to 401 SMEs, and data were analyzed using partial least squares. The results suggest that the TOE framework is useful for examining factors that affect SMEs' IT adoption decisions; the influence of perceived compatibility, complexity, relative advantage, and mimetic and regulatory pressure is important for the adoption of a value-added tax (VAT)-compliant accounting system. Moreover, the impact of compatibility, learning from external sources, and perceived coercive pressure on the adoption of a VAT-compliant accounting system is moderated by tax compliance cost.     

我国地方税系的重构——基于税收分布视角

地方税系重构需要在考虑地方税收均衡程度的基础上进行,所以,理清税收在各地的分布状况及其差异系数非常关键.分析表明,地方税收的差异系数决定于进入地方税系的税种类别及其在地方税收中的比重.进一步,在中央与地方税收格局不变的限定下,通过模拟计算出地方税系重构八种情景下的地方税收差异系数.同时,基于模拟结果与各种因素的权衡,认为我国地方税系重构不能仅简单依赖增值税分享比例向地方政府的倾斜来实现,而是需要将车辆购置税与部分消费税划归地方政府,之后再以增值税分享比例的调整来稳定地方税收规模.     

Progressive taxes and firm births

Tax reform proposals in the spirit of the “flat tax” model typically aim to reduce three parameters: the average tax burden, the progressivity of the tax schedule, and the complexity of the tax code. We explore the implications of changes in these parameters for entrepreneurial activity, measured by counts of firm births. The Swiss fiscal system offers sufficient intra-national variation in tax codes to allow us to estimate such effects with considerable precision. We find that high average taxes and complicated tax codes depress firm birth rates, while tax progressivity per se promotes firm births. The latter result supports the existence of an insurance effect from progressive corporate income taxes for risk-averse entrepreneurs. However, implied elasticities with respect to the level and complexity of corporate taxes are an order of magnitude larger than elasticities with respect to the progressivity of tax schedules.     

我国区域税负公平探析——以税收与税源的关系为研究视角

理论上,一个地区有多大规模的税源就应该收到多少税,但在现实中,由于税收体制设计和生产经营活动的复杂性,普遍存在着税收与税源相背离的现象。这违背了税收与税源相一致的原则,造成了区域间财力的不平衡,并进一步加重了西部地区的税收负担。为此,建议将“税收收入归属”列入税制要素,并从立法层面确立税收与税源的一致性原则;在完善相关理论的基础上,实践中审慎灵活操作,以促进东中西部之间的实际税负趋于一致。     

The Effect of Personnel Characteristics in the Internal Accounting Control System on Discretionary Tax Accruals: Evidence from Korea

This study examines whether the characteristics of personnel in a firm's internal accounting control system (IACS) and auditor characteristics control managers’ discretionary behaviour for tax planning. The study uses a sample of 4210 firm‐year observations from 2006 to 2014. The results show that managers’ discretionary tax planning cannot be controlled when the personnel in charge of internal accounting control are at an optimum level or higher. On the other hand, when a CPA is included among the personnel, the manager's discretionary behaviour is somewhat controlled. Moreover, the results show that firms audited by a large accounting firm also control the manager's discretionary tax planning to some extent. Unlike previous studies that examine the effects of IACS on discretionary accruals mostly in terms of book income, this study's contribution is an examination of the effects of the characteristics of personnel in IACS on the relationship between discretionary book‐tax conformity accruals and discretionary book‐only accruals that can be used when the manager establishes a tax plan. Additionally, this study also provides indirect evidence that the characteristics of auditors and personnel in charge of internal accounting perform a monitoring role that controls the manager's opportunistic behaviour.     

Reducing complexity and compliance costs: a simplification safe harbour for the global minimum tax

I present a simplification safe harbour based on tax administrative guidance for Pillar Two, the global minimum tax, developed together with Cedric Döllefeld, Joachim Englisch, Simon Harst and Felix Siegel. It aims at reducing unnecessary compliance costs by avoiding effective tax rate (ETR) calculations if a minimum tax of 15 per cent has already been paid. The simplification safe harbour consists of a two-level test to determine if a full GloBE ETR calculation is required from a multinational enterprise (MNE) or if a simplified ETR calculation or no calculation at all is sufficient. The test consists of a country-level test and – only if necessary – an MNE-level test. The country-level test assesses a country's tax system. It seeks to determine whether the national tax system's nominal tax rates are (too) low and whether significant deviations between a country's tax base and the GloBE income exist. The second level, the MNE-level test, is only carried out if the country-level test has identified potential ‘red flags’. Even if this second test is required, the simplification safe harbour offers a significant reduction in compliance costs. This reduction is achieved by relying on national tax data, which are readily available in firms, instead of highly adjusted accounting data.     

