Directorate-General for Taxation and Customs Union

Abstract In recent years, several nations have implemented various measures to control the surge of new synthetic cannabinoid receptor agonists (SCRAs) entering the recreational drug market. In July 2021, China put into effect a new generic legislation, banning SCRAs containing one of seven general core scaffolds. However, this has driven manufacturers towards the synthesis of SCRAs with alternative core structures, exemplified by the recent emergence of “OXIZID SCRAs.” Here, using in vitro β‐arrestin2 recruitment assays, we report on the CB1 and CB2 potency and efficacy of five members of this new class of SCRAs: BZO‐HEXOXIZID, BZO‐POXIZID, 5‐fluoro BZO‐POXIZID, BZO‐4en‐POXIZID, and BZO‐CHMOXIZID. All compounds behaved as full agonists at CB1 and partial agonists at CB2. Potencies ranged from 84.6 to 721 nM at CB1 and 2.21 to 25.9 nM at CB2. Shortening the n‐hexyl tail to a pentyl tail enhanced activity at both receptors. Fluorination of this pentyl analog did not yield a higher receptor activation potential, whereas an unsaturated tail resulted in decreased potency and efficacy at CB1. The cyclohexyl methyl analog BZO‐CHMOXIZID was the most potent compound at both receptors, with EC50 values of 84.6 and 2.21 nM at CB1 and CB2, respectively. Evaluation of the activity of a seized powder containing BZO‐4en‐POXIZID suggested a high purity, in line with high‐performance liquid chromatography coupled to diode‐array detection (HPLC‐DAD), gas chromatography coupled to mass spectrometry (GC–MS), liquid chromatography coupled to time‐of‐flight mass spectrometry (LC‐QTOF‐MS), and Fourier transform infrared spectroscopy (FTIR) and nuclear magnetic resonance (NMR) analysis. Furthermore, all tested compounds showed a preference for CB2, except for BZO‐POXIZID. Overall, these findings inform public health officials, law enforcement agencies, and clinicians on these newly emerging SCRAs.

The International Council for Harmonisation of Technical Requirements for Pharmaceuticals for Human Use (ICH) E7, the guidance for the conduct of clinical trials in people older than age 65 years, dates from 1994. Since then, the inclusion of older people in clinical trials has hardly improved, particularly for the oldest old age group (individuals older than age 75 years), which is the fastest growing demographic bracket in the EU. Even though most medications are taken by this group, relevant endpoints and safety outcomes for this cohort are rarely included and reported, both in clinical trials and regulatory approval documents. To improve the critical appraisal and the regulatory review of medicines taken by frail older adults, eight recommendations are presented and discussed in this Health Policy. These recommendations are brought together from different perspectives and experience of the treatment of older patients. On one side, the perspective of medical practitioners from various clinical disciplines, with their direct experience of clinical decision making; on the other, the perspective of regulators assessing the data submitted in medicine registration dossiers, their relevance to the risk-benefit balance for older patients, and the communication of the findings in the product information. Efforts to improve the participation of older people in clinical trials have been in place for more than a decade, with little success. The recommendations presented here are relevant for stakeholders, authorities, pharmaceutical companies, and researchers alike, as the implementation of these measures is not under the capacity of a single entity. Improving the inclusion of frail older adults requires awareness, focus, and action on the part of those who can effect a much needed change.

