Архив статей журнала
The current hottest issue in Indonesia is the small amount of Land and Building Tax (LBT) revenue at the national and local levels. This research aims to find a valuable model for increasing LBT revenue for the government by formulating ideal clauses and determining what policies should be implemented. This research aims to reveal the practice of tax avoidance and evasion on LBT tax objects, which causes LBT income to stagnate yearly, and find a solution by mapping actual conditions and forecasting the next ten years using a system dynamics model. The research question is why LBT makes a small contribution to total state revenue, even though the object and what are the solutions to increase LBT income in the future. The research methodology uses quantitative methods supported by qualitative analysis using dynamical system modeling. This modeling makes it possible to predict increases in tax revenues by considering several variables that cause LBT revenues to stagnate. The findings of this study show that LBT revenues will proliferate compared to revenues in the initial year of the simulation if intervention is carried out by reducing tax avoidance and tax evasion, increasing tax compliance, and the value of the income growth ratio per tax object. This study found nine actors essential in increasing property taxes in Indonesia: civil officials, tax officials, tax authorities, notaries, large companies, state and regional-owned enterprises, sellers, and buyers of property. In conclusion, the government needs to improve the tax collection system and implement various strategies, including increasing the role of notaries to prevent tax evasion in housing.
The article examines recent trends in tax level and structure changes within developed and developing economies in relation to economic growth. The study’s significance stems from increasing geo-economic turbulence and emerging risks in the global economy, necessitating fiscal regulation. The analysis spans the period from 2009, post the Great Recession, to the present day.
We tested the hypothesis that discernible patterns could be identified through statistical analysis regarding the relationship between tax indicators (level and structure) and economic growth indicators. However, no such clear patterns were found. In essence, it cannot be definitively concluded that reduced tax levels and/or increased indirect tax shares do explicitly foster national economic growth. Tax impact on economic growth varies significantly across developed and developing economies, presenting a complex and nuanced picture. The nature and strength of this influence are largely shaped by the specific circumstances of each location and period. In order to identify their unique impact, counterfactual analysis is required.
In the course of further research, it is important to consider, firstly, the increased fiscal activism of the post-pandemic period: in this case, the research outcomes may be different from those obtained for the period already examined. Secondly, considering the ongoing processes of geo-economic fragmentation, it is recommended to reexamine the influence of taxes on economic processes. This investigation should adhere to the evolving framework of new macro-regions worldwide, rather than the conventional dichotomy of developed and developing economies. Participants within these macro-regions, interconnected through supply and value chains, will
need to work together to align their tax rules and policies for mutual benefits.
Technological developments have fostered cross-border e-Commerce transactions. This study aims to reconstruct the concept of the meaning of physical presence in the criteria for identifying foreign individuals and foreign entities as permanent establishments. Reconstruction uses the terminology of physical presence, which is adjusted to the presence of a new post-pandemic order, namely maintaining distance in certain situations. The term maintaining distance is translated as the distance between foreign individuals, foreign entities, and service users. This study proposes a reconstruction of the concepts of physical presence, the subject of permanent establishments, and the objects of permanent establishments. The concept of Significant Economic Presence is relevant to the fulfilment of three criteria: revenue, digital, and user. The reconstruction of permanent establishments involves determining the digital and user aspects. Reconstruction of permanent establishments involves determining the digital aspect of income. This study proves the hypothesis that the addition of Significant Economic Presence criteria to the determination of permanent establishments in e-commerce transactions increases the fairness of taxation rights in the source country. Therefore, it is necessary to review the determination of permanent establishments, especially e-commerce transactions, which are not limited to a physical presence with a wider scope through revenue, digital, and user criteria. This study makes a theoretical contribution to the significance of economic presence by replacing the meaning of the physical presence of a permanent establishment. Thus, the potential for permanent establishment taxation is not limited to the potential value-added tax but can also be on the potential income tax.