The role of subnational tax capacity: A path toward regional integration
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Author(s)César Vega ZárateLink to ORCID Index: https://orcid.org/0000-0002-0233-4536
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Leticia Murcia LópezLink to ORCID Index: https://orcid.org/0000-0001-9617-2912
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DOIhttp://dx.doi.org/10.21511/pmf.14(1).2025.04
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Article InfoVolume 14 2025, Issue #1, pp. 41-53
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3 Downloads
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Creative Commons Attribution 4.0 International License
The tax capacity exercised by subnational governments in a country is fundamental in shaping the tax and economic system, especially when there is a coordination of interests, such as in the Pacific Alliance. Therefore, the coordination exercised by its member countries – Chile, Colombia, Mexico, and Peru – must be strategically aligned to comprehensively strengthen this Alliance. Considering the above, the objective of this study is to identify the similarities or differences between these four countries, check the tax behaviors of their subnational governments, and assess the degree of their impact on this trade agreement. Based on a longitudinal quantitative methodology, the results reveal significant differences between the subnational collection systems, identifying that Mexico and Peru are the only members that have maintained a similar trend, significantly differentiating themselves from Chile and Colombia. Despite their subnational tax structures, the main finding is that the Pacific Alliance needs to implement more coordinated actions in tax matters to strengthen its economic activities with other countries. A lack of coordination could counteract the commercial and financial strategies presented as a regional bloc, impacting investment, competitiveness, and regional sustainability. Overall, coordinated tax policies within the Pacific Alliance can drive regional integration, contributing to the region’s long-term stability.
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JEL Classification (Paper profile tab)H20, H30
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References34
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Tables7
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Figures2
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- Figure 1. Trend of tax revenue collection by the member countries of the Pacific Alliance
- Figure 2. Analysis of collection trends of the Pacific Alliance countries
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- Table 1. Amount of tax revenue collected by the member countries of the Pacific Alliance
- Table 2. Calculation of the subnational tax dependency ratio of the member countries of the Pacific Alliance
- Table 3. Determination of statistical p-value of analyzed data
- Table 4. ANOVA analysis
- Table 5. Welch test analysis
- Table A1. Tax levels of Latin American countries
- Table A2. Tax considerations of the members of the Pacific Alliance
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Impact of tax fairness and tax knowledge on tax compliance behavior of listed manufacturing companies in Nigeria
Olufemi Oladipo 
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Tony Nwanji ,
Damilola Eluyela ,
Bitrus Godo ,
Adekunle Adegboyegun
doi: http://dx.doi.org/10.21511/ppm.20(1).2022.04
Problems and Perspectives in Management Volume 20, 2022 Issue #1 pp. 41-48 Views: 2215 Downloads: 1084 TO CITE АНОТАЦІЯTax compliance is a major contemporary debate surrounding corporate taxation in the business world. The tax avoidance issue, which remains an ethical problem for companies, has been a general concern in developed and developing countries alike. The main problem of this study is a non-tax compliance behavior of the corporate organization taxpayers in Nigeria. This study examined the influence of tax fairness on the tax compliance behavior of listed manufacturing companies in Nigeria. The paper adopted a survey research method, and four hundred (400) copies of the questionnaire were administered to the selected manufacturing companies of both consumer and industrial goods sectors. The Laffer Curve Theory underpinned this study and Correlation Analysis, Analysis of Variance (ANOVA), and Multiple Regression Analysis were also employed. The study found that there is a significant level of tax compliance among the listed manufacturing companies in Nigeria. The study also shows that the corporate taxpayer’s perception of fairness of –2.765 (0.006) has a significant impact on corporate taxpayers’ willingness to pay taxes and tax knowledge of 4.601 (0.000) significantly influenced tax compliance. Based on tax knowledge, the study recommends that tax authorities must improve the knowledge of taxpayers and tax collection agents through programs, initiatives, and training on tax awareness.
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Critical financial and accounting issues of early-stage innovative enterprises
András Bethlendi ,
Roxána Urbanics
doi: http://dx.doi.org/10.21511/imfi.15(4).2018.12
Investment Management and Financial Innovations Volume 15, 2018 Issue #4 pp. 144-157 Views: 1831 Downloads: 575 TO CITE АНОТАЦІЯWhile the most important financial and accounting issues of early-stage enterprises with fast growth potential (startups) are widely covered in practice-oriented literature, academic studies do not deal with this subject. In the author’s opinion, this subject should receive more attention in academic writing, as inappropriate financial management can make it more difficult for startups to raise capital at a later stage of operation and, thus, to grow further. This paper is based on a sample of financial and tax due diligences of Hungarian startups. The authors intended to present some of the issues identified and relevant also to startups operating outside Hungary. The sample shows that due to a loss making operation in the early years, this type of companies can quickly use up their equity and, therefore, they need continuous ownership (equity) financing. The sample demonstrates that debt financing is not a viable option for this group of companies, the only option for them is venture capital financing. The authors confirmed the positive relation between startups and R&D&I. In their opinion, compliance with the rules and the optimization permitted by the rules themselves is highly significant for startups to manage their high upfront losses and to attain their general aim to raise investment capital. The financial and tax due diligences at startups allowed to identify several inappropriate practices due to complicated accounting and tax laws.
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Empirical study of the fiscal policy impact on economic growth
Mykola Pasichnyi
doi: http://dx.doi.org/10.21511/ppm.15(3-2).2017.01
Problems and Perspectives in Management Volume 15, 2017 Issue #3 pp. 316-322 Views: 1383 Downloads: 389 TO CITE АНОТАЦІЯThe challenges of economic globalization, recession, and the essential changes in market conditions, as well as the financial institutionalization, determine the expediency of the new studies to explore the impact of fiscal instruments on the dynamics of economic growth and social stability. This paper examines the role of fiscal policy in the economic growth ensuring in advanced and emerging market economies over the period from 2001 to 2015. The research indicates the growing role of the state (in general) and the budget (in particular) in regulation of social and economic processes. Based on the methods of economic regression, the interrelations between government spending and GDP growth in different groups of countries were evaluated. The study emphasized the directions to increase the positive influence of budget policy on economic development for countries with emerging market economies. This can be achieved by harmonization of the tax burden and structure, improving the use of budget funds, conducting structural optimization of budget expenditures, further development of financial and budget institutions, implementation of the fiscal constraints and rules while forming the basic indicators of fiscal policy.
