Journal of Tax Reform最新文献

{"title":"Analytic Hierarchy Process in Czech Taxpayers’ Decision-Making Regarding their Tax Liability","authors":"M. Krajňák","doi":"10.15826/jtr.2020.6.2.079","DOIUrl":"https://doi.org/10.15826/jtr.2020.6.2.079","url":null,"abstract":"The article deals with taxation of the earned income of natural persons in the Czech Republic in 1993–2017. The goal is to select the year when the tax burden on the earned income of natural persons was the lowest depending on the taxpayers’ preferences, their income level and the number of tax deductions they were entitled to. Based on their income levels, taxpayers analyzed the elements constituting their tax liability and decided whether it became smaller or larger in the given periods. The research methodology includes methods of description, comparison, analysis and synthesis and methods of multi-criteria decision-making. The decision-making analysis focuses on model situations which differ from each other in terms of the amount of gross wage and the number of deductions applied. It is concluded that in most cases, the replacement of the progressive tax rate by the linear rate in 2008 lead to a reduction in the tax burden. The highest decrease of tax liability was observed among taxpayers with below-average incomes. Taxpayers with above-average incomes were subject to a higher tax liability when the nominal tax rate was progressive. Tax credit is yet another factor that influences tax liability; for taxpayers whose income is less than average it takes a form of tax bonus. The most significant change in the legislation regulating income taxation occurred between 2007 and 2008. According to the evaluated criteria weights, the most import criterion for Czech taxpayers is the effective tax rate. The weights of criteria in multi-criteria decision-making analysis were established by using the results of the questionnaire survey conducted by the author among 189 respondents at a manufacturing company in Zlin region. For citation Krajňak M. Analytic Hierarchy Process in Czech Taxpayers’ Decision-Making Regarding their Tax Liability. Journal of Tax Reform. 2020;6(2):142–156. DOI: 10.15826/jtr.2020.6.2.079. Article info Received May 8, 2020; Revised May 22, 2020; Accepted June 2, 2020","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":"6 1","pages":"142-156"},"PeriodicalIF":0.4,"publicationDate":"2020-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42770419","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Factors of Tax Evasion in Greece: Taxpayers’ Perspective","authors":"M. Diakomihalis","doi":"10.15826/jtr.2020.6.2.081","DOIUrl":"https://doi.org/10.15826/jtr.2020.6.2.081","url":null,"abstract":"The aim of this study is to analyze the causes (criteria and sub-criteria) of tax evasion in contemporary Greece. Within the framework of the analytic hierarchy process (AHP) methodology, the research questions this study seeks to address are as follows: what drives people to avoid or evade taxes? What is the significance of each criterion and sub-criterion and how can they be ranked? The questionnaire survey covered 2,789 respondents (business owners, accountants and tax officers) from 26 Greek prefectures. The main objective of the AHP analysis is to classify the alternatives by making pairwise comparisons of qualitative and/or quantitative criteria (and sub-criteria) based on experts’ judgements. The results showed that excessive taxation and impunity for tax evasion are considered to be the main reasons for tax evasion in Greece. Among other significant factors are complexity of the legislation and opacity in public financial management. At the same time respondents did not consider deficient education as a significant factor. We also found differences in respondents’ evaluations of the sub-criteria: for instance, businessmen and tax officers disagreed about the significance of such factors as the unfair tax scale and corruption among tax collectors. The results reveal the mutual lack of trust between taxpayers and tax authorities in Greece. The Greek government is required to ensure justice and stability of the tax system; lower the tax rates; and introduce heavier penalties for tax evaders. Moreover, the system of public financial management should become more transparent to foster taxpayers’ trust and thus encourage tax compliance. For citation Diakomihalis M. Factors of Tax Evasion in Greece: Taxpayers’ Perspective. Journal of Tax Reform. 2020;6(2):180–195. DOI: 10.15826/jtr.2020.6.2.081. Article info Received May 14, 2020; Revised May 22, 2020; Accepted June 14, 2020","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":"6 1","pages":"180-195"},"PeriodicalIF":0.4,"publicationDate":"2020-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44447103","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"E-Commerce Taxation in Russia: Problems and Approaches","authors":"L. Polezharova, A. Krasnobaeva","doi":"10.15826/jtr.2020.6.2.077","DOIUrl":"https://doi.org/10.15826/jtr.2020.6.2.077","url":null,"abstract":"The purpose of this article is to describe a mechanism for taxing e-commerce profits of multinational corporations (MNCs). Our research hypothesis is that the new economic reality, where digital transactions are on the rise, requires new mechanisms for taxation of MNCs’ profits. Our research methodology relies on a systemic approach aimed at embracing the complexity and dynamics of the above phenomena. We analyze the feasibility and possible outcomes of the introduction of the indirect digital services tax in Russia, in particular its potential impact on