Resilience of the rural employment sector to economic shocks in India

The study explores the effect of recent economic shocks due to policy changes and the COVID-19 pandemic on rural employment in India. The study uses three cases;(i) demonetization, (ii) Goods and Service Tax (GST) implementation, and the recent (iii) COVID-19 pandemic to explore the resilience of employment in the rural regions of India. The study used state-level data estimates on rural employment in India provided by CMIE, employment data from NSSO, and migration data from the population census. A modified version of interrupted time series analysis within the beta regression framework was used to quantify the effect of shocks. The study shows that the rural unemployment rates increased after economic shocks as per expectations. The effects were smaller in the case of demonetization but were significantly higher in the case of GST. Early trends suggest a significant short-term effect due to COVID-19-induced shock on unemployment. The study shows that the urban sector is more resilient than the rural sector. The study highlights the need for employment guarantee programmes and direct assistance during the shocks to increase the resilience of the rural economy.

INDIVIDUAL HOME-WORK ASSIGNMENTS FOR STATE TAXES

The surge in work-from-home arrangements brought on by the COVID-19 pandemic threatens serious disruptions to state tax systems. Billions of dollars are at stake at this pivotal moment as states grapple with where to assign income earned through these remote work arrangements for tax purposes: the worker's home or the employer's location? Some states-intent on modernizing their income tax laws-have assigned such income to the employer's location, but have faced persistent challenges on both constitutional and policy grounds in response. This Article provides a vigorous defense against such challenges. The Supreme Court has long interpreted the Constitution to be deferential to state tax actions;new laws for the age of remote work surely satisfy constitutional demands. Moreover, assigning income from remote work to the employer's location is more equitable than assigning the income to the worker's home, justifying modernization efforts from a policy perspective. The solution to this homework assignment problem is evident: the states must revise their tax laws to face the evolving nature of work.

Disability Evaluations: Common Questions and Answers

Disability is a physical or mental impairment that substantially limits at least one major life activity. Family physicians are often asked to assess patients with disabling conditions that can impact insurance benefits, employment, and ability to access needed accommodations. Disability evaluations are needed for short-term work restrictions following a simple injury or illness and for more complex cases involving Social Security Disability Insurance, Supplemental Security Income, Family and Medical Leave Act, workers' compensation, and personal/private disability insurance claims. Using a stepwise approach built on awareness of the biologic, psychological, and social elements of disability assessment may facilitate this evaluation. Step 1 establishes the role of the physician in the disability evaluation process and the context of the request. In Step 2, the physician assesses impairments and establishes a diagnosis based on findings from an examination and validated diagnostic tools. In Step 3, the physician identifies specific participation restrictions by assessing the patient's ability to perform specific movements or activities and reviewing the employment environment and tasks. Steps 4 and 5 ensure proper documentation, billing, and coding. In complex cases, consultants such as psychiatrists and physical therapists may assist by providing insight into a patient's mental and physical impairments, activity limitations, and response to treatment. (Am Fam Physician. 2023;107(5):490–498. Copyright © 2023 American Academy of Family Physicians.)

Impact of Direct Taxation on Economic Growth: Empirical Evidence Based on Panel Data Regression Analysis at the Level of Eu Countries

Through fiscal policy, the government can influence businesses and individuals in order to regulate their behaviour. The research used panel data from all 27 EU countries covering the period 2008–2020 to investigate the impact of direct taxation on economic growth at the level of two main clusters of countries concerning fiscal efficiency. Therefore, the analysis employed cluster methods to classify the main EU countries in both groups of countries with a high level of fiscal efficiency and those with a rather limited level of fiscal efficiency. The study employs fixed effect models and dynamic GMM methods to investigate the effect of direct taxation components (personal and corporate income taxes) on economic growth. The analysis also considers the informal economy's role in relation to the official economy. The empirical results revealed that corporate income taxes significantly negatively impact economic growth for both clusters of high- and limited fiscal efficiency countries. Additionally, personal income tax was associated with lower economic growth for countries in the limited fiscal efficiency group. Thus, from the perspective of policymakers, lowering direct taxation can increase disposable income, stimulate consumption and economic growth, encourage investment leading to job creation, increase competitiveness, and reduce tax evasion and avoidance, thereby leading to a more efficient tax system.

