Assessing VAT Compliance Burden in Gulf Cooperation Council Countries

In 2017, the Gulf Cooperation Council (GCC) member countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates (UAE)) ratified the Unified Value Added Tax (VAT) Agreement, which set out the general principles for imposing VAT and mandated each GCC member state to introduce a VAT by January 2018. Four GCC countries have so far introduced VAT, namely, Saudi Arabia, UAE, Bahrain and Oman. None of these countries possess a mature tax system. In fact, they also lack a well-defined tax culture and tax morale, and their tax administrations are not yet well developed. Thus, the introduction of VAT could give rise to a serious issue regarding VAT compliance burden. In this context, this article aims (i) to examine the new VAT in the four GCC countries, and (ii) to compare qualitatively the likely VAT compliance burden among these four countries, and relative to other VAT-imposing countries, specifically member countries of the Forum on Tax Administration (FTA). We adopt the VAT Diagnostic Tool approach, which has been developed by an Australia-based research team and applied successfully to assess VAT compliance burden in FTA countries. The findings of the article suggests that while the four GCC countries belong to the medium VAT compliance burden group, they compare very favourably with FTA countries. More specifically, they perform above the FTA average in minimising compliance burden that arises from VAT policy complexity and administration complexity, but below FTA average in terms of revenue capabilities in meeting taxpayer service and compliance needs. A small number of policy recommendations are proposed with a view to maintaining or improving the good performance of GCC countries in terms of VAT complexity. They include: (i) formal recognition of the importance of tax system simplicity; (ii) use of VAT Diagnostic Tool Factors/indicators in guiding the design or simplification of VAT policy and administration; (iii) restraint from making VAT policy and administration changes without supporting evidence, and (iv) capacity building in tax administration

An Introduction to the Special Issue on Tax Dispute Resolution

The introduction of the present issue serves a dual objective. First, it furnishes the background and context, delineates the scope, and elucidates the rationale behind the issue’s specific focus on tax dispute resolution. Secondly, it offers a concise summary overview of the subsequent four articles featured in this special issue

Kantian–Nashian interaction and petty tax corruption in developing countries

Purpose – This paper attempts to develop a simple, static model of tax administration that is capable of explaining the widespread collusive petty tax administration corruption observed in developing countries. Design/methodology/approach – This paper utilizes a positivist research framework and adopts a theoretical method of analysis, although secondary data will also be mentioned to support theoretical arguments whenever it is appropriate to do so. Findings – A high rate of collusive tax corruption is inevitable in developing countries. Research limitations/implications – The model is static and needs to be extended into a dynamic model. Practical implications – Traditional enforcement tools such as higher audits or a higher penalty regime against tax evasion do not work. Tax simplification can lessen the incidence of tax corruption. Social implications – Fighting tax corruption requires significant changes in the attitudes of taxpayers and tax auditors. Originality/value – This paper combines the literature on Kantian economics and tax compliance in an innovative fashion

Presumptive Income Taxes and Tax Compliance Costs: Policy Implications for Small and Medium Enterprises in Emerging Economies

Journal of Tax Administration Vol 8:12023Presumptive Income Taxes and Tax Compliance Costs6PRESUMPTIVE INCOME TAXES AND TAX COMPLIANCE COSTS: POLICY IMPLICATIONS FOR SMALL AND MEDIUM-SIZED ENTERPRISES IN EMERGING ECONOMIESFerry1, Christopher Charles Evans2, Binh Tran-Nam3AbstractIt has been suggested that the introduction of presumptive income tax regimes for small and medium-sized enterprises (SMEs) can help to reduce the tax compliance costs that these businesses face. Little evidence, however, is available to help us to evaluate whether this is indeed the case. This article discusses how a presumptive tax regime may impact upon the tax compliance costs of SMEs operated by individuals (individual SMEs) in Indonesia in 2019 and suggests that the use of such regimes can havea beneficial effect on such businesses. It considers all components of tax compliance costs, including explicit, implicit, and psychological costs. By applying a mixed-modes research method, two main findings are highlighted. First, the presumptive tax significantly reduces explicit costs, although it does not appear to influence the implicit and psychological costs incurred by individual SMEs in Indonesia. Secondly, the combination of explicit and implicit costs indirectly affects the psychological costs throughthe existence of tax disputes and tax stressors. Not only do the results provide us with a new understanding of aspects of tax compliance costs, they show how the components of the costs interact with each other. While the empirical application is country-specific, the conceptual framework developed in the study does not exclusively relate to taxpayers in Indonesia and can be applied to other countries or in other public regulation studies

Genetic diversity of black soldier flies in Vietnam

The Black Soldier Fly (BSF), Hermetia illucens (Linnaeus, 1758), is found in temperate and tropical regions of the world. In recent years, BSF has been cultivated as fodder in some areas of Vietnam. The genetic diversity of BSF in Vietnam has not yet been assessed. This study aimed to investigate the nucleotide diversity in COI sequences of BSF in Vietnam. We examined the COI nucleotide sequences of 22 BSFs using flies or larval tissue samples for DNA extraction and subsequent sequencing. Our analysis showed that the nucleotide composition of BSF consisted of 25.36% A, 36.04% T, 21.25% C, and 17.35% G, with a significant prevalence of A+T nucleotides of 61.40% compared to 38.60% for G+C nucleotides. Among 22 individual BSFs samples collected from ten provinces and cities, spanning seven agro-ecological regions in Vietnam, we identified 9 different haplotypes, which were distributed in five clades but mainly clustered in two main clades: E and F. Clade E, prominently represented by branch E, showed a higher abundance in Asia, while Clade F has been identified in Europe, Uganda, South Korea, Oceania and North America. Our results highlight the relatively high genetic diversity of the Vietnamese BSF population. In addition, the COI nucleotide sequences of these Vietnamese BSF samples were similar to those of Asian and Australian countries, showing significant similarities to the Palearctic and Oriental regions. These results provide valuable insights to inform BSF breeding and development in Vietnam

