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on Accounting and Auditing |
| By: | Bachas, Pierre Jean; Brockmeyer, Anne; Dom, Roel; Semelet, Camille Marine |
| Abstract: | This paper provides novel evidence on the relationship between firm size and effective corporate tax rates, using full-population administrative tax data from 13 countries. In all countries, small firms face lower effective corporate tax rates than mid-sized firms due to reduced statutory tax rates and a higher propensity to register losses. In most countries, effective corporate tax rates fall for the largest firms due to the take-up of tax incentives. As a result, a third of the top 1 percent of firms face effective corporate tax rates below the global minimum tax of 15 percent. The minimum tax could raise corporate tax revenue by 27 percent in the median sample country. |
| Date: | 2023–02–23 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10312 |
| By: | Traore, Mohamed Lamine; Coulibaly, Seydou; Arvanitis, Yannis |
| Abstract: | Tax evasion and avoidance generate distortions in tax systems and cause significant revenue losses for African economies. International cooperation is one of the most effective methods of combating tax evasion and tax avoidance. As such, many countries are participating in global initiatives toward the exchange of information between national administrations for tax purposes. This paper provides the first empirical evidence on the revenue effects of tax-related exchange of information for African countries. The regressions are carried out on a sample of 54 African countries on data from 1990–2020. The findings indicate that the exchange of information for tax purposes between national tax jurisdictions has a positive and statistically significant impact on tax revenue. The estimation results show that exchange of information could increase tax revenue collection by a magnitude ranging from 5 to 19 percent. These findings reiterate the importance of international cooperation for combating tax evasion and stimulating tax collection in Africa. |
| Date: | 2023–02–07 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10299 |
| By: | Erna, Erna; Murwaningsari, Etty; Murtanto, Murtanto |
| Abstract: | This study aims to reveal the determinants of profit quality based on governance factors. Specifically, the proposed factors are institutional possession (IP), supervisory board size (SBS), and an external reputable auditor. Besides, this study intends to examine the IP to moderate the relationship between SBS and profit quality. By employing 12 agricultural companies in the Indonesian capital market for ten years, from 2013 to 2022, this study obtains 120 observations and analyzes the data by regression model with polling data. After that, this study demonstrates that IP, the supervisory board size, and reputable external auditor quality positively affect profit quality. The negative interaction effect between IP and supervisory board size (IP*SBS) on profit quality is available: The smaller the SBS, the higher the profit quality, and this tendency happens when institutional possession decreases. In other words, the IP and SBS have substitution roles to crate profit quality. |
| Date: | 2024–08–29 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:vxaud_v1 |
| By: | Ngugi, Rose; Tarp, Finn; Kedir, Abbi |
| Abstract: | Designing and implementing tax systems that are both efficient and effective are essential for revenue generation, economic growth, and equity as well as fairness across income groups in Kenya. The existing highly complex and outdated tax structures and the lack of effective digitization undermines compliance and limit revenue collection. This, in turn, severely constrains the amount and quality of public services the Government of Kenya (GOK) can finance in support of economic transformation and development, on the one hand, and the well-being of its citizens, on the other. It has also led to a public debt level that is at high risk of distress, and harsh liquidity constraints due to the reliance on short-term borrowing instruments. The overarching goals of the tax reform process in Kenya are to maximize revenues without distorting markets, and to ensure that the design of tax policy and tax instruments do not raise incentives to avoid and/or evade taxes. Simplification and unification of tax structures aimed at reducing government expenditures and the burden placed on taxpayers is central to achieving these goals. Therefore, this summary note (and the underlying policy notes) explores whether and how a re-design of taxes can help support change towards a combination of lower tax rates and higher revenue, and points to the associated needed range of adjustment in each of the tax instruments. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:b99cad2c-92f3-4a7e-9b01-1bbbdfb49f8c |
