Incidence of the WTO Anti-Discrimination Rules on Corporation Income Taxation

Many countries with free trade zones or export processing zones now exempt from corporate income taxation the income of firms exporting from these areas. The WTO has attempted to eliminate this exemption through its rules to promote the non-discrimination of fiscal systems with respect to export production. In particular, these rules do not allow countries to exempt the income of firms exporting from Free Trade Zones from corporate income taxation. This paper examines both theoretically as well as empirically the incidence of removing this corporate income tax exemption. The empirical analysis is carried out for the case of the Dominican Republic. The findings indicate that in the case of the Dominican Republic the removal of the corporate income tax exemption would inflict a burden on labour equal to about 6 times the amount of additional corporate tax revenue collected from the companies operating in its free trade zones.WTO, tax incidence, Free Trade Zones, corporate taxation

Regulation and Taxation of Casinos under State-Monopoly, Private Monopoly and Casino Association Regimes

This paper considers alternative forms of regulation and taxation of the casino sector. The model considers the situation of a typical tourist destination country that is using casinos to attract and entertain foreign tourists. The objective is to invest in the sector efficiently while maximizing the amount of government revenue or profits accruing to the country. The regulator must determine how the price of gambling will be set, how many casinos will be allowed to enter the industry and the form and rates of taxation. Four alternative forms of regulation are considered: price regulation, state-owned monopoly, private monopoly and casino association regulation. Turnover taxes on the amount of funds gambled and also annual taxation of the fixed costs of the casinos are evaluated. Applications of the models are carried out for North Cyprus. The conclusion is that the economic efficiency costs and the revenue losses from the absence of effective regulation in these tourist destinations can be very substantial with welfare costs equal to the approximately 75 percent of the tax revenue generated by this sector. Furthermore it shows that while a tax on turnover can be efficient in the case of a competitive industry or a cartel association form of regulation, it will be distortionary if a multi-plant private monopoly is controlling the sector. In contrast a tax on fixed costs will lead to an efficient result in the case of a competitive industry, but it will lead to economic inefficiencies if the sector is regulated by a casino association that controls the number of casino entering the sector.Casino regulation, taxation, state-monopoly, welfare cost

Migration from Turkey and the Uncertainty of the Accession of Turkey to the EU

There is a fear that, if Turkey were given admission to the EU, massive migration to the other member countries of the EU would result. This paper develops a theoretical framework for the migration decision that takes into consideration the impact on uncertainty of some of the important economic and social variables that are addressed by the EU membership and institutions. It emphasizes future expectations of living conditions and the level of uncertainty associated with them as a key variable in making migration decisions. It suggests that the more prosperous and stable Turkey is expected to be in the future, the less likely a person will now want to migrate. Hence, the greater certainty now that Turkey will gain admission in to EU, the more attractive is it for potential migrants to remain in Turkey. This framework suggests that measures to hinder Turkey's entry into the EU by having national referendums to approve its entry will increase the uncertainty of the future economic and social prospects in Turkey and will encourage migrants to migrate now to the member countries of the EU.Turkey, Migration, Uncertainty, Accession, European Union

Is the Value Added Tax Naturally Progressive?

A broad based consumption tax, such as a value added tax, is generally considered to be a regressive tax. This conclusion, however, has not taken into account the fact that in developing countries the commodities on which poor households spend most of their income, even if they are included in the legal tax base, are administratively impractical to tax. This paper employs a rich data set on household incomes and expenditures for the Dominican Republic. The data set covers 2042 goods and services purchased by households of different income and consumption levels. It also contains information on the type of establishment from which the items were purchased. With this information, we estimate the effective rate of tax that has been paid on each item purchased by households. These estimations include the effect of the different rates of the tax compliance across households with different expenditure levels. The results of the study show that the burden of the current VAT in the Dominican Republic is progressive over all the quintiles of household expenditure. Furthermore, if the base of the VAT is made comprehensive, the estimated incidence of the burden of the VAT is still progressive over all the quintiles of household expenditure.Value Added Tax, incidence, compliance

