• Asia pacific journal of information systems
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• v.33 no.4
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• pp.1016-1035
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• 2023

Corporate tax avoidance has been the subject of international debate since the Enron scandal and has raised awareness of the need for greater transparency in financial markets. Efforts have been made to strengthen financial reporting requirements and meet the needs of investors and other stakeholders, including digitalization of financial reporting through Extensible Business Reporting Language (XBRL). This study examines the impact of the mandatory adoption of XBRL on corporate tax avoidance. We tested our predictions using a panel dataset of Indonesian firms listed on the IDX stock exchange. Based on available information in the DATASTREAM database covering the 2013-2017 period, we used two proxies for tax avoidance i.e., GAAP effective tax rate and current effective tax rate. We estimated multiple regression model including industry and year fixed effects. The results show that XBRL implementation has reduced corporate tax avoidance. These findings suggest that improving corporate transparency through XBRL could play a deterrent tool to corporate tax avoidance. The results of this study should be useful to tax authorities and accounting standard setters supporting the benefits of digitalizing financial reporting and continuing to complete XBRL taxonomies around the world.

• Journal of Venture Innovation
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• v.3 no.1
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• pp.165-182
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• 2020

This research shows solutions for relieving the reversibility of the VAT system, and the solutions will be reviewed with current issues about supporting welfare. The Followings provide practical implementing solutions for each issue. Since the VAT is taxed for all goods and services as a general consumption tax, it is efficient tax policy for resource allocation comparing to income tax. On the other hand, because of the reversibility of the tax burden is also treated as a non-effective tax system for fair taxation. Even it is a non-effective tax system, the VAT system takes the most portion from the total national tax. In South Korea economic system, it is hard to raise the VAT rate because the economic effects are tremendous. For the long-term, the possibility of increasing the VAT rate is unavoidable, considering the economy, society, environment and energy, and aging. Therefore, a variety of substituted policies for the reversibility should be covered once there is a conference for the increase in the VAT rate. This research provides foundational solutions by acknowledging the reversibility of the tax burden in terms of the effective value-added tax rate. The followings are four solutions. First, it is required to adjust the duty-free system for relieving the reversibility and expand the tax-free system as well as individual consumption tax items. Second, The relief of reversibility should be worked by imposing higher the tax rate for high-income people' goods and services. Third, the adjustment of the duty-free system could be considered due to relieve the reversibility of the VAT. Last, it is considered to adjust of the simplified taxation system because the simplified taxation system is seriously against the tax-transfer principles.

• East Asian Economic Review
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• v.16 no.3
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• pp.273-290
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• 2012

While the issue of RMB (Renminbi, Chinese Yuan) revaluation became the focus of world attention in 2003, the reform of the RMB exchange rate regime in 2005 didn't fundamentally solve the RMB appreciation problem, and even in 2008 the global financial crisis made RMB appreciation face new challenges and risks. It appears that the rise in RMB value is caused by supply exceeding demand in China's foreign exchange market; however, intrinsically it is due to the asymmetry in RMB exchange rate formation mechanism. The export tax rebates policy implemented by Chinese government is one of the leading causes of the asymmetry. This study constructs a transmission model between export tax rebates and foreign exchange rates, and applies the Granger Test to validate the causality between kernel variables based on correlative data from 1994-2011, and uses the error correction method to analyze the quantified relations of kernel variables, and finally gets the contribution rate of export tax rebates to RMB appreciation.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.18 no.1
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• pp.231-237
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• 2017

This study examines the relationship between voluntary information disclosure and the effective tax rate using Investor Relation (IR) as the proxy for the level of the firm's voluntary information disclosure, and effective corporate tax rate as the proxy for the level of tax avoidance. This study considers sample data from 1,396 firms listed on the Korea Composite Stock Price Index (KOSPI) from 2011-2014. The results of this study are as follows: Investor Relation (IR) had a positive correlation with effective corporate tax rate. This result got on with the result of additional analysis using extra measurement of effective corporate tax rate. According to these results, we expect that firms featuring greater voluntary information disclosure report enhanced business performance. This study contributes understanding how Investor Relation (IR) affects tax avoidance. We hope that this study can promote the development of capital markets and provide good news to investors for firms that have greater information disclosure.

• Environmental and Resource Economics Review
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• v.9 no.4
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• pp.701-725
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• 2000

Environmental taxes tend to compound the welfare cost of pre-existing tax distortions, the tax-interaction effect, however they also raise government revenues, tax revenue-recycling effect. By incorporating these two opposite tax effects, this paper examines a second- best environmental taxation for a polluting monopolist with distortionary taxes. The analysis suggests that the complications posed by pre-existing tax distortions as well as market structure can be key considerations in designing environmental taxes. In the tax setting game between regulator and regulated firm, we also derive the equilibrium tax rate and examine its relationship with distortionary taxes.

