scholarly journals Where Has The Currency Gone? And Why? The Underground Economy And Personal Income Tax Evasion In The U.S., 1970-2008

2014 ◽  
Vol 6 (1) ◽  
pp. 36-52
Author(s):  
Richard J. Cebula
Keyword(s):  
Interest Rate ◽  
Tax Evasion ◽  
Income Tax ◽  
Tax Avoidance ◽  
Underground Economy ◽  
Personal Income ◽  
Personal Income Tax ◽  
Tax Returns ◽  
Federal Income Tax ◽  
The U.S

Unaccounted for currency in the U.S. is argued to reflect the presence of widespread income tax evasion. This empirical study seeks to identify determinants of the underground economy in the U.S. in the form of federal personal income tax evasion over the period 1970-2008. In this study, we use the most recent data available on personal income tax evasion, data that are derived from the General Currency Ratio Model and measured in the form of the ratio of unreported AGI (adjusted gross income) to reported AGI. Other studies of federal income tax evasion for the U.S. are dated and do not use data this current. It is found that personal income tax evasion was an increasing function of the maximum marginal federal personal income tax rate, the percentage of federal personal income tax returns characterized by itemized deductions, and unpopular military engagements, in this case, the War in Iraq, and a decreasing function of the Tax Reform Act of 1986 (during its first two years of being implemented), the ratio of the tax free interest rate yield on high grade municipals to the interest rate yield on ten year Treasury notes (as a measure of the incentive effect of a better return to tax avoidance, which is legal), and higher audit rates of filed federal income tax returns (as a measure of risk from tax evasion) by IRS personnel.

scholarly journals An Empirical Analysis of Determinants of Recent Federal Personal Income Tax Evasion in the U.S.

2011 ◽  
Vol 29 (1) ◽  
pp. 33-54
Author(s):  
Richard J. Cebula
Keyword(s):  
Interest Rate ◽  
Tax Evasion ◽  
Income Tax ◽  
Real Income ◽  
Personal Income ◽  
Budget Deficits ◽  
Personal Income Tax ◽  
Empirical Estimates ◽  
Treasury Notes ◽  
The U.S

Abstract Unaccounted for currency in die U.S. has been argued to reflect die presence of widespread income tax evasion. In turn, income tax evasion is especially problematic in this era of large government budget deficits and growing national debts which have led to debt crises. This empirical study seeks to identify determinants of recent federal personal income tax evasion in the U.S. using the most recent tax evasion data available, data that run through 2008 and are derived from the General Currency Ratio Model and measured in the form of the ratio of unreported AGI (adjusted gross income) to reported AGI. The empirical estimates find that personal income tax evasion is an increasing function of the maximum marginal federal personal income tax rate, the interest rate yield on three year Treasury notes, per capita real income, and a dummy variable for the years in which the second war in Iraq was conducted, while being a decreasing function of the Tax Reform Act of 1986, the ratio of the tax free interest rate yield on high grade municipals to the taxable interest rate yield on ten year Treasury notes, the audit rate by IRS (Internal Revenue Service) personnel, and the average IRS penalty on detected unreported income. Thus, among other things, this study finds that more aggressive IRS policies are effective tools in the war against personal income tax evasion.

scholarly journals PENERAPAN PAJAK PENGHASILAN ORANG PRIBADI DARI PERDAGANGAN VALUTA ASING SECARA ONLINE YANG MENGGUNAKAN BROKER LUAR NEGERI

2020 ◽  
Vol 15 (2) ◽  
pp. 277-289
Author(s):  
Zuhdi Arman ◽  
Lenny Husna
Keyword(s):  
Foreign Exchange ◽  
Tax Evasion ◽  
Income Tax ◽  
Tax Avoidance ◽  
Personal Income ◽  
Assessment System ◽  
Self Report ◽  
Personal Income Tax ◽  
Self Assessment ◽  
Foreign Exchange Trading

Foreign exchange trading is one of the most popular businesses in the world, including the Indonesian people. The income generated from an Indonesian trader will certainly raise an aspect of Income Tax that must be fulfilled. This study aims to analyze the application of personal income tax and to determine the form of tax avoidance that can occur in relation to online foreign exchange trading using foreign brokers. The method used in this research is descriptive qualitative, data collection is done by means of in-depth interviews, observation and documentation, informant selection techniques with purposive sampling, data analysis techniques performed by data reduction, data presentation and drawing conclusions. The result of this research is the application of personal income tax on personal traders (taxpayers) which is carried out by means of a self-assessment system with the expectation of voluntary compliance in which the taxpayer must self-report the tax owed at the end of the year. Due to the lack of supervision over the implementation of the self assessment system, and online forex trading transactions are carried out fully online, taxpayers have a very big opportunity to do tax evasion. In the application of individual PPh, there are also several obstacles that occur both from the side of the taxpayer itself and from the side of the government.

