...TAXATION PAPERS WORKING PAPER N.33 - 2012 Serena Fatica Thomas Hemmelgarn Gaëtan Nicodème The Debt-Equity Tax Bias: consequences and solutions Taxation and customs union Taxation Papers are written by the staff of the European Commission's Directorate-General for Taxation and Customs Union, or by experts working in association with them. Taxation Papers are intended to increase awareness of the work being done by the staff and to seek comments and suggestions for further analyses. The views expressed in the Taxation Papers are solely those of the authors and do not necessarily reflect the views of the European Commission. Comments and inquiries should be addressed to: TAXUD TAXATION-PAPERS@ec.europa.eu Cover photo made by Milan Pein Despite all our efforts, we have not yet succeeded in identifying the authors and rights holders for some of the images. If you believe that you may be a rights holder, we invite you to contact the Central Audiovisual Library of the European Commission. This paper is available in English only. Europe Direct is a service to help you find answers to your questions about the European Union Freephone number: 00 800 6 7 8 9 10 11 A great deal of additional information on the European Union is available on the Internet. It can be accessed through EUROPA at: http://europa.eu. For information on EU tax policy visit the European Commission's website at: http://ec.europa.eu/taxation_customs/taxation/index_en.htm ...
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...0084-0807 May 1974 Land Taxation and Land Reform by Geraldo W. Sazama and Harlan Davis LAND TENURE CENTER University of Wisconsin-Madison 53706 Land Taxation and Land Reform* Reprinted from ECONOMIC DEVELOPMENT AND CULTURAL CHANGE Vol. 21,No. 4, Part I, July 1973 01973 by The University of Chicago. All rights reserved. Printed in U.S.A. Geraldo W. Sazama University of Connecticut Harlan Davis U.S. Agency for InternationalDevelopment, Brazil Land taxation frequently has been presented as a panacea for certain problems of agricultural development. More specifically, the land tax has been seen by many as aquick and easy substitute for land reform, especially in Latin America.' This type of thinking, unfortunately, can cloud the real and important contribution that land taxation can make to the develop ment process. Because of its ability to be relatively neutral in its economic effects on agriculture, land taxation isalmost unique among the many ways 2 available to convert surplus agricultural output into development capital. It is, however, no substitute for a direct land reform program; it merely complements a nation's direct efforts to improve the agricultural sector while it goes about its principal task of raising new public investment capital for the economy.3 This paper uses both theoretical and empirical analysis to examine the effectiveness ofa land tax as aregulatory tool. Weare particularly interested in evaluating land taxation as adevice to induce an...
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...Memo To: John and Jane Smith From: Desiree Looft, CPA Date: September 24, 2011 Subject: Explanation of tax benefits and liabilities for business and personal. 1(a) As a result of a recent court settlement for a client John earned $300,000 for his law practice LLC. He wants to minimize his tax liability and understand how the IRS will treat this money earned. He lease’s office space for $3,500 per month. He wants to know the advantages in leasing office space versus purchasing the building. John has income derived from a business and as such the gross income will be taxable. (Code §1.61-3(a)) This total amount of taxable income will pass through to his personal taxes since he has an LLC, meaning he will be subject to self employment tax. ( ) He will get a break on the self employment tax since he will get a deduction from gross income for half of the self employment tax liability. John currently has a lease payment that provides him a deduction of $42,000 per year. (Code §162(a)) He is allowed this deduction since this lease is required to be made in order for his business to continue and he has not title or equity in the building. If purchases the building he will no longer have this deduction because capital purchases are not allowed for any expenditure for new buildings or to improve property. (Code §263) John and Jane could establish traditional IRA’s and make contributions up to $5,000 each. Even though Jane has a minimal income John is allowed to establish...
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...Margaret Fertig ECO 200 Professor Slaysman 4/3/2016 Sales tax experiment results analysis First, how closely do the results in the sessions approximate the results that economic theory would predict in a perfect market (hint: think about the conditions for a perfect market - perfect knowledge, zero transactions costs and laser-like focus on maximizing profit - and try to work out how buyers and sellers would interact in such a situation). Second, the results of the experiment show us that when the $15 tax is placed on sellers the market price goes up by only $8. What is your explanation of this result? Third, in the last session, a $15 tax was placed on the buyers. In this session the price fell by about $4 relative to the baseline outcome in session 1. Do you think the market price would have fallen farther if the market met the conditions we have laid out for a perfect market? Lastly, if markets were perfect, would buyers and sellers care about who has the legal responsibility for paying the tax (hint: sellers had that responsibility in the second session and buyers had that responsibility in the third) 1) In a perfect market, both the seller and the buyer would be fully and equally informed and would profit both equally and fully. The session results represent a different story. Many of the sellers would choose to not make a sale when taxes were imposed on them in order to keep a breakeven rather than taking a loss. Same would happen when the buyers were being...