| By: | Kiringai, Jane; Mutuku, Cyrus; Muchiri, Benjamin; Basescu, Simon; Remcho, Nathan |
| Abstract: | Value-Added Tax (VAT) is a cornerstone of Kenyas Medium-Term Revenue Strategy (MTRS) and the Government of Kenyas (GoK) domestic revenue goals. It plays a pivotal role, not only in raising domestic revenues, but also in developing a broader economic landscape that stimulates growth and diversification (The National Treasury and Economic Planning, 2023). However, despite a growing Gross Domestic Product (GDP) and broadening of the VAT base, the performance of the tax has not reached its potential. This paper provides a comprehensive analysis of the VAT architecture, identifies the VAT gap, and provides detailed policy recommendations to close the existing VAT gap. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:476b7049-7ea2-4fcd-b667-dcf18dd80eb3 |
| By: | Kiriga, Benson; Nato, Jacob; Remcho, Nathan; Eldrup, Magnus |
| Abstract: | This paper provides a high-level analysis of Kenyas tax system, examining structures, performance, and potential reforms to enhance domestic revenue mobilization for economic development. Synthesizing data from national agencies, we identify the central challenges facing the tax systems in Kenya including compliance levels, a significant informal sector, and economic shocks. Our analysis underscores the need for data-driven policymaking, emphasizing Kenyas Medium-Term Revenue Strategy (MTRS) 2024-2027, aimed at reversing declining tax-to-Gross Domestic Product (GDP) ratios through a comprehensive modernization of the public revenue system. Our study further highlights major revenue streams such as income taxes and value added tax to show how a few taxes make up a large portion of domestic revenues and the urgency for optimization within these taxes. The stagnant or declining performance of many tax structures in Kenya reveal a need for comprehensive reviews and updates that enhance progressivity, encourage compliance, and raise revenues relative to GDP. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:8051fe3a-63ff-4af7-962c-c592c90ac33b |
| By: | Anh, Chu Thúy; Trung, Tran Thanh |
| Abstract: | Corresponding Author: Chu Thúy Anh - Email: Anhct@huit.edu.vn. The factors influencing the employability of graduate students majoring in Finance, Banking, and Accounting in Ho Chi Minh City. The objective of this study is to examine the impact of factors influencing the employability of graduate students majoring in Finance, Banking, and Accounting at universities in Ho Chi Minh City, based on the theories of service quality evaluation, expectancy-perception theory, and previous research. Through a survey of 562 students in Ho Chi Minh City, the research results reveal three groups of factors, including six positively influential factors on the employability of graduate students majoring in finance, banking, and accounting, namely: Professional skills; Specialized knowledge; Language proficiency; Training programs; University brand; and Work ethic. |
| Date: | 2024–04–02 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:sbgf5_v1 |
| By: | Arno Botha; Tanja Verster; Roland Breedt |
| Abstract: | The lifetime behaviour of loans is notoriously difficult to model, which can compromise a bank's financial reserves against future losses, if modelled poorly. Therefore, we present a data-driven comparative study amongst three techniques in modelling a series of default risk estimates over the lifetime of each loan, i.e., its term-structure. The behaviour of loans can be described using a nonstationary and time-dependent semi-Markov model, though we model its elements using a multistate regression-based approach. As such, the transition probabilities are explicitly modelled as a function of a rich set of input variables, including macroeconomic and loan-level inputs. Our modelling techniques are deliberately chosen in ascending order of complexity: 1) a Markov chain; 2) beta regression; and 3) multinomial logistic regression. Using residential mortgage data, our results show that each successive model outperforms the previous, likely as a result of greater sophistication. This finding required devising a novel suite of simple model diagnostics, which can itself be reused in assessing sampling representativeness and the performance of other modelling techniques. These contributions surely advance the current practice within banking when conducting multistate modelling. Consequently, we believe that the estimation of loss reserves will be more timeous and accurate under IFRS 9. |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2502.14479 |