Federal aggregate personal income tax evasion/unreported income and its real interest rate yield effects on longer-term treasury debt issues

2019 ◽  
Vol 12 (3) ◽  
pp. 305-325 ◽  
Author(s):  
Richard Cebula
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Tax Evasion ◽  
Income Tax ◽  
Real Interest Rate ◽  
Personal Income ◽  
Personal Income Tax ◽  
Treasury Bonds ◽  
Content Type ◽  
The Impact

Purpose The purpose of this study is to empirically investigate the impact of aggregate federal personal income tax evasion on the real interest rate yield on 10-year Treasury notes, 20-year Treasury bonds and 30-year US Treasury bonds. Design/methodology/approach An open-economy loanable funds model is developed, with income tax evasion expressly included in the specification in the form of the AGI (adjusted gross income) gap and the ratio of unreported AGI to actual AGI, expressed as a per cent. Findings The empirical estimations reveal compelling evidence that income tax evasion thus measured acts to elevate the real interest rate yields on 10-year Treasury notes and both 20-year and 30-year Treasury bonds, raising the possibility of a tax evasion-induced form of “crowding out”. Research limitations/implications Ideally, tax evasion data for a longer time period would be very useful. Practical implications To the extent that greater federal personal income tax evasion yields a higher interest rate yield on 10-year, 20-year and 30-year Treasury debt issues, it is likely that the tax evasion will also elevate other interest rates in the economy. Social implications Higher interest rates resulting from tax evasion would likely slow-down macroeconomic growth and accelerate unemployment. Originality/value Neither the tax evasion literature nor the interest rate literature has ever considered the impact of tax evasion behavior on long-term interest rates.

scholarly journals Tax Fraud Detection through Neural Networks: An Application Using a Sample of Personal Income Taxpayers

2019 ◽  
Vol 11 (4) ◽  
pp. 86 ◽  
Author(s):  
César Pérez López ◽  
María Delgado Rodríguez ◽  
Sonia de Lucas Santos
Keyword(s):  
Neural Network ◽  
Neural Networks ◽  
Income Tax ◽  
Fraud Detection ◽  
Personal Income ◽  
Personal Income Tax ◽  
Tax Returns ◽  
The Neural Networks ◽  
Tax Fraud ◽  
Efficiency Rate

The goal of the present research is to contribute to the detection of tax fraud concerning personal income tax returns (IRPF, in Spanish) filed in Spain, through the use of Machine Learning advanced predictive tools, by applying Multilayer Perceptron neural network (MLP) models. The possibilities springing from these techniques have been applied to a broad range of personal income return data supplied by the Institute of Fiscal Studies (IEF). The use of the neural networks enabled taxpayer segmentation as well as calculation of the probability concerning an individual taxpayer’s propensity to attempt to evade taxes. The results showed that the selected model has an efficiency rate of 84.3%, implying an improvement in relation to other models utilized in tax fraud detection. The proposal can be generalized to quantify an individual’s propensity to commit fraud with regards to other kinds of taxes. These models will support tax offices to help them arrive at the best decisions regarding action plans to combat tax fraud.

scholarly journals Analisis Jumlah Wajib Pajak Pph OP Yang Tidak Menyampaikan SPT Dengan Penerimaan Pajak Pada KPP Pratama Jakarta Duren Sawit

2019 ◽  
Vol 6 (2) ◽  
pp. 173-178
Author(s):  
Dede Suleman
Keyword(s):  
Income Tax ◽  
Personal Income ◽  
Personal Income Tax ◽  
The Public ◽  
Tax Returns

Personal income tax is one of the potential tax receipts in this study which will provide a percentage picture of taxpayers who do not submit SPT with the percentage of Op tax PPh revenue. it was found that the number of taxpayers who did not submit annual tax returns decreased in 2017 to only 9.4% of the taxpayers who did not submit tax returns, which meant that the public began to realize their SPT every year. tax that turns out to be known that every year there is an increase in 2017 compared to 2016 experiencing an increase of 72% and the largest revenue occurred in 2017 amounting to 89% of the set target.

scholarly journals Tax Literacy

2018 ◽  
Vol 66 (2) ◽  
pp. 553-559
Author(s):  
Michaela Moučková ◽  
Leoš Vítek
Keyword(s):  
Income Tax ◽  
Response Rate ◽  
Statistical Tests ◽  
Value Added ◽  
Practical Experience ◽  
Personal Income ◽  
Personal Income Tax ◽  
Two Factors ◽  
Tax Returns ◽  
The University

Presented paper focuses on measuring tax literacy among bachelor degree students at the University of Economics, Prague, along with analysis of the two factors that influence it. Based on the 150 collected questionnaires (63 % response rate), we measured tax literacy of students (personal income tax and VAT) and examined whether it depends on (i) previous passing of tax courses and (ii) previous practical experience with filing tax returns. More than half of the students were well to excellently-versed in tax matters, including those who have not completed any more advanced tax courses apart from the elementary tax course. For VAT, the results of statistical tests show that students’ knowledge depends on passing a more advanced course on consumption taxation. On the other hand, the link between experience with tax returns and results of tax literacy tests cannot be unambiguously confirmed or rejected. Within the first statistical test (personal income tax), it was established that students’ knowledge does not depend on previous filing of tax returns; the second test (value added tax) led to the opposite conclusion.

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