Corruption and Firms Colonnelli, Emanuele; Prem, Mounu
The Review of economic studies,
03/2022, Letnik:
89, Številka:
2
Journal Article
Recenzirano
Abstract
We estimate the causal real economic effects of a randomized anti-corruption crackdown on local governments in Brazil using rich micro-data on corruption and firms. After anti-corruption ...audits, municipalities experience an increase in the number of firms concentrated in sectors most dependent on government relationships and public procurement. Through the estimation of geographic spillovers and additional tests, we show that audits operate via both a direct detection effect as well as through indirect deterrence channels. Politically connected firms suffer after the audits. Our estimates indicate the anti-corruption program generates significant local multipliers which are consistent with the presence of a large corruption tax on government-dependent firms.
Effective tax rates (ETRs) are often used to compare tax avoidance across firms and time. Using firms' detailed tax footnote data, we find that the effect of valuation allowances (VA) related to ...prior-period losses biases GAAP ETRs. This downward bias explains almost all of the downward trend in domestic firms' ETRs over the last 20 years. We also find that VAs explain cross-sectional differences in ETRs for both domestic and multinational firms. We show this bias extends to cash ETRs and the Henry and Sansing (2018) tax avoidance measure. We develop a methodology for substantially reducing the bias in both time-series and cross-sectional analyses of cash and GAAP ETRs. Overall, our results suggest firms’ loss histories and GAAP rules influence inferences from tax avoidance proxies.
•We provide large-scale detail of the components of firms' GAAP ETR reconciliations, revealing insights about the levels and trends in tax avoidance.•We document a downward bias in ETRs from VA releases for both domestic and multinational firms.•We find that declines in domestic firm GAAP ETRs are primarily a function of GAAP accounting rules for valuation allowance releases, rather than deliberate tax planning.•We create a measure of the probability of VA release to mitigate downward ETR biases associated with VA releases in profitable firm-years.•We show that incorporating the probability of a VA release improves the explanatory power of traditional cross-sectional tax avoidance models by 16–57 percent.
Obesity, defined as excess fat mass, increases risks for multiple metabolic diseases, such as type 2 diabetes, cardiovascular disease and several types of cancer. Over and above fat mass per se, the ...pattern of fat distribution, android or truncal as compared to gynoid or peripheral, has a profound influence on systemic metabolism and hence risk for metabolic diseases. Increases in upper body adipose tissue (visceral and abdominal subcutaneous) confer an independent risk, while the quantity of gluteofemoral adipose tissue is protective. Variations in the capacity of different depots to store and release fatty acids and to produce adipokines are important determinants of fat distribution and its metabolic consequences. Depot differences in cellular composition and physiology, including innervation and blood flow, likely influence their phenotypic properties. A number of lines of evidence also support the idea that adipocytes from different anatomical depots are intrinsically different as a result of genetic or developmental events. In this chapter, we will review the phenotypic characteristics of different adipose depots and mechanisms that link their depot-specific biology to metabolic complications in men and women.
Reducing tax evasion is a priority for many governments. A growing literature argues that verifying taxpayer reports against third-party information is critical for tax collection. However, ...effectiveness can be limited when tax authorities face constraints to credible enforcement and taxpayers make offsetting adjustments on other margins. We exploit a policy intervention in which Ecuadorian firms were notified about detected revenue discrepancies. Most firms simply failed to respond. Firms that responded increased reported revenue, matching the discrepancy amount when provided. However, they also increased reported costs by 96 cents per dollar of revenue adjustment, resulting in minor increases in tax collection.
The Goods and Services Tax (GST) is implemented to ensure India’s balanced economic development by simplifying the country’s cumbersome indirect tax system, allowing commodities to move freely across ...state and national borders, cutting tax evasion and ramping up the taxpayers’ base, improving compliance with taxation rules, increasing government revenues and attracting investors by making it easier to do business in India. The purpose of our study is to determine if GST is achieving the objectives for which it was conceived. The panel regression estimations were used on data obtained from 31 states and union territories of India from 2017 to 2021, and the outcome shows that GST has a considerable positive effect on India’s economic development. The study suggests that authorities should review and change GST taxing regulations regularly.
