Fiscal year 31 December. The 2001 tax year was nine months, from April to December. In Israel, the fiscal year is the calendar year, 1 January to 31 December. In Italy, the fiscal year is the calendar year, 1 January to 31 December. It was changed in 1965, before which it was 1 July to 30 June. In Japan, the government's financial year is from 1 April to 31 March. The fiscal year is represented by the calendar year in which the period begins, followed by the word "nendo" (年度); for example the fiscal year from 1 April to 31 March is
Fiscal capacity cannot improve fiscal capacity by simply raising taxes if it does not have a political, legal and fiscal history that has supported such state-power. In comparison to Besley and Persson's individual level study, Gordon and Li (2009) focus on the role of businesses and the financial sector in developed versus developing countries. They model businesses' participation in the financial sector—where Gordon and Li specifically refer to participation in the financial sector as using banks—as participation in the formal sector; they assume that tax authorities can monitor bank records, so that mass participation in the financial sector lends the state information