scholarly journals Do Small Businesses Respond to a Change in Tax Audit Rules? Evidence from Italy

2016 ◽  
Vol 45 (6) ◽  
pp. 792-814 ◽  
Author(s):  
Alessandro Santoro
Keyword(s):  
Administrative Data ◽  
Tax Evasion ◽  
Small Businesses ◽  
Accounting Standards ◽  
Compliance Costs ◽  
Tax Audit ◽  
The Impact

Tax evasion by small businesses can be tackled using different approaches. A traditional one recommends to increase the probability of an audit that is perceived by small businesses. Clearly, this entails high administrative and compliance costs. Another possibility is to reduce the room for accounting manipulation by applying more stringent accounting standards. This article uses a panel of administrative data concerning 71,000 Italian small businesses observed in tax years 2005 to 2008. The aim of this article is to evaluate the impact of a reform implemented in 2006. Until 2005, small businesses adopting more stringent accounting standards were granted a special audit regime such that the probability to be audited was particularly low. This regime was repealed in 2006. It is shown that the reform increased profits and turnover, as reported by the subset of businesses that were more likely to perceive the reform as an increase in the probability of an audit.

scholarly journals The Impact of Electronic Taxation on Tax Auditing: The Case of Turkey

2017 ◽  
Author(s):  
Tuğçe Uzun Kocamış ◽  
H. Muhammet Kekeç
Keyword(s):  
Information Technology ◽  
Informal Economy ◽  
Tax Evasion ◽  
Information Technologies ◽  
Internet Technology ◽  
Commercial Activities ◽  
The World ◽  
Tax Audit ◽  
The Impact

The advances in information and information technology provide companies with both speed and optimal benefit by using the internet intensively for every stage of their commercial activities and for all kinds of transactions. In order to reduce tax losses, it is necessary to utilize information technologies to develop new audit methods and techniques and to follow new practices in the world. It has become compulsory for public institutions to keep pace with the evolving information technology and to form the necessary information infrastructure. E-applications prevent tax evasion and ensure tax incomes of countries not only to increase the quality of public service but also increase the taxpayer's transaction speed. With the transfer of taxpayers to electronic book and electronic document in order to conduct an effective tax audit and to obtain tax revenue studies on the establishment of a structure that is effective, fast working and using computer technologies well in the struggle with the informal economy are carried out by the tax administration. In our work, electronic tax applications and tax audit in Turkey are explained under general headings and the process of transition to electronic tax audit is taken as basis on the basis of applications in the world. As a result, the contribution of computer and internet technology to the effectiveness of tax audit is an unquestionable reality.

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.

scholarly journals Measuring the Impact of Tax Inspection on Firms' Performance

2021 ◽  
Vol 5 (2) ◽  
pp. 195-204
Author(s):  
Muhamad Taufan Setiawan
Keyword(s):  
Tax Evasion ◽  
Tax Compliance ◽  
Subjective Measure ◽  
Self Assessment ◽  
Tax Audit ◽  
Causal Impact ◽  
The Difference ◽  
Compliance Problem ◽  
Taxation System ◽  
The Impact

The tax compliance problem is an imminent issue in a self-assessment taxation system in Indonesia. Tax audit is an important tool used by the tax authority to address the problem. Several studies showed that tax inspection might change the behavior of the taxpayers. Therefore, it is interesting to see how tax inspection will affect taxpayers' behavior related to their subjective measure of firms' performance. This research uses the difference-in-difference approach combine with the entropy balancing method to estimate the causal impact of tax inspection on firms’ performance. The findings showed that the inspected firms showed an increase in their perception of capital utilization which can be explained using tax evasion model or managerial benefits concept.

