The article is a review of the current theoretical achievements in the context of the discussion on the shape and validity of the property tax reform in Poland, indicated in the endogenous development of municipalities. The conclusions contained in the article are an attempt to join in a scientifi c discussion on the subject of property taxation. They constitute a proposal of formulated recommendations necessary from the point of view of legitimacy of collecting property taxes and the implementation of the new system of ad valorem tax.
We calculate the dynamics of tax evasion within a multi-agent econophysics model which is adopted from the theory of magnetism and previously has been shown to capture the main characteristics from agent-based based models which build on the standard Allingham and Sandmo approach. In particular, we implement a feedback of public goods provision on the decision-making of selfish agents which aim to pursue their self interest. Our results imply that such a feedback enhances the moral attitude of selfish agents thus reducing the percentage of tax evasion. Two parameters govern the behavior of selfish agents, (i) the rate of adaption to changes in public goods provision and (ii) the threshold of perception of public goods provision. Furtheron we analyze the tax evasion dynamics for different agent compositions and under the feedback of public goods provision. We conclude that policymakers may enhance tax compliance behavior via the threshold of perception by means of targeted public relations.
This paper aims to investigate the impact of exogenous fiscal policies on the Indonesian main macroeconomic indicators and the implications on different institutions and sectors in the economy using the static Computable General Equilibrium (CGE) analysis. Three simulations are conducted in order to analyze the expansion of exogenous public spending. The results revealed that the increase of government expenditure on goods under the adjusted government deficit and balance of payment generates the highest improvement on Indonesian GDP but resulting an increase in government deficit. In contrast, under financing scheme of either lowering subsidy rates across activities or increasing the ad valorem tax rates would result in lower improvement on Indonesian GDP. This is because it directly escalates the cost of production and thus increases the prices of final goods purchased by the households which result in a fall in their real consumption and in turn eventually could lead to a decrease in national income.
When considering tax reporting, taxpayers have an individual attitude towards the risk of being caught evading taxes by the tax authorities. This attitude is interdependent with how this inherent risk is perceived. We propose to analyse this phenomenon through a risk perspective by adding a risk attitude and corresponding perceived probability of being caught evading. In this paper, we study the dynamics of tax evasion under risk perception and attitude, and the consequent propensity of imitators to evade or to comply. Under this proposal, we conduct our experiments through a multi-agent based simulation. Simulation results suggest first that the risk attitude, in conjunction with perceived risk and its consequences are the main reasons to guarantee a low level of tax evasion. Secondly, results also demonstrate a non-linear impact of tax rate, investment interest rate and fines which is especially interesting and non-intuitive.
The extraction of mineral deposits is usually charged with additional taxes or royalty fees that go beyond the general income tax. As a rule, countries prefer stable sources of fiscal revenues based on the volume of raw material extraction, and investors prefer models based on profit tax, i.e. taking operating costs and risks lower than the expected profitability of the project into account. As a rule, too high a burden for the mining sector affects investors’ decisions regarding the introduction of new investments. There are a number of examples where excessive fiscal burdens force investors to move to countries with more favorable tax systems. An analysis of various forms of taxation of mining enterprises around the world has been presented and compared with the system implemented in Poland. Usually, the countries that apply the royalty fee in the mining sector at the same time introduce a number of adaptation mechanisms. This is crucial for new investments due to the fact that they may to some extent compensate for the high costs of transition from the investment to the operational phase. In most cases, several incentive mechanisms are used at the same time, e.g. the accelerated settlement of investment expenditures and the unlimited settlement of losses. The copper and silver mining tax introduced in Poland increased the discounted effective tax rate (ETR) from 38.5% to 89% for the entire investment period, which resulted in a 11-year return on investment, as well as a drop in the internal rate of return (IRR).There are currently no mechanisms in Poland which would balance the burden of this tax for a new investor. In order to balance the extraction tax for certain minerals in terms of the IRR and ETR key indicators, the introduction of several adaptation mechanisms has been proposed. For new investments the most essential mechanism is the preferential settlement of capital expenditures incurred in the pre-production phase of an investment. The others include accelerated amortization, the ability to deduct certain expenses for the exploration phase from the tax base, along with an extended tax loss settlement period, or a mechanism for deducting a certain percentage of investment expenses directly from the tax.
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