The administrative costs of saving and pension schemes have received increasing attention in recent years, at a time when a massive shift has been witnessed from actively to passively managed funds—often exchange-traded funds (ETFs)—that incur lower costs. The reason is obvious. Most studies of the performance of actively managed funds are unable to demonstrate their higher performance [1–3]. Mutual fund administrative fees are all expenses levied by a fund on its investors, covering investment management, administration, servicing, custody, and accounting services, among others . OECD  recommends the promotion of low-cost retirement savings investments because of the huge impact of fee levels in terms of reductions in benefits for long contribution periods.
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The author of this article performed his own measurements concerning the direct administrative costs related to the collection of tax on income of legal persons in the Czech Republic. The method used for determination of direct administrative costs of the mentioned corporation income tax is the so-called full-time equivalent method, which is described in detail in the section Material and Methods. As a contribution method was used full-time equivalent method. This method has several drawbacks and for this reason the results obtained by various authors mentioned in the paper slightly diﬀ erent. The main weakness of the methodology is diﬀ erent procedure for own classiﬁ cation of individual groups of employees and their allocation to the groups deﬁ ned in the formula (1). Results achieved in the respective monitored years are lower by the average of ca 1.66 percentage points in relation to the average value of direct administrative costs of the Czech tax system. On the basis of results of measurements concerning property taxes (real estate tax, gi tax, estate tax and tax on real estate transfer) performed earlier we establish that the income tax on legal persons is an absolute “good result”, as the administrative costs necessary for its collection are negligible if compared with the amount of collected tax. This statement is based on conclusions of a separate measurement whose results are contained in articles Andrlík (2010a, 2012, 2014), where the values of direct administrative costs related in particular to estate tax and gi tax exceed 100%, and local revenue authorities sustain losses from their collection. The future and further development of direct administrative costs related to tax on income of legal persons is diﬃ cult to predict as it depends on a number of factors. It is impossible to estimate the changes in key values entering into the calculation of direct administrative costs in the present political situation of 2014. This particularly concerns the tax collection and potential streamlining of revenue authorities.
The terminology and contents of administrative costs are different and depend on the analysed situations and contexts. In various situations, they refer to expenditure for achieving the information obligations. According to the International Standard Cost Model Manual, the administrative burden (AB) refers to „expenditures generated in companies, when they meet the information obligations required by public administration, based on the legislative rules” 16 . The extension of this issue towards the public sector will lead to an extension of the sphere of administrative burden to „compliance costs for enterprises, services and citizens, including administrative and bureaucratic (operational) costs as well as capital costs 17 .
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It is possible to identify two main trends that will lead to improvements. The ﬁ rst option is for in he- ri tance tax and gi tax the removal of great exemptions which are in the conditions of the European Union member countries totally unique; and thus increase the collection of taxes. Another option is to repeal these taxes as part of the tax system of the Czech Republic and in particular to listen to the long-term call of the right-wing political parties of their cancellation (the particular case of par- liamentary proposal is presented in this paper). The other monitored property taxes, although the re- sults have been better, but also the collection of these taxes is very expensive as shown in the study by the Ministry of Finance of the Czech Republic in 2004, where the average amount of direct adminis- trative costs in the Czech Republic was considered at 2 %.
Although there are some critical issues with this kind of arrangement such as administrative efficiency, lopsidedness in tax allocation rights and fiscal independence (Bello-Imam, 2007, p. 35). For instance, market fees and motor park charges are exploited by the local government but the levying of the rates will have to be prescribed by the state house of assembly (Alo, 2012) . According to Akindele et al. (2002), the ironic feature of the revenue allocation rights in the Nigerian fiscal federalism is there is lopsidedness in the arrangement, in their view, they assert that “this lopsidedness is without regards (by the federal government) to the fact that almost 80 per cent of Nigerians live in the rural areas which rightfully fall within the governmental aegis of the local government while it has jurisdictions over minor and poor- yielding revenue sources”. This fiscal arrangement gave dominance of centrally generated revenue to the federal government where it allocates a substantial percentage of the revenue to it. A paltry 8 per cent of the centrally generate revenue are allocated to 774 local governments that houses over 80 per cent of rural poor Nigerians (Alo, 2012). This therefore shows a fiscal imbalance or incongruity both in revenue generation by the tiers of government in Nigeria most especially at the local level.