the tax burden distribution and economic growth. Special attention in the article is given to the definition and criteria of virtual permanent establishment. We propose a definition that emphasizes the non-physical nature of permanent establishments in e-commerce and does not include any subjective criteria. Since the Russian tax system is not sufficiently synchronized with the global digital trends, especially regarding taxation of e-commerce profits of tech giants, which means that the introduction of a digital services tax in Russia may be premature due to its possible negative influence on the tax burden redistribution, competition, business profitability, employment, personal income and innovation. Russia will be able to participate in the process of allocation of MNCs’ profits if the mechanism of direct taxation is developed and the institution of virtual permanent establishment is introduced into the national tax legislation. These measures will enable the Russian state to realize its taxing rights in relation to MNC’s profits and benefit from the international trends in profit-allocation. Our critical analysis of the OECD’s unified approach has shown its weaknesses and led us to the conclusion that a simple and more transparent taxation mechanism is necessary based on the formulary apportionment of MNCs’ total revenues rather than residual profits among the relevant jurisdictions. In our view, Russia should move ahead with the unilateral measures for taxation of MNCs in accordance with the mechanism described above. Unlike the majority of research, we propose to use only objective value indicators, which cannot be distorted by subjective interpretations, and exclude the risk degree indicator from the set of allocation keys. It also makes sense to use a formula for allocation of profit among the countries rather than corporate structures, as it will enable tax authorities to take into account the impact of federal and regional tax preferences to investors. For citation Polezharova L.V., Krasnobaeva A.M. E-Commerce Taxation in Russia: Problems and Approaches. Journal of Tax Reform. 2020;6(2):104–123. DOI: 10.15826/jtr.2020.6.2.077. Article info Received June 3, 2020; Revised July 9, 2020; Accepted August 8, 2020","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":"6 1","pages":"104-123"},"PeriodicalIF":0.4,"publicationDate":"2020-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49193993","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Evaluation of Russian Economic Sectors’ Sensitivity to Tax Burden","authors":"E. Balatsky, N. Ekimova","doi":"10.15826/jtr.2020.6.2.080","DOIUrl":"https://doi.org/10.15826/jtr.2020.6.2.080","url":null,"abstract":"This study tests the hypothesis that Russia’s economic sectors have different sensitivity to tax burden. Econometric models are built to explore the relationship between production in different sectors and the tax burden on these sectors. We use employment growth, labour productivity growth and world oil prices growth as control variables; to neutralize crisis effects we introduced a binary dummy variable. A peculiar feature of our models is that we build a certain a priori non-linear fiscal aggregate, which appears as one variable in an econometric dependency and comprises one or two exogenous parameters. This enables us to test the hypothesis about the non-linear impact of tax burden on production and to avoid the multicollinearity problem. The parameter of the non-linear fiscal aggregate can take different values as we build the econometric dependency, which means that we can conduct a lot of computational experiments to choose the most adequate model. The econometric models use statistical data of Rosstat and the Federal Tax Service of Russia for the period of 1996–2019 for the whole economy and for the period of 2006–2019 for specific sectors. For this study we have chosen the manufacturing and extractive industries, manufacture of coke and refined petroleum products, chemical industry and electrical engineering. To gain a bigger picture, we have also considered the public service sector– education and health care. Model calculations have shown that the main indicator reflecting the sectors’ sensitivity to tax regulation is the width of the corridor of permissible values of the tax burden in the parabolic dependency (permissible in the meaning that such tax burden provides a positive production growth in the sector): ∆q = q00 – q0. The lower is ∆q, the more sensitive is this sector to any tax increase. The use of additional indicators – q (effective tax burden), q* (optimal tax burden) and l* (potential production growth if the tax burden is optimal)– has shown that the more technologically advanced is the sector, the more sensitive it is to the tax burden. Moreover, the more technologically advanced is the sector and the more sensitive it is to fiscal regulation, the faster its development can be, provided that the tax rates are optimal. Thus, a possible solution is to apply a differentiated taxation system for economic sectors. All developed countries apply progressive personal income tax scales, which shows awareness of the differences in income groups’ sensitivity to taxes. Theoretically, nothing could be said against applying a similar principle to economic sectors with different levels of technological intensity and innovation and with a different sensitivity to tax burden. A differentiated tax system can be applied for economic sectors if certain conditions are met and specific procedures are established and followed. For citation Balatsky E.V., Ekimova