Ad Valorem Tax

The Goods and Services Tax (GST) was introduced in Australia in July 2000 modelled on the European Union's value-added tax (VAT) system at a relatively lower and flat rate of 10%. In recent years, debate over the efficacy of the GST, and the tax system in general, has intensified. This paper analyses the economics of alternative tax policy scenarios for the purpose of informing the tax debate in Australia. Our analytical framework applies a dynamic computable general equilibrium model of the Australian economy that has been specifically designed for policy analysis.

We estimate the marginal excess burden of the GST and its components. Our results show that the GST is highly distortionary in its treatment of intermediate inputs and investment, but is efficient as applied to household consumption. We also estimate the general equilibrium effects of changes to the GST base and rate, and its removal from investment. The general equilibrium estimates support the marginal excess burden estimates. Our results suggest that the efficiency of the GST could be improved by broadening the consumption base or removing it from investment. Simply increasing the GST rate would be welfare decreasing.

This paper focuses on tax evasion and tax avoidance in Iceland, and on how special interest groups have shaped the taxation system to serve their own ends. The period covered is from 1930, when the present Icelandic system of power was established, to the present. Tax evasion is sometimes an intended, and other times an unintended response to taxation.Willful tax evasion is more likely to occur if consensus regarding fairness and equality of the tax-code is lacking. Tax evasion is an integral part of the “underground economy”, or more formally, the Non-Observed Economy (NOE).Measuring the size and scope of the NOE in general, and tax evasion in particular, is a difficult task.We compare results from three methods for estimating the size of the Gross Domestic Product (GDP): the production approach, the expenditure approach, and the income approach. The results of applying these three methods should, in principle, be identical, but they are not. We use the difference, guided by histor...

This paper estimates Nash-type fiscal reaction functions for European governments competing for revenue from diesel excises. It appears that European governments strategically set their excise levels by responding to their neighbors' tax rates. This provides evidence for the presence of tax competition in diesel excises. In fact, a 10% higher rate in neighboring countries (in terms of the user price) induces a country to raise its own rate by between 2 and 3%. This impact is robust for alternative specifications. By imposing restrictions on excise levels, EU harmonization of excises in 1987 and the introduction of a minimum in 1992 exerted a positive impact on the excise level in a number of EU countries. It has not, however, significantly reduced the intensity of tax competition. Indeed, strategic tax responses have not significantly been reduced by these harmonization policies. We also find that high-tax countries appear to compete more aggressively than low-tax countries in the sense that they feature larger strategic tax responses. There is no significant difference between large and small countries.

Pajak Penghasilan (PPh) dikenakan atas penghasilan yang diperoleh selama satu tahun dan tidak bisa dialihkan ke pihak lain. Withholding Tax (WHT) adalah mekanisme pemotongan langsung pajak penghasilan di sumber pembayaran, di mana pembayar wajib memotong persentase tertentu dari jumlah pembayaran yang dilakukan kepada penerima, berdasarkan Pasal 23 Undang-Undang No. 7 Tahun 1983 yang telah diubah dengan Undang-Undang No. 36 Tahun 2008. Dengan demikian, pajak berfungsi sebagai sumber pembiayaan negara yang bersifat wajib, tanpa imbalan langsung, dan dipungut dari penghasilan atau transaksi tertentu melalui mekanisme seperti pemotongan langsung di sumber pembayaran. Semua ketentuan ini diatur dalam undangundang perpajakan yang berlaku di Indonesia.

The main objective of this study is to quantify the impact caused by changes in federal tax on the tax policy of the Brazilian states, considering the presence of horizontal tax competition between states. Using panel data covering 26 Brazilian states plus the Federal District during the period 1995-2009, two models were estimated representing the average reaction of the states in response to changes in federal tax rates. In the first model, both levels of government act simultaneously, whereas in the second model, reaction is sequential, with the federal government acting as the leader in defining its effective tax rates. The results indicate a positive and significant response of states to increases in the federal tax rate, resulting in an over-taxation of the common tax base and higher tax rates. Additional tests show that the first model is the most suitable to represent the problem analysed.