Effect of trade barriers on export performance during COVID-19 pandemic: a comparative study among South Asian textile industries

Studiul s-a concentrat pe determinarea politicilor guvernamentale esenţiale si a barierelor comerciale care afectează performanţa exporturilor industriei textile în timpul pandemiei de COVID-19. Acest studiu a analizat influenţa politicilor guvernamentale de export asupra performanţei la export a industriei textile. Acest studiu a comparat, de asemenea, factori din trei industrii textile din Asia de Sud, respectiv Pakistan, India si Bangladesh. Studiul a identificat nouă politici guvernamentale de export esenţiale si bariere comerciale bazate pe vizualizarea organizaţiei industriale (Vizualizarea I/O). A fost utilizat un model de regresie de tip panel pentru a analiza semnificaţia fiecărei politici guvernamentale si barierele comerciale care afectează performanţa exporturilor de produse textile. Rezultatele studiului au arătat că ratele de schimb valutar, costul de export, timpul de export, stabilitatea politică a ţării, calitatea infrastructurii din ţară, libertatea din corupţie, costul de afaceri al terorismului si stabilitatea economică în ţară au un efect semnificativ asupra performanţei la export a industriei. În schimb, taxele pentru desfăşurarea afacerilor au un efect nesemnificativ asupra performanţei la export. Testul de Estimare aparent fără legătură (SUEST) a comparat diferenţele de performanţă la export ale industriilor textile din Pakistan, India si Bangladesh datorate politicilor guvernamentale. Rezultatele au arătat că un nivel mai ridicat de timp pentru export, costul de export si costul pentru desfăsurarea afacerilor terorismului duc la performanţa scăzută la export a industriei textile. În acelasi timp, un nivel mai ridicat al cursurilor de schimb valutar, stabilitatea politică a ţării, calitatea infrastructurii, libertatea din corupţie si stabilitatea economică în ţară duc la performanţe ridicate la export ale industriei textile. Mai mult, taxele pentru desfăsurarea afacerilor au un efect nesemnificativ asupra performanţei la export. Acest studiu este printre puţinele care abordează industria textilă în timpul pandemiei de COVID-19. Din cauza circumstanţelor incerte, va fi greu pentru guvern să identifice factori importanţi care ar putea ajuta exportatorii de textile să supravieţuiască si să se dezvolte în timpul pandemiei de COVID-19. Studiul a identificat politici guvernamentale importante si bariere comerciale care afectează exporturile de textile pe baza unui sprijin teoretic solid si a comparat si a elaborat, de asemenea, importanţa fiecărui factor în trei ţări din Asia de Sud. Acest studiu va ajuta factorii de decizie să-si reconsidere factorii legaţi de export pentru a-si spori exporturile de textile si pentru a-si relansa economia după pandemia de COVID-19.Alternate :The study focused on determining essential government policies and trade barriers affecting the textile industry's export performance during the COVID-19 pandemic. This study has analysed the effect of government export policies on the export performance of the textile industry. This study has also compared factors among three South Asian textile industries, including Pakistan, India, and Bangladesh. The study identified nine essential government export policies and trade barriers based on Industrial Organization View (I/O View). A panel regression model was used to analyse the significance of each government policy and trade barrier affecting textile export performance. Results of the study showed that currency exchange rates, the cost to export, time to export, political stability of the country, quality of infrastructure in the country, freedom from corruption, business cost of terrorism and economic stability in the country have a significant effect on export performance of the industry. In contrast, taxes on doing business have an insignificant effect on export performance. The Seemingly Unrelated Estimation (SUEST) test compared the differences in export performance of Pakistani, Indian and Bangladeshi textile industries due to governmen policies. The results showed that a higher level of time to export, cost to export and business cost of terrorism lead to the low export performance of the textile industry. At the same time, a higher level of currency exchange rates, political stability of the country, quality of infrastructure, freedom from corruption and economic stability in-country lead to the high export performance of the textile industry. Further, taxes on doing business have an insignificant effect on export performance. This study is among the few contributing to the textile industry during the COVID-19 pandemic. Due to uncertain circumstances, it becomes hard for the government to identify important factors which could help textile exporters to survive and grow during the COVID-19 pandemic. The study has identified important government policies and trade barriers affecting textile exports based on strong theoretical support and has also compared and elaborated on the importance of each factor across three South Asian countries. This study will help policymakers reconsider exportrelated factors to enhance their textile exports and revive their economy after the COVID-19 pandemic.

