scholarly journals Evaluation of tax audit strategies

2013 ◽  
pp. 52-59
Author(s):  
Gintarė Giriūnienė ◽  
Raminta Benetytė
Keyword(s):  
Informal Economy ◽  
Tax Evasion ◽  
Tax Avoidance ◽  
Additional Information ◽  
Increased Risk ◽  
Verification Time ◽  
Tax Audit ◽  
Point Line ◽  
A Company ◽  
Plane Point

It should be noted that the tax audit topic is relevant – during the last years quantity of tax audits accomplished by state authorities is still growing. Especially in this way is attempted to combat against tax avoidance and evasion, informal economy prevailed in the country. For committing it only helps to have regular inspections of taxpayers i.e. tax audits. Tax audits are divided under the verification time, as it is classified into a complex, a thematic inspection and an operational check. However, despite the existing differences between the various types of tax audit, a key moment of choosing strategy is a tax audit organization. In practice there are distinguished two tax audit strategies – “line-plane-point“ and “point-line-plane“. The first one indicates that before the initial analysis of data examination, it is necessary to investigate whether the company's tax accounting does not have indications for increased risk of error existence. For its practical application is necessary to execute a thorough collection and analysis of the evidence, and the most important is objective and correct assessment of indicators for an increased risk of errors. For this purpose suspicious taxpayers usually are selected and under the tax audit all of the data that can distort selected dubious indicators are checked. In application of the second strategy, if the execution of a company is suspected of tax evasion, it will be forwarded to the additional tax audit services, which will continue the investigation and will explore the additional information. Accomplished practical research have shown that the more of these indicators are observed during initial tax audit stage, the “point-line-plane“ method is more likely to be chosen. Accordingly, to choose one or another tax strategy correctly and adapt it properly it is necessary to take into account the indicators linked to the need for a tax audit.

scholarly journals Use of Financial Ratios in selecting entities for Tax Audit purposes – empirical study in Albania

2021 ◽  
Vol 17 ◽  
pp. 297-313
Author(s):  
Rezarta Shkurti ◽  
Elena Myftaraj ◽  
Elsia Gjika
Keyword(s):  
Financial Reporting ◽  
Tax Evasion ◽  
Tax Avoidance ◽  
Binary Logistic Regression ◽  
Financial Statements ◽  
Financial Ratios ◽  
Risk Indicators ◽  
Economic Entity ◽  
Tax Audit ◽  
Tax Reporting

Information from financial statements and reported financial ratios have long been used to detect common phenomenon such as fraudulent financial statements, earnings management, and the relation between financial ratios and the level of tax risk of an entity. The focus of this study is to research the use of financial ratios that entities declare, in the detection of the magnitude of tax avoidance. In this paper we apply a binary logistic regression to detect which financial statement ratios differentiate between tax evading and non-tax evading entities. We analyse data from 183 tax audited Albanian entities for 2015 and 2016 accounting years and calculate several financial ratios to determine the level of tax risk based on the tax evasion magnitude found by the tax audit of these entities. We apply univariate and multivariate analysis and find several important ratios that can indicate quite accurately the high risk of tax audit of an economic entity. We suggest including these ratios as risk indicators or “red flags” in the selection procedures employed by the tax auditors. As tax reporting and financial reporting have similarities across countries of the region, our findings may be useful for other Southern Eastern European Countries as well.

scholarly journals Albanian Individual Taxpayers Perceptions and Determinants on Ethical Behavior Regarding Tax Compliance

2021 ◽  
Vol 5 (1) ◽  
pp. 66-80
Author(s):  
Michael J. Salé ◽  
Oltiana Muharremi ◽  
Meleq Hoxhaj
Keyword(s):  
Informal Economy ◽  
Tax Evasion ◽  
Essential Element ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Analysis Data ◽  
Tax Rates ◽  
Factors Affecting ◽  
Logical Sequence ◽  
In The Beginning

Tax evasion and tax avoidance are among the most addressed topics in economic literature in recent years, as one of the most discussed issues in different countries. The research’s primary purpose is to present Albanian residents’ and taxpayers’ perceptions regarding tax evasion, tax avoidance, and tax compliance. The leading indicators used in this report, the attitude towards tax evasion and tax avoidance, rely on individual taxpayers’ perceptions and not on factual evidence such as the amount of income hidden from the tax authorities. Several studies have been done in different countries regarding the population’s perception regarding factors affecting evasion. In this paper, we investigated the following logical sequence: in the beginning, we provided an overview of the fiscal system and legislation, informal economy, and fiscal evasion in Albania. This analysis data was taken from reports from national and international organizations. After this, we analyzed data obtained from a survey issued to 387 taxpayer individuals in Albania. Our objective was to identify, using empirical analysis, factors that influence an individual’s ethical perception of tax avoidance and evasion. The statistical analyses we carried out in the paper were factor analyses and ordinal logistic linear regression analyses using the JMP statistical software. Based on the empirical research, we concluded that government policies positively correlate with taxpayers’ behavior regarding tax compliance. Among other determinants influencing tax evasion, we have evaluated that higher tax rates are an essential element. The results of the research can be helpful for governments and other policymakers’ institutions.

