Revenue functions and Dupuit curves for indirect taxes with cross-border shopping

Aasness, Jørgen; Nygård, Odd Erik

doi:10.1007/s10797-013-9268-x

Cited by 6 publications

(2 citation statements)

References 28 publications

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“…In addition, the study has detected a negative and meaningful relationship between lack of accurate monitoring of distribution channels and growth of smuggling cosmetic products in Iran (β = -0.18, Pvalue = 0.000). The results of our investigation are somewhat consistent with other similar results (Aasness & Nygård, 2014). Gordoncillo et al (2013) investigated the effect of anti-smuggling policies for selected agricultural commodities in the Philippines and reported that government rules and regulations could help reduce smugelling.…”

Section: Discussionsupporting

confidence: 92%

Investigating the role of government trade policies and regulations on smuggling cosmetic products

Seifpoor¹,

Mousa²

2014

10.5267/j.msl

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This paper investigates the effects of government trade policies as well as the rules and regulations on smuggling cosmetic products in Iran. The study considers the effects of five important factors including high tariffs and bureaucratic procedures, registration process, size and expire date, lack of accurate monitoring of distribution channels and government recent regulation failure on growth of smuggling cosmetic products in Iran. The proposed study uses structural equation modeling to examine the effects of these five components. The results indicate a positive and meaningful relationships between four variables including registration process (β = 0.84, P-value = 0.000), size and expire date (β = 0.86, P-value = 0.000), high rate of tariff (β = 0.88, P-value = 0.000) and government recent regulation failure (β = 0.97, P-value = 0.000) on growth of smuggling cosmetic products in Iran. In addition, the study has detected a negative and meaningful relationship between lack of accurate monitoring of distribution channels and growth of smuggling cosmetic products in Iran (β = -0.18, P-value = 0.000).

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Section: Discussionsupporting

confidence: 92%

Investigating the role of government trade policies and regulations on smuggling cosmetic products

Seifpoor¹,

Mousa²

2014

10.5267/j.msl

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“…Such positive cycles and cash flows help in economic growth. Further, Aasness and Nygard (2014) found cross-border shopping, tax-free shopping and smuggling to be intervening factors to the effects of tax cuts on tax revenues in Norway. Schmitt-Grohe and Uribe (1999) also argued for a higher capital income tax rate with substitution from labour taxes for balance in the annual budget in the USA.…”

Section: Related Literaturementioning

confidence: 97%

Malaysian corporate tax rate and revenue: the application of Ibn Khaldun tax theory

Annuar

Isa

Ibrahim

et al. 2018

IJIF

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Purpose The present study aims to investigate the impact of the reduction of the corporate tax rate on corporate tax revenue. The study adopts the theory of taxation by Ibn Khaldun, depicted as the Laffer curve. Design/methodology/approach The paper analyses time series data for the period 1996 to 2014 using the autoregressive distributed lag (ARDL) approach. Findings The paper finds that the corporate tax rate has a dual effect on corporate tax revenue over the study period. It shows an inverted U-shape relationship between the corporate tax rate and corporate tax revenue and reveals that the optimal tax rate is 25.5156 per cent. Inferentially, a positive relationship exists between the two variables prior to the optimal tax rate, and a negative relationship prevails afterwards. A further test of causality shows a long-run unidirectional causality between corporate tax rate and corporate tax revenue. Research limitations/implications First, it should be noted that the policy was not implemented in isolation. Several other tax incentives were given to corporate tax payers, and therefore, such incentives should be controlled for to have a more insightful evaluation of the policy. Second and most important, there is a need to investigate whether the increased cash flow available to firms as a result of the reduction in the corporate tax rate adds value to firms. It is also necessary to investigate whether firms’ stakeholders benefited from the increased cash flow or was there managerial diversion of firms’ resources. Practical implications The policy of gradual reduction of the corporate tax rate in Malaysia is suspected to have a positive impact on the productivity of Malaysian companies, which has contributed to an increase in corporate tax revenue. It also has a positive impact on the economic growth of the country. It means that the lower corporate tax rate has actually reduced the cost of doing business in the country. Originality/value The benefit of increased corporate tax revenue needs to be investigated empirically for insightful policy evaluation. In Malaysia, however, such investigation is close to non-existent to the best knowledge of the researchers. Thus, the present study aims at investigating the impact of the policy of gradual reduction of the corporate tax rate on corporate tax revenue over an 18-year period from 1996 to 2014.

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To Tax or not to Tax Sin Goods: That’s the Question for Emerging Economies

Pérez-Morón

2022

Innovation of Businesses, and Digitalization During Covid-19 Pandemic

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Revenue functions and Dupuit curves for indirect taxes with cross-border shopping

Cited by 6 publications

References 28 publications

Investigating the role of government trade policies and regulations on smuggling cosmetic products

Investigating the role of government trade policies and regulations on smuggling cosmetic products

Malaysian corporate tax rate and revenue: the application of Ibn Khaldun tax theory

To Tax or not to Tax Sin Goods: That’s the Question for Emerging Economies

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