Informal but not Insignificant: Unregistered Workers in North Cyprus

The size of the informal labour force and its contribution to the national income of North Cyprus has been an issue of considerable controversy and political significance. Because of the relatively free movement of labour between Turkey and North Cyprus, a significant body of unregistered workers have accumulated in North Cyprus. The findings are that from 1996 to 2000 the informal employment is between 35 to 40 per cent of the total labour force. Because not all the informal sectors production is excluded from the official national income statistics, the understatement of the official statistics is estimated to be between 12 to 17 percent of GNP. The fiscal losses are estimated to be about 9 percent of total tax revenues and a loss of social security revenues is approximately 38 per cent of the total annual contributions.Cyprus, informal sector, informal labour force, fiscal losses, unrecorded income, underground economy

Regulation and Taxation of Casinos under State-Monopoly, Private Monopoly and Casino Association Regimes

This paper considers alternative forms of regulation and taxation of the casino sector. The model considers the situation of a typical tourist destination country that is using casinos to attract and entertain foreign tourists. The objective is to invest in the sector efficiently while maximizing the amount of government revenue or profits accruing to the country. The regulator must determine how the price of gambling will be set, how many casinos will be allowed to enter the industry and the form and rates of taxation. Four alternative forms of regulation are considered: price regulation, state-owned monopoly, private monopoly and casino association regulation. Turnover taxes on the amount of funds gambled and also annual taxation of the fixed costs of the casinos are evaluated. Applications of the models are carried out for North Cyprus. The conclusion is that the economic efficiency costs and the revenue losses from the absence of effective regulation in these tourist destinations can be very substantial with welfare costs equal to the approximately 75 percent of the tax revenue generated by this sector. Furthermore it shows that while a tax on turnover can be efficient in the case of a competitive industry or a cartel association form of regulation, it will be distortunary if a private monopoly is controlling the sector. In contrast a tax on fixed costs will lead to an efficient result in the case of a competitive or private monopoly cases, but it will lead to allocate inefficiencies if the sector is regulated by a casino association that can only control the number of casino entering the sector.Casino regulation, taxation, state-monopoly, welfare cost

The Economics of Casino Taxation

In this paper, a model of the costs of a casino is developed that focuses on the implications for economic welfare of different taxation schemes for casinos. The situation being considered is in a country where casinos cater exclusively to foreign tourists. The goal of the country is to determine the maximum amount of taxes that can be extracted from the activities of this sector under different systems of taxation. When the price of gambling is set by regulation above its competitive level, the economic losses created by excessive investment in the sector can be reduced by taxation. A turnover tax on the amount gambled can maximize both tax revenue and the economic welfare of the country. Due administrative constraints, a number of countries rely on the taxation of the casinos’ fixed assets or a combination of a turnover tax and a tax on fixed costs. The model is applied to the situation in North Cyprus. The annual economic efficiency loss from its poorly designed tax policies on casino gambling is estimated to be about 0.5 percent of GDP.Casino, taxation, gambling, tourism, economic benefit

Individual Code Reviews to Improve Solo Programming

Programming is a difficult subject for many students and therefore a popular topic in computing education research, with extensive research into the teaching and learning of programming (Sheard et al., 2009).Peer code reviews (or code inspections,) have been successfully applied to the teaching of programming (Hundhausen et al., 2009, Trytten, 2005, Wang et al., 2008). Code reviews can also be applied in a individual context as in the Personal Software Process (PSP) (Humphrey, 1997). Making the review process individual eliminates the problems associated with group and pair work as the student is working alone. The aim of this research is to ascertain whether individual code reviews based on checklists (like those used in PSP (Humphrey, 1997) and during formal code inspections in industry (Sommerville, 2007),) with minimal reporting can be used to improve solo programming.The results shown an increase in performance however this is not statistically significant possibly due to the small sample size

Can Individual Code Reviews Improve Solo Programming on an Introductory Course?

Peer code reviews have been successfully applied to the teaching of programming and can be applied to solo programming. Collaborative approaches are currently popular and have been successfully applied though social interaction and assessment issues limit their application. It is believed that a checklist based individual code review can provide a framework which allows students to proofread their code prior to submission, improving performance. Pilot and follow-up studies were conducted at Swansea Metropolitan University and although the results are inconclusive some important observations are made with regards to the use of this technique. Further study into the effects of individual code reviews on student performance is recommended