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Business and Economics > Investments: Stocks

You are looking at 1 - 4 of 4 items for :

  • Type: Journal Issue x
  • Tax Evasion and Avoidance x
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Cover IMF Working Papers
Digitalization to Improve Tax Compliance: Evidence from VAT e-Invoicing in Peru
Mr. Matthieu Bellon
,
Jillie Chang
,
Ms. Era Dabla-Norris
,
Salma Khalid
,
Frederico Lima
,
Enrique Rojas
, and
Pilar Villena
This paper examines the impact of e-invoicing on firm tax compliance and performance using administrative tax data and quasi-experimental variation in the rollout of VAT electronic invoicing in Peru. We find that e-invoicing increases reported firm sales, purchases and value-added by over 5 percent in the first year after adoption. The impact is concentrated among smaller firms and sectors with higher rates of non-compliance, suggesting that e-invoicing enhances compliance by lowering compliance costs and strengthening deterrence. The reform’s positive effects on tax collection are hindered by shortcomings in the VAT refund mechanism in Peru, suggesting that digital tools such as e-invoicing should be complemented by other reforms to improve revenue mobilization.
Keywords:
WP; firm; VAT; authority; electronic invoicing; tax compliance; digitalization; VAT collection; firm size interaction term; VAT liability; VAT credit; construction firm; VAT payment; Value-added tax; Credit; Tax administration core functions; Tax return filing compliance; Stocks; Caribbean
Cover IMF Working Papers
Debt, Taxes, and Banks
Mr. Michael Keen
and
Ruud A. de Mooij
Understanding the impact of the asymmetric tax treatment of debt and equity on the capital structures of financial institutions is critical to shaping and assessing responses to the problem of excessive leverage that underlay the 2009 financial crisis - but there is no empirical evidence to draw on. Guided by a simple model of banks? financing decisions in the presence of both regulatory constraints and tax asymmetries, this paper explores the impact of corporate tax bias on bank leverage, the use of hybrid instruments and regulatory capital ratios for a panel of over 14,000 commercial banks in 82 countries over nine years. On average, the sensitivity of banks? debt choices proves very similar to that of non-financial firms, consistent with rough offsetting of two opposing effects suggested by the theory. As the model predicts, somewhat counter-intuitively, the impact of tax on hybrids is generally weak or insignificant. Responsiveness to taxation varies significantly across banks, however: those holding smaller equity buffers, and larger banks, are noticeably less sensitive to tax.
Keywords:
WP; capital structure; tax rate; Bank taxation; corporate tax; debt bias; leverage; capital requirement; leverage-asset ratio; bank assets; capital structure choice; bank capital structure; Corporate income tax; Capital adequacy requirements; Stocks; Deposit insurance; Tax arrears management; Europe
Cover IMF Working Papers
Securities Transaction Taxes and Financial Markets
Mr. Karl F Habermeier
and
Mr. Andrei A Kirilenko
This paper argues that securities transaction taxes "throw sand" not in the wheels, but into the engine of financial markets where the transformation of latent demands into realized transactions takes place. The paper considers the impact of transaction taxes on financial markets in the context of four questions. How important is trading? What causes price volatility? How are prices formed? How valuable is the volume of transactions? The paper concludes that transaction taxes or such equivalents as capital controls can have negative effects on price discovery, volatility, and liquidity and lead to a reduction in the informational efficiency of markets.
Keywords:
WP; informational efficiency; price discovery; equity trading; securities transaction taxes; capital controls; transaction volume; round-trip transaction; transaction price volatility; market liquidity; market microstructure study; derivative transaction; securities transaction tax; market participant; Transaction tax; Stocks; Asset prices; Options; North America
Cover IMF Working Papers
Tax Credits for Debt Reduction: A Proposal
International Monetary Fund
The incentives for domestic investment in debtor countries are influenced by the terms of their external obligations and by the system of taxation utilized to provide government revenue for debt payments. It is well known that existing debt contracts could be altered to improve the incentives for investment but this has proven difficult to accomplish, perhaps because individual creditors have incentives not to agree to such changes. In this paper we show that a simple tax credit scheme that can be implemented unilaterally by the debtor government can overcome at least some of the inefficiencies caused by existing debt contracts.
Keywords:
WP; debt forgiveness; marginal revenue