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The article provides a comprehensive overview of P2P payments and tax authority concerns. It delves into the potential impact on tax revenue and political risks, offering practical ideas for tax administration. The suggestions include leveraging banking systems for P2P payments, engaging mobile operators, and motivating legalization. Furthermore, it stresses the importance of accessing electronic payment data and shifting from punitive measures to informational strategies.
The article provides a comprehensive overview of transfer pricing, including the key concepts, principles, challenges for tax authorities and methods used in international practice. It explains the conditions under which companies are considered associated and the need for transfer pricing regulations to prevent profit reallocation within a group of companies.
The article provides a comprehensive overview of key VAT fraud methods and different generations of VAT administration systems. It also introduces the concept of the 5th generation of VAT administration systems.
International standards for the exchange of tax information enable countries to establish effective cooperation in combating tax evasion and illegal tax optimization.
This article describes the goals, capabilities, and options for the implementation of financial modules that work with cash registers. Fiscal modules aim to enhance tax compliance, increase efficiency in tax administration, and ensure transparency and accountability in retail business practices. They can be implemented as hardware or software modules. Hardware modules are physical devices integrated or connected to cash registers, while software modules run on various devices. Software modules offer advantages such as flexibility, cost effectiveness, and scalability, but they also have limitations in offline operation and vulnerability to cyberattacks. DTT's software fiscal module supports fiscal data processing, storage, network interaction, and cryptography. It emphasizes the module's password protected asymmetric encryption for key protection.
Tax authorities employ various regimes and systems to regulate tax payment and reporting. One such traditional regime is the preparation and filing of tax returns. Experts, governments, and international organizations consistently engage in discussions regarding the possibility and benefits of return-free tax regimes.
Cross-border challenges have emerged for tax administrations in the tourism and hospitality industry due to the rise of international aggregators like Airbnb.com, Expedia.com, and Booking.com. These aggregators operate as non-resident taxpayers, making it difficult for local authorities to regulate and collect taxes effectively. To address this issue, implementing a systemic solution becomes crucial. Regulations can be established requiring international aggregators to pay taxes on behalf of themselves and property owners, with fiscalization technology facilitating transparency and accurate tax calculation. By streamlining tax administration, ensuring compliance, and establishing a level playing field, these measures can enhance the legality of cross-border rental property services and improve tax collection in the industry.
Over the past 20 years, local e-commerce and trade has grown to an international level. The largest companies headquartered in one country trade in dozens and hundreds of countries and employ two development strategies. The first strategy involves localization, establishing warehouses, developing local logistics, and paying taxes in the country of sale. The second option excludes local presence, with goods being shipped directly to the buyer from international warehouses or supplier warehouses through international delivery services. The tax administration faces the challenge of how to collect taxes from second-type e-commerce companies—non-resident taxpayers of the country.
The term “cash withdrawal,” or more specifically “illegal cash withdrawal,” has gained popularity in the tax authorities of former Soviet Union countries and refers to taxpayer operations aimed at understating the tax base and evading tax payments. This is the perspective of tax authorities responsible for taxes and levies. From the taxpayer's point of view, cash withdrawal operations may have additional objectives, with tax reduction being a favorable outcome. Therefore, combating cash withdrawal involves addressing all taxpayer objectives and attempts to understate the tax base.
Tax authorities around the world have been adopting electronic systems for various tax-related activities, such as filing tax returns and making tax payments. One such activity that is increasingly being digitized is the process of requesting documents from taxpayers. Instead of traditional paper-based requests, tax authorities are now allowing taxpayers to submit electronic copies of documents through their online portals. This shift towards electronic document requesting has many benefits for both taxpayers and tax authorities, including increased efficiency, improved accuracy, and reduced costs. In this article, we will explore the details of taxpayer's electronic document requesting by tax authorities, including its benefits and implementation methods.
