Financial Markets, Institutions and Risks (FMIR)
Permanent URI for this collectionhttps://devessuir.sumdu.edu.ua/handle/123456789/61500
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Item Cross Country Tax Competition and its Impact on Multinational Corporations – a Theoretical Re-examination(Sumy State University, 2018) Mukherjee, S.The recent wave of globalization has made the global corporations to take advantage of the international tax differences and suitably shift their profits from low tax to high tax jurisdictions. In this paper, we consider a simple world with two countries with different market sizes and n multinationals having a branch in each country. For simplicity, we have considered that both the countries impose a source-based tax on profit of the multinational firms. Moreover, these firms function in a Cournot framework with tax competition between the countries and shift their profit depending on the extent of tax differential. But profit shifting is costly as there is a chance of getting caught. In this backdrop, we propose a simple theoretical model which puts emphasis on the role of concealment of true profits in a framework of tax competition. It is shown that given the similar administrative efficiency across the countries, a higher probability of non-detection indicates that more profits will be declared in the lower tax country. Also, a fall in non-detection probability will reduce the tax revenue but there is a possibility that it might raise the overall revenue collections of the government. So, the focus should not only be on tax revenue per se but on other forms of revenue collections also.Item The Relationship Between the Tax Burden and Financing Public Services: A Comparison of Ukraine and European Countries(Sumy State University, 2017) Самусевич, Ярина Валентинівна; Самусевич, Ярина Валентиновна; Samusevych, Yaryna Valentynivna; Shamaelh, A.The strategy of reforming the country’s tax system should consider the real effect that taxpayers receive in response to their tax payments, that is, the level of financing public services. The article formalizes the links between the tax burden and financing public services since multifactor dependencies using the panel regression method with fixed effects for Ukraine and 10 countries – its tax competitors (Bulgaria, Georgia, Latvia, Lithuania, Romania, the Czech Republic, Estonia, Slovakia, Moldova, Serbia). Based on the calculations, it was found that the existing level of tax burden in Ukraine is overstated, while the optimal level in 2012 was: 1) the total tax burden – 14.39-18.09% of GDP; 2) the burden on legal entities – 45.99-48.32% of the profits of enterprises; 3) the burden on individuals – 11.92-28.75% of wages. These values correspond to the actual amounts of government spendings on financing public services.Item The role of tax competition between the countries of the world and the features of determining the main tax competitors of Ukraine among the European countries(Sumy State University, 2017) Бойко, Антон Олександрович; Бойко, Антон Александрович; Boiko, Anton Oleksandrovych; Самусевич, Ярина Валентинівна; Самусевич, Ярина Валентиновна; Samusevych, Yaryna ValentynivnaThe article defines the role of the tax system, which it plays to gain competitive advantages of the country in social and economic spheres. The system of relevant taxes, characterizing the level of competition of the national tax system, is identified. Methodological basis for determining tax countries competing with Ukraine based on the cluster analysis is improved. By implementing the algorithm for establishment the European countries – tax competitors of Ukraine, firstly, potential tax competitors of Ukraine were identified, secondly, real tax competitors of Ukraine in a cluster with a similar structure of the tax system in terms of socioeconomic development were set.