N.A. Evaluation of Russian Economic Sectors’ Sensitivity to Tax Burden. Journal of","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":"6 1","pages":"157-179"},"PeriodicalIF":0.4,"publicationDate":"2020-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45145116","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Prospects and Problems of Realization of the VAT Neutrality Principle in Russia and China","authors":"O. Karpova, I. Mayburov, Yongmao Fan","doi":"10.15826/jtr.2020.6.2.078","DOIUrl":"https://doi.org/10.15826/jtr.2020.6.2.078","url":null,"abstract":"The principle of neutrality lies at the core of the European VAT model. In other models, this principle is deemed less important. The most illustrative in this respect is the Chinese VAT system, in which the government has departed from the neutrality principle in order to be able to regulate export structure more efficiently. Since Russia with its resource-oriented export structure is now facing a similar challenge, it may benefit from adopting some of the relevant Chinese experience and thus improve the export potential of its non-resource industries, which is the question this paper seeks to explore. Our hypothesis is that differentiated export VAT refund rates, which signifies a deviation from the VAT neutrality principle, can be used for export regulation. The research relies on the comparative analysis method and the method of analogy. We conducted a detailed analysis of VAT neutrality by focusing on the constitutive elements of the VAT (object of taxation, subject of taxation, tax rates and tax period) and the corresponding types of neutrality. We also compared realization of different neutrality types in China and Russia and the resulting distortionary effects. Our analysis has shown that significant distortions of the VAT neutrality principle are observed in both systems. Some of the elements from the Chinese model can be adopted in Russia, for example, the system of incomplete VAT refunds to exporters. In order to evaluate exporters’ credibility, two criteria may be applied. First, their credibility may be assessed with the help of the Automated System for Monitoring VAT Refunds. Second, companies participating in industrial charters and associations can be deemed more credible than those that don’t. These two criteria could underpin the application of reducing coefficients. The algorithm for setting the values of these coefficients is described. For the second criterion, we calculated the effect that would be achieved if the export coefficients are introduced. Our study has shown that in the Russian context, differentiated export VAT refund rates could open new opportunities for regulation of the export structure and enhance tax compliance of exporting companies. For citation Karpova O.M., Mayburov I.A., Yong Fan. Prospects and Problems of Realization of the VAT Neutrality Principle in Russia and China. Journal of Tax Reform. 2020;6(2):124–141. DOI: 10.15826/jtr.2020.6.2.078. Article info Received June 19, 2020; Revised July 20, 2020; Accepted August 8, 2020","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":"6 1","pages":"124-141"},"PeriodicalIF":0.4,"publicationDate":"2020-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46933001","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Comparative Analysis of Alcohol Excise Taxation and State Alcohol Policies in Russia and Germany","authors":"E. Iadrennikova, R. Busse","doi":"10.15826/jtr.2020.6.1.075","DOIUrl":"https://doi.org/10.15826/jtr.2020.6.1.075","url":null,"abstract":"The influence of excise policy on alcohol consumption has been a focus of interest among Russian and international researchers. In Russia, the socio-economic effects of alcohol abuse are as damaging to the country as its health effects. This problem can be addressed by stimulating a shift of consumer preferences from spirits towards low-alcohol beverages, such as wine and beer. The purpose of this study is to evaluate the efficiency of state alcohol policies, in particular the price and non-price measures, in Russia and Germany and the influence of these policies on alcohol consumption. Based on our research findings, we are going to devise recommendations for improvement of the state alcohol excise policies in these countries. The hypothesis is that for Russia, a feasible solution would be to readjust its alcohol excise policy by increasing the tax burden on spirits and reducing the burden on low-alcohol beverages, which would change the price structure for different kinds of alcohol products. The research methodology involves the analysis of the current state and characteristics of alcohol excise taxation in Russia and Germany, the measures of the state alcohol policies implemented in these countries and their influence on tax revenues and alcohol consumption. We also conducted comparative analysis of the restrictive measures of manufacture, distribution, sale and consumption of alcohol products in Russia and Germany; the dynamics and types of alcohol excise rates in Russia and EU countries. Yet another question discussed in this study is the influence of restrictive measures, especially excise duties, on the amount and structure of alcohol consumption in Russia and Germany. Our study has shown the need to readjust the alcohol excise policy in Russia by taking into account the experience of Germany and other European states. For citation Iadrennikova E. V., Busse R. A. Comparative Analysis of Alcohol Excise Taxation and State Alcohol Policies in Russia and Germany. Journal of Tax Reform . 