International trade resilience with applied welfare economics: an analysis on personal protective equipment

A global crisis such as a pandemic causes a decrease in the global trade of medical supplies. One of the most significant issues healthcare workers and people face is the shortage of personal protective equipment (PPE) items. This study constructs the first international trade model to link infectious disease dynamics and global trade networks, considering the important relationship between government preparedness, domestic manufacturers, and consumers. We examine social welfare measures here in the presence of quantity controls and taxes on the global trade flows. An equilibrium coverage among countries is investigated that integrates net government revenue, purchasing cost, transportation cost, and the health cost caused by the shortage of PPE supply. We develop an optimisation model that balances domestic firms and the global trade network to satisfy the total demand for each traded PPE product. The proportional change in value-added on domestic production is also studied by considering the marginal manufacturing costs of a face mask. The results obtained from testing our model show that the average quantity coverage by the global trade networks among four countries decreased by up to 28 % using the proposed trade policy. Hence, a large amount of demand is met by relying on domestic production.

The Taxation of 'Digital Nomads' and the '3 W's': Between Tax Challenges and Heavenly Beaches

Work mobility is not something new, but it certainly received an important boost with the COVID-19 pandemic as many people began working remotely which reflected on their lifestyle. In this context, the objective of the present study is to analyse the challenges imposed by what is known as 'digital nomads' from the exclusive perspective of individual taxation. The first part aims to understand the first 'W', i.e., who the 'digital nomads' are and the factors that favour the choice for this type of work. Subsequently, it examines the impacts caused by the 'digital nomadism' in determining the tax residence (second 'W' – where) and presents the measures, albeit incipient and indistinguishable, adopted by some countries in relation to this phenomenon. The third section delves into the taxation of income obtained by 'digital nomads' through either an employment relationship or the provision of services (third 'W' – what). Based on the analysis of examples and the presentation of some alternatives, this study seeks to demonstrate the need to adapt the tax residence rules at both of the levels of domestic law and double tax treaties (tiebreaker rules). The rules on the taxation of income from employment and the provision of independent services also demand modifications that detach them from the strict need for a physical presence.

The Case for A Global Excess Profits Tax: A Response to Dr. Tarcísio Diniz Magalhães & Professor Allison Christians

In striving to slow the spread of the COVID-19 pandemic, governments across the globe acted quickly to implement various "stay-at- home" orders and bans on all "non-essential activities." While these actions were likely effective in slowing the spread of the virus, the economic impacts were felt almost immediately. The US deficit rose to $3.1 trillion following massive spending to aid individuals and small businesses. Internationally, governments have been increasing their debt loads to combat both the health and financial impacts of the pandemic. Indeed, by the end of 2020, the international debt load increased to a record-breaking $281 trillion. Almost as quickly, various proposals have been offered regarding how to mitigate this pandemic-fueled deficit. One solution offered is the return of a historical tax scheme-an excess profits tax. Excess profits taxes have historically been applied both domestically and internationally during times of war. Although there are variations in how an excess profits tax is calculated, traditionally, an excess profits tax is applied to those companies who earn returns in excess of a set "normal" rate of return.

Do South Africa's e-commerce VAT rules measure up to international trends and OECD guidelines?

