scholarly journals The deterrence effect of real-world operational tax audits on self-employed taxpayers: evidence from Italy

2021 ◽  
Author(s):  
Gabriele Mazzolini ◽  
Laura Pagani ◽  
Alessandro Santoro
Keyword(s):  
Real World ◽  
Fixed Effects ◽  
Tax Compliance ◽  
Theoretical Predictions ◽  
Audit Rates ◽  
Tax Returns ◽  
Tax Audit ◽  
Deterrence Effect ◽  
The Common ◽  
Endogenous Selection

AbstractWe use a large administrative tax-returns panel dataset merged with a tax audit database to estimate the effect of real-world operational tax audits on subsequent tax behavior of a large sample of Italian self-employed taxpayers. Results from operational audits do not suffer from the fact that taxpayers are aware that they have been randomly selected for research purposes and, then, such audits are viewed as more of a signal about true audit rates by the taxpayer. Our empirical approach relies on fixed-effects difference-in-difference comparisons with an ex-ante matched sample of non-audited taxpayers. To address concerns about the endogenous selection into audit, we provide evidence for the common trends assumption. We find a positive and lasting effect of audits on subsequent reported income. However, in line with theoretical predictions, taxpayers do not increase tax compliance when the tax authority does not assess a positive additional income. Our results are robust to a variety of specifications and samples.

scholarly journals IMPROVING TAX COMPLIANCE IN A GLOBALIZED WORLD: AN APPROACH OF BRICS COUNTRIES

2018 ◽  
pp. 27-43
Author(s):  
DANIL VINNITSKY ◽  
DENIS KUROCHKIN
Keyword(s):  
Tax Compliance ◽  
Tax Administration ◽  
Brics Countries ◽  
Legal Method ◽  
Tax Gap ◽  
Tax Returns ◽  
Tax Audit ◽  
International Conventions ◽  
Globalized World ◽  
Method Analysis

Introduction: The article is devoted to the issues of improving tax compliance. The tax gap leads to the loss of the planned revenues to the budgetary system, therefore the Russian Federation, as many other countries, is trying to give an adequate forecast of the possible tax gap and minimize the amount of the falling out revenues. Methods: comparison and analysis, comparative legal method. Analysis: to decrease the tax gap it is necessary to adopt a complex of measures such as improving: (1) access to information needed by tax administration, (2) exchange of information between tax administrations of different countries (3) horizontal monitoring and risk management. At present, Russian tax law includes both traditional and modern forms of tax audit that need to be developed on the following directions: (1) providing for the expanded electronic documentation circulation between the tax administration and taxpayers, (2) reduction of time and material costs of the preparation and submission of tax returns, and other. Results: the effective elimination of the tax gap requires coordinated and consistent application of the abovementioned measures taking into account the economic situation and the actual capacity of certain categories of taxpayers in regard to paying taxes. In the context of the BRICS, it is proposed to adopt international conventions aimed at improving tax compliance and creating conditions for a fair resolution of cross-border tax disputes.

ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI TAX COMPLIANCE TERHADAP PENYAMPAIAN SPT TAHUNAN WAJIB PAJAK ORANG PRIBADI

2019 ◽  
Vol 3 (2) ◽  
pp. 19
Author(s):  
Mela Cyntia Sani ◽  
Khuznatul Zulfa Wafirotin ◽  
Ika Farida Ulfa
Keyword(s):  
Behavioral Control ◽  
Linear Regression Analysis ◽  
Tax Compliance ◽  
Multiple Linear Regression Analysis ◽  
Primary Data ◽  
Analysis Method ◽  
Online Systems ◽  
Tax Returns ◽  
Directorate General ◽  
The Government

Individual Taxpayers (WPOP) experience problems every year due to difficulties in filling out SPT. The Directorate General of Taxes issued a new policy in providing easy Notification Services (SPT) using online systems namely e-Filling and e-SPT. The policy taken by the government turned out that there were still many obstacles faced by the KPP Pratama Ponorogo Tax Office regarding ponorogo's lack of understanding related to filling out SPT manually or online using e-SPT and e-Felling. So that this certainly can make taxpayers object to the submission of Annual Tax Returns, especially in terms of calculating the tax payable which must be calculated on its own. Data collection is done by using primary data in the form of questionnaires. The samples processed in this study were 100 respondents who were distributed to individual taxpayers registered at KPP Pratama Ponorogo. Data analysis method uses validity test and reliability test, hypothesis testing using multiple linear regression analysis. The results of this study indicate that the awareness of taxpayers, taxpayer intentions, taxpayer attitudes, subjective norms, behavioral control and ease of tax return filling process affect Tax Compliance (tax compliance) submission of Annual Tax Returns. This is because taxpayers know, understand and implement taxation provisions correctly and voluntarily so as to increase taxpayer compliance in fulfilling their obligations and are willing to report taxes with their own awareness.