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...India's pulp and paper sector PESTLE Analysis PESTLE analysis is a useful tool for understanding the industry situation as a whole, and is often used in conjunction with a SWOT analysis to assess the situation of an individual business. PESTLE stands for “Political, Economic, Sociological, Technological, Legal and Environmental” factors. The questions to ask are: § What are the key political factors likely to affect the industry? § What are the important economic factors? § What cultural aspects are most important? § What technological innovations are likely to occur? § What current and impending legislation may affect the industry? § What are the environmental considerations? Political Factors The Political factor refers to the governmental policies which are much influenced by the economic situation in a country. It is a macro aspect of analyze which deal with major changes to the government policies of a country. It has great influence to the business outlook and confidence. Political factors often comprises of - Current taxation policy - Future taxation policy - The current and future political support - Grants, funding and initiatives - Trade bodies - Effect of wars or worsening relations with particular countries Economic factors The Economic factor is an area where macro economic environment can affect the outlook and competitiveness of any business sectors in the country. Economic factors comprises of - Overall economic situation - Strength of...
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...An illustration denoting the timeless elegance of created by Mavra Almas, 2005 Suraj Miani Sahib in Multan. Annual Report of Packages Limited 2012 Naqsh School Foundation in of 2003, Arts was established by the Babar Ali with the purpose to revive the traditional arts of miniature, naqashi (the art of arabesques) and calligraphy. Naqsh artists and students have excelled in the art of naqashi, which has been inspired from the rich historical monuments of the Packages Limited the years. We Annual Report Mughal is proud to have been a patron of Naqsh over are happy to dedicate the theme of this year’s to the revival of traditional naqashi, using some of the artworks produced by the A era. On the Naqsh School Cover Page: magnificent display of true arabesque patterns coming to life – Jahangir’s tomb Afshan Ijaz, n.d. a masterpiece inspired by created by in Lahore. of Arts. Ottoman Majesty The strikingly intricate beauty of a 16th century ceiling artwork. the mausoleum of Shah Rukn-e-Alam in Multan. A spectacularly intricate painting depicting Created 2 by Sadia Jamil, 2012 Annual Report of Packages Limited 2012 Contents 04 Company Profile 06 Company Information 08 Organogram 10 Business Divisions 21 Entity Rating Governance 22 24 26 30 31 Board of Directors Management Committees Vision, Mission...
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...business is to provide packaging materials for the products of different industries. It also produces all types of tissues available in the local market as well as for export purposes. There are more than 3000 employees working in the company. Packages Limited has had a joint venture with Tetra Pak International in Tetra Pak Pakistan Limited to manufacture paperboard for liquid food packaging and to market Tetra Pak packaging equipment. Packages commissioned its own paper mill with a production capacity of 24,000 tonnes in 1968. The mill produces paper and paperboard based on waste paper and agricultural by-products like wheat straw and river grass. With growing demand the capacity was increased periodically and in 2003 was nearly 100,000 tonnes per year. In the beginning 22 Swedish Experts came to Pakistan to run the factory and to train the Pakistani staff. Packages Limited was established in 1957 as a joint venture between the Ali Group of Pakistan and Akerlund & Rausing of Sweden, to convert paper and Paperboard into packaging for consumer industry in 1958 production of packaging cartons for different industries started packaging. Cartons include soaps, biscuits, cigarettes, tea, and pharmaceutical products and many others. a joint venture agreement was signed with Mitsubishi Corporation of Japan for the manufacture of Polypropylene films at the Industrial Estate in Hattar, NWFP. This project, called Tri-Pack Films Limited, commenced production...
