Tax Evasion, Tax Administration, and the Impact of Growth: Tax Enforcement as Regulatory Failure in a High Tax Rates, High Tax Evasion, and Low-Growth Economic Environment

2017 ◽  
pp. 175-203
Author(s):  
Yiolanda Vasilopoulou ◽  
Dimitrios D. Thomakos
Keyword(s):  
Tax Evasion ◽  
Economic Environment ◽  
Tax Administration ◽  
Tax Rates ◽  
Tax Enforcement ◽  
Regulatory Failure ◽  
The Impact ◽  
Growth Economic

scholarly journals The Impact of Tax Administration on Revenue Generation in Gombe State, Nigeria

2018 ◽  
Vol 5 (8) ◽  
pp. 86
Author(s):  
Emmanuel Stephen N
Keyword(s):  
Tax Evasion ◽  
Pearson Correlation ◽  
Rank Correlation ◽  
Tax Avoidance ◽  
Primary Source ◽  
The State ◽  
The Body ◽  
Tax Administration ◽  
Revenue Generation ◽  
The Impact

Taxes<em> have been the bedrock of revenue generation to any government. The administration of tax is very important to any government as it is the body responsible for implementing and governing the tax laws and other tax related to assessment, collection and remittance of tax. This study is aimed at ascertaining the effect of tax administration on revenue generation in Gombe state. The study uses survey research design. The primary source of data collection was adopted, which analysed using descriptive statistics was made up of frequencies and simple percentages. Cronbach's Alpha diagnose was carried out to seek for reliability of the questions contained in the questionnaire Three Hypotheses were presented in this research and were tested using Spearman’s Rank correlation, Pearson correlation and linear regression. Research findings indicated that Tax Administration in the state is not efficient and effective. The study revealed further that revenue generated in the state is low to meet its objectives due to low level of enlightenment of tax payers and incidents of tax evasion and tax avoidance. To this end, the study recommends, among others, that authorities should embark on more enlightenment campaign of citizens on the significance of paying Personal Income Tax, the quality and efficiency of tax workers should be improved so that more effective administration will be achieved and automation of the system.</em>

Tax rates, tax administration and income tax evasion in Switzerland

Public Choice ◽  
1996 ◽  
Vol 88 (1-2) ◽  
pp. 161-170 ◽  
Author(s):  
Werner W. Pommerehne ◽  
Hannelore Weck-Hannemann
Keyword(s):  
Tax Evasion ◽  
Income Tax ◽  
Tax Administration ◽  
Tax Rates

scholarly journals Current State of Research on the Interaction of Theory on Tax Evasion and the Developments in the Field of Digital Tax Administration

2021 ◽  
Vol 1 (1) ◽  
pp. 95-110
Author(s):  
Tina Krieger
Keyword(s):  
Tax Evasion ◽  
Research Question ◽  
Tax Compliance ◽  
Fundamental Principle ◽  
Tax Administration ◽  
Starting Point ◽  
The Rich ◽  
State Of Research ◽  
The One ◽  
The Impact

Fairness in the sense of tax equality is a fundamental principle in modern tax systems, which needs to be protected for various reasons. This has become challenging for tax administrations – particularly in the digital age. On the one hand, digitalisation entails the danger of tax evasion and avoidance, but if used properly by the tax authorities, it may as well be a chance for more tax transparency. By surveying the existing literature on tax compliance in the context of digitalisation, this paper represents a first attempt to merge the rich research already done on the theory of tax evasion with the insights gained from the digitalisation efforts of tax administrations. The objective of this paper is to provide a solid starting point for further research in the area of digitalisation and fair taxation, addressing the research question: “How can digitalisation of the tax administrations contribute to fair taxation?” From the literature research, it became clear that there is no publication of a theoretical nature that systematically deals with the impact of the digitalisation of the tax administration on the objectives of fair taxation. However, our research revealed numerous literary references that provide a valuable starting point to unite the research streams and bridge the research gap identified.

scholarly journals A MODEL-THEORETICAL ANALYSIS FOR DIGITAL TAX ADMINISTRATIONS

2021 ◽  
Author(s):  
Tina Krieger
Keyword(s):  
Theoretical Analysis ◽  
Model Theory ◽  
Tax Evasion ◽  
Fundamental Principle ◽  
Tax Administration ◽  
Compliance Costs ◽  
Tax Returns ◽  
Tax Systems ◽  
The Impact

Fairness in the sense of tax equality is a fundamental principle in modern tax systems. In recent years tax administrations have been making tremendous advances in moving from paper tax returns to a far-reaching digitalisation of the taxation procedure. This paper represents the first attempt to examine the impact of digitalisation of the tax administration on fair taxation through model theory. The model suggested in this paper is based on Allingham and Sandmo’s tax evasion model (Allingham & Sandmo, 1972, 323–338) supplemented by psychological costs of tax evasion and compliance costs and then transferred to the context of digitalisation and fair taxation. The model is intended to mathematically derive the influence of various digitalisation measures on the taxpayer's decision to behave fairly. It implies that the objective of fair taxation should be promoted with a mix of deterrent and encouraging measures.