•Using firm-level data from 2001 to 2016, we evaluate the impact of the R&D tax credit scheme and its 2010-11 reform in India on the innovation activity of private firms.•We adopt a ...difference-in-difference (DID) setting and study the timing of DSIR registration.•Reform reduced the user cost of R&D by 33% and increased the firms R&D expenditure and the number of IPO patent applications by 78% and 11% respectively.•In case of newly incentivized firms, R&D expenditure, R&D intensity and IPO patent applications increased by 113%, 1.06% and 20% respectively.•The results are not driven by unobserved cross-firm heterogeneity or firm-specific time trends.
Using firm-level data from 2001 to 2016, this paper evaluates the impact of India’s R&D tax credit scheme and its 2010-11 reform on the innovation activity of the country’s private firms. Registration with the Department of Scientific and Industrial Research (DSIR) is a requirement for the R&D tax credit eligibility. Not all firms have registered with the DSIR by 2016 and those that did, vary by year of registration. In a difference-in-difference setting, we evaluate the change in innovation activity after the reform in DSIR-registered firms relative to non-DSIR-registered firms. We also study the timing of DSIR registration and examine how the changes in firm innovation activity following registration were impacted by the 2010-11 reform. Among firms first registered with the DSIR after the 2010-11 reform, we find a sharp increase in firm R&D expenditures, R&D intensity, and the number of patent applications filed at the Indian Patent Office following registration. The reform has also spurred innovation in firms registered with the DSIR in or before 2001. The results are not driven by unobserved cross-firm heterogeneity or firm-specific time trends.
SiC is recognized as a viable material for electromagnetic wave (EMW) absorption due to its unique physicochemical properties. However, there are still some challenges at present, such as poor EMW ...absorption performance and difficulty in the fabrication of complicated structures for optimized EMW properties. Here, we presented a novel strategy through vat photopolymerization (VPP) 3D printing technology and carbothermal reduction to prepare porous SiCnw/SiC ceramics with controlled topologies and excellent EMW absorption properties. The gradient hole structure produced by carbothermal reduction facilitates material impedance matching regulation and improves incident wave multiple scattering as well as the in-situ grown SiCnw acts as the dipole center and improves incident wave dielectric loss. Porous SiCnw/SiC ceramics achieve improved EMW absorption performance with a minimum reflection loss (RL) of −57.67 dB at a thickness of 2.20 mm and with an effective absorption bandwidth (EAB) of 3.93 GHz at a thickness of 2.60 mm, covering almost the whole X-band, demonstrating outstanding EMW absorption properties. Furthermore, it exhibits the potential in the application of EMW absorbing devices with complex structure.
Taxes represent a significant cost to the firm and shareholders, and it is generally expected that shareholders prefer tax aggressiveness. However, this argument ignores potential non-tax costs that ...can accompany tax aggressiveness, especially those arising from agency problems. Firms owned/run by founding family members are characterized by a unique agency conflict between dominant and small shareholders. Using multiple measures to capture tax aggressiveness and founding family presence, we find that family firms are less tax aggressive than their non-family counterparts, ceteris paribus. This result suggests that family owners are willing to forgo tax benefits to avoid the non-tax cost of a potential price discount, which can arise from minority shareholders’ concern with family rent-seeking masked by tax avoidance activities Desai and Dharmapala, 2006. Corporate tax avoidance and high-powered incentives. Journal of Financial Economics 79, 145–179. Our result is also consistent with family owners being more concerned with the potential penalty and reputation damage from an IRS audit than non-family firms. We obtain similar inferences when using a small sample of tax shelter cases.
Editorial Walpole, Michael
eJournal of tax research,
12/2020, Letnik:
18, Številka:
1
Journal Article
Recenzirano
Debate about tax in Australia is not new, and certainly debate about the role and form of its indirect tax system is not new. In 1985, the Labor government proposed that the WST be replaced with a ...12.5% Retail Sales Tax, and in 1992 the Coalition advocated as part of Fightback! (its election platform at the time) the introduction of a 15% GST to replace the WST, payroll taxes, import tariffs, petroleum and other excises as well as the Training Guarantee Levy. From that point the pressure was on to find an adequate alternative funding model for the states whose tax base had been further eroded.
PDF