Cash economy: tax evasion amongst SMEs in Malaysia

2016 ◽  
Vol 23 (4) ◽  
pp. 974-986 ◽  
Author(s):  
Azhar Mohamad ◽  
Mohd Hasrol Zakaria ◽  
Zarinah Hamid
Keyword(s):  
Tax Evasion ◽  
Design Methodology ◽  
Content Type ◽  
Audit Data ◽  
Tax Returns ◽  
Tax Audit ◽  
Inland Revenue ◽  
Cash Economy ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this study is to investigate the relationship between tax evasion and certain demographic factors such as location, engagement of tax agent, size and type of small- and medium-sized enterprises (SMEs) industry in Malaysia. Design/methodology/approach In this study, using proprietary tax audit data from the Inland Revenue Board of Malaysia (IRBM) on the 2011 tax returns of SMEs, the authors run a multiple regression analysis to examine the impact of location, agent, type of industry, size of enterprise and type of tax evasion on SMEs’ tax evasion in Malaysia. Findings The authors find that tax evasion among SMEs in Malaysia is the highest when the business is located in a suburban environment and has no tax agent. Tax evasion is also influenced by the size of the SME (micro or medium). Originality/value This study gives insight that the IRBM can use to aid its collection department in profiling SMEs that have a higher tendency to evade paying tax.

scholarly journals Impact of Tax Evasion Among tax Payers of Bale Robe Town Administration, Ethiopia

2020 ◽  
Vol 1 (1) ◽  
pp. 41-49
Author(s):  
Birhanu Hailu ◽  
Tarik Kechema
Keyword(s):  
Data Analysis ◽  
Tax Evasion ◽  
Research Method ◽  
Quantitative Research ◽  
Tax Audit ◽  
Tax Payers ◽  
The Impact ◽  
Significant Factors ◽  
Quantitative Research Method

The main purpose of this study was to investigate the impact of tax evasion among tax payers of payers Robe town administration. To attain the intended objective the study used quantitative research method and logit method for the econometrics model. And to collect the necessary data from the respective respondents questionnaire was distributed and collected from 346 respondents. For the data analysis SPSS version 20.0 was used. The finding of this study revealed that; tax knowledge, efficiency of tax authority, equity, and tax audit are found to be significant factors that could affect the tax evasion perception of tax payers.

scholarly journals The Limit of Tax Audit and Its Impact on the Status of Taxable Entities

2017 ◽  
Vol 2 (1) ◽  
pp. 43-55
Author(s):  
Ivana Štieberová
Keyword(s):  
Tax Evasion ◽  
Control Mechanism ◽  
Value Added ◽  
Time Limit ◽  
Value Added Tax ◽  
Significant Control ◽  
The Status ◽  
Tax Audit ◽  
Tax Fraud ◽  
The Impact

Tax audit is a significant control mechanism nowadays, particularly in the context of increasing tax evasion and tax fraud. Taxable entities are obliged to tolerate the performing of tax audit for a certain statutory period. But what if the tax audit exceeds this statutory time limit? What impact does it have on the status of the taxable entity? Regarding the length of the tax audit, we will deal with the impact of the interest on value added tax refund on the status of the taxable entity. Will this interest contribute to its improvement?

scholarly journals The Impact of Tax Audit and Corruption Perception on Tax Evasion

2021 ◽  
Vol 22 (3) ◽  
pp. 1158-1173
Author(s):  
Ferry Irawan ◽  
Adam Siaga Utama
Keyword(s):  
Tax Evasion ◽  
Tax Compliance ◽  
Fixed Effect Model ◽  
Tax Enforcement ◽  
Effect Model ◽  
Panel Data Regression ◽  
Data Regression ◽  
Tax Audit ◽  
Corruption Perception ◽  
The Impact

This study is aimed to determine the impact of tax audit intensity and perception of corruption on tax evasion activities. Some research that explains the impact of tax audit on tax evasion tends to give a varied result one and another. It is reasonable to assume that there is another factor that simultaneously influences tax evasion. Tax audit and perception of corruption were chosen because of their relevance and intertwine relation in tax authorities function and program, namely tax enforcement and the eradication of corruption. This research is also in line with the challenges faced by many countries in increasing tax compliance. We conduct a panel data regression method with a fixed effect model. We found that tax audit proved insignificant to tax evasion, and perception of corruption positively significant to tax evasion. We conclude that corruption significantly increases tax evasion and undermine the benefit of tax audit

scholarly journals Impact of Demonetization on Small Businesses in Indian Economy - An Empirical Study on Small Businesses at Cooch Behar District, West Bengal

2018 ◽  
Vol 10 (3) ◽  
pp. 100
Author(s):  
Madhuchandra Bhaduri
Keyword(s):  
Real Estate ◽  
Tax Evasion ◽  
Small Businesses ◽  
West Bengal ◽  
Small Scale ◽  
Indian Economy ◽  
Daily Wage ◽  
One Year ◽  
The Impact ◽  
Small Traders

