The impact of thin capitalization rule on tax avoidance in Indonesia

Research aims: This study aims to investigate the impact of the thin capitalization rule on tax avoidance in Indonesia.Design/Methodology/Approach: The analysis used event study regression to overcome the problem of committed variable bias. Research findings: The examination found that, over the entire period, the thin capitalization rule could reduce tax avoidance. However, this study also uncovered that even though tax avoidance was reduced, the company did not pay the tax in the current year but postponed it to the following years. In addition, this study revealed that the thin capitalization rule could only reduce tax avoidance for a sub-sample of non-manufacturing companies. As for manufacturing companies, the thin capitalization rule had no impact on tax avoidance.Theoretical contribution/Originality: This research is the first to examine the impact of the thin capitalization rule on tax avoidance using a suitable method, i.e., event study regression with a staggered setup.Practitioner/Policy implication: This study can show that the thin capitalization rule works well for non-manufacturing companies. However, for manufacturing companies, the Indonesian tax authorities need to consider other ways to reduce their tax avoidance, for example, by creating or updating other specific anti-tax avoidance rules, such as transfer pricing or treaty shopping

Fiscal Consolidation Strategy: Phased vs. Direct, Which is Better?

This research aims to examine the impact of fiscal consolidation on the US economy. Since COVID-19 caused the government to cut expenditures due to higher health and business incentive expenditures, fiscal consolidation is required. The analysis is divided into three parts. First, we assume that the decrease in government expenditure is accomplished in the first year. Second, we suppose that government expenditure is progressively reduced, by 0.25% in the first year, 0.50% in the second year, 0.75% in the third year, and 1% in the fourth year. The last scenario predicts that the rest of the globe will follow fiscal consolidation. Following the investigation, we can conclude that fiscal consolidation has a significant long-term influence on the economy. Even while real GDP is declining in the near term, reductions in government expenditure may enhance real GDP in the long run. Based on the comparison of the first and second scenarios, we can conclude that gradual fiscal consolidation is preferable since real GDP does not fall immediately in the first year. Furthermore, we know that the impact of fiscal consolidation in the third scenario is not as favourable as in the first and second scenarios regarding real GDP. As a result, we may assume that the fiscal consolidation policy will be less successful if other nations follow it

PRICE WAR: AN EMPIRICAL STUDY IN INDONESIAN MARKETPLACE

The goal of this research is to create a price war model for the Indonesian market and examine actual data from price competition in the country (Shopee Indonesia). According to the Bertrand basic model, if two sellers have similar cost structures and offer homogenous items, the seller must establish a price at marginal cost and cannot change it. The company will be unable to sell its own items if the price is raised. The Bertrand model for differentiated products then demonstrates that if the differentiated commodities are comparable, the price choice is influenced by the cost structure. If a company's cost structure is consistent, the price set will be consistent as well. Empirically, it is difficult to locate suppliers that match the Bertrand basic model's criteria, particularly when it comes to the same cost structure. However, empirical evidence shows that price wars occur in homogenous product marketplaces, even when prices are not same owing to cost structure variations. In a differentiated product market, on the other hand, the pattern of price fluctuations tends to vary from one another

Perbandingan Insentif Pajak Indonesia, Malaysia, dan Singapura dalam Kondisi Pandemi Covid-19

COVID-19 pandemic which caused state revenues, especially tax revenues in Indonesia to be hampered. This is also experienced by Indonesia's neighboring countries, namely Malaysia and Singapore. Therefore, the governments of Indonesia, Malaysia, and Singapore overcome these problems by issuing fiscal policies including policies on tax incentives. This study aims to compare the tax incentives in Indonesia with Malaysia and Singapore during the COVID-19 pandemic. The data collection method used is descriptive research method in the form of literature study. The results of the study show that Indonesia, Malaysia, and Singapore have similarities and differences in terms of providing tax incentives. What the three countries have in common is that they have the same concern for the empowerment of Small Micro Business (SMEs) and individual income. Then the difference is seen in terms of the approach of the governments of the three countries in providing tax incentives. Singapore has a tax system that is already quite competitive and business-friendly, there will be no fundamental changes to Singapore's tax rates due to the COVID-19 pandemic. Indonesia and Malaysia, which pay attention to changes in rates from various sectors in providing tax incentives. Pandemi covid-19 yang menyebabkan penerimaan negara terutama penerimaan perpajakan di Indonesia terhambat. Hal tersebut juga dialami oleh negara tetangga Indonesia yaitu Malaysia dan Singapura. Maka dari itu, pemerintah Indonesia, Malaysia, dan Singapura mengatasi permasalahan tersebut dengan mengeluarkan kebijakan fiskal termasuk kebijakan mengenai insentif perpajakan. Penelitian ini bertujuan untuk mengetahui perbandingan insentif perpajakan di negara Indonesia dengan negara Malaysia dan Singapura dalam kondisi pandemi covid-19. Penelitian ini menunggunakan studi kepustakaan deskriptif. Hasil penelitian menunjukkan bahwa Indonesia, Malaysia, dan Singapura memiliki persamaan dan perbedaan pemberian insentif perpajakannya. Persamaan dari ketiga negara tersebut ialah memiliki perhatian yang sama akan pemberdayaan Usaha Kecil Mikro (UKM) dan penghasilan individu. Perbedaannya adalah terlihat dari segi pendekatan pemerintah ketiga negara tersebut dalam memberi insentif perpajakannya. Singapura memiliki sistem perpajakan yang sudah cukup kompetitif dan ramah bisnis. Tidak ada perubahan mendasar pada tarif perpajakan Indonesia dan Malaysia memperhatikan perubahan tarif dari berbagai kalangan sektor dalam memberikan insentif