The main objective of this study is to quantify the impact caused by changes in federal tax on the tax policy of the Brazilian states, considering the presence of horizontal tax competition between states. Using panel data covering 26 Brazilian states plus the Federal District during the period 1995-2009, two models were estimated representing the average reaction of the states in response to changes in federal tax rates. In the first model, both levels of government act simultaneously, whereas in the second model, reaction is sequential, with the federal government acting as the leader in defining its effective tax rates. The results indicate a positive and significant response of states to increases in the federal tax rate, resulting in an over-taxation of the common tax base and higher tax rates. Additional tests show that the first model is the most suitable to represent the problem analysed.

Saya menyadari sepenuhnya bahwa makalah ini masih memiliki banyak kekurangan, baik dari segi penyusunan maupun isi materi. Oleh karena itu, dengan rendah hati saya memohon maaf atas kekurangan yang ada dan sangat mengharapkan kritik serta saran dari dosen pengampu mata kuliah Pajak Penghasilan Pemotongan dan Pemungutan maupun dari teman-teman sekalian. Semoga makalah ini dapat memberikan manfaat bagi para pembaca.

Puji syukur kehadirat Tuhan yang maha esa sehingga makalah ini dapat tersusun sampai selesai. Terima kasih kepada Bapak Dr. Wirmie Eka Putra, S.E., M.Si. dan Ibu Scheilla Aprilia Murnidayanti, S.Pn., M.A. pembimbing yang telah mengarahkan penulis dalam membuat makalah ini Penulis sangat berharap semoga makalah ini dapat menambah pengetahuan dan pengalaman bagi pembaca. Bahkan penulis juga berharap agar makalah ini bisa bermanfaat bagi kehidupan pembaca Penulis sebagai penyusun makalah ini merasa bahwa masih banyak kekurangan dalam penyusunan karena keterbatasan pengetahuan dan pengalaman penulis. Oleh karena itu, jika ada kritik dan saran terkait ide tulisan maupun penyusunannya, Penulis akan menerimanya dengan senang hati.

Penyusunan makalah ini bertujuan untuk menambah wawasan mengenai teori dan praktik perpajakan, khususnya terkait pemotongan pajak di Indonesia. Selain itu, penulis berharap makalah ini dapat memberikan gambaran yang jelas mengenai jenis-jenis, sifat, serta mekanisme pemotongan pajak sesuai dengan ketentuan peraturan perundangundangan yang berlaku. Penulis menyadari bahwa makalah ini masih jauh dari sempurna. Oleh karena itu, penulis dengan rendah hati menerima segala kritik dan saran yang membangun demi perbaikan di masa yang akan datang. Akhir kata, penulis mengucapkan terima kasih kepada semua pihak yang telah memberikan dukungan, bimbingan, serta bantuan dalam proses penyusunan makalah ini, khususnya kepada Bapak dan Ibu dosen pengampu. Semoga makalah ini dapat memberikan manfaat bagi penulis maupun para pembaca. Jambi,

We embed a model of the labor market with sector-specific search-and-matching frictions into a Ricardian model with a continuum of goods to show that trade liberalization causes higher unemployment in countries with comparative advantage in sectors with strong labor market frictions and leads to lower unemployment in countries with comparative advantage in sectors with weak labor market frictions. We test this prediction in a panel dataset of 97 countries during the period 1995-2009 and find that the data supports the theoretical prediction. Our results also help reconciliate the apparently contradicting evidence in the empirical literature on the impact of trade on unemployment.

We embed a model of the labor market with sector-specific search-and-matching frictions into a Ricardian model with a continuum of goods to show that trade liberalization causes higher unemployment in countries with comparative advantage in sectors with strong labor market frictions and leads to lower unemployment in countries with comparative advantage in sectors with weak labor market frictions. We test this prediction in a panel dataset of 97 countries during the period 1995-2009 and find that the data supports the theoretical prediction. Our results also help reconciliate the apparently contradicting evidence in the empirical literature on the impact of trade on unemployment. CARRERE, Céline, et al. & International Trade and Regional Economics Centre for Economic Policy Research. Trade in Unemployment. London : International Trade and Regional Economics Centre for Economic Policy Research, 2014, 54 p.

Tax administration constantly monitors taxpayers through tax control to meet the legal obligations of the tax field. The main purpose of this function is to advise taxpayers and maintain operational control through continuous monitoring. Motivated by the importance of tax control, this paper aims to provide an empirical contribution to the analysis of tax control’s effects on the level of tax revenues. The database obtained in the analysis is both quantitative and qualitative according to the evidence of direct operational controls performed on businesses. The variables analysed are total tax revenues from value added tax (VAT), profit tax, personal income tax (PIT), withholding tax, etc.; tax control variables and macroeconomic variables. The methodology used in this paper is based on linear models with many variables as well as statistical tests to find the potential levels and equilibrium, elasticity and structural estimation of tax revenues. The findings of this paper provide a ...