Tax compliance and social desirability bias of taxpayers: experimental evidence from Indonesia

2021 ◽  
pp. 1-18
Author(s):  
Endra Iraman ◽  
Yoshikuni Ono ◽  
Makoto Kakinaka
Keyword(s):  
Experimental Evidence ◽  
Social Desirability ◽  
Tax Evasion ◽  
Tax Compliance ◽  
Computer Assisted ◽  
Social Desirability Bias ◽  
Lower Income ◽  
Tax Returns ◽  
List Experiment ◽  
Experiment Technique

Abstract Identifying taxpayers who engage in noncompliant behaviour is crucial for tax authorities to determine appropriate taxation schemes. However, because taxpayers have an incentive to conceal their true income, it is difficult for tax authorities to uncover such behaviour (social desirability bias). Our study mitigates the bias in responses to sensitive questions by employing the list experiment technique, which allows us to identify the characteristics of taxpayers who engage in tax evasion. Using a dataset obtained from a tax office in Jakarta, Indonesia, we conducted a computer-assisted telephone interviewing survey in 2019. Our results revealed that 13% of the taxpayers, old, male, corporate employees, and members of a certain ethnic group had reported lower income than their true income on their tax returns. These findings suggest that our research design can be a useful tool for understanding tax evasion and for developing effective taxation schemes that promote tax compliance.

Moderating role of patriotism on sales tax compliance among Jordanian SMEs

2020 ◽  
Vol 13 (3) ◽  
pp. 389-415 ◽  
Author(s):  
Ahmad Farhan Alshira'h ◽  
Hijattulah Abdul-Jabbar
Keyword(s):  
Tax Compliance ◽  
Arab Countries ◽  
Moderating Effect ◽  
Theory And Practice ◽  
Sales Tax ◽  
Deterrence Theory ◽  
Content Type ◽  
Tax Rate ◽  
Tax Audit ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of tax audit, tax rate and tax penalty on sales tax compliance and examine the moderating effect of patriotism on the associations between tax audit, tax rate and tax penalty with sales tax compliance among Jordanian manufacturing small- and medium-sized enterprises (SMEs). Design/methodology/approach In this study, 660 questionnaires were distributed by using systematic random sampling to manufacturing SMEs in Jordan, after which a total of 385 useable questionnaires were deemed suitable for analysis. Partial least squares structural equation modelling (PLS-SEM) was used to validate the measurement model and structural model and the predictive relevance of the study’s model. Findings The findings showed that tax audit and tax penalty were positively associated with the level of sales tax compliance, whereas tax rate was insignificantly associated with sales tax compliance. They also demonstrated the moderating significant effect of patriotism on the relationship between tax penalty, tax audit and tax rate with sales tax compliance. Research limitations/implications Tax authorities and policymakers in developing majority societies in developing countries and in other Arab countries, especially in Jordan may use the results to focus their interest on the formulation of policies founded on the outcomes of the study to strengthen eligible SMEs to comply to further boost their sales collections. Originality/value This study extends the deterrence theory in the context of sales tax compliance by proposing the moderating effect of patriotism in the deterrence theory on sales tax compliance among SMEs. Moreover, the suitability for the use of PLS-SEM as a statistical tool in investigating the extended deterrence theory with patriotism as a moderating variable as well as its implications for theory and practice was also discussed.

scholarly journals Covid-19 and corporate tax avoidance: Measuring long-run tax burdens as an alternative bailout test

2021 ◽  
Vol 4 (3) ◽  
pp. 216-244
Author(s):  
Subagio Efendi
Keyword(s):  
Financial Aid ◽  
Income Tax ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Total Sample ◽  
Ordinary Least Squares ◽  
Corporate Tax ◽  
Long Run ◽  
Tax Returns ◽  
Avoidance Measures