Abstract Following the class‐wide ban of synthetic cannabinoid receptor agonists (SCRAs) in China, SCRAs carrying new core and linker structures, aimed at circumventing the recent Chinese generic legislation, have appeared on the recreational drug market. A very recent example is (S)‐2‐(2‐(1‐(4‐fluorobenzyl)‐1H‐indol‐3‐yl)acetamido)‐3,3‐dimethylbutanamide (ADB‐FUBIATA), which is structurally closely related to the potent SCRA ADB‐FUBICA, but carries an additional methylene in the linker region of the molecule. ADB‐FUBIATA has recently been identified in seized materials in China, Russia, the United States, and also Belgium; however, its pharmacological characteristics were unknown. The aim of this study was to evaluate the intrinsic cannabinoid receptor (hCB1 and hCB2) activation potential of this previously unknown substance via two distinct yet similar in vitro β‐arrestin2 recruitment assays, based on the NanoLuc Binary Technology®. At CB1, a potency of 635 nM (EC50) was found, with an efficacy (Emax) of 141% relative to the reference compound CP55,940. On the other hand, ADB‐FUBIATA had almost no activity at CB2, indicative of a clear CB1 selectivity. Interestingly, this activation pattern differs markedly from that observed for ADB‐FUBICA, which was previously found to be potent and efficacious at both cannabinoid receptors. Additionally, the bioassays were applied to a seized powder containing ADB‐FUBIATA, as analytically confirmed by high‐performance liquid chromatography coupled to diode‐array detection (HLPC‐DAD), gas chromatography coupled to mass spectrometry (GC‐MS), liquid chromatography couple to time‐of‐flight mass spectrometry (LC‐QTOF‐MS), Fourier transform infrared spectroscopy (FTIR), and nuclear magnetic resonance (NMR). The EC50 and Emax values obtained for this powder were very similar to those of the ADB‐FUBIATA analytical standard, suggesting a high purity of the powder, although analytical techniques did reveal that the sample was not entirely pure.

BACKGROUND: The emergence of psychoactive designer drugs has significantly increased over the last few years. Customs officials are responsible for the control of products entering the European Union (EU) market. This control applies to chemicals in general, pharmaceutical products and medicines. Numerous products imported from non-EU countries, often declared as 'bath salts' or 'fertilizers', contain new psychoactive substance (NPS). REVIEW: These are not necessarily controlled under international law, but may be subject to monitoring in agreement with EU legislation. This situation imposes substantial challenges, for example, for the maintenance of spectral libraries used for their detection by designated laboratories. The chemical identification of new substances, with the use of powerful instrumentation, and the time needed for detailed analysis and interpretation of the results, demands considerable commitment. The EU Joint Research Centre endeavors to provide scientific support to EU Customs laboratories to facilitate rapid identification and characterisation of seized samples. In addition to analysing known NPS, several new chemical entities have also been identified. Frequently, these belong to NPS classes already notified to the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) by the European Early- Warning System (EWS). CONCLUSION: The aim of this paper is to discuss the implementation of workflow mechanisms that are in place in order to facilitate the monitoring, communication and management of analytical data. The rapid dissemination of this information between control authorities strives to help protect EU citizens against the health risks posed by harmful substances.

Novel substances for which none or limited analytical data are available constitute a challenge for police and customs forensic laboratories. The time-consuming process of structural elucidation and acquisition of analytical data has been centralized in the ADEBAR project in Germany, co-funded since 2017 by the EU's Internal Security Fund. The project aims to comprehensively characterize substances relevant for forensic-toxicological casework within the analytical competence network. The analytical datasets are distributed digitally through European and (inter)national channels. Additionally, pharmacological evaluation allows for estimating in vivo potency and potential harm required as scientific evidence for legislative amendments. The ADEBAR project contributes to the availability of analytical data on new substances relevant to the daily work of police and customs laboratories. Since the inception of the ADEBAR project, 549 samples have been registered, and 302 substance reports notified to the EMCDDA, including numerous spectrometric and spectroscopic data. In addition, 3,619 mass spectra have been accumulated in ADEBAR mass spectra databases. A central institution for the structure elucidation and acquisition of valid, high-quality analytical data for police and customs forensic laboratories and forensic medicine institutes is important in the future because there does not seem to be an end to the dynamic of novel NPS appearing on the drug market.