Introduction E-cigarette use has become a significant global public health concern. Recently, several systematic reviews have synthesised evidence on e-cigarette use in Europe, America and Southeast Asia. However, there is no known systematic review of such on South Asia (SA). This systematic review aimed to systematically synthesise empirical evidence on the prevalence and determinants of e-cigarette use in SA. Methods This systematic review adhered to Preferred Reporting Items for Systematic Review and Meta-Analysis guidelines and Cochrane Handbook for Systematic Reviews of Interventions. Nine databases, as well as additional sources, were searched to retrieve relevant articles on the prevalence and determinants of e-cigarette use in SA. Only those peer-reviewed articles which met the eligibility criteria were included in this systematic review. Data were extracted from the included articles and synthesised using a narrative synthesis approach. Results Seventeen articles were included in this systematic review and all were graded as above average after quality appraisal. Lifetime prevalence of e-cigarette use was reported in three SA countries only: India (0.1-23.8%), Bangladesh (0.4-0.5%) and Nepal (21.2%). The prevalence of current e-cigarette use was reported in four SA countries only: Pakistan (6.20-10.1%), India (0.01-5.39%), Nepal (5.9%) and Bangladesh (0.5%). The following factors were the reported determinants of e-cigarette use that were significant (p<0.05) among SA populations: self-perception of e-cigarette use as addictive, less harmful, an alternative to tobacco smoking and as a safe product; leisure use; individual appeal to the flavours of e-cigarette; individual stress; presence of mental depression; peer influence; social acceptance of e-cigarette use and prices of e-cigarettes. Conclusion Empirical evidence on e-cigarette use is limited to specific sociodemographic, socioeconomic and geographical regions in SA. Additional empirical investigations are required to outline the prevalence and determinants of e-cigarette use in SA countries lacking adequate data. Also, there is a need for tailored interventions targeting e-cigarette use in SA.

Faced with budget constraints the Sri Lankan government (SLG) entered an International Monetary Fund Stand-by-Arrangement (IMF-SBA) for USD 2.6bn in 2009. • With this, the SLG has committed to raising the revenue-to-GDP ratio from 14 percent at present (2009) to 16.9 percent of GDP by 2012.

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

The taxation system in the USA is one of the most complex in the world. It is based on federal, state, and local levels of taxation. Every citizen, business, and nonresident earning income within the country must comply with U.S. tax laws. The Internal Revenue Service (IRS) is the primary authority responsible for collecting federal taxes and ensuring compliance.

This paper represents an outline of the contribution of Value Added Tax (VAT) in Bangladesh in association with the GDP growth rate, the annual budget amount, and total government revenues from the beginning of vat introduction in Bangladesh. We constructed a correlation matrix using the Pearson and Spearman correlation methods, which was then visualized using a Heatmap to visualize the relationship between the variables. To evaluate the association among the variables, three hypotheses have been set and tested using ANOVA, Pearson correlation, and Spearman correlation. The data set have been developed from secondary sources combing the data of VAT revenues, GDP growth rate, the annual budget amount, and total government revenues from the very beginning of VAT's introduction in Bangladesh (1991-2020) to complete the study and test statistical models. According to our findings, VAT makes a significant contribution to government income generation, resulting in the coverage of budgeted revenues and contributing to consistent GDP growth. VAT, as an indirect tax, is now seen as a powerful fiscal weapon to meet the government's ever-increasing demand for revenues to support all development programs for countries transitioning from least developed to developing. VAT has a strong significant correlation with the annual budget amount, but no positive association with GDP growth rate or total governmental revenues, according to Pearson, Spearman, and ANOVA model findings. VAT can play a vital role in sustaining government internal revenue sources by bordering the basic tax base.

In India, a new Direct Tax Regime was established in the 2020 Union budget, which will help taxpayer's more and simplified regulations relating to income tax and tax filing. It is clear from looking at many scenarios that both tax systems have benefits and drawbacks. For Indian taxpayer's, the adjustments made don't truly make life simpler. The new tax system is an excellent choice for those who have recently begun working, have a lesser salary and also for people who don't have lot of money. Investing in someone to lower their tax burden is part of the old tax system. However, everyone should bear in mind that your investment and insurance coverage shouldn't be chosen based on Tax Regime you choose.