Studying the process of annual balance sheets, interests and losses of Iran Zamin Bank in relation to other banks has a low share. Thus, the rise of guidelines in editing framework of strategic plan is necessary in this bank. The study analyzes the strategic plan of Iran Zamin Bank. It also analyzes the financial implications in balanced score card through the relationship among profitability, productivity and financial growth. We introduced two indexes for productivity. The results are as follows. There’s not any negative and significant relationship between the capitation of profit in- dex and capitation index in terms of administrative costs comparing all costs. There’s a positive and significant relationship between the financial implication indexes and profitability index. There’s a significant and negative relationship between productivity indexes and financial growth index. Therefore, the effect of strategic plan can be evaluated by using the available tools and the organization’s performance can be assessed.
• aspect of the structure of administrative costs. It shows six possible aspects of examining administrative costs. In another investigation, the text will in detail deal with the exploration of administrative costs according to impacts on the relevant economic sector. Within this perspective, the administrative costs will be classiﬁ ed in administrative costs which will be carried only by the public sector (referred to as direct administrative costs) and administrative costs, which aﬀ ect the private sector (indirect administrative costs). Direct administrative costs include costs for the identiﬁ cation and collection of tax, which cannot be performed without personnel and equipment. Typical direct administrative costs are state costs for administration of applied tax system, records of taxpayers, collection itself of tax liabilities and, ﬁ nally, for control of compliance with legal standards. Monitoring compliance with legal norms is related in particular to detecting those taxpayers who deliberately seek ways to avoid paying taxes – on the edge of the law “by legal or illegal manner”. Direct administrative costs are increased especially with the higher complexity of the tax system of particular country resulting from a large number of diﬀ erent taxes, from the number of tax rates, from application of various exemptions or exceptions for certain groups of taxpayers and ultimately from frequency of advance payments or payments of tax liability itself. Kubátová (2003) states that direct administrative costs o en tend to grow excessively and she sees causes in fact, that the public sector is not controlled by the market, which would force it to the eﬃ cient allocation of resources (she says that it is providing services in the tax ﬁ eld without direct competition). Stiglitz (1997) deals with the identiﬁ cation of speciﬁ c causes of ineﬃ ciency of public sector and deﬁ nes two basic causes of ineﬃ ciency. He says that the public sector does not have to worry about bankruptcy and competition.
Nonproduction overhead was measured by selling, general and administrative costs divided by sales revenue for firm i in year t. This measure is more relevant since it captures not only compensation to the senior managers, but also compensation to their staff (Capozza & Seguin, 1998). Financial leverage was measured by total liabilities divided by total assets for firm i in year t. Financial leverage has been associated to the extent of liabilities as compared to total assets in a firm (Das et al., 2009; Munoz, 2013; Kim & Partington, 2014). Financial distress was measured using the Z-score for firm i in year t, developed and validated by Altman (1968) and reviewed by Altman & Hotchkiss (2006). Altman postulated that companies with a Z-Score <1.10 were likely to experience distress, companies with a Z-score of 1.10 to 2.6 were in a grey zone in which distress may be impending and companies with a Z-Score of >2.60 were likely to be financially sound (Altman & Hotchkiss, 2006). The determined Z-scores are then compared to Altman’s predetermined cutoffs. Firm size is defined and measured as natural log of total value of firm assets (Back, 2005; Boyd et al., 2005; Agarwal & Taffler, 2008; Brad et al., 2015; Doumpos et al., 2015) for firm i in year t. Industry differences refer to attributes common to an industry (Mauri & Michael, 1998; Lieu & Ching-Wen, 2006; Short et al., 2007). Industry was measured as a dummy variable by assigning ―1‖ to firms in the manufacturing sector and ―0‖ to the rest. This is consistent with the approach used by Barroso et al., (2011) and Plambeck & Weber (2010). Firm age is defined and measured as the natural log of the number of years since the firm was first listed (Shumway, 2001; Hovakimian et al., 2011) for firm i in year t.
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In the case of overhead separated on categories and calculation articles, the operative control is done on summary documents, called overhead comparative situations. In these situations, we are facing the effective and estimated overhead with delimitation on departments (centers, areas, processes, activities etc.) and in its interior on calculation articles (maintaining equipment costs, general department costs, administrative costs, sale costs) and so the deviations are determined.
