INCOME TAX PREFERENCE AND R&D INVESTMENTS OF HIGH-TECH ENTERPRISES IN CHINA

This study explores the relationship between income tax preference and R&D investments of high-tech enterprises. This study selects listed high-tech enterprises in China from 2013 to 2018 as samples. The empirical results show that the effective income tax rate among high-tech enterprises in China differs widely. The findings suggest that high-tech enterprises in China have to take advantage of preferential income tax, pay more attention to R&D investments, and strive to improve R&D ability and market competitiveness. In addition, there is a significantly positive relationship between income tax preference and R&D investments of high-tech enterprises, indicating that the preferential tax rate policy and other tax incentives such as additional tax deduction increase R&D investments of high-tech enterprises effectively. State-owned enterprises (SOEs) are enterprises in which the state has ownership or control over its capital. The positive relation between income tax preference and R&D investments of hightech enterprises is more significant for non-SOEs. Non-SOEs have stronger governance efficiency. Therefore, SOEs should make better use of income tax preference and improve innovation enthusiasm. Moreover, this study finds a more positive relationship between income tax preference and R&D investments among high-tech enterprises in the introduction phase than in the growth and mature phases. However, the relation between income tax preference and R&D investments is insignificant for high-tech enterprises in the decline phase. The findings seem to provide a new perspective for the life cycle characteristics of enterprises and the theoretical guidance to enterprises in phases of growth, mature and decline to develop R&D investments better. Finally, loss enterprises or enterprises in geographical units with the innovative environment are eliminated in this study to avoid extra interference. The results remain robust, indicating that preferential income tax policies applied in high-tech enterprises are significantly and positively associated with R&D investments.

Effective Tax Rate Time Trends and its Determinants: Insight From The Corporate Taxpayer Utilising Reinvestment Allowance In Malaysia

This study aims to provide evidence on the trend in corporate tax revenue from the application of time-trend analysis of effective tax rate (ETR) amongst corporate taxpayers in Malaysia who claimed reinvestment allowance (RA) over a decade between 2007 and 2016. This study chose these observation periods because the Malaysian corporate STR has been found to have gradually reduced from 27 per cent to 24 per cent between 2007 to 2016, whereby these changes somehow impacted the tax revenue. Taxpayers who used RA for tax planning pay low taxes over time, determined through tax return data. Then, the study intended to examine the relationships between certain tax attributes, namely, company's profitability (ROA), the reinvestment allowance utilisation rate (RAUTI), type of corporate taxpayers (TPP), the book-tax gap (BTG) and how they associate to the trend in ETR. Reinvestment Allowance (RA) is renowned for being a corporate tax incentive in Malaysia to encourage investments in qualified projects through a tax deduction. An incentivised firm that pays low tax may not be engaging in fraudulent management, as generally assumed. However, it could have been due to tax avoidance strategies that can be observed through reduced or lowered effective tax rate (ETR) across ten years. Keywords: Effective Tax Rates, Tax Avoidance, Reinvestment Allowance, Tax Incentive, Taxation.

ABSENCE OF INTENT TO RECEIVE BUDGET FUNDS IN CASE OF ERRONEOUS RECEIPT OF A PROPERTY TAX DEDUCTION BY A SERVICEMAN AS AN INDEPENDENT BASIS FOR TERMINATION OF CRIMINAL PROSECUTION

В статье представлен детальный анализ судебной практики об осуждении военнослужащих, которые воспользовались специальными финансовыми механизмами по льготному обеспечению жилыми помещениями, и дополнительно обратились в налоговые органы за получением имущественного налогового вычета. Отмечается ошибочная трактовка судами и должностными лицами правоохранительных органов самого факта обращения и последующего принятия налогового органами решения о предоставление данного вычета в результате неосмотрительности или невнимательности сотрудников налоговых инспекций как мошенничество. При отсутствии в представленных документах и информации подделки или подлога должно служить достаточным основанием для прекращения уголовного преследования. The article presents a detailed analysis of judicial practice on the conviction of military personnel who used special financial mechanisms for preferential provision of residential premises, and additionally applied to the tax authorities for obtaining a property tax deduction. There is an erroneous interpretation by the courts and law enforcement officials of the very fact of applying and the subsequent decision by the tax authorities to grant this deduction as a result of the carelessness or inattention of tax inspection employees as fraud. If there is no forgery or forgery in the submitted documents and information, it should serve as a sufficient reason for the termination of criminal prosecution.