scholarly journals The Influence of Tax Knowledge, Tax Service Quality, Tax Audit, and Use of Tax Sanctions on Tax Evasion: The Case Study of KPP Pratama Seberang Ulu 1 Palembang

2020 ◽  
pp. 68-74
Author(s):  
Nurul Khafizah ◽  
◽  
Azwardi Azwardi ◽  
Lukluk Fuadah ◽  
◽  
...  
Keyword(s):  
Service Quality ◽  
Tax Evasion ◽  
Tax Avoidance ◽  
Future Research ◽  
Audit Risk ◽  
Tax Legislation ◽  
Tax Audit ◽  
Tax Payments

Tax evasion and tax avoidance and is part of tax planning which aims to reduce the amount of tax payments. As an illegal act, it is clear that tax evasion violates the law so that the practice is not allowed. The tax evasion action is cheating, because taxpayers try to manipulate transactions so that costs arise that reduce income and even cause losses. Tax evasion is detrimental to the state, because the tax value paid by taxpayers is not the value it should be. It could even be that taxpayers are free from tax burden if their income is minus or experiences a loss. The purpose of the study is to find out how tax knowledge, tax service quality, tax audit and use of tax sanctions affect tax evasion, using a basic approach to the theory of attribution. The sample of the study consists of 114 respondents. The materiality and consistency of all factors selected for analysis were verified by testing and using the Cronbach's alpha. According to the results of the study, all factors (knowledge of tax legislation, quality of tax services, tax audit and use of tax sanctions) have a positive and significant impact on the level of tax evasion, i.e. lead to a reduction in such actions by taxpayers. Future research on this topic can be developed by adding research variables; such as the modernization of the tax administration system, transparency of tax spending, audit risk, taxpayer awareness, tax justice, tax regulations, and other variables that may affect tax evasion (tax evasion). In addition the research sample can also expand by increasing the number of respondents in order to represent the population accurately and more deeply and using different research methods such as purposive sampling method and direct interviews with taxpayers and tax officials to obtain deeper data.

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.

Likuiditas, Return On Assets, Leverage Dan Ukuran Perusahaan Terhadap Agresivitas Pajak

2021 ◽  
Vol 14 (2) ◽  
pp. 283-296
Author(s):  
Eni Endaryati ◽  
Vivi Kumalasari Subroto
Keyword(s):  
Tax Evasion ◽  
Descriptive Analysis ◽  
Tax Avoidance ◽  
Descriptive Statistics ◽  
Company Size ◽  
Return On Assets ◽  
Tax Aggressiveness ◽  
Independent Variable ◽  
The Relationship ◽  
A Company

Tax aggressiveness is the actions taken by the company to reduce its tax obligations. A company is said to carry out tax aggressiveness if the company tries to reduce the tax burden aggressively, either using legal methods, namely tax avoidance or illegal methods such as tax evasion. Although not all tax planning actions are carried out illegally, the more loopholes a company uses to avoid taxes, the more aggressive the company is considered. And this study aims to examine the relationship between the dependent variable and the independent variable of this study. The independent variables are liquidity, ROA, leverage and firm size and the dependent variable is tax aggressiveness. And for the analytical method used is regression analysis, and descriptive analysis. Descriptive statistics are used to describe or describe the variables in the study. Descriptive statistics used are measures of tax aggressiveness of all sample companies. The description of the variables can be seen from the mean and standard deviation. The descriptive statistical test was carried out with the SPSS program. The results of the study found that liquidity has no effect on tax aggressiveness, then Renturn on Assets (ROA) affects tax aggressiveness, then leverage affects tax aggressiveness and company size affects tax aggressiveness.   Keywords: Liquidity, ROA, Leverage, Company Size, Tax Aggressiveness

scholarly journals Pengaruh E-Filing, Kualitas Pelayanan, Audit dan Pemeriksaan Perpajakan dan Biaya Kepatuhan Pajak Terhadap Kepatuhan Wajib Pajak