The weight of public expenditure is different and depends on the development level of the public or of the private sector. Reported to the latter, the administrative burden of the public sector has a non linear evolution. From this perspective it is worth mentioning the models formulated by Musqrave (1974) and Rostow (1960), stating that in the earlier stages of growth and economic development, investments in the public sector are high, providing the core social infrastructure. The purpose of these investments is to help economy to reach higher development stages, where, although the state will continue investments, their role will be to complete the private investments. The conclusions of the two economists are relevant also for the evolution of the administrative costs, both in the public and private sector:
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We start by investigating the dynamic of administrative costs. The variable that most successfully can be associated to administrative costs of pension funds is the number of participants: an increase in the fund dimension produces efficiency gains if the level of administrative costs increases less than proportionately to the number of participants. Administrative costs include those relative to the staff, administrative services (all closed pension funds rely on an external organization which provide the management of administrative activities) and a range of expenses relative to the fund’s operation, among which there are promotion costs and those linked to business premises, consultants, auditors and other suppliers. Usually they do not include costs sustained by the financial manager and bank deposit fees, which are included in the financial costs. A strong correlation between unit costs and fund size appears evident in an analysis of pension fund data. Table 1 shows the average administrative costs per participant in 2013, or expressed as a percentage of assets according to the size of the fund, both in terms of number of participants and of managed asset. In general, there is a significant decreasing level of unit costs.
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Our micro-simulation also reveals that the current property tax system raises less than 0.2 percent of GDP in property taxes, whereas a comprehensive tax on land rents at 25 percent would increase revenues by a factor of 10 (to 1.35 percent of GDP). Thus, extending land taxation would increase government revenues substantially – by 8 to 17 percent (Table 5) which allows for upscaling infrastructure investment in rapidly urbanizing areas but also for reducing income or trade related taxes. Local authorities could also gain higher financial autonomy as revenues from local taxes are in the range of 10-15 percent of total district revenues (Irwin, Fisher, and Pigey 2014), which is below their potential (Cyan, Karuranga, and Vaillancourt 2013). Co-benefits of the envisaged land tax reform relate to improvements in institutional quality by increased land tenure security and transparency by full registration of property. Nevertheless, introducing a uniform land tax would hit poorer households more than wealthier ones (Figure 5) and as a direct consequence increase poverty rates. Using a tax-free amount turns the land tax from a regressive tax to a progressive one. Under the 50 percent non-linear tax rate, households among all income groups do not pay more than 2 percent of their income in terms of land taxes. As the number of households decreases more than the revenues due to the tax exemption, there are additional reductions in relative administrative costs. While total tax revenues also decrease, higher marginal tax rates can compensate this and reduce the revenue-equity trade-off.
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The Federal Government’s cost of collecting pr ovincial personal income tax under the TCA can be broken down into two categories. The first pertains to the tax liabilities that are paid on time and collected by the Federal Government. The cost of collecting these can be estimated by applying to the a gency’s overall budget the fraction of the overall Canada Revenue Agency’s budget that can be reasonably assigned to the collection of provincial personal income tax revenues. The second category is the net cost to the Federal Government associated with the collection of late personal tax accounts. This includes the administrative costs of collecting late accounts, the value of any accounts that cannot be collected or bad debts, and the time value of the money that is not collected on time. These costs are offset by the value of the interest and penalties that the taxpayer must pay to compensate the Federal Government for late payments. Interest and penalties charged by the Federal Government exceed the time value of money because they incorporate a premiu m interest rate defined as the “prescribed rate” plus 4 per cent (or plus 2 per cent prior to July 1, 1995) as well as a penalty equal to 5 per cent of the balance owing, plus an additional 1 per cent for each full month that the return is late, to a maximum of 12 months. It is worth noting that that the value of interest and penalties are offset completely by the cost of bad debts and late payments making the provinces net financial beneficiaries under this arrangement.
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Like the users’ time value, to obtain the operating cost of a vehicle, the traffic weighted average for three classes of vehicles will be determined. The following procedure is employed to calculate the time and extra cost of vehicles. The operation costs for each vehicle class is multiplied with the lost time for 1000 stop at different initial speeds. The required values have been provided by Winfrey (Winfrey, 1969). The operating cost of a vehicle per 1,000 stop is obtained at different initial speeds. Then, the values are entered the software (Table 4). Real Cost calculates the operating cost of a vehicle for speed changes in the work zone.
