• The Journal of Asian Finance, Economics and Business
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• v.10 no.2
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• pp.267-280
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• 2023

The relationship between the state and taxation starts from the establishment of the state. The most important element is the concept of "tax compliance". Tax compliance can be considered as the harmony of state-society relations. However, the concept of tax non-compliance occurs when taxpayers do not fulfill their tax-related tasks as required. Tax noncompliance is just one of the costs that occur in tax systems, and is named "tax compliance cost" in the literature. This study focuses on tax compliance costs because tax compliance costs are the ones taxpayers are personally obliged to deal with. For this purpose, the study investigates costs accruing from tax systems, including efficiency, planning, application, and compliance costs. According to the analysis results, it was concluded that the main reason for fraud in the tax systems is high compliance costs and that tax compliance directly impacts social wealth. Besides, the existence of conditions conducive to tax evasion and tax avoidance in a country, short-term tax policies, belief in the unfairness and inequality of tax systems, inadequacy of audits conducted by tax authorities, insufficiency of pressure and deterrence mechanisms, constantly changing legislation, and the attitudes and perceptions regarding the illegitimacy of the government determine tax compliance.

• Asian Journal of Business Environment
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• v.12 no.2
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• pp.43-53
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• 2022

Purpose: This study aims to analyze the performance of local taxes in Indonesia through the estimation of tax capacity and tax effort, as well as classifying provinces based on the estimated value of tax capacity and tax effort. Research design, data and methodology: this study uses panel data of 34 provinces in Indonesia for the period of 2014-2018. The analytical method used in the tax capacity model is panel data regression to explain the factors that influence tax performance. Tax effort is estimated by the ratio of tax to tax capacity. Results: The results of the analysis show that gini ratio and regional expenditures have a significant positive effect on the tax ratio, while the share of GRDP in the manufacturing sector and HDI has a significant negative effect on the tax ratio. Based on the results, there are 19 provinces that have low tax capacity and 16 provinces that have low tax effort. Conclusions: The development of local tax performance tends to fluctuate with an average of 1.24 percent per year. Gini ratio and regional expenditure have a significant positive effect on the tax ratio, while the share of GRDP in the manufacturing sector and HDI have a significant negative effect on the tax ratio.

• Management & Information Systems Review
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• v.12
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• pp.227-245
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• 2003

In this paper, it is indicated that, currently, foundation of small and medium businesses is generally increasing in number, but the establishment of manufacturing companies is very slow. This is because of many factors interfering with promotion of the opening of small and medium businesses such as endless bakruptcies of the businesses and uncertain perspective. Therefore, it will be expected to encourage people to start business and activate establishment of small and medium sized manufacturing companies by improving tax support systems and providing tax support information services for founed companies and foundation supporting companies.

• Korea Journal of Hospital Management
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• v.4 no.2
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• pp.330-353
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• 1999

It is needed for human-being to get the better healthcare and to be educated well for happiness. In korea, they have had less interest in the healthcare than the education. In this study, the role of taxes was surveyed for the improvement of the healthcare. Many articales on the tax system of the healthcare were investigated. And it was searched also what is the key factors of tax expenditures for the improvement of the healthcare. Through a survey to the staffs of medical services, tax experts, the receiver of medical services and tax officiers, the gap of opinions in each group and the factors of tax expenditures were analysed. The findings of this study are as following: Firstly, For the improvement of the healthcare the acceptability of tax deduction is needed. Secondly, is found that there is a meaningful difference between the staffs of medical services and tax officiers in the acceptability of tax expenditures.

• East Asian Journal of Business Economics (EAJBE)
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• v.1 no.2
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• pp.22-29
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• 2013

Purpose: The present study combines both tax structures and pension funds as the factors of economic importance and explores the impact of both (pension funds and tax rates) on the economic growth in context of OECD nations. Research Design, Data and Methodology: Last forty years data on these variables is taken for study purpose. A Sample size of thirty four nations which form the part of OECD nations was taken for study purpose. Results: Regression analysis (linear) was used to find out relationship between tax structure, Pension funds and economic growth. Conclusion: The results are important for nations increasing their expenditure for social contribution.