Information exchange and communication have become critical for organizations and governments to operate smoothly in the digital age. Tax administrations require reliable and secure means for information exchange between tax officials and banks. This is critical for tax collection, combatting financial crime, and guaranteeing regulatory compliance. In this article, we will highlight the significance of an information architecture that allows tax authorities and banks to connect seamlessly. We will look at the obstacles that all sides encounter, as well as potential ways to increase the efficiency and effectiveness of this crucial process.
The agent-based retail trade, which involves intermediaries or agents who facilitate the sale of goods between buyers and sellers, has become increasingly popular in recent years. However, this type of trade presents unique challenges for tax administration, as multiple parties may be involved in a single transaction. In this article, we will explore the tax administration of the agent-based retail trade, including the role of agents, the tax implications of their services, and the challenges faced by tax authorities. We will also examine the strategies that can be employed to ensure compliance with tax regulations and promote a fair and transparent marketplace.
The rapid growth of online marketplaces has created a new entity for tax administration, as transactions take place across borders and jurisdictions. Unlike traditional brick-and-mortar stores, online marketplaces often involve multiple sellers and buyers, making it challenging for tax authorities to ensure compliance and collect revenue. In this article, we will explore the unique tax administration challenges posed by online marketplaces, including the issues of jurisdiction, tax evasion, and the need for cooperation between tax authorities and online platforms.
Tax administration promotes taxpayer compliance as well as effective and equitable revenue collection. Tax administration costs are the expenses incurred by taxpayers in order to comply with tax laws. Time and resources spent on record keeping, tax preparation, and tax risk management can all be included in these expenditures. In this article, we will look at the many forms of taxpayer costs associated with tax administration, as well as the factors that contribute to these costs. We will also examine techniques that tax authorities can employ to reduce taxpayer losses. Knowing taxpayers' costs of tax compliance can assist improve the efficacy of tax policy and reduce taxpayers' unproductive spending.
Traditional marketplaces are causing problems for tax and other government authorities. On the one hand, they facilitate unregulated trade. They also allow manufacturers to sell directly to consumers and purchasers to obtain low-cost goods. As a result, marketplaces serve a vital social function. The purpose of marketplace tax administration is to avoid the hazards of the expansion of the shadow economy while keeping the social advantages of their operation. In this article, we will look at the new approach to conventional marketplace tax administration, including the obstacles for tax authorities and three approaches for ensuring tax compliance.
In earlier articles, we explored how important financial data is for tax administration and how banks oppose giving this information on a regular basis. When we look at worldwide tax systems, we can observe that just a few countries have surmounted this barrier. So, what can the tax officials do? In this article, we will look at ways to create incentives for taxpayers to voluntarily give financial data to tax authorities.
Tax compliance may be a complex and time-consuming procedure for organizations of all sizes. Noncompliance, on the other hand, can have serious implications, including financial penalties, reputational damage, and even legal action. The concept of a circle of trusted taxpayers is one answer to this problem. In this post, we will look at the advantages of this method, as well as how it can help businesses avoid tax risks and comply with tax requirements. Members of a circle of trusted taxpayers can share information and knowledge on tax compliance and improve their overall tax governance by working together. This strategy can be especially beneficial for small and medium-sized businesses that may lack the means and knowledge to manage complex tax legislation.
Information from the banking system plays an important role in tax authorities' efforts to close the tax gap. By analyzing bank account transactions, it is possible to form a tax base and compare it with the data declared by the taxpayer. Banks are categorically opposed to tax authorities' interest in their clients' financial activities and do everything they can to prevent access to this information. In this article, we will analyze this conflict to understand why it occurs, and how to find a compromise solution.
Republicans propose a radical change in the concept of taxation, eliminating the income tax, self-employment taxes, payroll taxes, estate, and gift taxes, and replacing them with a national sales tax (consumption tax). The sales tax is much easier to administer because it is simply calculated and does not require filing tax returns by consumers of goods. Instead of solving the problem with the existing tax gap, the proposal is aiming to eliminate its source—several difficult for administering taxes. To implement this initiative, Republicans have introduced two bills...
Virtual VAT control accounts integrate the benefits of VAT control accounts with the conventional accrual-based VAT administration system without freezing taxpayers' money.
Digital Tax