The tax system should constitute a cohesive, uniform, logically internally ordered whole, and a rational legislatorshould create regulations that are clear and understandable to taxpayers. Meanwhile, in Poland, in the field ofincome taxation, there are many acts whose subject is the taxation of income (revenue) earned both by naturalpersons who do not conduct business activity and conduct such activity. In addition, separate acts establish therules for taxation of income of legal persons, but also of other entities – regardless of the organizational and legalform – taking as a criterion not the source of income, but the subject of the taxpayer’s activity. In this situation,the postulate that has been put forward for many years to adopt two laws is valid – one clear and understandablefor natural persons who do not conduct business activity and the other for all entities that conduct such activity
Taxation revenues generated from corporations are critical in funding public infrastructure and national development, which is vital for firm performance; however, fiscal efforts to maximize taxation collection have threatened industries’ competitiveness. The study evaluates the impact of taxation structure and firm characteristics on the performance of companies listed on the Zimbabwe Stock Exchange for the two years ended 31 December 2018. Taxation structure is measured using selected individual taxation heads. Firm performance is measured by the firm’s return on assets. A causal research design was applied under a theoretical framework encompassing the taxation structure, management motivations and internal resources, business operations under public scrutiny and the expectations raised on the influence of external forces, structures and relationships. The results indicate that pay as you earn, corporate income taxation and customs and excise duty hinder firm performance whereas, although value added tax and deferred taxation reduce performance, the relationships are weak. Political pressure by the industrial society appears to have failed to increase social services and infrastructural development as public income increased; political power effected through various interest groups, affluent individuals, corporations and political elites appears to have limited taxes for larger firms. Although total assets are insignificant on the whole, the result confirms the existence of unmeasured and unrecorded intangible assets that may be driving profitability, confirming the resource-based view approach on heterogeneous assets. In addition, the results indicate that liquidity is positive and significant, whilst leverage hinders performance; industry effects are insignificant. For the majority of firms, regardless of industry, liquidity has had the most significant impact on performance, in particular when coupled with effective financial relations under the resource-based view of the firm. This result may be expected in an environment characterized by inflation and currency arbitrage opportunities.
The best tax system for any country is presumably one that reflects its economic structure, its capacity to administer taxes, its public service needs and its access to such other sources of revenue (Bird, 2013). Since taxes are the main source of funding for public goods like public infrastructure and law and order maintenance, raising revenue continues to be the most important role of taxes in a world where many governments are dealing with declining revenue, rising expenditures and ensuing fiscal constraints. Tax policy is not just about economics, it is about politics (Moore, 2007). There are several general tax policy concerns that have historically influenced the formation of taxation systems, presuming a particular amount of income that must be produced that depends on the larger economic and fiscal policies of the country concerned. All the changes in the economy brought about by the implementation of tax systems are included in the consequences of taxes (James and Nobes, 2008). Taxation has an impact on several variables, including employment, investment, consumption and output. Governments could not support their societies' needs if they did not collect taxes. The government uses the money it collects from taxes to fund social projects which makes them essential. However, whether in the rich or developing world, tax avoidance and evasion are the double crimes that face and destroy all tax systems. Adhere (2013) asserts that the Zimbabwean situation seems unique when viewed against the scale of corrupt practices prevalent in the country and the detrimental effects of economic sanctions imposed by the West, resulting in the country having to rely on internally generated income for its operations, including, but not limited to, tax collections. To escape from the constraints of tax, corruption, high tax rates and lack of trust on Government and tax authority by taxpayers, are among the reasons for evasion and avoidance (ibid.). This write-up will scour out how taxation laws operate in regulating tax payments and the socioeconomic adaptation thereto.
JOSHUA CHIBI DARIYE, OKWOLI, A. AMBROSE, SARATU L. JIM-SULEIMAN
The government of any country or state had the integral component of fiscal sustainability to enable it finance its numerous activities and be able to attend to the servicing of its debt. This would enable the government not to recourse to increase in its debt levels to a point where they become unmanageable. One of the sources of revenue of any state government was derived from taxes, a mandatory contribution, levied on individuals and corporations. This study examined the effect of tax revenue and statutory allocation on fiscal sustainability of states in Nigeria with Pay-As-You-Earn (PAYE) tax revenue in perspective. The methodology included secondary sources of data from the Public Finance Database of the Nigeria Governors Forum (NGF), annual fiscal reports published by the Central Bank of Nigeria (CBN), Joint Tax revenue generation through taxation and allocations received from the federation account. The statistical tool of analysis was the panel regression technique. Finding revealed that PAYE has a positive significance effect on the financial sustainability of states. In conclusion, personal income tax was a reliable and consistent source of revenue for state governments. The federal transfers that were derived from the national revenue pool often constitute a substantial portion of state budgets, especially in states with limited internally generated revenue. The study recommended that Pay-As-You-Earn (PAYE) management and collection strategy be encouraged and modified to enhance the government’s sources of revenue.