2020;6(1):54–72. DOI: 10.15826/jtr.2020.6.1.075. Article info Received February 10, 2020 ; Revised March 6, 2020 ; Accepted March 27, 2020","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":"6 1","pages":"54-72"},"PeriodicalIF":0.4,"publicationDate":"2020-04-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45676740","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Impact of Value Added Tax on Macro-Economic Parameters of the Russian Economy","authors":"L. Koroleva","doi":"10.15826/jtr.2020.6.1.073","DOIUrl":"https://doi.org/10.15826/jtr.2020.6.1.073","url":null,"abstract":"In 2019, in Russia the standard VAT rate was raised from 18% to 20%, which resulted in a broad discussion about the possible negative effects of this measure such as falling consumer spending, producers’ revenues and profits, imports and exports. The purpose of this study is to test the widely spread views about the impact of VAT on macro-economic parameters such as final consumption, gross profit and gross mixed income, fixed capital investment and export volume. To this end, we formulated three hypotheses, which we tested by using correlation, dispersion and regression analysis based on the data of the system of national accounts and reports of tax authorities in Russia. We built four dual linear regression equations and one multiple regression equation; estimated the significance of these equations (determination coefficient, F-statistic, average approximation error) and their coefficients (Student’s t -test, p -value). The resulting equations were shown to accurately represent the relationship between the criterion variables and predictors. The hypothesis about the negative correlation between VAT and consumer spending was refuted in the case of Russia. VAT revenues to the consolidated budget have a direct influence on consumer spending in the ratio of 1:12.605 and a direct influence on the tax index on consumption, index of spending and index of final consumption in the ratio of 1:0.276. There is also evidence that VAT does not have a significant negative impact on the country’s economic performance on the macro-level. VAT revenues to the consolidated budget have a direct influence on gross profit and mixed income in the ratio of 1:8.455. VAT refunds to exporters stimulate fixed capital investment and exports (VAT refunds have a direct influence on fixed capital investment in the ratio of 1:6.543 and on exports, in the ratio of 1:11.117). The positive dependencies demonstrate the neutral influence of VAT on economic growth in Russia and need to be taken into account by VAT policy-makers. For citation Koroleva L.P. Impact of Value Added Tax on Macro-Economic Parameters of the Russian Economy. Journal of Tax Reform . 2020;6(1):22–35. DOI: 10.15826/jtr.2020.6.1.073.  Article info Received February 5, 2020 ; Revised March 20, 2020 ; Accepted April 1, 2020","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":"6 1","pages":"22-35"},"PeriodicalIF":0.4,"publicationDate":"2020-04-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42986275","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Why Did the Consolidated Tax Regime Cause Massive Losses in Tax Revenue in Russia?","authors":"N. S. Kostrykina, A. Korytin","doi":"10.15826/jtr.2020.6.1.072","DOIUrl":"https://doi.org/10.15826/jtr.2020.6.1.072","url":null,"abstract":"In Russia, the consolidated tax regime was introduced in 2012 but in 2019 the decision was made to abolish it from 2023. The initial reform purported to discourage companies from using transfer pricing for domestic transactions between companies of one group and to ensure a more just allocation of the corporate income tax across Russian regions. In practice, however, the government’s shortfall in tax revenue reached two billion US dollars in certain years or 0.15% of Russia’s GDP. Our analysis has shown that the publicly available data are, unfortunately, insufficient for assessing the success of this reform, in particular, whether the two above-mentioned goals were achieved. However, we can focus on the role the following two factors played in the budgetary losses. The first such factor is that profits and losses of group members can be consolidated within one accounting (fiscal) period. The second factor is that consolidated taxpayer groups shift their tax bases to regions with lower tax rates (in some cases, regions established tax preferences explicitly for the purpose of attracting members of these groups). These loopholes reveal the deficiencies of the Russian consolidation model: for example, the ‘everybody or nobody’ principle is not applied in Russia and consolidated taxpayer groups are allowed to form the perimeter of tax consolidation themselves. In this paper, statistical tax reporting data are used to estimate the total amount of the shortfall in tax revenue caused by the regional tax preferences granted to members of consolidated taxpayer groups. In some cases, as our analysis of regional tax legislation shows, these tax preferences were intended to ‘steal’ the tax base from other regions or at least to prevent the regions’ own tax bases from being ‘stolen’ by rivals. Judging by the total figures, regional tax competition had a negative influence on budgetary revenues. This, however, was not the main factor as the shortfall in revenue was mostly caused by the possibility of immediate offset of losses within consolidated taxpayer groups. For citation Kostrykina N.S., Korytin A.V. Why Did the Consolidated Tax Regime Cause Massive Losses in Tax Revenue in Russia? Journal of Tax Reform . 