Advanced Research in Accounting and Taxation

1. Advanced Research in Accounting and TaxationIssues, Gaps, and Future Directions

2. Introduction Importance of research in accounting and taxation for economic policy, compliance, and corporate governance. Global and Indian context: Evolving landscape due to digitalization, GST regime, BEPS, etc. • What are the current debates? • Why is research in this area vital?

3. Digital Economy and Taxation • Debate: How should countries tax multinational tech giants (like Google, Meta, Amazon) operating without a physical presence? • Key Concepts: Equalization levy (India), OECD Pillar One and Pillar Two proposals (Global minimum tax) • Research Angle: Effectiveness of digital taxation in ensuring fair contribution from the digital economy. • Taxing High Net-Worth Individuals (HNIs) and Wealth Inequality • Debate: Should there be a wealth tax or higher income tax brackets for the ultra-rich to reduce inequality? • Global Context: US proposal for billionaire tax; France's earlier wealth tax repeal • India Context: Discontinuation of wealth tax in 2015—should it be reintroduced? • Research Angle: Impact of taxing the rich on investment, savings, and migration of wealth

4. Capital Gains Tax Reform • Debate: Should long-term capital gains (LTCG) be taxed differently from income? • India Context: Differential rates for equity vs. other assets; indexation benefits • Controversy: Is it fair that salaried individuals pay more tax than those earning via capital markets? • Research Angle: Equity vs. efficiency in the tax treatment of capital income. • Tax Incentives and Exemptions: Boon or Burden? • Debate: Do tax holidays, exemptions, and rebates distort economic behavior or incentivize growth? • India Example: New Tax Regime vs. Old Regime (with deductions) • Global: Corporate tax incentives and base erosion • Research Angle: Effectiveness of tax incentives in attracting investment and innovation. • Simplification vs. Equity in Income Tax Structure • Debate: Should income tax be simplified (e.g., flat tax) at the cost of progressivity? • India Example: Optional simplified tax regime (2020) without deductions • Global Debate: Flat tax in Eastern Europe vs. progressive tax in OECD nations • Research Angle: Trade-off between simplicity, fairness, and revenue generation.

5. Tax Evasion, Black Money, and Compliance • Debate: Are current penalties and enforcement tools sufficient to curb tax evasion? • India Context: Demonetization, faceless assessment, PAN-Aadhaar linking • Research Angle: Behavioral analysis of compliance; impact of digitization on reporting accuracy. • Gender and Taxation • Debate: Should the income tax structure recognize gender-based roles (e.g., homemakers, single mothers)? • India Status: No gender-based tax slabs • Global: Some countries offer family-based or joint taxation benefits • Research Angle: Gender equity in direct tax policies. • Agricultural Income Exemption • Debate: Should agricultural income be taxed if it exceeds a certain limit? • India Context: Agricultural income is tax-exempt—but often misused by high-income individuals. • Research Angle: Revenue potential vs. political sensitivity; ethical dimensions of taxing farmers.

6. Emerging Research Areas Accounting: • ESG reporting and integrated reporting • Forensic accounting and fraud detection • Impact of AI/automation on accounting practices • Sustainability and green accounting • Behavioral accounting and decision-making Taxation: • Tax compliance behavior and evasion models • Effect of digital taxation (equalization levy, crypto taxation) • GST transition and policy efficiency • International taxation and transfer pricing • Impact of tax incentives on investment and R&D

7. Developing a Research Problem: • Activities: • Read 3–4 real-world articles or case studies. • extract a research gap from each. • Discuss: How to refine a topic into a viable problem statement? • Key Concepts: • Research gap vs. problem vs. objective • Types of gaps: Empirical, theoretical, methodological, contextual

8. Research Methodologies in Accounting & Taxation Quantitative: • Panel data analysis (e.g., firm-level tax data) • Event study methodology (e.g., tax policy announcements) • Regression models for compliance or audit effects Qualitative: • Content analysis of annual reports/tax audits • Case studies of tax fraud or forensic accounting • Interviews with practitioners and tax authorities

9. Use Secondary Data Sources • CMIE Prowess • MCA filings and Annual Reports • GSTN Data (if accessible) • Income Tax Statistics of India • IMF/World Bank for comparative tax data • OECD Tax Policy Studies

10. Ethics and Academic Integrity in Taxation Research • Confidentiality in tax data • Misuse of financial/accounting data • Bias in tax policy evaluation

11. Discussion and Q&A Think and talk • “What’s a good problem in indirect tax research today?” • “How to choose a theoretical lens for accounting research?”

12. Suggested Readings and Journals • Journals: • The Accounting Review • Journal of Accounting and Economics • National Tax Journal • International Tax and Public Finance • Accounting, Auditing & Accountability Journal • Books: • “Principles of Accounting” – Anthony & Reece • “Taxation: Theory and Practice” – Lynne Oats • “Public Finance in Theory and Practice” – Musgrave & Musgrave