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on Accounting and Auditing |
| By: | Ojo, Marianne |
| Abstract: | Whilst the impact of globalisation and harmonisation is currently being witnessed around the globe, and the need to embrace the adoption of International Financial Reporting Standards (IFRSs) is becoming increasingly evident, certain jurisdictions have been much quicker in their embrace, adoption and adaptation of International Financial Reporting Standards, than others. As well as highlighting the need for the adoption of International Financial Reporting Standards, this paper also aims to provide an explanation for the pace of response in the adoption and adaptation of IFRSs in selected jurisdictions. It does so partly through a consideration of the impact of accounting and finance theories which have impacted the standard setting systems of certain jurisdictions. |
| Keywords: | IFRS; accounting; finance theories; creative accounting; accounting reforms; transparency; financial reporting; disclosure; rules based; principles based approach |
| JEL: | D0 E02 K2 M41 G3 D8 G01 |
| Date: | 2012–06–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39348&r=acc |
| By: | Alcalde, José (Universidad de Alicante, Departamento de Métodos Cuantitativos y Teoría Económica); Marco-Gil, María del Carmen (Dep. of Economics, Polytechnic University of Cartagena); Silva-Reus, José A. (Universitat d'Alacant. Departament de Mètodes Quantitatius i Teoría Econòmica and Instituto Universitario Desarrollo Social y Paz (IUDESP)) |
| Abstract: | This paper explores an integrated taxation system. Taking as a premise the proposals by the Carter Commission Report, we find out that proportional tax is the unique system that allows to neutrally integrate the taxable income. This analysis leads to explore new tax rules combining the extreme cases of `Flat Tax' and `Equalizing Net Income' rules. As a conclusion we suggest the Equitably Compensatory tax rule which accurately combines both extreme principles. Surprisingly enough, this rule coincides with the Proportional rule for societies whose income is not too unequally distributed. |
| Keywords: | Tax burden degree; Taxation system; Prop ortional taxation |
| JEL: | D63 H20 H30 |
| Date: | 2012–06–18 |
| URL: | http://d.repec.org/n?u=RePEc:ris:qmetal:2012_011&r=acc |
| By: | Bengtsson, Niklas (Department of Economics); Holmlund, Bertil (Department of Economics); Waldenström, Daniel (Uppsala Center for Fiscal Studies) |
| Abstract: | This paper analyzes the evolution of tax progressivity in Sweden from both annual and lifetime perspectives.Using a rich micro panel with administrative records of incomes, taxes and benefits over the period 1968–2009, we calculate tax rates across the income distribution accounting for different tax bases as well as the role of transfers. The uniquely long time span also allows us to compute tax progressivity as realized over a cohort’s entire life cycle. Our main finding is that taxes are considerably less progressive over the lifetime than in any single year. In fact, life cycle taxes are close to proportional, bearing a redistributive effect of only a few percent. Intragenerational income mobility seems to be driving this result, although the Swedish economic crisis of the 1990s and the tax reforms of 1971 and 1991 are also important. Labor income taxes contribute less to progressivity in recent years,whereas transfers to unemployed and old-age pensioners have become increasingly important. These findings are robust to the use of different tax rates, tax bases, sample populations, rates of discounting and controls for reranking. |
| Keywords: | Tax progressivity; Income distribution; Lifetime income; Redistributive effect; Kakwani index; Transfers. |
| JEL: | D31 H20 |
| Date: | 2012–06–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:uufswp:2012_008&r=acc |
| By: | Micael Castanheira (ECARES, Université Libre de Bruxelles, Belgium); Gaëtan Nicodème (European Commission, CESifo, CEPR and Université Libre de Bruxelles, Belgium); Paola Profeta (Università Bocconi, Econpubblica and Dondena, Italy, CESifo) |
| Abstract: | Political constraints and incentives are the true driver of tax reforms. This paper reviews the political economics literature on personal income tax systems and reforms to see how political mechanisms help explain tax reforms. We take some of the implications of these theories to the data using LABREF, a database that identifies labor tax reforms in the European Union for the period 2000-2007, and control for economic and labor market factors. We find that political variables carry more weight than economic variables, and we show empirical regularities that support political economy theories. We also find that governments tended to reform more in better economic times, engaging in pro-cyclical behavior. |
| Keywords: | political economy, taxation, personal income tax, LABREF |
| JEL: | H11 H21 H24 P16 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cccrwp:2012-08-ccr&r=acc |
| By: | Apps, Patricia (University of Sydney); Rees, Ray (University of Munich) |
| Abstract: | The Mirrlees Review of the UK tax system, together with its companion volume of research papers, can be expected to influence future discussions of tax reform. Indeed, this can already be recognised in the Henry Review. As far as income taxation is concerned, the most substantive recommendation of the Mirrlees Review is a move toward a system of consumption or expenditure taxation, by exempting the "normal return" to saving and taxing only "excess returns" on the same tax schedule as labour earnings. This paper argues against this direction of reform on the grounds that it is based on a model of household behaviour over the life cycle that ignores important aspects of reality. We present an alternative model, together with supporting empirical evidence. We go on to argue that, against the background of rising inequality and an aging population, the appropriate direction for reform is towards more progressive taxation of both labour earnings and capital income, although not necessarily under the same rate scale. |
| Keywords: | optimal taxation, labour supply, capital income taxation, family life cycle, time allocation, saving, inequality |
| JEL: | H21 H24 H31 D13 D91 J22 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6615&r=acc |
| By: | Julia Cagé (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris - INRA); Lucie Gadenne (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris - INRA) |
| Abstract: | Trade taxes are an important source of revenue for developing countries. These revenues have fallen over the past decades as these countries liberalized trade. Many developing countries simultaneously experienced a decrease in their total tax revenues, suggesting trade liberalization may have come at a fiscal cost. Using a novel panel dataset of tax revenues and government expenditures in developing countries for the period 1945-2006 we identify 110 episodes of decreases in tariff revenues and consider whether countries are able to recover those lost revenues through other tax resources. We show that trade taxes fall by close to 4 GDP percentage points on average during those episodes. Less than half of the countries recover the lost tax revenues 5 years after the start of the episode. The picture is similar when we consider government expenditures. We use the intuition that pre-existing tax capacity is needed to levy domestic taxes to explain theoretically why some countries are unable to recover all tax revenues lost from lowering tariffs. We find that the fiscal cost of trade liberalization is a non-linear function of countries' incentives to invest in tax capacity, and that some will be stuck in a low tax capacity trap. Finally we provide some empirical evidence in line with the model's predictions. |
| Keywords: | Taxation and development ; Trade liberalization ; State capacity ; Tax and tariff reform |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-00705354&r=acc |