• KDI Journal of Economic Policy
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• v.40 no.2
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• pp.53-73
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• 2018

Using an overlapping generations model, this paper examines tax policy effects across generations. The model incorporates housing assets separately from capital assets and includes taxes on labor income, capital income, consumption and housing assets. Tax reforms for each tax rate have different effects on tax burdens across generations and the overall efficiency of the economy, leading to different welfare costs for generations. Specifically, raising housing property taxes results in the smallest welfare loss by future generations, as in the model it does not hurt economic efficiency and the tax burden increases mainly for the elderly, who have accumulated housing assets in preparation for retirement.

• Journal of Digital Convergence
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• v.19 no.5
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• pp.153-161
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• 2021

This study examined whether the probability of a tax investigation by the general construction industry could reduce the entertainment expenses in order to confirm whether a tax investigation can reduce excessive discretionary expenses of firms. Among the general construction industry listed on the KOSPI and KOSDAQ from 2011 to 2018, 274 firms with sales exceeding 10 billion won in the previous year were targeted at the tax audit selection rate and the tax audit detection rate, which is a proxy for the possibility of a tax investigation. The effect of the ratio of entertainment expenses to sales and the increase rate of entertainment expenses was verified. As a result of the analysis, both the selection rate and the detection rate of the tax investigation have a significant negative effect on the proxy variable of the discretionary expenses measured as the proportion of entertainment expenses and the increase rate of entertainment expenses. The results of this study showed that the tax investigation is a means to curb the excessive expenditure of the firm's discretionary expenses, thus suggesting the direction for the taxation policy and the effectiveness of the tax investigation.

• Journal of Environmental Policy
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• v.12 no.3
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• pp.123-159
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• 2013

We use a multi-regional dynamic computable general equilibrium model to explain an economic effect of $CO_2$ tax on the national and regional economy of Korea. First, we compare two $CO_2$ taxes: a region-specific $CO_2$ tax and a uniform $CO_2$ tax. In the region-specific tax, the $CO_2$ tax rate in the capital area and the south-eastern region is much greater than those in other regions. GDP loss resulting from the region-specific tax is bigger than that in the uniform tax. Second, we consider three options for tax recycling: consumption tax recycling, labor-income tax recycling, and corporate-income tax recycling. The corporate-income tax recycling has the least GDP-loss effect over the three options. These results support that it is more efficient to use a uniform $CO_2$ tax rate than a region-specific $CO_2$ tax rate and that the corporate-income tax recycling is more desirable in a sense of efficiency than the consumption and labor-income tax recycling options.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.209-216
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• 2021

This study aim is to examine 1) the impact of corporate social responsibility disclosure and tax aggressiveness on firm value, 2) the impact of tax aggressiveness on firm value, and 3) the impact of corporate social responsibility on firm value. The sample of this study is 29 manufacturing companies listed on the Indonesia Stock Exchange. The period of research spans three years, from 2017 to 2019. The data is gathered from the annual report of the companies or website of companies and also the website from Indonesia Stock Exchange (IDX). This study uses Structural Equation Model with Partial Least Square. The research findings show that corporate social responsibility and tax aggressiveness have a negative and significant impact on firm value. The tax aggressiveness and firm value have a negative and significant impact. Corporate social responsibility has a positive and significant impact on firm value. This study uses the manufacturing sector, so that the findings of this study cannot be generalized to other sectors. Future research should explore other sectors such as mining, banking, etc. This study uses Effective Tax Rate (ETR) to measure tax aggressiveness. Further research should use another measurement, for instance, Current Effective Tax Rate (CETR).

• Asia-Pacific Journal of Business
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• v.11 no.2
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• pp.133-143
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• 2020

Purpose - This study seeks to summarize the tax changes in stock trading and analyze K-OTC stock trading data in 2017 and 2018 to infer the effects of the application of capital gains taxes by individual investors. Design/methodology/approach - This study analyzes the case of the expansion of the 2018 capital gains tax exemption in the K-OTC market, which exempts capital gains tax on the proceeds from the sale of individual investors of certain stocks under the temporary special law. Findings - In the K-OTC market, the amount of transactions has expanded since the capital gains tax exemption in 2018, but the volume of transactions and transaction turnover have decreased. In particular, the result of lower transaction turnover after the expansion is contrary to expectations. To control the macroscopic effects of the stock market, further analyses the transactions of capital gains tax-exempt stocks and non-exempt stocks. The turnover rate of exemption stocks is higher than that of the non-exempt stocks. In the case of transaction turnover, the two results are not consistent. However, the latter result is more meaningful because the comparison of exempt and non-exempt reduces distortion by macro effects. Research implications or Originality - To mitigate the impact of capital gains taxes on stock market, government authorities need to consider the gradual expansion of the scope of taxation, the application of separate taxation in the introduction of capital gains, the reduction tax rate on transfer income of listed shares, and the reduction tax rate on long-term holdings.