Orientation: The taxability of e-commerce transactions have been the subject of many studies to protect governments from Value-Added Tax (VAT) erosion, illegal recovery and fraud. Research purpose: This study critically analyses the challenges posed by e-commerce transactions in South Africa's VAT Act . Recommendations are made for amendments to the VAT Act to improve rules to effectively tax e-commerce transactions occurring in South Africa. Motivation for the study: Globally, including in South Africa, enforcing relevant VAT legislation to target output tax collections and input tax credits from e-commerce transactions aptly remains a challenge. Research approach/design and method: By integrating qualitative literature reviews and comparative synthesis, this study employed a comparative legal methodology. VAT levied on e-commerce transactions in South Africa is compared to the Organisation for Economic Co-operation and Development's guidelines as well as New Zealand's and Australia's Goods and Services Tax legislations. Main Findings: While the South African VAT Act aligns with international best practices on the use of intermediaries, there are some differences as detailed in the study. Practical/managerial implications: To align with international trade counterparts, the South African VAT Act should differentiate between business-to-business and business-to-consumer sales. A provision concerning the place of consumption for bundled goods should be included in the VAT Act . The VAT Act should contain a provision that allows bad debts to be claimed on cash sales made instead of total sales made. Contribution/value-add: This study harmonises South African VAT legislation with international best practices within the context of continual advancement of e-commerce transactions.

What CPAs Need to Know about Employee Retention Credit Fraud: Certified Public Accountant

According to the IRS, many of these solicitations are offering credits that are "too good to be true"- in some cases, they are downright fraudulent. Eligible employers can still claim the credit currently by filing an amended payroll tax return (Form 941-X) for each quarter during which they paid qualifying wages. Because amended payroll returns may be filed up to three years alfer the deadline for the original returns, employers will be able to claim ERC credits into 2025. [...]during the midst of the pandemic, the IRS undertook efforts to publicize the credit, affirmatively "urg[ing] employers to take advantage of the newly-extended employee retention credit." According to the IRS, promoters also are failing to advise taxpayers that they cannot deduct wages covered by ERC credits on the business's income tax returns or that they cannot claim the credit for wages that formed the basis of a PPP loan application that was granted (IR-2022-183, Oct. 19, 2022, https://bit.ly/40XkCMc).

Were small businesses more likely to permanently close in the pandemic?

Previous estimates indicate that COVID-19 led to a large drop in the number of operating businesses operating early in the pandemic, but surprisingly little is known on whether these shutdowns turned into permanent closures and whether small businesses were disproportionately hit. This paper provides the first analysis of permanent business closures using confidential administrative firm-level panel data covering the universe of businesses filing sales taxes from the California Department of Tax and Fee Administration. We find large increases in closure rates in the first two quarters of 2020, but a strong reversal of this trend in the third quarter of 2020. The increase in closures rates in the first two quarters of the pandemic was substantially larger for small businesses than large businesses, but the rebound in the third quarter was also larger. The disproportionate closing of small businesses led to a sharp concentration of market share among larger businesses as indicated by the Herfindahl–Hirschman Index with only a partial reversal after the initial increase. The findings highlight the fragility of small businesses during a large adverse shock and the consequences for the competitiveness of markets.Plain English SummarySmall businesses were more likely to close permanently during the early stages of the COVID-19 pandemic than large businesses. Although they rebounded strongly thereafter, market concentration remains higher than before the pandemic. We obtain these results from analyzing administrative firm-level data covering all businesses filing sales taxes in California. Our analysis contributes to research by demonstrating the fragility of small businesses during a crisis relative to large businesses. Our findings imply that small businesses may need additional support given the trend toward purchases from large online retailers.

Evolution of Pension System Financial Models for Sustainable Economic Growth

Sustainable accumulation of pension rights and increasing of income protection for individuals are central problems for any pension system. Public pension provision in the world practice usually has an earnings-related basis. At least one third of OECD countries has basic minimal pension provision, which depends on the socio-economic policy and financial health of the budgetary system. The development of financial and investment models of pension systems since the creation of the first prototype in Germany has been driven by changes in the gender and age structure of the population, globalization and rapid development of technology. The recession of 2008 and the COVID-19 crisis of 2020 highlighted the vulnerabilities of the global financial system and the risks to the financial stability of pension systems. Pension finances deteriorated during these crises due to lost contributions on wages, which have been mainly covered by state budgets. Automatic adjustment mechanisms in pensions are crucial to deal with the problem ageing. The aim of the study is to analyze the evolutionary vector of development of financial and investment models of pension provision, update and analyze risks for their future development, and justify ways to overcome these risks in the long term. The paper concludes that to adapt pension models to the current challenges of the global economy, it is necessary to improve the quality of public services in the field of social security and optimize the costs of their financing via increasing the quality of the public financial management. It is also necessary to use advantages of technological progress in order to minimize the threats of technological growth to pension systems caused by the industrial Revolution 4.0. This direction will require adaptation, effective adjustment of the financial mechanisms of pension systems, and even qualitative changes in the financing models of the pension system in the long term. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.