This study fills the gap in the tax authority’s Covid-19 financial aid verifications by examining, and nominating, Long-run ETR (Dyreng et al., 2008) as the better corporate tax avoidance measure in excluding tax evader firms from the broad stimulus programs. Analysing confidential tax returns of 4,752 largest firms (32,120 firm-years) in Indonesia over 2009 to 2017 periods, this study found 18.12 percent of total sample firms is able to retain its Long-run ETR below 10 percent, which indicates continual tax avoidance activities by these firms during observation periods. Moreover, applying univariate and multivariate Ordinary Least Squares and Panel Data estimations, this study reveals, relative to other tax avoidance measures, Lagged Cash ETR (Lisowsky, 2010; Lisowsky et al., 2013) present the most consistent reliability in predicting long-run income tax burdens. Thus, this study asserts, in the conditions of computing Long-run ETR is costly and impractical (i.e. because of data unavailability), tax authority and policymakers can directly analyse firms’ Lagged Cash ETR to gauge their long-run income tax burdens and tax compliance behaviours prior the economic downturn. 

Disabled Peers and Academic Achievement

2010 ◽  
Vol 5 (3) ◽  
pp. 317-348 ◽  
Author(s):  
Jane Friesen ◽  
Ross Hickey ◽  
Brian Krauth
Keyword(s):  
Adverse Effect ◽  
Academic Achievement ◽  
British Columbia ◽  
Grade Level ◽  
Fixed Effects ◽  
Test Score ◽  
Value Added ◽  
Canadian Province ◽  
Disabled Students ◽  
Endogenous Selection

We use data on students in grades 4–7 in the Canadian province of British Columbia to investigate the effect of having disabled peers on value-added exam outcomes. Longitudinal data for multiple cohorts of students are used together with school-by-grade-level fixed effects to account for endogenous selection into schools. Our estimates suggest that same-grade peers with learning and behavioral disabilities have an adverse effect on the test score gains of nondisabled students in British Columbia. However, these effects are statistically insignificant and are sufficiently small that they are unlikely to raise concerns about the placement of this group of disabled students. The effect of peers with other disabilities is also small and statistically insignificant but varies in sign.

Paying the State Use Tax

2016 ◽  
Vol 45 (2) ◽  
pp. 260-282 ◽  
Author(s):  
John E. Anderson
Keyword(s):  
Income Tax ◽  
Research Question ◽  
Tax Compliance ◽  
Behavioral Study ◽  
Reporting Behavior ◽  
Tax Returns ◽  
Use Tax ◽  
Rate Selection ◽  
Tax Reporting ◽  
Selection Of

To improve use tax compliance, twenty-seven states have added a line to their income tax returns where taxpayers can report taxable sales. This article reports results of a behavioral study of a postcard “nudge” sent to income tax filers in one of those states, Nebraska, to encourage self-reporting of liability. The research question is whether the informational nudge was sufficient to alter self-reporting behavior. Data indicate that the nudge more than doubled the likelihood of use tax reporting and nearly doubled the amount of revenue collected, but the rate of use tax reporting remains extremely low. Probit models reveal that use tax reporting rises with income at a decreasing rate. Selection models are also estimated because of positive selection bias in the selection of the treatment group. Taken together, the results indicate that an informational nudge is not likely to be sufficient to substantially change use tax reporting behavior.

Determinants of total factor productivity in Visegrad Group Nuts-2 regions

2018 ◽  
Vol 68 (1) ◽  
pp. 31-50 ◽  
Author(s):  
Barbara Danska-Borsiak
Keyword(s):  
Panel Data ◽  
Total Factor Productivity ◽  
Latent Variables ◽  
Fixed Effects ◽  
Orthogonal Transformation ◽  
Common Factors ◽  
Dynamic Panel Data ◽  
Factor Productivity ◽  
The Common ◽  
Visegrad Group

This article attempts to estimate the total factor productivity (TFP) for 35 NUTS-2 regions of the Visegrad Group countries and to identify its determinants. The TFP values are estimated on the basis of the Cobb-Douglas production function, with the assumption of regional differences in productivity. The parameters of the productivity function were analysed with panel data, using a fixed effects model. There are many economic variables that influence the TFP level. Some of them are highly correlated, and therefore the factor analysis was applied to extract the common factors – the latent variables that capture the common variance among those observed variables that have similar patterns of responses. This statistical procedure uses an orthogonal transformation to convert a set of observations of possibly correlated variables into a set of values of linearly uncorrelated variables called principal components. Each component is interpreted using the contributions of variables to the respective component. I estimated a dynamic panel data model describing TFP formation by regions. An attempt was made to incorporate the common factors among the model’s explanatory variables. One of them, representing the effects of research activity, proved to be significant.