纳税人税收遵从行为博弈分析

创建基于行为博弈的税收遵从均衡模型,将处于相同税收境况的纳税人视为一个群体,则个体纳税人选择税收遵从策略从纳税人群体角度来看就是以一定的概率选择该种策略。面对正常税务检查与严格税务检查并存的环境,纳税人税收遵从博弈稳定均衡策略形成不但取决于税制的特性,而且依赖于其他纳税人的税收遵从决策。依据税收遵从博弈均衡的形成机理,提出建立我国税收遵从激励监督机制的对策。     

建立税务稽查选案指标体系的原则和方法

选案是税务稽查工作的起点,是实施税务稽查的前提和基础。选取税务稽查选案评价指标应遵循适应性、规范性、重要性、综合性、简洁性、易得性、稳定性七项原则。结构模型是选取稽查指标的有效方法。建立税务稽查选案指标体系,应根据软硬指标的不同特点,扬长避短,科学配置,从而准确界定企业纳税行为的合法性。     

Adapting the APV valuation methodology and the beta gearing formula to the dividend imputation tax system

This paper adapts the APV valuation methodology and the formula for gearing beta to the Australian dividend imputation tax system. The APV formulation is shown to be able to be applied in the dividend imputation tax system by simply replacing the statutory tax rate with an effective tax rate in the calculation of the “cash flows”. The effect of the dividend imputation tax system on a company's value is shown to be easily bounded using the APV formulation by making the extreme assumption that imputation credits are either: fully distributed and fully valued by the market; or that they are worthless. This paper also quantifies the effect of changing the assumed value of imputation credits on: (i) the value of the interest tax shield of debt; and (ii) the levered, or equity, beta.     

Tax strategy control: The case of transfer pricing tax risk management

This paper examines how a functional tax strategy impacts the management control system (MCS) in a multinational enterprise (MNE) facing transfer pricing tax risks. Based on case study findings it is argued that the MCS in a multinational setting is contingent upon the MNE's response to its tax environment. Moreover, the paper extends existing contingency-based theory on MCS by illustrating the role of inter-organisational network collaboration across MNE transfer pricing tax experts. This collaboration, caused by a widely dispersed tax knowledge base, fuels the formal interactive control system and reduces tax uncertainty. The paper adopts an interdisciplinary approach for explaining findings, using contingency-based theory and network theory at the inter-organisational level.     

“营业税改征增值税”对地方经济的影响分析——以吉林省延边州为例

自从“营改增”税收模式在2012年1月1日上海试运行以来，其动态一直处于各界人士的关注当中。随着“营改增”税收制度的不断完善，目前延边州1万多户企业单位成为了“营改增”试点，随着我国社会经济持续发展，“营改增”作为我国税制改革与增值税改革发展的必然趋势，这种税收模式将越来越被人所认同，并愿意接受和实施该税收制度。当该税收制度实行的程度越深，对地方经济的影响也会越来越大，以下我们就浅谈该税收模式对延边州地方经济的影响及建议。     

关于物流税收指标体系与政策的探讨

物流业作为新兴的生产性服务业已成为推动经济发展的加速器.税收政策是调整和振兴物流业最重要的政策杠杆,也是物流企业最为关心的政策问题,本文通过分析物流税与税率体系与指标分析含义,中外物流税与税率体系发展,分析新旧物流税优点与不足、税率体系与指标比较,针对物流税与税率体系及指标提出了促进我国物流业发展的相关建议。     