Firm informality during the COVID-19 crisis in Argentina: perception of commercial entrepreneurs and public accountants

Este trabajo analiza el impacto de la crisis del COVID-19 en la informalidad de las micro, pequeñas y medianas empresas argentinas a partir de la percepción de empresarios comerciales y contadores públicos de la ciudad de Bahía Blanca (Argentina). Utilizando datos primarios recopilados a través de entrevistas semiestructuradas, se realizó un análisis de contenido cualitativo combinando codificación basada en teoría y basada en datos. A pesar del uso generalizado de pagos electrónicos, los hallazgos sugieren un aumento tanto en la subdeclaración de ingresos como en la cantidad de empresas no registradas, lo que respalda el comportamiento contracíclico del sector informal durante dicha crisis. El artículo contribuye a una mayor comprensión de la informalidad a través de un enfoque microeconómico-cualitativo e integrando la perspectiva de dos actores diferentes. Los resultados son relevantes para la formulación de políticas tendientes a la reducción de la informalidad empresarial.Alternate abstract:Este artigo analisa o impacto da crise do COVID-19 na informalidade das micro, pequenas e médias empresas argentinas com base na percepção de empresários comerciais e contadores públicos da cidade de Bahía Blanca (Argentina). Utilizando dados primários coletados por meio de entrevistas semiestruturadas, foi realizada uma análise de conteúdo qualitativa combinando codificação baseada em teoria e dados. Apesar do uso generalizado de pagamentos eletrônicos, os resultados sugerem um aumento tanto na subdeclaração de renda quanto no número de negócios não registrados, corroborando o comportamento anticíclico do setor informal durante a referida crise. O artigo contribui para uma melhor compreensão da informalidade por meio de uma abordagem microeconômica-qualitativa e integrando a perspectiva de dois atores distintos. Os resultados são relevantes para a formulação de políticas voltadas à redução da informalidade empresarial.Alternate abstract:This article analyzes the impact of the COVID-19 crisis on the informality of Argentinian micro-, small-, and medium-sized enterprises based on the perception of commercial entrepreneurs and public accountants from Bahía Blanca (Argentina). Using primary data collected through semi-structured interviews, a qualitative content analysis was performed combining theory-oriented and data-based coding. Despite the widespread use of electronic payments, the findings suggest an increase in income underreporting and the number of unregistered companies, thus supporting the countercyclical behavior of the informal sector during that crisis. The article contributes to a better understanding of informality through a microeconomic-qualitative approach by integrating the perspective of two different actors. Empirical findings are relevant for policymakers seeking to reduce the levels of informality during periods of crisis.

Global prospects to deliver safe drinking water services for 100 million rural people by 2030

The climate crisis and global pandemic have accelerated the urgency of providing safe drinking water services around the world. Global progress to safe drinking water is off-track with uncertain and limited data on the extent and performance of rural water service providers to inform policy and investment decisions. This report documents a global diagnostic survey to evaluate the status and prospects of rural water service providers from 68 countries. The service providers describe providing drinking water services to a population of around 15 million people through over 3 million waterpoints. The data provides information on the scale and sustainability of rural water services to examine: . The extent and type of professional water service provision in rural areas globally;. Self-reported metrics of operational and financial performance;and, . The size and scope of current rural service providers that could transition to resultsbased funding. Five major findings emerge. First, most service providers aim to repair broken infrastructure in three days or less. Second, almost all service providers reported at least one type of water safety activity. Third, most service providers collect payments for water services. Fourth, about one third of service providers reported major negative shocks to their operations from the COVID-19 pandemic. Fifth, non-governmental service providers in low income countries less often report receiving subsidies for operations, and more often report paying part of user fees to government, including through taxes. Most rural water service providers are working towards provision of affordable, safe and reliable drinking water services. Key barriers to progress include sustainable funding and delivery of services at scale. We propose four conditions to promote scale and sustainability based on policy alignment, public finance, professional service delivery, and verifiable data. To illustrate these conditions, we consider the differing context and service delivery approaches in the Central African Republic and Bangladesh. We conclude by identifying a group of 77 service providers delivering water services for about 5 million people in 28 countries. These 77 service providers report operational metrics consistent with a results-based contracting approach. Technical assistance might support many more to progress. We argue that government support and investment is needed to rapidly progress to the scale of 100 million people to provide evidence of pathways to universal drinking water services for billions more.