Tofacitinib and risk of cardiovascular outcomes: results from the Safety of TofAcitinib in Routine care patients with Rheumatoid Arthritis (STAR-RA) study

2022 ◽  
pp. annrheumdis-2021-221915
Author(s):  
Farzin Khosrow-Khavar ◽  
Seoyoung C Kim ◽  
Hemin Lee ◽  
Su Been Lee ◽  
Rishi J Desai
Keyword(s):  
Rheumatoid Arthritis ◽  
Real World ◽  
Fixed Effects ◽  
Safety Concern ◽  
Specific Effect ◽  
Routine Care ◽  
Cardiovascular Outcomes ◽  
The Real ◽  
Real World Setting ◽  
Increased Risk

ObjectivesRecent results from ‘ORAL Surveillance’ trial have raised concerns regarding the cardiovascular safety of tofacitinib in patients with rheumatoid arthritis (RA). We further examined this safety concern in the real-world setting.MethodsWe created two cohorts of patients with RA initiating treatment with tofacitinib or tumour necrosis factor inhibitors (TNFI) using deidentified data from Optum Clinformatics (2012–2020), IBM MarketScan (2012–2018) and Medicare (parts A, B and D, 2012–2017) claims databases: (1) A ‘real-world evidence (RWE) cohort’ consisting of routine care patients and (2) A ‘randomised controlled trial (RCT)-duplicate cohort’ mimicking inclusion and exclusion criteria of the ORAL surveillance trial to calibrate results against the trial findings. Cox proportional hazards models with propensity score fine stratification weighting were used to estimate HR and 95% CIs for composite outcome of myocardial infarction and stroke and accounting for 76 potential confounders. Database-specific effect estimates were pooled using fixed effects models with inverse-variance weighting.ResultsIn the RWE cohort, 102 263 patients were identified of whom 12 852 (12.6%) initiated tofacitinib. The pooled weighted HR (95% CI) comparing tofacitinib with TNFI was 1.01 (0.83 to 1.23) in RWE cohort and 1.24 (0.90 to 1.69) in RCT-duplicate cohort which aligned closely with ORAL-surveillance results (HR: 1.33, 95% CI 0.91 to 1.94).ConclusionsWe did not find evidence for an increased risk of cardiovascular outcomes with tofacitinib in patients with RA treated in the real-world setting; however, tofacitinib was associated with an increased risk of cardiovascular outcomes, although statistically non-significant, in patients with RA with cardiovascular risk factors.Trial registration numberNCT04772248.

Christian Calling and the Ideal of Martyrdom in the Real World

2021 ◽  
pp. 122-159
Author(s):  
Matthew D. Lundberg
Keyword(s):  
Real World ◽  
Common Good ◽  
Just War ◽  
Christian Ethics ◽  
Moral Injury ◽  
Roman Catholicism ◽  
Enforcement Official ◽  
The World ◽  
The Common ◽  
Christian Discipleship

Setting just war reasoning into its broader context, this chapter begins by examining the logic, weight, and dangers of the “realist” traditions of Christian ethics, especially Augustine, Niebuhr, and Bonhoeffer (one often acclaimed as martyr though implicated in violent resistance). It shows how Protestant theologies of “vocation” typically sanction the sword-bearing occupations of magistrate, soldier, and law enforcement official as potentially consistent with Christian discipleship and holiness. Recent discussions of “moral injury” in soldiers are considered in relation to this “calling” of sword-bearing for the common good. In dialogue with Roman Catholicism, the chapter elaborates a Protestant conception of sainthood that acknowledges the ambiguity of the world, a conception that occasions a return to the criteria identifying Christian martyrdom.

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