Eneji Mathias Agri, Oko Sylvannus Ushie, Abubakar Abdullahi Kumo
et al.
This study is on the impact of tax revenue on income inequality and poverty in Nigeria from 1995 to 2022, variables used are total tax revenue as the independent variable, poverty rate and income inequality proxy by Gini coefficient as dependent variables. Multiple taxation, corruption, value added tax, policy failures and inefficient fiscal operations are identified by this study as contributive factors to income inequality and poverty in Nigeria. The findings revealed that the relationship between total tax revenue and poverty rate is positive (as against apriori expectations). The estimated results are R2 at 0.626243 and adjusted R2 0.588253 which are the coefficient of determination or explainability of the independent variable (TTR) for the dependent variable (GIN), 63% of the changes in the dependent variable (GIN) is caused by changes in (TTR). The study concluded that tax revenue has a significant positive impact on poverty rate and income inequality in Nigeria. Major recommendations are that the Ministry of Finance, the Federal Inland Revenue Service (FIRS) the state board of Internal Revenue Service, the Joint Tax Board (JTB) should improve the dividend of taxation through accountability, transparency, better revenue generation and tax revenue expenditure on infrastructure and basic services.
This study been anchor on the practical gap, it identified the poor level of internally generated revenue, as one of the banes that results in the inability of the various state governments in Nigeria to defray workers’ salaries and provide for other basic infrastructural and social needs of its citizens. In the light of this, the study sets its main objective of taking a comparative examination on the effect of personal income tax amendment Act 2011 on internally generated revenue of Adamawa state. Specifically, the study examined the effect of direct assessment; pay-as-you-earn, and other taxes on internally generated revenue of Adamawa state; and make comparism on the contribution of direct assessment, Pay-as-you-earn and other taxes on internally generated revenue of Adamawa State; The study employed quantitative methodological approach, which allows it to use archival and ex post facto designed to generates secondary data from the annual reports and the revenue statement of Adamawa state board of Internal revenue for a period from 2001-2022. The data collected were analysed using descriptive statistics, trend/performance analysis, regression analysis and paired t-test. The study found that PAYE, and Other Taxes Revenue have positive and significant effect on IGR of Adamawa State, while Direct Assessment have Negative and insignificant effect on IGR of Adamawa State. The study recommends that PITA 2011 should be fully implemented by Adamawa state government and that taxpayer education/awareness should be embarked upon by Adamawa State Board of Internal Revenue with respect to the benefits of complying with the new PITA regime. And equally adopt the use of E-taxation in the tax collection process.
I. Shtuler, Sergii Ierokhin, Oleksii Braslavets
et al.
Ukraine’s current state of customs payments administration is undergoing transformations influenced by internal and external factors. However, customs taxation remains a significant fiscal tool that contributes to the accumulation of funds in national and local budgets. This study aimed to substantiate theoretical and practical recommendations for improving the mechanism of taxing goods crossing the national customs border. This was achieved through the analysis and evaluation of collected customs payments, the share of customs payments in budget structures, and their dynamics during the period of 2017-2022. The article examined the theoretical foundations of customs payments administration for goods crossing the national customs border. It explored the procedures, conditions, characteristics, methods, and types of border crossings, and presented a procedural framework for customs clearance of goods at the national customs border. An analysis of the share of customs payments in the State Budget of Ukraine from 2019 to 2022 revealed that the highest accumulation was observed in 2019. The structure and dynamics of import and export duties were identified, with the volume of import duties amounting to 36854.9 million UAH and export duties to 1322.3 million UAH in 2021. The contribution of value-added tax and excise fees to the State Budget of Ukraine was assessed. Between 2017 and 2022, the share of value-added tax in the State Budget fluctuated between 26.3% and 41.7%. The share of excise tax in Ukraine’s revenues ranged from 13.85% to 15.42% during 2017-2021. However, in 2022, a record low of -5.3% was recorded for excise tax contributions to state revenue. This decline resulted from the temporary suspension of customs and tax payments on imported vehicles, implemented from April to June 2022. Typical violations of the rules for crossing goods through the national customs border were outlined, and priority areas for improving the taxation mechanism for goods crossing the customs border were identified
Abstract As the tax base for traditional tobacco excise taxes continues to erode, policymakers have growing interest to expand taxation to novel and reduced-risk tobacco products. Chief among the latter are electronic nicotine delivery systems (ENDS; commonly known as e-cigarettes), although other reduced-risk tobacco products such as heated tobacco and smokeless tobacco products are also being considered for taxation. There are many possible rationales for taxing such products: to raise revenue, to correct for health externalities, to improve public health, to correct for internalities caused by irrationality or misinformation, and to redistribute income. Although each rationale leads to a different objective function, the conclusions regarding relative tax rates are largely the same. The relatively higher price elasticity of demand for e-cigarettes (compared to cigarettes) and the lower marginal harms from use imply in each case that taxes on e-cigarettes and other harm-reduced products should be relatively lower, and likely much lower, than those on cigarettes. Additional considerations concerning the policy goal of discouraging use of any tobacco product by youth are discussed as well.