Fiscal Stabilization in the United States: Lessons for Monetary Unions

The debate about the use of fiscal instruments for macroeconomic stabilization has regained prominence in the aftermath of the Great Recession, and its relevance has suddenly increased further, after the recent Covid-19 shock. The analysis of fiscal stabilization in the United States, a monetary union equipped with a common fiscal capacity, has often informed the literature on the European EMU and could serve as a reference for its possible future reforms. This paper expands that literature in three ways: first, by measuring stabilization not only as inter-state risk-sharing of asymmetric shocks, but also as intertemporal stabilization of common shocks;second, by doing this for specific items in the US federal budget, both on the revenue and on the expenditure side;and third, by also measuring the impact of the federal system of unemployment benefits and of its extension as a response to the Great Recession. Corporate and personal income tax, on the revenue side, and social security benefits and federal grants, on the spending side, are the most effective items. The US federal system of unemployment insurance provides great stabilization in the event of a large shock, in particular when enhanced by the discretionary program of extended benefits. These findings imply that a proper design of the budget can maximize its stabilization effect, when it helps bridging the gap between higher mobility of capital and lower mobility of labor, by collecting revenues based on the income of the most mobile factor (corporate income tax) and providing support to the income of the least mobile factor (social security).

Role of monetary policy in economic growth and development: from theory to empirical evidence

PurposeThis article examines the effects of credit to private sector on the business and trade activities. The effectiveness of rapid expansion in public and private borrowing through state's intervention after COVID-19 pandemic has been assessed in this study.Design/methodology/approachThe model to determine the role of credit expansion is based on four equations estimated through panel least square technique on 18 years data of 186 countries.FindingsIt is concluded that credit to private sector and external debt improve the investment in infrastructure, which is a significant determinant of gross domestic product growth. Empirical evidences corroborate that higher number of firms using banks to finance their investment and the volume of broad money determine the magnitude of credit to private sector.Originality/valueThis study explores some new evidences and aspects of the credit financing which have not been discussed in this way before.

Sustainability elements of companies that are affected by pandemics

Orientation: The havoc created by COVID-19 reaffirmed the pervasive effects of pandemics on companies' sustainability, which has become an increasingly important consideration for stakeholders. Research purpose: This study determined the sustainability elements of companies that are affected by pandemics. Motivation for the study: Pandemics' recurring nature is evidenced by history. Knowledge of pandemics' effects on sustainability may assist companies in preparing for and reporting on pandemics, while such information to stakeholders may be important when considering a company's sustainability. Research design and method: The study followed a systematic review. The final sample constituted 30 records, which were thematically analysed. Main findings: A list of sustainability elements of companies that are affected by pandemics is provided. Government-imposed restrictions led to supply and demand shocks, severely threatening companies' financial performance and socio-economic targets. Pandemics also present opportunities to improve business models by increasing focus on relationships, nature and digitalisation. Practical implications: This study may assist companies to minimise the effects of future pandemics on sustainability by urging them to recognise the interplay between sustainability's components. Companies should have some financial leeway and consider the composition of its product/service range (essential versus non-essential) and the delivery thereof (traditional vs. e-commerce), consider and reduce its impact on nature, become more human-centric and finally, revisit their strategy through strong governance. Contribution: Current literature describes some effects of a single pandemic on companies within a specific industry, whereas this study's scope is broadened to consider all pandemics and industries to derive an extensive list of affected sustainability elements. Current sustainability frameworks do not specify pandemic-related disclosure requirements, making the list useful as a reporting guideline.