中国公共预算约束软化的体制成因：理论分析与实证检验

科学和民主的预算管理制度建立前,税制和分税制对政府预算约束有重要作用。中国税制和分税制缺乏内生约束机制,地方政府有空间和激励突破预算框架参与过度财政竞争,使公共预算约束软化。根据公共预算软约束的估计和面板 probit模型,1994年的税制和分税制改革整体硬化了全国预算收入约束,但导致东部的预算收入约束软化,且未改善预算支出约束。现行税制和分税制下,不规范的税收优惠政策、投资扩张冲动和专项转移支出依赖是导致公共预算约束软化的重要机制。     

Modigliani and Miller Again Revisited: The Cost of Capital with Unequal Borrowing and Lending Rates

The financial literature asserts that financial managers must borrow at least to some degree if they are to optimise the value of their companies. This result has been described in the literature as ‘perhaps the single most important result in the theory of corporate finance obtained in the last 30 years’ (Copeland and Weston, 1988, p. 443). Based on US tax systems, the value added to a company by debt has been estimated as high as 35 to 50% of the debt's market value. More recently in this journal, Ashton (1989b) has argued that under the present UK tax system, the theoretical tax advantage afforded by debt should be estimated at no more than 13% of the debt's market value. The contribution of this paper is to draw attention to an aspect of borrowing that has largely escaped attention, but which nevertheless affects the above conclusions: namely, that the market spread between borrowing and lending constitutes a ‘cost’ for corporate borrowing. This paper demonstrates that in the context of the present UK tax system, this ‘cost’ of borrowing is sufficient to nullify entirely the formerly perceived financial tax benefits of corporate borrowing. We conclude that, at present, corporate borrowing could imply a net disadvantage for the valuation of a company's equity by about 6 or 7% of the debt's market value.     

间接税亲贫性与代内归宿——穷人从减税中获益了吗?

税收工具作为财政扶贫机制中的重要一环,在推进精准扶贫、精准脱贫上发挥着重要作用。本文基于CFPS2012入户调查数据和中国2012年投入产出表,运用微观模拟方法测算出家庭的间接税负,在此基础上,借鉴衡量经济“涓滴效应”的亲贫增长指数,构建了识别和测度税制“亲贫性”的数量方法,评估间接税的减税政策能否自发惠及穷人,进一步测算家庭不同年龄层的间接税负代内归宿。结果显示:间接税整体上不具有“亲贫性”,其中增值税的“亲富性”最强,减税能让穷人比富人获益更多;儿童、成人以及老人均是间接税的负税人,贫困家庭抚养小孩而承担的间接税负比重高于非贫困家庭,赡养老人而负担的间接税负比重低于非贫困家庭。据此本文认为,继续推动大规模的间接税减税政策、采取差别化的增值税和消费税减免策略、逐步形成以直接税为主的税制结构,是改变间接税"亲富性"和强化税收扶贫职能的有效措施。     

The effects of personality traits on digital transformation: Evidence from German tax consulting

Digitization is said to strongly disrupt business and professional life. Especially tax consulting has aroused public interest in this respect. Frey and Osborne (2017) even go so far as to predict that tax consulting will become obsolete. Although these statements are misleading without further interpretation, there is no denying the fact that some change in the accounting and tax profession is inevitable. In Germany, however, business digitization currently does not seem to be urgently necessary in the tax consulting field since this profession is protected by law from competition. Thus, by examining the digitization efforts of German tax consultants we are able to exclude almost all effects of outside pressure and therefore take a look at intrinsic motivation. This study focuses on psychological factors and explores the relationship between tax consultants' Big-Five personality and their level of digitization. Personality is measured using the ten-item Big-Five inventory provided by Rammstedt and John (2007). We develop a digital maturity model based on 20 questions relating to digitization in business and tax consulting. After carrying out a factor analysis, five factors are extracted. To interpret our results, we develop two business model transformation indices as well as an overall digitization index. Our analysis is based on a survey of 968 members of the chamber of tax consultants (Steuerberaterkammer) in Munich, Germany. We are able to show that tax consultants scoring high on extraversion and openness to experience and low on neuroticism exhibit a higher level of digitization. This is, to the best of our knowledge, the first study to discuss intrinsic motivation and digitization in an accounting context. Moreover, an index for digitization as a whole and two business model transformation indices are provided, shedding light upon a hard-to-grasp phenomenon.