Tax evasion through complex network schemes poses a significant challenge to tax authorities, leading to substantial revenue losses. This paper aims to develop and evaluate an artificial intelligence model designed to detect tax evasion within complex corporate networks, providing a comprehensive overview and prediction of tax avoidance behaviors. Employing a systematic literature review and document analysis of applicable tax regulations, the study utilizes Social Network Analysis (SNA) as a primary technique for mapping and analyzing taxpayer networks. The process involves matching taxable identities, constructing taxpayer graphs, extracting features, and developing a machine learning model. The proposed architectures and processes demonstrate the potential for tax authorities to enhance their capabilities in detecting tax evasion involving complex networks, with the machine learning model effectively identifying features related to both individual and network characteristics of taxpayers. The findings suggest that the integration of artificial intelligence and big data analytics can significantly improve the detection of tax evasion in complex corporate structures, offering valuable tools for tax authorities to better enforce tax compliance.

The purpose of this study is to analyze and determine the effect of socialization quality, service quality, and electronic service quality on taxpayer satisfaction and taxpayer compliance. The population in question is taxpayers who are registered with the KPP Madya Pekanbaru and have the obligation to report the Annual Income Tax Return using e-filing, totaling 829 taxpayers. The sample was used using the Slovin formula calculation of as many as 109 respondents. The data analysis technique in this study used descriptive analysis and Structural Equation Model – Partial Least Square (SEM-PLS) analysis with the help of Smart PLS software. The results of this study indicate that the quality of service and the quality of electronic services is significantly positive for taxpayer satisfaction and socialization quality is positively not significant for taxpayer satisfaction. Quality of socialization, quality of service, quality of electronic services, and taxpayer satisfaction are positive but not significant on taxpayer compliance.

A recent proposal for a Common Consolidated Corporate Tax Base (CCCTB) across the European Union (EU) includes provisions in support of business R&D investment. This paper presents the rationale for the inclusion of R&D provisions, quantifies the subsidy implied by alternative options using the user's cost approach and approximates aggregate impacts by means of simple extrapolations from elasticities found in literature. We find that the provisions for immediate expensing of R&D included in the 2011 proposal would be less generous than what national schemes currently offer. We present alternative allowances that would serve to either maintain present levels or increase business R&D expenditure and we cost them in terms of foregone CIT revenue. In view of the pressing current need for a boost in business investment and the EU's R&D investment targets for the year 2020, we argue that the level of support should be ambitious. Importantly, to take full advantage of the opportunities afforded by this tax reform, EU member states will have to engage in complementary interventions in their national innovation systems. We conclude with a broad consideration of what these may be for the varied and variably developed business innovation capabilities found across the EU.

According to recent CJEU case law, fiscal neutrality is not a rule of primary law which can condition the validity of a provision of an European Directive; it is only a principle of interpretation, to be applied concurrently with the principle of strict interpretation of the VAT exemptions. In this article it is suggested that the principle of fiscal neutrality has been contained in the European Treaties since 1957, and it is an implementation in VAT matters of the concept of the EU principle of non-discrimination. Discrimination is sometimes expressly authorised by EU law, but for a transitional period in the case of VAT exemptions. The distinction between non-discrimination and VAT neutrality is not based on historical or economic evidence and it creates logical inconsistencies. The CJEU gives priority to uniform interpretation above the objectives of the Treaties but this does not improve the functioning of the internal market.

Synthetic cannabinoid receptor agonists (SCRAs) are a diverse class of new psychoactive substances (NPS) and new structural scaffolds have emerged on the recreational drug market since the enactment of Chinese SCRA analog controls in 2021. This study reports the first SCRAs to be detected with a bromide at the 5 position (5'Br) on the phenyl ring of the indazole core and without a tail moiety. ADB-5'Br-INACA (ADMB-5'Br-INACA) and MDMB-5'Br-INACA were detected in seized samples from Scottish prisons, Belgian customs, and US forensic casework. The brominated analog with a tail moiety, ADB-5'Br-BUTINACA (ADMB-5'Br-BUTINACA), was also detected in Scottish prisons and US forensic casework. The metabolites of these compounds and the predicted compound MDMB-5'Br-BUTINACA were identified through incubation with primary human hepatocytes to aid in their toxicological identification. The bromide on the indazole remains intact on metabolites, allowing these compounds to be easily distinguished in toxicological samples from their non-brominated analogs. Glucuronidation was more common for tail-less analogs than their butyl tail-containing counterparts. Forensic toxicologists are advised to update their analytical methods with the characteristic ions for these compounds, as well as their anticipated urinary markers: amide hydrolysis and monoOH at tert-butyl metabolites (after β-glucuronidase treatment) for ADB-5'Br-INACA; monoOH at tert-butyl and amide hydrolysis metabolites for ADB-5'Br-BUTINACA; and ester hydrolysis metabolites with additional metabolites for MDMB-5'Br-INACA and MDMB-5'Br-BUTINACA. Toxicologists should remain vigilant to the emergence of new SCRAs with halogenation of the indazole core and tail-less analogs, which have already started to emerge.