Based on the best available theory and evidence, the Mirrlees Review sets out a comprehensive set of proposals for tax reform. While focused on the UK, its analysis and conclusions bear directly on the policy debate in other developed countries. The Review proposes a move to a more neutral tax system. Key ingredients include adjusting the personal tax and welfare system to achieve redistribution more effi ciently, imposing VAT on a broader base of consumption at a single rate, targeting environmental externalities more accurately, and aligning tax rates across all income sources while exempting the normal return to saving from tax, and introducing an allowance for corporate equity into the corporate tax system.

This study aimed at to identify problems associated with tax payers and revenue authority in Dessie town. The research used descriptive research design. The target population included taxpayers and tax authority of Dessie town among which questionnaires were administered to a selected sample. The questionnaires were organized into sections including respondents’ profiles, problems associated with tax payers and revenue authority. The statistical treatment of data was done using the frequencies and percentages through SPSS software. The identified problems facing tax payers were tax fairness and equity, organizational strength of the tax authority, awareness level of the taxpayers, cultural factors and provision of social services by the government. It was also discussed the challenges facing tax authority of Dessie town included mainly poor tax payers’ perception on the relevance of tax payment , taxpayers ’ delay in tax declaration, starting business activity without trading licens...

for comments and discussions. We thank Maxim Massenkoff and Yannick Schindler for outstanding research assistance. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

We explore the prospects for using the Eurosystem Household Finance and Consumption Survey (HFCS) dataset as an underlying micro-database for the EU tax-benefit model, EUROMOD. This will allow expanding the policy domains currently covered in EUROMOD with dimensions like wealth taxation, incentives for wealth accumulation and asset tests determining benefit eligibility. As the HFCS only contains gross income amounts which are not suitable for distributive analysis, the purpose of this paper is to derive net incomes by simulating the gross-to-net transition with EUROMOD taking into account all important details of the social security and personal income tax system. In order to identify the issues and illustrate their importance a trial database for Belgium and Italy is constructed.

There have been recurring arguments over time that taxes paid by wage earners for Social Security are regressive and hence unfair. The argument is further made that if these taxes are included in the calculation of the overall income tax burden, they make the income tax in the United States regressive (and hence unfair) as well. The purpose of this paper is to address both of those arguments: whether it is appropriate to combine it with the income tax when assessing progressivity, and whether the Social Security system itself is unfair. Much of the literature on taxation-popular, political, and academic-makes repeated references to whether a given tax structure is "fair" or not. Fairness in taxation, although never clearly defined on an objectively measurable basis, is generally thought to be based at least on a progressive tax structure. A critical question in the current discussion is whether this progressivity is in all cases "fair" and desirable, irrespective of the nature of the tax being imposed. This paper argues that combining general income taxes with Social Security taxes in order to assess the overall "fairness" of the tax structure is inappropriate and that the Social Security program imposes unfair taxes on some taxpayers.

There is no doubt that the tax laws of many countries are complex and difficult to comply with administratively. In particular, Australia, New Zealand and the United States have tax systems that are generally recognized as complex especially for small businesses. They also have the distinction of having had a significant portion of their tax policy literature address the issue of complexity and its impact. What has been given scant recognition is the ability of different tax systems to learn from the successes and failures of each other. This article will try to bridge that gap by comparing tax advisers’ perceptions of tax law complexities in these three jurisdictions that impact a crucial segment of the economy, small business.

This paper studies the evolution of the modern Swedish inheritance taxation from its introduction in 1885 to its abolishment in 2004. A thorough description is offered of the basic principles of the tax, including underlying ideas and ambitions, tax schedules, and rules concerning valuation of assets, liability matters and deduction opportunities. Using these rules, we calculate inheritance tax rates for the whole period for a number of differently endowed family firms and individuals. The overall trend in inheritance tax burden exhibits an inverse-U shape for all firms and individuals. Up until the end of World War I, inheritance tax rates were very low (never above four percent). Tax rates began to increase in the interwar period with tax hikes in 1918, 1920 and 1934. After World War II tax rates increased rapidly for both inherited firms and individual fortunes. Effective tax rates peaked in the mid-1970s. Valuation reliefs were introduced in the 1970s, which sharply reduced tax rates for inherited family businesses. Tax rates for deceased individuals having non-corporate wealth were first cut in 1987 and then significantly reduced in 1991-1992. Finally, inheritance and gift tax revenues were relatively small, typically 0.1 to 0.2 percent of GDP.