In the study, 19% of the pneumonia patients were under the age of 59 years, of whom a proportion are still active in the workforce. This might imply a considerable economic burden in terms of productivity losses in this group. However, the ability to estimate the productivity losses was hampered by the sample size (see “Study limitations” section). Moreover, the majority of the pneumonia patients were older than the age of 70 (63%) and only 14% were employed at baseline. Thus, health care and social care costs are likely to make up the largest proportion of costs in these older than 70 years of age group in the three municipalities. In Europe, Welte et al found that pneumonia costs € 5.7 billion annually, with inpatient care accounting for € 5.0 billion, outpatient care for € 0.5 billion, and drugs € 0.2 billion. 6 In comparison, indirect
In obtained a credit facility, both from the formal or informal sector, a number of farmers face many obstacles, among others: (1) farmers do not have the collateral in the form of fixed assets such as proof of ownership of land and buildings, (2) the existence of bureaucracy and administration of credit relative convoluted that complicate the farmers, (3) the lack of experience of some particular banks in serving the population in rural areas, (4) the high transaction costs of loans from the informal sector, (5) the high degree of risk associated with the entrepreneur/small producers, (6 ) dependence on the ability of government's formal sector.
representing an annual growth rate of 130%) due to the rising number of affiliates (see section 6) and the fixed annual fee, which rose from € 10 to 25, except those who enjoyed the enhanced reimbursement of health care insurance on 1 January 2002. The costs of support/assistance also increased sharply, from € 72.884 million in 2002 to € 133.197 million in 2003, i.e. an increase of 83% (less than that of the contributions paid by affiliates). On the other hand, the fixed endowment paid annually to the reserve fund, which amounted to € 89.242 million in 2001 and 2002, increases to € 27.268 million in 2003. Finally, the Vlaams Zorgfonds’ budget has been slightly overestimated by the Government of Flanders (overvaluation of less than 0.5%). Despite the relentless growth of the budget, the Government of Flanders succeeds overall in correctly estimating the total expenditure of Flemish long-term care insurance. As with the previous budget forecast (2002), the Flemish Government had even overestimated the costs of support/assistance in 2003. This overestimation is approximately 10%, i.e. a percentage lower than that of the previous financial year which amounted to 40%. The budget on 31 December 2003 is also in surplus (€ 48.303 million). As in the previous year, this amount is carried forward to the Zorgfonds’ revenue for the following year (i.e. 2004).
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Abstract The monitoring and analysis of traffic safety is an important part of a process in the area of traffic safety control. In a relatively long period of time, based on the analysis in a real time frame, there can be seen some changes of parameters in traffic safety which gives us the insight in the success of so far activities and the prediction of future traffic accidents can be done. Based on the most recent experience and best practices, it is desirable to analyze as many cases as we can in order to understand and interpret the tendencies in traffic safety correctly. However, this requires the constant monitoring of cases, examination of general tendencies and their analyses. This paper analyses the indicators of traffic safety (the number of traffic accidents with casualties, the number of killed and injured) from 2012 to 2017 on the roads of Republika Srpska entity. Special attention, beside traffic accidents, is given to regulations, the costs of traffic accidents and to the performance audit.
incremental costs and incremental revenues, (equality of marginal costs and marginal revenues) which is achievable through budgeting? Saleem (2001), states that profit is the difference between selling price and cost of production. Khan and Jain (2001), state that budget is an important tool of profit planning, are closely related to the broader system of planning in an organization. Planning involves the specification of the basic objectives that the organization will pursue and fundamental policies that will guide it. According to Garrison and Noreen (2002), a budget is a step taken by the business organizations to achieve their desired levels of profits. This process is generally called planning. Profit planning is accomplished through the preparation of a number of budgets, which when brought together, form an integrated business plan known as the master budget. The master budget is an essentially management tool that communicates management’s plans throughout the organization, allocates resources, and Co- ordinates activities’. Edmonds et al (2000), state that planning is critical to the operations of a profitable business. The area of planning that is associated with financial matters is commonly called budgeting: which involves coordinating the finances of all areas of the business. The planning or budgeting area of an organization is responsible for the profits organizations make or achieve.
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The Devil’s Quadrangle is an often used theory to describe the trade off between different main forces in a company. The Devils Quadrangle in this study is used to select the main dimensions. The main criteria to judge on the business process of renting out and resale are Time, Quality, Flexibility and Costs. Since other dimensions like innovation can easily be arranged under these main dimensions, these criteria can well be projected on the activities at De Meeuw. The theory about the quadrangle describes the model and its factors but does not contain a suitable method to actually create a redesign. It is theoretical model and not suitable for operational use. To make the redesign operational it is opted for a BPR framework developed by S. Limam Mansar and H.A. Reijers (2005). The framework is a synthesis of different methods and techniques and will be used to group and analyse the results in this study. This framework distinguishes the behavioral and the operational view. These two views will be influenced and interact with the factors: organization (structure and population), information and technology. The structure of this framework will also be used to describe the current business process in chapter 4. The advantage of this approach is that the description of the current process will be structured and made comparable with the best practices from the theory. Although the framework is an excellent way to structure and analyze the study, it is not a method for redesign.
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