The debate over the effectiveness of taxes as a tool for promoting economic growth still needs to be solved, with several studies indicating mixed effects of taxes on economic growth. The purpose of this research is to assess the impact of taxation on economic growth in Africa. The study spans eleven years, from 2008 to 2018, and includes multiple variables for 21 African countries. GDP is a dependent variable used as a proxy for economic growth. Numerous GDP-determining predictors were utilized as independent variables; these variables were categorized into three groups: The supply side consists of human capital (population and literacy rate) and economic activities (trade and services). Demand side variables include consumption, government expenditures, net exports, and gross capital formation. Lastly, taxation variables consist of tax revenue, corporate tax rate, number of tax payments, personal income tax, and taxes on income, profits, and capital gains. The study conducted preliminary tests, including descriptive statistics, correlation matrix, and pooled least square estimations for panel data. Based on the results, all macroeconomic determinants have statistically significant effects on GDP except trade. Tax revenue and corporate tax rate positively affect GDP, while personal income tax rate and tax on income, profit, and capital gain negatively affect GDP. In general, taxation has a favorable effect on the economy of African countries because emerging countries use taxation as an internal key to generate revenue and improve economic growth.
As most developing countries strive to achieve economic growth and development through taxation, they face numerous economic challenges. The debate on the effectiveness of taxes as a tool for promoting growth and development remains inconclusive, as several studies have indicated mixed impacts of tax on economic growth. Against this background, the study investigated the impact of taxation on economic growth in Africa from 2004 to 2013. The study carried out various preliminary tests including descriptive statistics, and stationary tests using Augmented Dickey Fuller (ADF) test, Levin et al. test, Im, Pesaran and Shin W-stat tests. The appropriate fixed and random effect test was employed to determine the fitness of the model using the Hausman test. The study conducted the Hausman-Test to determine the appropriate estimator between Fixed and Random Effect. To confirm the robustness and validity of regression model, some post estimation tests are conducted which were omitted Variable Test, and Heteroscedasticity test. Findings indicated that tax revenue is positively related to GDP and promotes Economic Growth in Africa. It was significant at 5% level. The study concluded that tax revenue has a significant positive relationship with Gross Domestic Product. Therefore, high and weak levels of taxation are favorable to economic growth as upheld by the economic effect of Ibn Khaldun’s theory on taxation, which approves the positive impact that lower tax rate have on work, output and economic performance. However, in the midst of harsh economic conditions such as crashing oil prices, rising exchange rates, drop in Naira value, the governments should be ready to develop a comprehensive tax structure or model that will grow, nurture and sustain its tax economic base so as to drive economic performance. Key words: Taxation revenue, economic growth, Johansen cointegration test, fixed and random effect, panel data.
Revenue generation is the nucleus and the path to modern development. Thus, this study assessed the effect of internal revenue generation on infrastructural development. The research methodology entailed the use of survey research design and purposive sampling method to select respondents from Lagos State Inland Revenue Office.. Questionnaires and statistical data were instruments used for the study. Descriptive and inferential statistics were the statistical tool used for the analysis. The descriptive statistics involves the use of simple percentages while the inferential statistics involved the use of Spearman’s Rank, which is to show the direction of relationship between variables in the study and to show the scale for the data that is interval. Two hypotheses were formulated and the Spearman’s rank correlation analysis was used to test the relationship between internally generated revenue and infrastructural development. The result showed that there is a positive relationship between internally generated revenue and infrastructural development. The study also revealed the various methods of generating internal revenue, which are the enforcement of tax personnel, contribution, and creating awareness to the public. The findings of the study however show that revenue administration agencies need to be reviewed to generate more revenue in the country. DOI: 10.5901/jesr.2013.v3n2p419
Unlike many other recent tax changes the self-assessment system quietly slipped into the Assessment Act without fuss or fanfare. The relevant legislation is deceptively simple. Notwithstanding its apparent simplicity and inconspicuous entry into the Act, it is considerred that the self-assessment system will ultimately be adjudged as the most significant tax legislation introduced during the 1980s. This article seeks to identify the significant ramifications that will arise as a consequence of the new system. What we see is only the tip of the iceberg.