ENTREPRENEURSHIP IN THE REPUBLIC OF CROATIA - ANALYSIS FOR THE PERIOD FROM 2017-2021

Entrepreneurship is characterized by great uncertainty and great risk in business, and entrepreneurs are personally ready to take risks in their business at any moment, predict future events and adapt to constant changes and to the dynamic market. The aim of this work is to analyze business entities in the Republic of Croatia from 2017-2021. who are obliged to submit annual financial statements, in order to draw conclusions about the decline or increase in business activities during the observed period and whether revenues increased or decreased during the observed period from 2017 to 2021, whether the number of entrepreneurs increased, such as is the trend of net salaries and analysis of all other business indicators. The paper analyzes the data of companies that are obliged to submit annual financial statements to the Financial Agency. Three hypotheses are presented in the paper, H1: business entities in the observed period from 2017-2021 show a decline in all business activities and this hypothesis is accepted, H2: during the COVID-19 pandemic, the number of business entities and the number of employees decreased and this hypothesis is not accepted, H3: during the COVID-19 pandemic, the profits and revenues of companies are lower and this hypothesis is accepted. The research is based on up-to-date and accurate data from info.Biz, the e-service of the Financial Agency. Info.Biz collects accurate and up-to-date data from the financial reports of business entities, which business entities in the Republic of Croatia are obliged to submit to the Financial Agency every business year, according to the Accounting Act. On the basis of data from the info.Biz e-service, numerous conclusions can be drawn about economic indicators and business operations in the Republic of Croatia. Business entities obliged to submit annual financial reports in 2020 record a decline in all business activities and business results, while in 2021 they show a trend of growth in business indicators.

INCOMES, GAPS AND WELL-BEING: AN EXPLORATION OF DIRECT TAX INCOME STATEMENTS BEFORE AND DURING COVID-19 THROUGH THE COMPARABILITY INTERVAL

Purpose: The purpose of this research is to see if total direct taxes (TDT) affect the growth of the country's income and well-being or stagnation and gaps based on the variables raised: Corporate Income Tax (CIT), Personal Income Tax (TAP), Property Taxes (PT), Other Direct Taxes (ODT), as well as to explore which variables had a greater impact on income growth, welfare or gaps before and during the Covid-19 pandemic. Theoretical framework: First, this research brought a new approach to explore the income statement through total direct taxes before and during the Covid-19 pandemic, then analyzed which variables there were increases in income, gaps, or welfare. Finally, an overview is given on how to promote and continuously increase state revenues and reduce gaps through TDTs. Design/methodology/approach: The data were collected at the local and central levels in the state of Kosovo based on the audited financial and economic reports for the period (2014-2021) as well as through interviews with officials and directors in the finance department and with the Minister of Finance during 2017-2018, analyzing in detail all financial items for direct tax variables and their impact on government revenues, on the country's well-being or economic-financial gaps through descriptive analysis, factorial analysis, reliability analysis, multiple regression analysis using SPSS version 23.0 for Windows. Findings: Based on analyzes such as PCA Matrix Loading Factors, PCA Model Summary- Multiple Linear Regression, Coefficients- TDT, the results showed that the variables [(CIT=98%, R=.980, Sig=.000, F=148,854), (PIT=99%, R=.987, Sig.=000, F=220,841), (PT=90%, R=.902, Sig.=.000, F=26,240)] are quite important and that they have influenced the increase in income and well-being of the country, while the variable (OTD=39%, R=.390, Sig.=000, F=1.079) has not influenced the well-being of the country during this period and that there are still some gaps that need to be improved before and during the Covid-19 pandemic. Therefore, greater weight in the collection of (TDTs) and an increase in well-being have been shown (PIT=.975, Cons=.136, Acu=99%), while gaps have been shown (ODT: Cons=.209, Acu =39%). It is recommended that the state should be careful in collecting revenues from (TDT) and especially (OTDs). Research, Practical & Social implications: The limitations and implications of this research are that the study period is (8) years, the number of variables is limited to only (4) with their sub-variables (48), and it is only an analysis of one country. Therefore, for further analysis, a larger number of countries, periods, and variables can be taken into the research. Originality/value: It will help countries to see where there is an increase in income and well-being and where there are gaps and a decrease in income and based on this, they should be careful in creating policies to encourage and increase income through (TDTs) © 2022 AOS-Estratagia and Inovacao. All rights reserved.