This paper studies the evolution of the modern Swedish inheritance taxation from its introduction in 1885 to its abolishment in 2004. A thorough description is offered of the basic principles of the tax, including underlying ideas and ambitions, tax schedules, and rules concerning valuation of assets, liability matters and deduction opportunities. Using these rules, we calculate inheritance tax rates for the whole period for a number of differently endowed family firms and individuals. The overall trend in inheritance tax burden exhibits an inverse-U shape for all firms and individuals. Up until the end of World War I, inheritance tax rates were very low (never above four percent). Tax rates began to increase in the interwar period with tax hikes in and 1934. After . After World War II tax rates increased rapidly for both inherited firms and individual fortunes. Effective tax rates peaked in the mid-1970s. Valuation reliefs were introduced in the 1970s, which sharply reduced tax rates for inherited family businesses. Tax rates for deceased individuals having non-corporate wealth were first cut in 1987 and then significantly reduced in 1991-1992. Finally, inheritance and gift tax revenues were relatively small, typically 0.1 to 0.2 percent of GDP.

Facilitating voluntary tax compliance especially in the informal sector is the goal of most developing countries but, the challenges of tax administration as well as the nature of businesses in the informal economy has hampered the revenue drive of many countries. This study aimed to determine if new models for tax collection would be beneficial for improving voluntary tax compliance and consequently tax revenue generated from the informal economy. The study investigated the level of voluntary tax compliance among taxpayers in the informal sector as well as the factors that influence tax compliance. A sample of 100 business owners comprising traders, artisans, shop owners and 17 tax officials from IfakoIjaiye Local Government Area (LGA) of Lagos State, Nigeria were selected using convenience sampling. Primary data elicited through a structured questionnaire was used to test the hypothesis that the level of tax compliance among informal sector operators would be significantly improve...

The case of reduction in ad valorem tariffs as a trade liberalization policy is considered in this article. It is shown that the reduction leads to a higher quality of imports, ceteris paribus. This hypothesis was tested on the case of Japanese beef imports from the United States and Australia. U.S. beef, according to the results of Gallup surveys, is considered by Japanese consumers to be a high quality product, while Australian beef is considered to be a low quality product. Empirical results support the hypothesis. Moreover, the recent domination of U.S. beef in the Japanese market is further explained by increasingly more efficient U.S. beef production relative to Australian production and a strong income effect, where an increase in per capita income leads to more demand for higher quality products.

High tax-rates erode their own bases, and thereby adversely affect tax-revenues. This general idea, which is referred to as the Laffer Curve, can be traced back to Kautilya's famous treatise on Economics, Arthasastra, and even before that, to the ancient Indian book of laws called the Manusmriti. This paper considers the basic tenets of taxation prescribed in these texts and attempts to interpret the tax-rates proposed for different economic activities using Laffer Curve analytics. In particular, an attempt is made to interpret the core rate of taxation proposed in these works, viz., one-sixth of the tax-base. The implicit assumption in prescribing moderate tax-rates appears to indicate the value judgement that in most economic activities, the negative substitution effect of increasing taxation overpowers the positive income effect, if any, at rather low tax-rates.

Penelitian ini bertujuan untuk menganalisis kesesuaian penerapan Pajak Pertambahan Nilai pada Perum BULOG Kantor Wilayah Bengkulu dengan Undang-undang Perpajakan Republik Indonesia Nomor 42 Tahun 2009 tentang Pajak Pertambahan Nilai. Penelitian ini menggunakan metode kualitatif deskriptif  dimulai dari tahap pengumpulan data, reduksi dan kategorisasi data, displai data, dan penarikan kesimpulan. Hasil penelitian ini menunjukkan bahwa penerapan Pajak Pertambahan Nilai pada Perum BULOG Kantor Wilayah Bengkulu telah sesuai dengan UU Perpajakan Republik Indonesia dimana Perum BULOG Kantor Wilayah Bengkulu telah melakukan pemungutan pajak masukan, membuat faktur pajak keluaran, dan membayar pajak keluaran. Adapun dalam hal penghitungan, penyetoran, dan pelaporan Pajak Pertambahan Nilai di Perum BULOG Kantor Wilayah Bengkulu dilakukan langsung oleh BULOG Pusat sebagai tempat pajak terutang. Hal ini sesuai dengan Peraturan Direktur Jendral Pajak Nomor PER-10/PJ./2008 tentang tempat pajak ...