2021 ◽  
Vol 21 (2) ◽  
pp. 243-250
Author(s):  
Nena Suyati ◽  
Sugiharto Sugiharto
Keyword(s):  
Linear Regression ◽  
Multiple Linear Regression ◽  
Tax Evasion ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Tax Audit ◽  
Regression Techniques ◽  
Spss Software ◽  
The Government

Abstract   To improve the quality of tax services, the government issued an e-filing policy. Also, tax audits and tax compliance fees are also strengthened in order that taxes as the main income of the state can be increased. In particular, at this time the issue of non-compliance with taxes through tax avoidance and even tax evasion is increasingly widespread. Therefore, this study aims to examine the level of tax compliance based on the above aspects. This study uses quantitative analysis. The sample was gathered on 100 taxpayers in the Bekasi Selatan KPP environment. The sample was chosen based on accidental sampling, and questionnaire was processed using multiple linear regression techniques in SPSS software. The regression results show that the implementation of e-filing, service quality, audit and tax audit, and tax compliance costs have a positive and significant effect on taxpayer compliance. In addition, several variables need attention, including the application of e-filing of the ITE law and audits and tax audits related to the ethics and professionalism of tax examiners.   Keywords: Multiple Linear Regression, KPP Pratama Bekasi Selatan, Taxpayer Compliance, SPSS, Accidental Sampling   Abstrak   Untuk meningkatkan kualitas pelayanan pajak, pemerintah mengeluarkan kebijakan e-Filing. Selain itu, audit dan pemeriksaan perpajakan dan biaya kepatuhan pajak juga diperkuat agar pajak sebagai pendapatan utama negara dapat ditingkatkan. Apalagi saat ini isu ketidakpatuhan terhadap pajak lewat penghindaran bahkan penggelapan pajak kian marak. Oleh karena itu penelitian ini bermaksud meneliti tingkat kepatuhan pajak berdasarkan aspek-aspek di atas. Sampel dilakukan terhadap 100 orang wajib pajak di lingkungan KPP Pratama Bekasi Selatan. Dengan sampel yang dipilih berdasarkan accidental sampling, kuesionar diolah menggunakan teknik regresi linear berganda. Hasil regresi menunjukan penerapan e-filing, kualitas pelayanan, audit dan pemeriksan perpajakan, dan biaya kepatuhan pajak berpengaruh positif dan signifikan pada kepatuhan WP OP. Selain itu, beberapa variabel perlu mendapat perhatian antara lain penerapan e-filing undang-undang ITE dan audit dan pemeriksaan pajak terkait etika dan profesionalisme pemeriksa pajak.   Kata kunci: Regresi Linear Berganda, KPP Pratama Bekasi Selatan, Kepatuhan Wajib Pajak, SPSS, Accidental Sampling

scholarly journals Economic crisis and “white informal economy” – a slippery slope

2017 ◽  
Vol 37 (7/8) ◽  
pp. 468-476 ◽  
Author(s):  
Bojan Dobovšek ◽  
Boštjan Slak
Keyword(s):  
Financial Crisis ◽  
Informal Economy ◽  
Tax Evasion ◽  
Policy Development ◽  
Tax Avoidance ◽  
Economic Activities ◽  
Content Type ◽  
Economic Practices ◽  
Legal Forms

Purpose The purpose of this paper is to demonstrate the importance of studying the quasi-legal forms of informal economic behaviour that we know as the white informal economy. The paper also sheds light on the role of the informal economy in the financial crisis that started in 2008. Finally, the aim of the paper is also to encourage empirical research about these concepts. Design/methodology/approach The paper is theoretical and based on a literature review. Findings The paper implies that when discussing about informal economy, different sub-categories should continue to be used in order to distinguish the various forms of informal economic practices. There is a particular need for research on practices of economic activities that are legal but not always moral, yet severely damaging. For such activities, the authors propose the term/categorisation the “white informal economy”. Additionally, the authors argue that in the causal links of events that brought about the financial crisis the role of the white informal economy was significant. Practical implications The paper wishes to encourage further research on the topic of (white) informal economy that in turn would also create the scenario for proper policy development for tackling tax avoidance, tax evasion and future financial crises. Originality/value The paper adds to scholarship that takes a critical standpoint towards the financial crisis and to scholarship on the informal economy. It presents an attempt to stimulate further discussion about the connectivity of the informal economy and the financial crisis.

scholarly journals Tax Audit as a Significant Factor in Suppressing Tax Evasion

2017 ◽  
Vol 55 (2) ◽  
pp. 161-178
Author(s):  
Miodrag Todorović ◽  
Ivan Stanković ◽  
Samir Ljajić
Keyword(s):  
Gross Domestic Product ◽  
Informal Economy ◽  
Tax Evasion ◽  
Income Tax ◽  
Arithmetic Operations ◽  
Tax System ◽  
The Public ◽  
Descriptive Research ◽  
Tax Audit ◽  
Public Revenue

