scholarly journals THE MODEL OF TAX EVASION, ITS COHERENCE TO THE PRACTICAL TAX ADMINISTRATION

Ekonomika ◽  
2010 ◽  
Vol 89 (4) ◽  
pp. 49-65 ◽  
Author(s):  
Aurelija Anciūtė ◽  
Rūta Kropienė
Keyword(s):  
Theoretical Model ◽  
Tax Evasion ◽  
Probability Function ◽  
Comparative Statics ◽  
Personal Income ◽  
Tax Administration ◽  
Taxable Income ◽  
Proposed Model ◽  
Tax Audit

In this paper, a theoretical model of tax evasion, proposed by Allingham and Sandmo, is briefly presented. This model tries to explain the taxpayer’s decision to reveal only part of the taxable income and to evade taxes in this way. The main parameters of the model are personal income, the rates of tax and penalty, probability of the tax audit. By the method of comparative statics it is possible, at least partially, to evaluate the influence of changes of the model’s parameters on a person’s decision to evade tax.As some of the assumptions of the Allingam–Sandmo model differ from taxation rules in practice or the model’s conclusions do not match the actual taxpayers’ behaviour, in this paper some criticism and improvements of the proposed model are reviewed. A comparison of the model’s assumptions and actual aspects of the tax administration in Lithuania is also provided.This article contains also a model of tax evasion with regard for the peculiarities of tax administration in Lithuania and the possible corrections of tax audit probability function.

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.

Driving Forces of the Shadow Economy. Theoretical Model

2016 ◽  
Vol 63 (1) ◽  
pp. 33-48
Author(s):  
Paulina Malaczewska
Keyword(s):  
Nash Equilibrium ◽  
Theoretical Model ◽  
Public Sector ◽  
Shadow Economy ◽  
Driving Forces ◽  
Comparative Statics ◽  
Economic Factors ◽  
Proposed Model ◽  
Equilibrium Level

We present theoretical model of shadow economy. The model includes not only economic factors, such as tax burden or fines for unregistered activity, but also legal and organizational background factors, such as level of bureaucracy (corruption), quality of public sector services and institutions, or tax morale. In the proposed model shadow economy arises as a result of interactions between economic entities – government and households. The Nash Equilibrium level of shadow economy is derived and comparative statics analysis is presented.

scholarly journals Modeling the Probability of the Detection Process of Tax Evasion Taking into Account Quality and Quantity Indicators

2020 ◽  
pp. 28-37
Author(s):  
Akif Musayev ◽  
Mirvari Gazanfarli
Keyword(s):  
Environmental Factors ◽  
Tax Evasion ◽  
Probability Of Detection ◽  
Tax Administration ◽  
Main Function ◽  
Inference System ◽  
Information Base ◽  
Proposed Model ◽  
Quantitative Indicators ◽  
The Impact

Aims: In contrast to the classical approaches of the standard model of tax evasion based on game theory, our manuscript has considered the detection of tax evasion as one of the main function of tax administration and has proposed a model for assessing the probability of tax evasion taking into consideration qualitative and quantitative indicators. Study Design: This investigation has been carried out on the basis of research methods such as scientific abstraction and systematic analysis, expert evaluation, logical generalization, statistical analysis. Place and Duration of Study: Department of Mathematical provision of economic researches, between November 2019 and May 2020. Methodology: For the evaluating of the probability of tax evasion’s detection firstly, efficiency indicators of tax administration were selected including 3 groups such as internal environmental, external micro, and external macro-environmental factors. These indicators consist of both quantitative as well as qualitative indicators. Quantitative indicators were assessed on the base on statistics information base. Quantitative indicators were assessed on the base of expert skills, knowledge, and experiences in accordance with under investigation countries. The objectiveness of obtained data that characterize qualitative indicators was checked and used both these as well as quantitative indicators for formulating the tax efficiency index. The next step is consists of using these formulations for evaluating the probability of detection of tax evasion under uncertainty. The impact degrees (membership functions) of the parameters that characterize the influence of 3 groups-environmental factors, in the detection of tax evasion were defined, and taking them into account in the fuzzy inference system probability of detection of tax evasion was assessed. Limitations: Lack or uncertainties of the information base cause difficulties in applying our model. Results: The probability of detection of tax evasion in the Republic of Azerbaijan was assessed with the proposed model and depends on the results recommendations have been consulted for improving appropriate tax system. As a result of model the probability of detection of tax evasion was defined 29%. The result shows that tax administration mechanism in Azerbaijan Republic need to be improved. Conclusion: Proposed model drives practical significance as a providing effective activity of tax institutions by defining the level of tax administration, as well as, as an impacting remarkably the revenue of state budget by determining the probability of tax evasion's detection.

ENSURING EFFECTIVE ACTIVITY OF TAX ADMINISTRATION -AN IMPORTANT FACTOR FOR INCREASING TAX ACCOUNTABILITY

2020 ◽  
Vol 8 (3) ◽  
pp. 40-48
Author(s):  
Uguloy Berdiyeva ◽  
Keyword(s):  
Tax Evasion ◽  
The State ◽  
Tax Administration ◽  
Tax Collection ◽  
State Budget ◽  
Effective Activity

The article discusses the issues of increasing the level of tax collection on the basis of improving tax administration, ensuring the full payment of taxes and fees to the state budget, reducing the likelihood of tax evasion.

scholarly journals A Theoretical Model with Which to Safely Optimize the Configuration of Hydraulic Suspension of Modular Trailers in Special Road Transport