Abstract The rapidly evolving synthetic cannabinoid receptor agonist (SCRA) market poses significant challenges for forensic scientists. Since the enactment of a generic ban in China, a variety of new compounds have emerged capable of evading the legislation by carrying new structural features. One recent example of a SCRA with new linker and head moieties is CH‐PIATA (CH‐PIACA, CHX‐PIATA, CHX‐PIACA). CH‐PIATA bears an additional methylene spacer in the linker moiety between the indole core and the traditional carbonyl component of the linker. This study describes detections in 2022 of this new SCRA in the United States, Belgium, and Scottish prisons. CH‐PIATA was detected once in a seized powder by Belgian customs and 12 times in Scottish prisons in infused papers or resin. The metabolites of CH‐PIATA were investigated via in vitro human liver microsome (HLM) incubations and eight metabolites were identified, dominated by oxidative biotransformations. A blood sample from the United States was confirmed to contain a mixture of SCRAs including CH‐PIATA via presence of the parent and at least five of the metabolites identified from HLM incubations. Furthermore, this paper evaluates the intrinsic in vitro cannabinoid 1 and 2 (CB1 and CB2) receptor activation potential of CH‐PIATA reference material and the powder seized by Belgian customs by means of β‐arrestin 2 recruitment assays. Both the reference and the seized powder showed a weak activity at both CB receptors with signs of antagonism found. Based on these results, the expected harm potential of this newly emerging substance remains limited.

We show that stronger fiscal rules in Euro area members reduce sovereign risk premia, in particular in times of market stress. Using a unique data set of rules-based fiscal governance in EU member states, we estimate a model of sovereign spreads that are determined by the probability of default in interaction with the level of risk aversion. The legal base of the rules and their enforcement mechanisms are the most important dimensions of rules-based fiscal governance.

В умовах актуалізації транскордонної торгівлі постає питання формування належної системи захисту саме національного ринку від правопорушень, які мають місце в процесах перевезення продукції через митні кордони України, неякісних товарів чи послуг, а також невиправданих дій державних службовців, які так само характеризуються значною впливовістю на ефективність митного контролю та здатні знизити результативність фіскальної політики за умови нехтування працівниками своїми функціональними обов'язками. Отже, важливість проведених у роботі досліджень пов'язана саме із наявністю значної кількості проблемних аспектів у системі митного контролю України, які стоять на заваді реалізації державою євроінтеграційних прагнень та суттєво знижують ефективність національної економіки як самостійного учасника міжнародних правовідносин. Наукова стаття являє собою оригінальне дослідження проблем, характерних для вітчизняної системи митного контролю в умовах реалізації Україною євроінтеграційних прагнень. Дослідження проблематики здійснювалось завдяки застосуванню методів порівняння, абстракції, аналізу та узагальнення, а також графічного моделювання. У науковій роботі було детерміновано сутність та ключові фактори ефективності митного контролю, а також проблемні аспекти як такі, що унеможливлюють створення прогресивної системи митного контролю та аудиту в Україні. Під час дослідження було визначено, що діяльність у митній сфері повинна бути забезпечена сучасними інструментами, які б обслуговували систему контролю на основі новітніх прогресивних технологій. Враховуючи актуалізацію процесів цифрових трансформацій було визначено доцільним розширення практики використання інформаційно-комунікаційних технологій у контексті раціоналізації управління транскордонною торгівлею та підвищення рівня її відкритості задля забезпечення результативності митного контролю.