Comparing the Harrod-Domar, Solow and Ramsey growth models and their implications for economic policies

Purpose – The principal aim of this paper is to review three basic theoretical growth models, namely the Harrod-Domar model, the Solow model and the Ramsey model, and examine their implications for economic policies. Design/methodology/approach – The paper utilizes a positivist research framework that emphasizes the causal relationships between the variables in each of the three models. Mathematical methods are employed to formulate and examine the three models under study. Since the paper is theoretical, it does not use any empirical data although numerical illustrations are provided whenever they are appropriate. Findings – The Harrod-Domar model explains why countries with high rates of saving may also enjoy high rate of economic growth. Both the Solow and Ramsey models can be used to explain the medium-income trap. The paper examines the impact of Covid shocks on the macroeconomy. While the growth rate can be recovered, it may not always possible to recover the output level. Research limitations/implications – For the Harrod-Domar model, the public spending decreases the private consumption at the period 1, but there is no change in the capital stock and hence the production in subsequent periods. For the Ramsey model with AK production function, both the private consumption and the outputs will be lowered. In both the Harrod-Domar and Ramsey models with Cobb-Douglas production function, if the debt is not high and the interest rate is sufficiently low, it is better to use public debt for production rather than for consumption. If the country borrows to recover the Total Factor Productivity after the Covid pandemic, both the Harrod-Domar and Ramsey models with Cobb-Douglas production function show that the rate of growth is higher for the year just after the pandemic but is the same as before the pandemic. Practical implications – The economy can recover the growth rate after a Covid shock, but the recovery process will generally take many periods. Social implications – This paper focuses on economic implications and does not aim to examine social implications of policy changes or Covid-type shock. Originality/value – The paper provides a comparison of three basic growth models with respect to public spending, public debts and repayments and Covid-type shocks

Students’ Attitudes Towards Education in Biology-Related Disciplines and the Need for Internationalization : A Survey at a Vietnamese University

This survey examined the attitudes of 538 undergraduate students enrolled at a Vietnamese university towards biology-related disciplines. Employing a structured questionnaire, the study explored several aspects, including students' interests in various biology-related fields, their motivations for pursuing these disciplines, their opinions on teaching methods, their aspirations for internationalization and study abroad experiences, the essential skills they believed were crucial for success, and the areas in teaching that required improvement. The survey results indicated that students acknowledged the significance of fields such as medicine and veterinary sciences, with their motivations largely influenced by job prospects and societal needs. Moreover, the results identified specific areas in teaching that students wanted to have improvement, such as laboratory work, practical skills development, fieldwork experiences, and exchange programs, and their attitude towards internationalization and study abroad opportunities, in relations to the factors such as age, gender, grade, and major. The insights gained from this survey can contribute to the enhancement of educational strategies and the creation of an engaging learning environment for students majoring in biology-related disciplines

Do perceptions of corruption influence personal income taxpayer reporting behaviour? Evidence from Indonesia

This paper addresses an identified gap in knowledge about whether, and how, perceptions of corruption may influence personal income taxpayer compliance behaviour. It examines how perceptions of five forms of corruption may impact upon intentional tax underreporting behaviour by adopting a sequential mixed-methods approach. Initially, a qualitative phase was carried out by conducting semi-structured in-depth interviews with nine participants (three taxpayers, three tax agents and three tax officers). The secondand corephase of the research involved extensive data collection using a mixed-modes field survey conducted through 12 tax offices across four Indonesian regions. A total of 397 respondents were surveyed, comprising 196 self-employed and 201 employed taxpayers. Three principal findings have emerged from the data. First, as expected, the data from both the qualitative and quantitative phases suggest that high levels of perceived corruption were evident in Indonesia. Second, the quantitative findings clearly demonstrate that perceptions of corruption undermine taxpayers’ intention to report actual income. Third, the findings ultimately suggest that high levels of perceived general corruption (that is, abuse of entrusted power by public officials for private gain), grand corruption (that is, corruption involving high-level public officials) and grand tax-corruption (that is, corruption involving high-level tax officials) were influential on intentional tax underreporting behaviour. The present empirical results support the notions that perceptions of corruption are important determinants and have a negative impact upon tax compliance behaviour. The results also imply that combating corruption, especially grand corruption, would have a beneficial effect on voluntary tax compliance in Indonesia.https://www.business.unsw.edu.au/research/publications/atax-journalam2016Taxatio

Students’ Perceived Well-Being and Online Preference : Evidence from Two Universities in Vietnam during COVID-19

University education is still being impacted two years after the COVID-19 outbreak. We performed a rapid survey in February 2022 at two public universities in Vietnam to examine the effects of the pandemic on well-being and the factors that may associate with online class preference among university students as well as to investigate the need for support to improve resilience. A web-based survey included 1589 undergraduate students in total. Both quantitative and qualitative data analysis was carried out. Overall, approximately a quarter of respondents said that they perceived an influence on their health, 42.9% expressed stress, and more than 70% reported worrying about the future. In total, 61.9% of the respondents reported having satisfaction with online classes, while over half of them preferred a program of 50% online classes. Students who live in an urban area, are female, have had pre-COVID-19 campus life experience, have decreased income, and/or experience low online satisfaction and over-information may be in need of more support. The results show implications for universities to consider policies addressing well-being and post-pandemic online education. Providing support to university students to improve their resilience against the impact on their studying, campus life, health, and well-being should be prioritized during and post-pandemic