AbstractThe fact that an enormous portion of the public revenue is lost through tax evasion indicates the inevitability of taking various measures to suppress it. According to the latest statistics, the outflow from the gross domestic product through tax evasion is 30%. The aim of this paper is to point to the systematisation of the matter relating to an assessment of the efficiency of tax audit as a pillar of the reduction of tax evasion and informal economy in our country. Methodology implies a descriptive research. Collected data were meticulously analysed by means of basic arithmetic operations. Due to serious consequences of tax evasion, it is necessary to upgrade the tax system modelled on developed market economies. It is necessary to modernise a Tax Administration, as well as to improve the co-operation between its segments. A synthetic income tax should be introduced. It would encompass all revenues that a taxpayer generates per year. If all taxpayers settled their tax liabilities, it would create space for tax burden reduction. In legal states only “the bravest” resort to tax evasion. Most countries have undertaken a series of measures in order to suppress tax evasion and informal economy. However, the effectiveness of the struggle varies.

scholarly journals The Albanian Taxpayers’ Perception of the Current Tax System and Its Impact on Informal Economy, Tax Evasion and Tax Avoidance

2017 ◽  
Vol 8 (1) ◽  
pp. 470-477
Author(s):  
Hysen Muceku ◽  
Teuta Balliu
Keyword(s):  
Informal Economy ◽  
Tax Evasion ◽  
Tax Avoidance ◽  
Poor Performance ◽  
Tax System ◽  
Factors Affecting ◽  
The Public ◽  
Fiscal System ◽  
Main Factors ◽  
Fiscal Administration

Abstract Tax revenues constitute the main source of public expenditure financing. The main problem that the public finances in Albania are facing today is the lack of public revenue to the level that the execution of the public spending requires. This is the result of a still high level of informal economy, tax evasion and tax avoidance. The reforms undertaken by the Albanian governments in the past two decades in order to manage the main factors of the informal economy, tax evasion, and tax avoidance have not had the expected results. Poor performance of the fiscal administration agencies has allowed fiscal policies and strategies approved by governments not to be implemented, thus creating a lot of problems and difficulties with an impact on the reduction of the efficiency of the fiscal system. This paper deals with the perception of the Albanian taxpayer for the current tax system in Albania. It also deals with its impact on the informal economy, tax evasion and tax avoidance. It analyses the main factors affecting the informal economy, tax evasion and tax avoidance, and the perception that Albanian taxpayers have for the current fiscal system. A fiscal system must be effective and perceived as fair in order to encourage voluntary payment of taxes thus bringing increased revenue, reduction of informality, tax evasion and tax avoidance. In order to realize this paper we used questionnaires with focused taxpayers, explaining the techniques of collecting, interpreting and analyzing the data. The paper concludes with the main conclusions of how Albanian taxpayers perceive the current tax system. It also provides recommendations for improving the current fiscal system based on the perception of taxpayers.

Pengaruh Konvergensi International Financial Reporting Standards (Ifrs) Terhadap Penghindaran Pajak(Tax Avoidance)

2018 ◽  
Vol 26 (2) ◽  
pp. 158-169
Author(s):  
Umi Wahidah ◽  
Sri Ayem
Keyword(s):  
Financial Reporting ◽  
Tax Evasion ◽  
Stock Exchange ◽  
Control Variable ◽  
Tax Avoidance ◽  
Sampling Technique ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Control Variables ◽  
Financial Reporting Standards

This research aimed to examine the effect of the convergence of International Financial Reporting Standards (IFRS) on tax avoidance on companies listed in Indonesia Stock Exchange. Tax avoidance that used in this research was Cash Efective Tax Rate (CETR). This research is also use the control variable to get other different influence that different such as CSR, size, and earning management (EM. This research used populations sector of transport service companies that listed in Indonesia Stock Exchange. The data of this research taken from secondary data that was from the Indonesia Stock Exchange in the form of Indonesian Capital Market Directory (ICMD) and the annual report of the company 2011-2015. The method of collecting sample was purposive sampling technique, the population that to be sampling in this research was populations that has the criteria of a particular sample. Companies that has the criteria of the research sample as many as 78 companies. The method of analysis used in this research is multiple regression analysis. Based on regression testing shows that the convergence of International Financial Reporting Standards (IFRS) has a positiveand significant impact on tax evasion. This shows that IFRS convergence actually improves tax evasion practices. The control variables of firm size and earnings management also significantly influence the application of IFRS in improving tax avoidance practices, while CSR control variables have no role in convergence IFRS in improving tax evasion practice.

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