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...Taxation is said to be one of the key governance tools of any state including the upholding of Zambians sovereignty. INTRODUCTION The most fundamental function of taxation is raising revenue to pay for governmental expenses and programs. "Taxes are necessary to raise revenue for public goods and infrastructure, as well as to provide other sorts of public services conducive to general welfare and economic growth." Tax revenues pay for the necessary goods – like national defense or a legal system – that an unregulated market cannot provide by itself. More often overlooked is the role of taxation as a catalyst for the development of responsive and accountable government, and for the expansion of state capacity. Taxes, however, do more than simply raise revenue: "Any tax that produces revenue will in some way alter the social and economic order." Taxes that only raise revenue without effecting other changes do not exist in the real world. The concept of fiscal policy captures that link between revenue collection and government spending. More specifically, taxes can be used to increase or decrease inflation and purchasing power, stimulate investment, and prevent harmful concentrations of wealth. Taxation is an underrated tool in the effort to build more capable and responsive states. The role of taxation as a central force in the development of democracy resonates strongly in Anglo-American history. The duty of paying for government legitimizes demands for services...
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...CHAPTER ONE INTRODUCTION 1.1 Background to the Study Since the 1960s to date, small and medium sized enterprises (SMEs) have been given due recognitions especially in the developed nations for playing very important roles towards fostering accelerated economic growth, development and stability within several economies (Yitzhaki, 2006). They make-up the largest proportion of businesses all over the world and play tremendous roles in employment generation, provision of goods and services, creating a better standard of living, as well as immensely contributing to the gross domestic products (GDPs) of many countries (OECD, 2000).Over the last few decades, the contributions of the SMEs sector, the development of the largest economies in the world have beamed the searchlight on the uniqueness of the SMEs; and this have succeeded in overruling previously held views that SMEs were only ―miniature versions‖ of larger companies (Al-Shaikh 1998; Gaskill et al. 1993). And although Small and Medium Enterprises have been at the center of the policy debate for quite some time in both developed and developing countries, little analytical work has been undertaken in this area.The dearth information that exists among researchers on Small and Medium Enterprises however provides a sense of how important this sector is for sustainable development in emerging economies (Medina, 2001). For instance, recent studies conducted by United Nations Industrial Development Organization (UNIDO) concur that SMEs...
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...Economics, Aligarh Muslim University, India Abstract: Goods and services tax (GST) is a broad based and a single comprehensive tax levied at every stage of the production and distribution chain with applicable set-off in respect of the tax remitted at previous stages. It is basically a tax on final consumption integrates the union excise duties, custom duties, services tax and state VAT. Presently around 140 countries have adopted the GST pattern, including India. The GST would be beneficial for the consumers as it reduces the final burden of taxation. For Government it leads the reduction of tax compliance efforts and administrative costs and for business units it leads transparency, complete set-off and removal of cascading effect of taxation. It is in this background that the present paper tries to explain the significance of GST in India and its prospects for states to generate revenue and ensure transparency in tax structure. This paper is organized into seven sections. Section two presents justification for dual structure of GST in India. The third part presents the rate structure under GST work in India. The fourth segment is concerned with the working of GST in India. The fifth part shows the international experiences of GST at state level in India. The seventh and final part is related to conclusion and policy recommendations. Keywords: Goods and service tax, budgetary revenues, India JEL Classification: H2, H71 1 2 E-mail: azamkhanamu@gmail.com E-mail: shadab.nagma7@gmail...
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...DIRECT VERSUS INDIRECT TAXATION* A.B. ATKINSON University of Essex, Wivenhoe Park, Colchester, England J.E. STIGLITZ Stanford University, Stanford, CA 94305, U.S.A. Revised version received February 1976 1. Introduction The recent literature on optimal taxation may be seen as attempting to clarify the structure of the arguments advanced to support changes in the tax system, tracing the implications of taxes and quantifying (analytically) the trade-offs between the various objectives of tax policy. This literature has examined the optimal structure for particular types of taxation taken in isolation, such as the optimal rates of excise tax and the optimal income tax schedule. Our purpose, on the other hand, is to provide a broader framework and to consider the interaction between different kinds of taxation. To illustrate this, we reexamine the age-old question of direct versus indirect taxation and the relationship of these taxes to the goals of efficiency, vertical equity and horizontal equity. After describing in section 2 the general framework of the analysis, and arguing that any treatment of the choice of tax structures must be centrally concerned with distributional considerations, we begin in section 3 with the extension of the classic Ramsey formula for optimal excise taxation to include vertical equity objectives. This was considered by Diamond and Mirrlees (1971), but the results *This is a revised and condensed version of the paper given at the ISPE meeting...