• Korean Business Review
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• v.14
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• pp.1-30
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• 2001

To prevent the VAT evasion and to form a sound VAT paying culture, we can draw the policy directions for government as follows: First, it is necessary to strengthen the tax supervision of small business and the administration of tax sources of cash-income industry. Second, the tax-deductible rate of the received tax invoices should be increased in a short-term base, and a simplified taxation system should be abolished in a long-term base. Third, in cases a trader has not received a tax invoice, an additional tax should be applied. Forth, to issue the tax invoice faster and conveniently, it is requested to introduce a new system which issues electronic card of registration when a businessman applies for his/her business registration. Fifth, to make tax standard transparent, it is desirable to punish the violator, relating to credit card regulations, stricter than present and to enforce the electronic bookkeeping. Sixth, for the reduction of noncompliance rate and creating a climate for autonomous, faithful tax return, it is necessary to expand and intensify tax investigation. And also it is necessary to make the level of penalty tax higher up and the level of criminal punishment less down, to keep up tax audit coverage. Seventh, a trader who is eligible for simplified taxation, whose tax base is under 12,000 thousand won, should not be required to pay the value added tax. But it is desirable to cut down them for the fairness of tax burden. Eighth, the effective date of the revised tax law should be fixed. Ninth, it is necessary to reinforce publicity and to educate on tax system and administration, for reducing tax evasion or tax avoidance and encouraging faithful tax return. Tenth, as the tendency of VAT evasion of distribution industry turns out to be the highest, it is requested not only to intensify tax administration on them but also to establish system and incentives, for introducing information system in distribution industry(introducing POS system, computerization of transaction record, establishing EDI between traders).

• Management & Information Systems Review
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• v.34 no.2
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• pp.207-227
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• 2015

This study addresses and examines differences in firm value after tax audits by the Korean Internal Revenue Service. Tax audits can potentially depreciate a firm's value due to the mass cash outflow that often results from the additional tax charges involved. However, tax audits that reveal negative aspects of a business, such as excessive entertainment expenses, fraudulent accounting, or inappropriate business practices, may have positive effects on a firm's value, as the monitoring involved can improve accounting transparency and reduce agency costs. This study shows that there is typically an increase in a firm's value in the year after a tax audit has been conducted, in comparison with the previous year. This result suggests that firm value can increase after a tax audit is conducted, despite the possible value depreciation resulting from a mass cash outflow.

• The Journal of Society for e-Business Studies
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• v.16 no.3
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• pp.263-274
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• 2011

The KEC XML Electronic Tax Invoice v3.0 which is a typical example of XML document was developed in 2009 according to the amendment of the Value Added Tax Law in 2008 that obliged all the corporation business to issue tax invoices electronically and submit them to the National Tax Service. The issue and submission of those tax invoices has been implemented since Jan. 2011 through a pilot test in 2010. It has some differences in aspect of standard, developing subject, technologies, and operation with the previous version of it. Above all, it is the first case of the XML document being developed based on international standard and methodologies and distributed nationally. This study aims to guide the future development of same kinds of standard XML document by arranging the development and distribution processes of XML Tax Invoice comprehensively.

• Korean Business Review
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• v.19 no.1
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• pp.115-136
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• 2006

Most countries that use a Value Added Tax(VAT) have exception for special cases with small enterprises who lack the ability to adapt in tax laws. VAT has been the most important tax. The simplified taxation system under VAT was introduced for small business taxpayers to perform tax liability easily and for government and taxpayers to get administrative efficiency by using a simple procedure. The present thesis suggests the conversion of simplified taxation system into general taxation as its improvement plan. That is, to abolish simplified taxation system, to convert it into general taxation and to apply the same tax base. The principle of fair taxation is not only important to realize tax justice, but also the principle of administrative efficiency important to increase the level of convenience for small enterprise taxpayers and efficiency for tax authorities.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.113-122
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• 2021

This study aims to investigate the effects of fiscal policy instruments on economic growth in Jordan using annual data from 1970 to 2019, by applying the VAR model (Vector Auto regression) and the Vector Error Correction Model (VECM). The study also examines the dynamic relationship among economic variables over time using the Granger casualty test, Impulse Response Function, and Variance Decomposition. The results show that not only the public expenditures have a positive effect on economic growth in Jordan, but also the tax revenues positively affect the economic growth in the short-run, and this is because of using the tax revenues to finance the government activities in Jordan. This effect becomes negative in the long run, and this is explained because the tax seems a source of distortions in the economy, The extreme taxes may cause huge distortions in the economy, and these distortions destroys the purchasing power, the aggregate demand, and supply. More governmental dependence on tax revenues is the main source of tax evasion and less efficiency. The effect of taxation will curb any prosperity in the economy. Therefore, the government should estimate the fair tax rates to generate sufficient revenues to finance the public expenditure required to enhance economic prosperity.