Research Originality: The second-largest organisation after the UN, with a population of 24.4% worldwide, makes OIC countries a potential market. This paper contributes to the existing literature on trade within them by focusing on crucial aspects of the trade agreement's impact on the halal food industry.Research Objectives: This study examines the influence of a free trade agreement (FTA) on Indonesian halal food exports.Research Methods: Using panel data from 23 countries spanning the period from 2003 to 2019, the paper employs the gravity model to assess the impact of the FTA and other variables on Indonesian halal food exports to OIC countries.Empirical Results: The findings indicate that Indonesian food exports to OIC countries with FTAs experience a notable 68% increase compared to those without such agreements. The study reveals GDP, population size, trade openness, and exchange rate positively affect food exports to OIC countries. However, trading partners' distance and entry time exhibit a negative correlation.Implications: This research holds significance for the Indonesian government as it provides valuable insights for considering the acceleration of trade agreement ratification with OIC countries. JEL Classification: F13, F47, C68How to Cite:Muchtar, M., Hafid, A., Rodoni, A., Amalia, E., & Hosen, M. N. (2024). Does a Free Trade Agreement’s Impact on the Export of Halal Food to OIC Countries Matter? Evidence from Indonesia. Etikonomi, 23(1), 147 – 166. https://doi.org/10.15408/etk.v23i1.32951.

Purpose The purpose of our study is to investigate the effect of the dividend tax reform established by the Job Creation Act on corporate dividend behavior in a manner that increases firms’ dividends. We intend to test whether the rise in dividends following the new tax law is motivated by tax considerations. Design/methodology/approach Using the data from the Indonesian Stock Exchange (IDX) database and Bloomberg, we employ the difference-in-difference approach as our main strategy. Findings Our results are twofold. First, we find that firms pay higher dividends after the tax reform, despite facing sharp declines in financial performance caused by the pandemic crisis. Therefore, the dividend rise among Indonesian firms after the tax reform cannot be attributed to corporate profitability as suggested by several scholars who studied the effect of the dividend tax reform on corporate dividend behavior in the USA. Second, we find that firms pay dividends more frequently following the dividend tax reform. As a result, we confirm that our results are not driven by a few large payers, and there is a larger number of firms that are initiating or increasing dividends compared to those that are omitting or decreasing dividends. Research limitations/implications We face two limitations in our paper. First, we do not separate the dividend payments into regular and special dividends as done by Chetty and Saez (2005) and Julio and Ikenberry (2004). Examining the response of the dividend tax reform separately between regular and special dividends allows for more valid inferences about whether the increase in dividend payments following the tax reform should be attributed to the change in firms’ dividend behavior in general or the sole effect of a few large firms that paid one-time and non-recurring dividends that drove the results. Second, we provide evidence that may be particularly unique to developing countries like Indonesia, where controlling shareholders predominantly stir corporate dividend decisions. Consequently, it is challenging to generalize our findings to other contexts where the legal and regulatory environments are distinct. Practical implications First, our findings provide evidence that the dividend rise after the tax reform is not attributable to corporate profitability, which has long been claimed by several scholars as a factor that influences the dividend rise post-reform rather than the dividend policy per se. Second, our results demonstrate that, despite the fact that controlling shareholders lack marginal incentives to increase dividend payments, the dividend tax reform can serve as a governance mechanism to safeguard minority shareholders in the absence of strong investor protection. Lastly, our findings provide evidence that the dividend tax policy can become the first-order determinant that shapes firms’ dividend decisions rather than firm-specific factors such as the pattern of past dividends and stability of earnings. Originality/value This is the first study that documents the effects of the reduction in tax penalty on corporate dividend behavior in Indonesia, where the dividend tax exemption is set to be permanently implemented.