This paper explores Indonesia’s implementation of the Core Tax Administration System (CTAS) as a case study of public sector innovation driven by digitalisation, consultant engagement, and political leadership. It applies New Public Management (NPM) theory to examine how modern technologies and private-sector expertise are leveraged to improve government efficiency. Drawing on experiences from South Korea and Australia, the study highlights Indonesia's effort to enhance tax compliance and service delivery through system renewal. However, it critically assesses the challenges that emerged, including over-reliance on consultants, diminished public sector capacity, and the premature launch of CTAS under political pressure. Using Seabrooke and Sending’s task-setting framework, the paper evaluates the shifting dynamics of ethos, expertise, and status between consultants and public administrators. It concludes by calling for a balanced approach that maintains administrative autonomy, strengthens institutional capacity, and ensures political decisions are grounded in administrative readiness.

October 12'~. 2004. City Bayview Hotel, Penang taxes namely the 'trading taxes' (Import and Export) and the Land Tax 2. It was in the 20th. Century that Taxation had became political instruments to pursue a specific economic interest and ideology. It is in this so called "Modern Taxation' era that policies such as 'efficiency' equity' and 'productivity' had bloomed. To make the system more sophisticated, taxation had also been used to direct the economy towards the 'preferred' sectors through Investment Tax Incentives and the likes. Further development saw that attempt was made to use Taxation as one of the State's economic and financial policies. The success of this tax instrument in directing and controlling the economy has always been debated by the academia. The Malaysian Tax System has evolved in more or less following the same trail. We were fortunate that The British Government had inherited us with the 'most up to dateJ System of Taxation when they left us in 1957. The system that Hearsmen3 has introduced in Malaya in 1947 was considered most advanced at that time. ' That very system had lasted over half a century and still not be seen as too outdated. Some of the elements of the system still formed the Fundamental of Taxation System in our country that clearly distinguished us from the American system for example4 . The taxation system survived the colonization process in a way. The Taxation System in Malaysia had progressed very far from that of a War Tax in 1910 , to ' Class Tax5 in the Income Tax system to 'Mass TaxJ6 and finally to semi-voluntary tax system in the form of 'Self Assessment TaxJ. Though the tax still emphasised on the corporate sectors as the main target, it had wide spread in terms of coverage making Inland Revenue Board as the most 'networked institution' in the country7 . The later development showed a ' See disscussion by Sven on the the evolution of taxation. In Malaya Taxation was introduced in 191 0. In 1917 a temporat tax was initiated as a war measure and repealed in 1922, then introduced back in 1945 during the 2nd. World War solely for Imperial Defence. ' R.B.Hearsman was commissioned to recommend a tax system for Malaya by the then British Government. Though the later had been succeeded in colonising the thinking, technology, system and life style with the 'American Way' at every facet of our life today. Where taxes were the affairs of the very riches in society -basically in the form of Income Tax. Where taxes were paid by the public masses -in the form of Income Tax and Consumption Tax ' Inland Revenue Department has the records and network addresses with almost all of the works force in the economy and those participated in the country economy. 'O That a person could practically have three or four residents worldwidehaving breakfast in Tokyo. morning break in Kuala Lumpur, Lunch in Dubai and Dinner at San Francisco.

The impact of the Australian federal tax on the adoption of federal income taxation in Canada is reviewed in Richard Krever, "The Origin of Federal Income Taxation in Canada" (1981) 3:2 Canadian Taxation 170-88. 2 See Australia, Royal Commission on Taxation, Report[s] of the Royal Commission on Taxation,

We consider the licensing of a non-drastic innovation by an innovator who interacts with a potential licensee in a downstream Cournot market. We compare two kinds of license contracts: per unit and ad valorem, combined with fixed fees. Assuming that antitrust authorities apply the same principle to review ad valorem royalty license contracts which they apply to per unit royalty license contracts, we show that per unit royalty licensing is more profitable if the licensor is more efficient in using the innovation, whereas ad valorem royalty licensing is more profitable if the licensee is more efficient. This explains why and when these licensing schemes should be observed.