No abstract

No abstract

In this paper the experiences of taxpayers with the tax audits services as an important tool of tax authorities’ struggle against tax evasion are discussed. In the theoretical part of the paper the factors of tax compliance and the tax authorities’ measures in combating tax evasion are examined, the levels of tax rates and the compliance burden of European Union member states’ tax systems are compared. In the empirical part of the paper the experiences of Slovenian companies with tax audit services are analyzed. Better understanding of the drivers of taxpayer compliance behavior allows tax administration to identify and implement policy measures more effectively.

PurposeTo introduce the systemic approach towards measuring globalization of the economy that is based on the theory of systemic framework of national competitiveness and economic growth.Design/methodology/approachConstruction of a composite index of global economy by the principal components analysis (PCA) on the basis of 83 individual indicators, linked into the seven spheres of national competitiveness in the period of contemporary globalization. The weights of single indicators in the composite index are determined by two levels: on the first level, the weights of the indicators in the subindices are determined, whereas on the second level the weights of the sub‐indices in the joint composite index of global economy are determined. Reliability of the composite indices is verified by Cronbach's α.FindingsThe results of the PCA indicate the high reliability of the joint composite index on the basis of five subindices, whereas the inclusion of the remaining two subindices – international business activities and government role – has lowered the reliability of the joint composite index. This finding is combined with many statistical limitations in the field of measuring globalization of economies.Research limitations/implicationsThe unavailability and incomparability of statistical data in the field of international business activities presented great obstacles to deeper analysis. Such analysis would be attainable above all by the international harmonization of hard data collecting and greater emphasis on development of qualitative surveys in the field of activities of transnational enterprises.Originality/valueThis paper develops the concept for monitoring and benchmarking globalization of economies which is founded on the comprehensive theory and solid methodology. It offers a useful tool for national policymaking.

In the emerging process of market globalisation, firms’ strategic options for optimising their cross-border operations have broadened. This paper presents a strategic framework for developing an appropriate strategic response of firms by relocating their production facilities and framing their operational procedures in such a way that they may, as eligible beneficiaries, exploit institutional incentive mechanisms available in a specific region or a host country. More specifically, in the paper we explore a strategic option for lowering firms’ operational costs through international operations by using the mechanism of diagonal cumulation of origin introduced by the European Union (EU) in its Common Commercial Policy towards selected non-member countries. Despite extensive discussions in theoretical literature on the conception of the rules of origin, only a few studies have explored the implications of this mechanism from the perspective of a firm’s transaction costs in international business. This paper shows that the ‘SAP+ diagonal cumulation of origin,’ when properly conceived and implemented by a firm, can positively affect its financial performance. By analysing the cost-effect simulation of a selected household appliance producer in the presented case study, we then discuss the key strategic and operational implications for firms wishing to take advantage of offered supranational institutional incentive mechanisms.