<p>November 8<sup>th</sup>, 2016 was a path breaking day in Indian economy when Govt. of India has demonetized the high value currency notes and replaced with new notes of Rs.500 and Rs.2000. This move Govt. was taken to clean the black money from the market, to inspire digital economy and to reduce the ‘Cash’ payment culture of some people for tax evasion. The overnight decision changed the life of many people in India. Thousands of people they waited in long queues in front of Banks, ATMs for money. Entire social life of people throughout the country got distracted. Many poor daily wage workers were left with no job and income as owners were unable to pay their daily wage because of less cash, around 15 lakh jobs have been obsolete during this one year.</p><p> Despite Govt. of India has taken a bold step to make India corruption free and inspire the people in cashless transaction but after one year can we say India is really corruption free? Can we observe any significant improvement in cashless transactions? Can we see the digital payments have significantly improved for common general man?</p><p>Many reports stated that Country’s automobile and real estate sectors are highly affected and World Bank has downgraded the Indian economy’s growth forecast as sharp falls. The empirical findings suggest that the impact of demonetization on GDP growth during Q3 and Q4 of 2016-17 was mostly felt in construction and real estate, but the good thing was that because of stronger growth in manufacturing, agriculture, mining and electricity the overall impact on gross domestic product growth was modest.</p><p>Many reports stated that small traders have immensely affected after demonetization because of the cash crunch and lack of infrastructure like digital payment system etc. Small traders in retail sector (grocery shops etc), service sector (restaurants, nursing homes etc.), gems and jewellery, small traders in agricultural products, SMEs, small dealers, professionals like doctors, lawyers etc, have highly affected because of demonetization during  last one year. So my objective to find out whether the small traders have really affected or not. If they are affected then how they have affected?</p><p>The main objective of this paper is to study the impact of demonetization on the small scale traders at Cooch Behar District of West Bengal and how it affected their business. As we all know that Cooch Behar is the princely state of West Bengal which is located very near to Assam, Bhutan and Siliguri region. As a district town Cooch Behar has a high significance in businesses with Northeast, Siliguri and Bhutan. I prepared a questionnaire and surveyed to 50 small scale businessmen at Cooch Behar district and tried to find their perception on demonetization and its impacts on their businesses during last one year. The study at Cooch Behar district may reflect the status of small traders for entire country.  Another objectives I have kept here to study whether demonetization really eradicated corruption from India and whether demonetization has changed the behavior of the citizens of the country in cashless transactions?</p>

Assessment of small businesses activities in Ukraine

2019 ◽  
pp. 40-47
Author(s):  
Igor Ponomarenko ◽  
Kateryna Volovnenko
Keyword(s):  
Comparative Analysis ◽  
Statistical Analysis ◽  
Small Business ◽  
Small Businesses ◽  
Government Agencies ◽  
Small Enterprises ◽  
The Subject ◽  
Business Entities ◽  
The Impact ◽  
Micro Enterprises

The subject of the research is a set of approaches to the statistical analysis ofthe activities of small business entities in Ukraine, including micro-enterprises. The purpose of writing this article is to study of the features of functioningof small business entities in Ukraine. Methodology. The research methodology isto use a system-structural and comparative analysis (to study the change in thenumber of small enterprises by major components); monographic (when studyingmethods of statistical analysis of small businesses); economic analysis (when assessing the impact of small business entities on socio-economic phenomena andprocesses in Ukraine). The scientific novelty consists to determine the features ofthe functioning of small businesses in Ukraine in modern conditions. The influenceof the activities of the main socio-economic and political indicators on the activities of small enterprises in recent periods of time has been identified. It has beenestablished that there is flexibility in the development of strategies by small businesses in conditions of significant competition, which makes it possible to quicklyrespond to changing situations in specific markets. Conclusions. The use of acomprehensive statistical analysis of small businesses functioning in Ukraine willallow government agencies to develop a set of measures to optimize the activitiesof these enterprises, which ultimately will positively affect the strengthening oftheir competitiveness and will contribute to the growth of the national economicsystem.

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