INTEGRASI PAJAK DAN ZAKAT DI INDONESIA

Pemungutan dan pengelolaan zakat saat ini dilakukan oleh Badan Amil Zakat Nasional dan dibantu oleh Lembaga Amil Zakat yang didirikan masyarakat. Hal ini tentu menjadi permasalahan karena seharusnya pemerintah lah yang berkewajiban untuk melakukan pemungutan dan pengelolaan zakat. Kemudian dalam pengelolaannya pun dana zakat masih belum dikelola dengan baik, bahkan terkesan terdapat suatu bidang yang dibiayai baik oleh zakat maupun oleh pajak. Hal ini disebabkan oleh belum terintegrasinya sistem pajak dan zakat di Indonesia baik dalam pemungutannya maupun pengelolaannya. Penelitian ini menunjukkan bahwa terdapat beberapa belanja pemerintah yang dapat dibiayai oleh zakat sehingga dengan pemungutan dan pengelolaan zakat yang lebih baik, mengakibatkan adanya perbaikan dalam defisit anggaran pemerintah dan saldo utang pemerintah yang semakin berkurang. Selain itu, penelitian ini memberikan usulan mengenai integrasi sistem pemungutan pajak dan zakat di Indonesia serta bagaimana hubungan antara zakat dan pajak dalam hal kewajiban pemenuhannya yang terutang kepada seseorang atau suatu badan yang sama

ANALISIS KOMPARASI KEBIJAKAN PERPAJAKAN TRANSAKSI E-COMMERCE YANG BERLAKU DI INDONESIA DENGAN NEGARA LAIN (UNI EROPA, AUSTRALIA, KOREA SELATAN, INDIA, TIONGKOK, AMERIKA SERIKAT, DAN JEPANG)

Indonesia mengalami peningkatan pengguna platform e-commerce yang mengakibatkan pendapatan naik bagi penjual, baik perseorangan maupun badan, yang melakukan transaksi penjualan secara online. Oleh karena itu, pemerintah Indonesia menetapkan kebijakan perpajakan bagi penjual online. Namun, pemerintah Indonesia masih memiliki beberapa kendala, salah satunya adalah transaksi e-commerce memiliki sifat tanpa batas. Untuk menjawab permasalahan tersebut, penulis melakukan perbandingan kebijakan perpajakan atas transaksi e-commerce yang berlaku di Indonesia dengan kebijakan perpajakan atas transaksi e-commerce yang berlaku di negara lain, yaitu Uni Eropa, Australia, Korea Selatan, India, Tiongkok, Amerika Serikat, dan Jepang. Metode penulisan yang digunakan penulis adalah metode studi pustaka. Hasil dari penulisan karya tulis ini menunjukkan bahwa kebijakan perpajakan atas transaksi e-commerce di Indonesia, Uni Eropa, Australia, Korea Selatan, India, Tiongkok, Amerika Serikat, dan Jepang memberlakukan Pajak Pertambahan Nilai (PPN) atau sejenisnya, seperti pajak konsumsi atas barang dan jasa serta pajak penjualan, dan Pajak Penghasilan (PPh). Selain itu, terdapat beberapa negara yang membuat platform atau tim khusus untuk mengelola pajak dari transaksi e-commerce, yaitu platform Mini One Stop Shop (MOSS), sekarang disebut OSS (Uni Eropa); Korean Fair Trade Commission (KFTC) (Korea Selatan); Professional Team for E-Commerce Taxation (Protect) (Jepang). Oleh Karena itu, Indonesia perlu mencontoh Uni Eropa, Korea Selatan, dan Jepang dalam hal pembentukan sistem atau tim yang dikhususkan untuk mengelola pemungutan pajak dari transaksi e-commerce