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...specific analysis for the OECD economies: 2.6 Tax and subsidy incidence equivalence theories: experimental evidence from competitive markets 2.7 Tax incidence under oligopoly: a comparison of policy approaches 2.8 The incidence of income tax on wages and labour supply 2.9 The incidence of personal income taxation: evidence from the tax reform act of 1986: 2.10 Tax incidence when individuals are time-inconsistent: the case of cigarette excise tax 3. Conclusion References 1. Introduction: Government generally collect taxes to generate revenue and question arise here is that after imposition of taxation, which group will bear the tax burden. After implementation of tax, there would be the division of tax burden between byres and sellers which is known as tax incidence. Tax incidence is linked to the price elasticity of demand and supply. If supply is more elastic than demand then the tax burden falls upon the buyers and when the demand is more elastic than supply then the producers will bear the cost of the tax. Tax incidence is basically the analysis of the effect of taxation on the distribution of economic welfare. Tax incidence expose that which group either consumer or producer is going to pay the price of new tax and it falls mostly on the group that has the inelastic price quantity or respond least to the price. Tax incidence or the tax burden does not depend on that where the revenue is collected but it...
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... Submitted By: Hooria Majid Submitted To: Sir Khalid Mehmood ACKNOWLEDGEMENT I would like to thank Allah Almighty for giving us the courage and devotion to complete this project. I am highly grateful to our advisor Mr. Khalid Mahmood whose supervision and guidance in relation to selection of material for perusal and formatting of the research paper helped us to do the work on time and in a professional manner. I extend my gratitude towards University of Lahore Islamabad Campus for giving me such kind of opportunities. Thank you Hooria Majid ABSTRACT Taxes affect citizens, economy of the country, businesses, governance mechanisms, etc. Not only revenue mobilization, an effective system of taxation helps in formalizing the economy, encourages economic growth, shapes political cohesion between tiers of the Government, and results in increase in social sector service delivery. We are now quite used to hearing the rhetoric by the government and bureaucracy on how Pakistan has one of the world’s lowest tax to GDP ratios since long (by their account it has stood between 9.50 and 10.40 percent in recent years), which also happens to be...
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...Public Finance Methods in Nigeria The Federal Republic of Nigeria is comprised of 36 states located in West Africa geographically bound by the Republic of Niger to the north, the Gulf of Guinea (on the Atlantic Ocean) to the south, the Republic of Cameroon and Chad on the east and Republic of Benin on the west. Since gaining full independence from the British in 1960, Nigeria has gone from a Parliamentary system of government (modeled after the British Parliament), the Biafran Civil War, and numerous dictatorships to the current Democratic system of government. Widely described as the most populous country in Africa (accounting for over half of West Africa’s population alone[i]), the US State Department estimated in 2010 a population of approximately 152 million people of 250 Ethnic groups with the largest ethnic groups comprising of Hausa-Fulani (north), Igbo (south-east), Yoruba (south-west) and Kanuri (north). The religions practiced in Nigeria are Islam, Christianity and indigenous African traditional worship. The Hausa’s are from the northern part of the country and are predominantly Muslims, the Yoruba are from the south west and are predominately an even mix of Christians and Muslims, the Igbos are from the southeast and are predominately Christians. The official language of Nigeria is English in addition to other local dialects. Nigeria’s commercial capital (and former political capital), Lagos, is located in the southwestern part of the country while the political...
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...Asia-Pacific Development Journal Vol. 8, No. 1, June 2001 ISSUES IN TAX REFORMS Azizul Islam* This paper seeks to describe the principles that have guided recent tax reforms in Asian developing countries. It critically examines the purported rationale underlying these reforms and raises some issues connected with these reforms. The paper first discusses the new direction of the perceived role of taxation as a macroeconomic tool and the principles which have formed the basis of recent tax reforms. It then analyses the implications of the application of these principles for the level and structure of taxes. It concludes with a summary of the key issues raised in the paper. Developing countries implemented an array of major economic reforms during the 1980s and the 1990s. Tax reforms formed an integral part of these reforms. The impetus for tax reforms was provided by a number of domestic and external factors (ADB, 1993). The last two decades were marked by a fundamental reassessment in developing countries of the role of the Government in economic development. There was a discernible shift in favour of assigning a greater role to the private sector, including foreign enterprises. This required re-examination of the structure of tax systems. Faced with declining external assistance, many Governments came under pressure to reduce budgetary deficits in the interest of macroeconomic stability. Multilateral development agencies required deficit reduction as a precondition...
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