Improving Tax Administration's Services as a Factor of Tax Compliance: The Case of Tax Audit

2014 ◽  
Vol 12 (3) ◽  
pp. 481-501 ◽  
Author(s):  
Lidija Hauptman ◽  
Mirjana Horvat ◽  
Romana Korez-Vide
Keyword(s):  
European Union ◽  
Tax Evasion ◽  
Union Member ◽  
Tax Compliance ◽  
Tax Administration ◽  
Tax Rates ◽  
Compliance Behavior ◽  
Tax Audit ◽  
Policy Measures ◽  
European Union Member States

In this paper the experiences of taxpayers with the tax audits services as an important tool of tax authorities’ struggle against tax evasion are discussed. In the theoretical part of the paper the factors of tax compliance and the tax authorities’ measures in combating tax evasion are examined, the levels of tax rates and the compliance burden of European Union member states’ tax systems are compared. In the empirical part of the paper the experiences of Slovenian companies with tax audit services are analyzed. Better understanding of the drivers of taxpayer compliance behavior allows tax administration to identify and implement policy measures more effectively.

Tax Rates and Tax Evasion

2018 ◽  
Vol 19 (2) ◽  
pp. 229-250
Author(s):  
Harini Weerasekera
Keyword(s):  
Sri Lanka ◽  
Policy Change ◽  
Tax Evasion ◽  
Value Added ◽  
Tax Rates ◽  
Treatment Data ◽  
The Difference ◽  
The Impact ◽  
The Relationship ◽  
Trade Partners

The study empirically examines the relationship between tax rates and tax evasion for Sri Lanka. This is examined in the context of border tax evasion, where I test for the presence of evasion via the ‘evasion gap’: the discrepancy between exports to Sri Lanka (as reported by Sri Lanka’s trade partners) and imports by Sri Lanka (as reported by Sri Lanka) for products imported by Sri Lanka from its top seven import partners in 2014. The study focuses on two forms of border tax evasion: underreporting and mislabelling. In addition, the study estimates the effect of a policy to bring selected value-added tax (VAT)-exempt products into the VAT net, on the evasion gap. Results from OLS estimation suggest that both forms of evasion are present. The difference-in-difference results of the impact of the policy change on the evasion gap are insignificant, but require post-treatment data to arrive at a more concrete conclusion. JEL: H200, H260

scholarly journals Is Neoliberalism Still Spreading? The Impact of International Cooperation on Capital Taxation

2020 ◽  
Author(s):  
Lukas Hakelberg ◽  
Thomas Rixen
Keyword(s):  
International Cooperation ◽  
Tax Evasion ◽  
Negative Impact ◽  
Tax Avoidance ◽  
Tax Rates ◽  
Capital Taxation ◽  
Profit Shifting ◽  
Tax Rate ◽  
Corporate Profits ◽  
The Impact

The downward trend in capital taxes since the 1980s has recently reversed for personal capital income. At the same time, it continued for corporate profits. Why have these tax rates di-verged after a long period of parallel decline? We argue that the answer lies in different levels of change in the fights against tax evasion and tax avoidance. The fight against evasion by households progressed significantly since 2009, culminating in the multilateral adoption of automatic exchange of information (AEI). In contrast, international efforts against base ero-sion and profit shifting (BEPS) failed to curb tax avoidance by corporations. We theorize that international cooperation is an intervening variable, countering the negative impact of tax competition on capital taxation by reducing the risk of capital flight. Under such conditions, domestic political pressures in favor of higher capital taxes can unfold. We confirm our argu-ment in a difference-in-difference analysis and through additional tests with data for up to 35 OECD countries from 2000-2017. Our central estimate suggests that the average tax rate on dividends in 2017 is 4.5 percentage points higher than it would have been absent international tax cooperation.

Audit assurance and tax enforcement

2019 ◽  
Vol 9 (4) ◽  
pp. 449-472
Author(s):  
Dengjun Zhang
Keyword(s):  
Logit Model ◽  
Poisson Model ◽  
Fiscal Year ◽  
Tax Administration ◽  
Financial Reports ◽  
Tax Enforcement ◽  
Content Type ◽  
Central Eastern Europe ◽  
Business Environments ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of audit assurance on tax enforcement, which is represented by whether firms have been visited by tax officials and, if so, the total number of inspections per fiscal year. The efficiency of tax administration is further examined by whether it becomes a binding constraint to a firm’s operations. Design/methodology/approach The sample consists of 18,746 firm-year observations from 28 transition and market-based economies in Central-Eastern Europe. The binary logit model, the Poisson model and the ordinal logit model are applied to test the hypotheses. Findings The empirical results show that, while audit assurance does not reduce the probability of being visited by tax officials (regardless of visit times) for the two country groups, firms with audited financial reports meet tax officials less often in market-based economies but not in transition economies. Furthermore, only in market-based economies does audit assurance reduce the probability that tax administration becomes a severe obstacle to firms’ operations. Originality/value This study addresses the relationship between tax administration and audit assurance in market-based and transition countries. One implication of the empirical findings is that audit assurance would add benefits to business environments when countries evolve from transition to market-based economies.

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