Potential Security Issues in Implementing IaaS and PaaS Cloud Service Models

As the digital world evolves, so does potential problem that computer users encounter. Cybersecurity threats are still evolving and expanding. Unfortunately, most computer users do not understand this properly. The cloud models offered by various public cloud providers remain concentrated on infrastructure resources, application platforms, and software services despite the recent increase in the popularity of cloud computing. The first step in this study will be a literature review to get an understanding of accessible cloud service models. The papers chosen for the study spans 2010 to 2020. All data was gathered from pertinent and related literature on cyber security and cloud computing. The following tenets serve as the foundation for this architecture. First, in the described architecture, the perimeter scanner serves as the first entry point for external cyberattacks. Firewall and other security layers become next barriers if the attack can get past first layer. On the other side, the machine learning system will detect every successful assault that gets past the security layers. As a result, there are numerous viewpoints and categorization systems for diverse attacks. It is possible to advance cyber security research in the context of cloud technology by merging the results of existing studies and developing international guiding standard

Is Fiscal Decentralization a means to Poverty Reduction?

The number of poor people in West Kalimantan is still in the second highest position among the provinces in Kalimantan the poverty level in six districts is above the national poverty level. The research aims to determine the impact of fiscal decentralization which is proxied by the General Allocation Fund, education which is proxied by the Average Years of Schooling, and Economic Growth on the number of poor people in the District/City of West Kalimantan Province. This research uses secondary data from 2010-2022. The novelty of this research is the use of the General Allocation Fund variable which is regional income from central transfers. Previous researchers have rarely used the General Allocation Fund variable to see the relationship between transfer funds and poverty alleviation efforts in West Kalimantan Province. In the future, more attention will be paid to the allocation and use of the General Allocation Fund so that it will have an impact on overcoming poverty and using quantitative analysis with panel data regression method, Fixed Effect Model (FEM) approach. The research results found that the general allocation fund variable had a significant and positive effect on the number of poor people. the variable average length of schooling has a significant and negative effect on the number of poor people, and economic growth has an insignificant and positive effect on the number of poor people in the District/City of West Kalimantan Province. The results of this research are the basis for consideration of the West Kalimantan Provincial government policy to eradicate poverty which is carried out thoroughly and comprehensively through the government's role in the form of strengthening fiscal decentralization and improving economic performance in each Regency/City area of ​​West Kalimantan Province.The number of poor people in West Kalimantan is still in the second highest position among the provinces in Kalimantan the poverty level in six districts is above the national poverty level. The research aims to determine the impact of fiscal decentralization which is proxied by the General Allocation Fund, education which is proxied by the Average Years of Schooling, and Economic Growth on the number of poor people in the District/City of West Kalimantan Province. This research uses secondary data from 2010-2022. The novelty of this research is the use of the General Allocation Fund variable which is regional income from central transfers. Previous researchers have rarely used the General Allocation Fund variable to see the relationship between transfer funds and poverty alleviation efforts in West Kalimantan Province. In the future, more attention will be paid to the allocation and use of the General Allocation Fund so that it will have an impact on overcoming poverty and using quantitative analysis with panel data regression method, Fixed Effect Model (FEM) approach. The research results found that the general allocation fund variable had a significant and positive effect on the number of poor people. the variable average length of schooling has a significant and negative effect on the number of poor people, and economic growth has an insignificant and positive effect on the number of poor people in the District/City of West Kalimantan Province. The results of this research are the basis for consideration of the West Kalimantan Provincial government policy to eradicate poverty which is carried out thoroughly and comprehensively through the government's role in the form of strengthening fiscal decentralization and improving economic performance in each Regency/City area of ​​West Kalimantan Province

PENGARUH TAX AVOIDANCE RISK TERHADAP CASH HOLDING POLICY PERUSAHAAN DI INDONESIA

This study aims to determine the effect of Tax Avoidance Risk to Cash Holding Company Policy in Indonesia. Tax Avoidance Risk is measured by Cash Effective Tax Rate proxy and Cash Holding Policy is measured by Cash Ratio proxy (cash and cash equivalent divided by total asset or total sales). Based on regression with random effect model on 74 samples, we found that Tax Avoidance Risk has no effect on Cash Holding Policy after controlled by market to book ratio variable, firm size, leverage, capital expenditure, volatility ofcash flow, dividend, research and development , Acquisitions, cash flow after tax, and industrial sector. Keywords : Tax Avoidance, Cash Holding Policy, Tax Aggressiveness, Cash ET