Nexus Between Tax Structure and Income Inequality in India

Muduli, Dillip Kumar; Rout, Sanjay Kumar; Khan, NA

doi:10.55493/5008.v10i2.4484

Cited by 3 publications

(3 citation statements)

References 30 publications

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“…Systematically, the model of Dynamic Panel Data model is employed when the dependent variable depends on its former realizations (Flannery and Rangan, 2006). Remarkably, numerous researchers specified that the firms' capital structure is not a static property and possesses dynamic attributes Hovakimian et al, 2001;Maheswaranathan and Bhavan, 2022;Liu, 2022;Muduli et al, 2022;Aidoo et al, 2022). Therefore, this investigation also selects different GMM estimator to explore the dynamic linkages among the designated…”

Section: Methodsmentioning

confidence: 99%

Examining Capital Structure Determinants for ASEAN Energy Firms

Ghani

Hye²,

Rehan

et al. 2023

IJEEP

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Increasing energy insufficiency is the main trench for the South East Asian countries. Though, there are rare empirical inquiries in relation to the energy firms’ capital structure determinants for the firms functioning in the Association of Southeast Asian Nations (ASEAN). Therefore, this study is an attempt to discover the capital structure determinants of energy firms that are functioning in the six key economies of ASEAN region which are Malaysia, Indonesia, Thailand, Philippines, Cambodia and Vietnam. In this setting, a total of 144 energy firms’ yearly Panel Data is involved over 14 years period from 2007 to 2020. The seven core determinants of capital structure, namely tangibility, return on equity, current ratio, non-debt tax shield, inflation and annual gross domestic product are inspected in relation to capital structure which is measured by ratio of debt to total asset. Employing both Panel Data models that are Static and Dynamic models via using robust estimator i.e. Generalized Method of Moments (GMM), the results reveal that tangibility and profitability are the most prominent determinants among all others. Evidently, the two newly introduced capital structure determinants that are inflation and energy consumption for ASEAN region energy firms are also reported significant by dissimilar estimators. The significant character of tangibility, profitability and lagged dependent variable directly infers the relevance of Dynamic Trade-Off theory. The findings provide new ways for policy makers to construct parallel strategies which will not only help out to overcome the energy scarcity issues but also to enhance regional level integration.

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Section: Methodsmentioning

confidence: 99%

Examining Capital Structure Determinants for ASEAN Energy Firms

Ghani

Hye²,

Rehan

et al. 2023

IJEEP

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“…Compliance costs are the costs that taxpayers or third parties (e.g., businesses) incur in complying with the requirements of a particular tax structure (Pavel & Vítek, 2014). Although compliance costs may increase upon the implementation of a new system, these costs may still vary according to various factors, for instance, tax laws and tax changes (Palil, Ramli, Mustapha, & Hassan, 2013;Muduli et al, 2022;Basha, 2022;Opeyemi et al, 2022). Ariff and Pope (2002) categorised tax compliance costs into economic costs (monetary costs and time costs) and non-economic costs (psychological costs, e.g., stress and anxiety).…”

Section: Compliance Costsmentioning

confidence: 99%

Determining the Factors of Tax Agents’ Readiness Towards the Digitalisation of Tax Administration

Hamid¹,

Saruji²,

Shamsuddin³

et al. 2023

R. Econ. and Finan.

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The increase in digital transformation through Industry 4.0 has become a top priority for both businesses and governments on a worldwide scale, thus forcing the need for updating the tax system. With substantial technological advancements and accelerating demands to save costs, many tax authorities are undergoing a considerable transformation from the conventional to an online platform in engaging with taxpayers and tax agents; however, the tax agents responsible for advising and assisting companies or individuals with income tax matters may not be ready for such a transformation. This study aims to examine tax agents' readiness towards the digitalisation of tax administration in Malaysia. By using the probability sampling technique, a list of tax agents was obtained from the Inland Revenue Board Malaysia (IRBM)'s website and data were collected from the structured questionnaires distributed to the IRBM-registered tax agents in Malaysia. Considering that Malaysia is still at an early stage of fully digitalising its tax system, the findings of this study are, therefore, important for many parties involved and the body of knowledge. By selecting 173 respondents that consist of tax agents listed with the Inland Revenue Board Malaysia (IRBM), this study employed Quadrant Analysis to determine the factors of priority in supporting the readiness towards the digitalisation of tax administration. Based on the findings, the three elements that demand immediate attention from the policymakers are perceived ease of use, technology infrastructure, and government policy and support. These findings are crucial for policymakers who intend to speed up the digital transformation process to improve the efficiency and effectiveness of tax administration. This study should be able to ascertain the factors that influence tax agents' readiness to deal with the digitalisation of Malaysian tax administration. There is a paucity of research on the digitalisation of tax administration, particularly for services to taxpayers that should have been fully digitalised years ago. This study should contribute to the literature by identifying the factors that contribute to the delay in fully digitalising tax administration in Malaysia.

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“…In 2019, the extensively-discussed National Worry Index compiled Malaysians' concerns regarding the SST 2.0 failure to alleviate goods and service prices (Zainal, 2016). Such alarming outcomes contradict the local government aim to provide lower goods and service prices through SST 2.0 (Choong, 2018;Muduli et al, 2022;Sanusi, Omar, Mohd Sanusi, & Muslichah, 2021).…”

Section: Introductionmentioning

confidence: 99%

Indirect Tax Policy Acceptance Model: From the Perspective of the Public in Malaysia

Hamid¹,

Jamel²,

Zawawi³

et al. 2023

R. Econ. and Finan.

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Given the strong rumour that the Goods and Services Tax (GST) may be re-introduced in Malaysia, Bernama (2022) reported that Malaysia is keen on reintroducing GST to expand its revenue base and carry the weight of public subsidies. Due to GST abolishment, Malaysia incurred an annual revenue loss of RM20 billion, shockingly, the reintroduction of SST contributed little to the government. Unfortunately, from the public's perspective, GST remains a very unpopular indirect tax reform due to its regressive nature, affecting both the poor and rich. Since the tax applies to every transaction regardless of the socioeconomic status of individuals, it places an undue burden, especially on poor households. The literature on the critical catalyst of the public acceptance of Malaysian indirect tax also lacks discussions on a specific public acceptance model for indirect tax policy implementation. This study, therefore, aims to bridge the gap by proposing an indirect tax acceptance model using the guiding principles of sound tax policy recommended by AICPA ( 2017). Using a quantitative approach, questionnaires were distributed to the B40, M40, and T20 household income earners throughout Malaysia. The results show that the guiding principles of the effectiveness of tax administrations, transparency and visibility, appropriate government revenue, neutrality, and simplicity are the variables that allow the assessment of public behaviour towards indirect tax. The findings can provide helpful feedback to relevant policymakers and tax authorities in designing a more acceptable indirect tax.

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Nexus Between Tax Structure and Income Inequality in India

Cited by 3 publications

References 30 publications

Examining Capital Structure Determinants for ASEAN Energy Firms

Examining Capital Structure Determinants for ASEAN Energy Firms

Determining the Factors of Tax Agents’ Readiness Towards the Digitalisation of Tax Administration

Indirect Tax Policy Acceptance Model: From the Perspective of the Public in Malaysia

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