Pengabdian Masyarakat Workshop Tripartit Kebijakan Super Tax Deduction Pemagangan Pendidikan Vokasional

In 2019, the Ministry of Finance issued a Super Tax Deduction policy, a tax incentive provided by the government to businesses/industries involved in vocational education programs, including research and development activities to generate innovation. This program provides a maximum gross income reduction of up to 200% of the total costs incurred for work practices, apprenticeship, and/or vocational education learning services. This program is designed to encourage establishing a link-and-match between the world of education and industry to improve the quality of human resources produced by the education sector. Two years since its launch, the socialization of this program has not been optimal. Only a handful of industries have taken advantage of this program. Information that does not reach stakeholders causes the program not to run as expected. The tripartite workshop that brings together all stakeholders is expected to be able to share perceptions regarding the nature and technical implementation of the policy.

Analisis Pengaruh Financial Indicators dan Ownership Structure untuk Memprediksi Kondisi Financial Distress (Studi pada Sektor Industri Perdagangan, Jasa, dan Investasi yang Terdaftar di BEI Tahun 2014-2018)

Financial distress is the stage when a company experiences a decline in financial performance before bankruptcy occurs. This study aims to examine the effect of financial indicators and ownership structure on financial distress. The independent variables in financial indicators include profitability, activity, growth, liquidity, and leverage. The ownership structure includes managerial ownership and institutional ownership. This research period is for five years, from 2014 to 2018. This study's population are companies in the trade, services, and investment sectors. Samples were taken using the purposive sampling method and obtained 16 companies as samples. The results of data analysis using the logistic regression method. The results showed that the current ratio and debt to assets ratio significantly affected financial distress. Meanwhile, the variables return on assets, total assets turnover, sales growth, managerial ownership, and institutional ownership do not significantly affect financial distress. The solution that the trade, service can carry out, and investment industry sector that has negative EPS in a row is to pay off short-term obligations within a predetermined period and maximize the benefits of debt as a tax deduction so that financial distress for companies can be avoided.

19. Taxation of directors’ fees and employees’ salaries

This chapter considers the taxation treatment of salaries, from the perspectives of both employer and employee. An employer will wish to ensure that any remuneration or reward paid to its employees will entitle it to claim a pre-tax deduction and reduce its taxable profits. The system for taxation of employees’ income is contained in the Income Tax Earnings and Pensions Act (ITEPA) 2003. The taxation of proprietors of a business and IR35 companies is also described.

Receiving a social tax deduction on personal income tax through an employer: amendments to the Tax Code of the Russian Federation

Article analyzes changes which the employers performing functions of the tax agent on an income tax will face since the beginning of 2022. Changes have been made to the Tax Code of the Russian Federation, which not only expand the range of social tax deductions, but also in some cases change the format of interaction between the employer and the employee, which he decided to receive a social tax deduction for personal income tax. The peculiarities of obtaining various types of social tax deductions through the employer, changes that will come into force in 2022 in this area, as well as the necessary documents are disclosed on the basis of which the employer provides the employee with social tax deductions.

Legitimacy and Reciprocal Altruism in Donation-Based Crowdfunding: Evidence from India

The donation-based crowdfunding platforms witness a mix of different entities seeking funding for numerous campaigns, adding complexities in understanding the donor behavior and factors that motivate donation. This study builds upon the economic theory of charitable giving and examines the ethical dilemma that donors face during the selection process. Using the data from Ketto.org, the biggest crowdfunding platform in India, this paper investigates the rank-order preference of donors while making a selection across heterogeneous entities and campaigns. The results show that campaigns run by non-profit organizations registered with causes that qualify for a tax-deduction receive a higher level of funding. Donors then fund unregistered non-profit organizations, followed by campaigns run by individuals. Demonstrating legitimacy by using subtle cues, like tagging “with tax-benefit,” motivates the donors to provide a higher amount of funding.