2020;6(1):6–21. DOI: 10.15826/jtr.2020.6.1.072. Article info Received January 31, 2020 ; Revised March 1, 2020 ; Accepted April 10, 2020","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":"6 1","pages":"6-21"},"PeriodicalIF":0.4,"publicationDate":"2020-04-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48577578","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Intersectoral Shadow Economic Linkages and their Impact on Tax Evasion","authors":"D. Fedotov, E. N. Nevzorova","doi":"10.15826/jtr.2020.6.1.074","DOIUrl":"https://doi.org/10.15826/jtr.2020.6.1.074","url":null,"abstract":"The article discusses shadow economic linkages between companies from different sectors. The research hypothesis is that the multiplier effect can cause a spillover of the shadow economy from one sector to another through business connections between companies. The research methodology comprises, first, a correlation analysis of the indicators reflecting the level of informal activities in the key industries of Russia in 2011–2017; second, analysis of input-output tables to reveal the patterns inherent to intersectoral financial flows that involve sectors with a large share of shadow activities; and, third, analysis of the tax ratio in the key sectors in the given period. The correlation analysis of Rosstat’s adjustment of gross value added for informal economic activities and the share of undocumented workers employed in the total number of workers in the sector has revealed a strong correlation between these indicators. It was found that such sectors as real estate, agriculture and forestry, construction, trade and hotel industry have shadow economies exceeding the average level in the country. We used the input-output balance data to reveal the close connections between the sectors with a large share of shadow activities and other sectors. Our calculations have brought to light an increase in the share of illicit transactions in some industries due to interactions with shadow sectors. This trend was particularly characteristic of such industries as transport and communications, education, health care and social services. It was also found that the tax ratio for transactions involving companies from sectors with a large share of shadow activities tended to decline due to tax evasion. These research results can be used by tax authorities to detect and monitor economic operations associated with high tax evasion risks. For citation Fedotov D.Yu., Nevzorova E.N. Intersectoral Shadow Economic Linkages and their Impact on Tax Evasion. Journal of Tax Reform . 2020;6(1):36–53. DOI: 10.15826/jtr.2020.6.1.074. Article info Received February 15, 2020 ; Revised March 12, 2020 ; Accepted April 9, 2020","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":"6 1","pages":"36-53"},"PeriodicalIF":0.4,"publicationDate":"2020-04-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44617111","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Tax Revenues of Local Budgets in Unitary States: a Case Study of Japan","authors":"N. Pokrovskaia, A. Belov","doi":"10.15826/jtr.2020.6.1.076","DOIUrl":"https://doi.org/10.15826/jtr.2020.6.1.076","url":null,"abstract":"This article discusses municipal self-government in Japan by focusing on tax receipts of local budgets. Revenues and expenditures of local governments of unitary states, such as Japan, roughly corresponds to subnational budgets of federal states. In unitary frameworks, however, local authorities enjoy greater autonomy. In Japan, local governments account for a large share of public spending and tax revenues. Tax re-venues are decentralised and taxes play a significant role in consolidated budget receipts. The centralised system of local administration and finance that evolved in late nineteenth-century Japan was based on arrangements prevailing in Germany at that time. In the second half of the twentieth century, the system of inter-governmental fiscal relations was rebuilt according to the Anglo-Saxon decentralised model, resulting in more autonomy (including tax administration) given to local authorities. The current version of the local public finance in Japan has several salient characteristics and combines both centralisation and decentralisation features. The tax base for the key prefectural and municipal taxes overlaps the tax base for the national income and consumption taxes. The main source of municipal revenue is the property tax. Financial equalisation is achieved through grants, essentially in the form of the local allocation tax (LAT), which is a percentage of national taxes that is channelled to prefectural and municipal budgets. Another important feature of local finance is that municipal governments cover a comparatively large share of expenditures by is-suing local bonds. The reform of local governance and inter-governmental fiscal relations conducted in the early 2000s increased the financial autonomy and tax receipts of municipalities. The reform’s results were positively received by the international community and may be interesting for several transitional and developing economies that are seeking to improve their system of local finance. For citation Pokrovskaia N.V., Belov A.V. Tax Revenues of Local Budgets in Unitary States: a Case Study of Japan. Journal of Tax Reform . 2020;6(1):73–89. DOI: 10.15826/jtr.2020.6.1.076. Article info Received February 14, 2020 ; Revised March 15, 2020 ; Accepted April 8, 2020","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":"6 1","pages":"73-89"},"PeriodicalIF":0.4,"publicationDate":"2020-04-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42176046","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}