This study examined whether the initiatives carried out by the Directorate General of Taxation (DGT) as part of a series of tax reforms have met the characteristics of the six building blocks in the development of Tax Administration 3.0 as formulated by the OECD. The research was conducted using a literature review of the tax reform volume III that is being implemented by the DGT and of the Tax Administration 3.0 model developed by the OECD. The data in this study were secondary data collected from various reports and studies. There were several findings, including about a large number of characteristics in the ”established” phase towards Tax Administration 3.0 that were carried out and designed by the DGT. However, there were some building-block characteristics that require collaboration with other parties and so which need to be a concern of the government, such as the single identity number project for digital identification, the implementation of the pay as you earn (PAYE) system in the daily life of taxpayers, and a governance framework to increase the involvement of various stakeholders in tax administration. Keywords: OECD, Tax Administration 3.0, tax reform

New information is emerging as a basis for reconsidering albumin as a key homeostatic molecule in the critically ill. We are only beginning to understand the full spectrum of albumin properties and action in healthy individuals and hypoalbuminaemic patients. Besides its function in the regulation of colloidal osmotic pressure, albumin has an important antioxidant capacity and a role in the transport of a wide range of drugs, hormones, ions, amino acids, and fatty acids. Few comparative studies have as yet been performed, and they address only a restricted number of parameters mostly defined by the European Pharmacopeia.

The signing of RCEP has captured global attention for the new mega trade deals. Expected to open wider market potential and access, yet the previous trade agreements between ASEAN and its five partners raise whether RCEP can increase trade between partners. This study employed partial equilibrium using SMART Simulator to analyze the impact of RCEP on members, and identifying potential export for Indonesia. The data used is trade value between RCEP signers in 2019 and conducted two scenarios. First, one hundred percent tariff liberalization was conducted and the second simulation was conducted with consideration of sensitive list and tariff rate quotas in schedule of tariff commitments of each member. This study indentified potential Indonesian export commodities using spatial analysis and descriptive analysis in order to map each province’s potential, enhance export activities and increase the utilization rate of trade facilities. The results of this study concluded that ASEAN relatively gained lower compared to ASEAN partner countries. Australia would be the top gainer. RCEP slightly might increase the value of exports, imports and trade balance for Indonesia but the low utilization of trade facilities needs the government's attention to encourage business actors to increase productivity and reach a wider market.

The Directorate General of Customs and Excise (DJBC) serves as a revenue collector in the field of customs and excise. This revenue plays an essential role in supporting infrastructure development. Predictions are needed to plan a good State Revenue and Expenditure Budget (APBN). Predictions serve as a tool for revenue optimization and control. However, forecasting is problematic because unpredictable external factors also influence these receipts. A logical and accountable approach is needed to predict acceptance to overcome this problem. The prediction method used is Autoregressive Integrated Moving Average (ARIMA). According to the computations, the Root Mean Square Percentage Error (RMSPE) value is less than 10%, indicating that the ARIMA model estimation is excellent

According to research by Tobacco Atlas in 2015, Indonesia has the third largest number of smokers in the world after China and India, with an estimated number of smokers at around 53.7 million. Smoking is a habit that harms health. Smoking causes heart disease, lung, oral, stomach, skin, and other conditions. This study aims to empirically examine the relationship between the excise rate, per capita income, and education level on the level of non-child group smokers in Indonesia for the 2015-2020 period. This period was chosen following Presidential Decree No. 28 of 2008 and Permenperin No.117/M- IND/PER/10/2009, which discusses the Tobacco Products Industry (IHT) roadmap and states that from 2015 to 2020, the priority is on the health aspect. This research was conducted with a quantitative approach using the panel data regression method. The results of this study conclude that the independent variables in this study simultaneously affect the dependent variable. In addition, it is known that the variable excise tax rate and education level partially have a significant effect on the dependent variable with a positive coefficient. In contrast, the income per capita variable partially has a substantial impact on the dependent variable with a negative coefficient.