2020 ◽  
Vol 11 (1) ◽  
pp. 305
Author(s):  
Rubén Escribano-García ◽  
Marina Corral-Bobadilla ◽  
Fátima Somovilla-Gómez ◽  
Rubén Lostado-Lorza ◽  
Ash Ahmed
Keyword(s):  
Theoretical Model ◽  
Wind Turbine ◽  
Optimization Algorithm ◽  
Hydraulic Cylinder ◽  
Road Transport ◽  
Automatic Testing ◽  
Transport Systems ◽  
The Road ◽  
Proposed Model ◽  
On The Road

The dimensions and weight of machines, structures, and components that need to be transported safely by road are growing constantly. One of the safest and most widely used transport systems on the road today due to their versatility and configuration are modular trailers. These trailers have hydraulic pendulum axles that are that are attached in pairs to the rigid platform above. In turn, these modular trailers are subject to limitations on the load that each axle carries, the tipping angle, and the oil pressure of the suspension system in order to guarantee safe transport by road. Optimizing the configuration of these modular trailers accurately and safely is a complex task. Factors to be considered include the load’s characteristics, the trailer’s mechanical properties, and road route conditions including the road’s slope and camber, precipitation and direction, and force of the wind. This paper presents a theoretical model that can be used for the optimal configuration of hydraulic cylinder suspension of special transport by road using modular trailers. It considers the previously mentioned factors and guarantees the safe stability of road transport. The proposed model was validated experimentally by placing a nacelle wind turbine at different points within a modular trailer. The weight of the wind turbine was 42,500 kg and its dimensions were 5133 × 2650 × 2975 mm. Once the proposed model was validated, an optimization algorithm was employed to find the optimal center of gravity for load, number of trailers, number of axles, oil pressures, and hydraulic configuration. The optimization algorithm was based on the iterative and automatic testing of the proposed model for different positions on the trailer and different hydraulic configurations. The optimization algorithm was tested with a cylindrical tank that weighed 108,500 kg and had dimensions of 19,500 × 3200 × 2500 mm. The results showed that the proposed model and optimization algorithm could safely optimize the configuration of the hydraulic suspension of modular trailers in special road transport, increase the accuracy and reliability of the calculation of the load configuration, save time, simplify the calculation process, and be easily implemented.

scholarly journals Health and Risk Behaviors of Bystanders: An Integrative Theoretical Model of Bystanders’ Reactions to Mistreatment

2021 ◽  
Vol 18 (11) ◽  
pp. 5552
Author(s):  
Yariv Itzkovich ◽  
Ella Barhon ◽  
Rachel Lev-Wiesel
Keyword(s):  
Theoretical Model ◽  
Health Risk ◽  
Risk Behaviors ◽  
Moral Disengagement ◽  
Current Model ◽  
Health Risk Behaviors ◽  
Conservation Of Resources ◽  
Cognitive Reactions ◽  
Proposed Model ◽  
New Applications

This article constructs a comprehensive theoretical model that outlines bystanders’ emotional and behavioral responses to the mistreatment of adolescent peers. The model captures bystanders’ risk and health risk behaviors, which have been overlooked in the context of their reactions; when addressed at all in connection with bystanders of bullying among adolescents, they have been treated separately. Here, we present bystanders’ emotional and cognitive reactions and their impact on bystanders’ responses including a set of responses that demonstrate risk and health risk behaviors that are directed to the bystander as a victim by proxy. The theoretical framework is the conservation of resources theory, which posits that personal resources (i.e., potency and moral disengagement) and social resources impact the process that leads to bystanders’ reactions. Previous models have overlooked the integrative viewpoint of bystanders, and comprehensive models that explain bystanders’ behavioral and emotional responses have received little attention especially with regards to adolescents. Two recent models overlooked core features embedded in the current model, including the risk and health risk behaviors that it integrates. The proposed model presents a novel and more comprehensive view of bystanders’ reactions and the process underlying these reactions. It integrates existing knowledge embedded in other existing models. At the same time, this perspective indicates the centricity of potency as a key resource that dictates the emotional response and behaviors of bystanders. This potentially allows for new applications in the mitigation of adverse impacts that follow the witnessing of mistreatment. The article discusses these applications, which are based on previous findings, their implications for practice, and directions for future empirical research necessary to validate the model.

Farm capital structure choice: theory and an empirical test

2014 ◽  
Vol 74 (1) ◽  
pp. 115-132 ◽  
Author(s):  
Feng Wu ◽  
Zhengfei Guan ◽  
Robert Myers
Keyword(s):  
Theoretical Model ◽  
Capital Structure ◽  
Credit Risk ◽  
Choice Theory ◽  
Empirical Test ◽  
Theoretical Framework ◽  
Comparative Statics ◽  
Content Type ◽  
Structure Choice ◽  
Capital Structure Choice

Purpose – The purpose of this paper is to provide a unified theoretical framework that explains farm capital structure choice. Design/methodology/approach – The framework accommodates different credit access scenarios and heterogeneous risk profiles of borrowers. It recognizes that the costs of capital are endogenously determined, reflecting the degree of credit risk and accessibility to credit markets. Based on the proposed model and the comparative statics derived thereof, the paper empirically tests the impacts of different factors on capital structure choice. Findings – Based on the theoretical framework, the paper derived the impacts of different factors on capital structure choice using comparative statics. Results suggest that the potential determinants of capital structure have varying effects at different ranges of leverage. Empirical evidence supports the theoretical model. Originality/value – Despite all of previous work on various aspects of farm capital structure choice, a framework that encompasses each of the different assumptions and scenarios is still lacking. The theoretical model integrates credit risk models and accommodates endogenous cost of capital, providing a comprehensive framework for studying farm capital structure choice and its determinants. The results provide insights that could help policy makers and lenders develop effective instruments to manage, monitor, and influence the financial leverage of farms at different quantiles of debt ratio.

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