scholarly journals Tax Evasion and Self-Employment in a High-Tax Country: Evidence from Sweden

2006 ◽  
Author(s):  
Per Engström ◽  
Bertil Holmlund
Keyword(s):  
Tax Evasion ◽  
Self Employment

Attitudes Toward Tax Evasion and the Choice of Self-Employment

2013 ◽  
Vol 2 (4) ◽  
pp. 52-65
Author(s):  
Vasanthakumar N. Bhat
Keyword(s):  
Random Sample ◽  
Tax Evasion ◽  
Self Employment

It is generally believed that self-employment offers ample opportunities for tax evasion. Therefore, this paper examines whether attitudes toward tax evasion has any influence on the choice of self-employment. The author’s analysis based on a random sample of Americans indicates that an individual who believes that tax evasion is “not wrong and a bit wrong” is more likely to be self-employed as compared to an individual who believes that tax evasion is “wrong and seriously wrong.” This decision is not affected by the gender. In addition, this analysis finds that a self-employed person earns more income than a person who works for someone else. However, an individual who believes that tax evasion is “wrong and seriously wrong” earns more than an individual who believes that tax evasion is “not and a bit wrong”. Moreover, a self-employed person who believes that tax evasion is “not and a bit wrong” earns less than all other people, everything else being the same.

scholarly journals Inequality in tax evasion: the case of the Spanish income tax

2020 ◽  
Vol 28 (83) ◽  
pp. 89-109
Author(s):  
Sara Torregrosa-Hetland
Keyword(s):  
Tax Evasion ◽  
Income Tax ◽  
Sample Selection ◽  
Composition Effect ◽  
Content Type ◽  
Top Incomes ◽  
Self Employment ◽  
Real Value ◽  
Measurement Of Inequality ◽  
Income Concentration

Purpose The purpose of this paper is to estimate tax evasion and its impact on progressivity, redistribution and the measurement of inequality, using microdata from the Spanish income tax for 2001-2004. Design/methodology/approach The approach follows Feldman and Slemrod (2007) by exploiting the relation of charitable donations with the composition of income but introduces two methodological innovations, which could be useful for further studies: correction for sample selection with a Heckman two-step setting and the calculation of different evasion rates for top incomes with an interaction term. Findings Evasion in capital incomes was significant throughout these years. Financial incomes were reported at around 50-70 per cent of their real value, with the lowest estimates corresponding to the top decile. Revenues from fixed capital display similarly low compliance rates for the top 10 per cent. Tax evasion in self-employment incomes (direct assessment) is estimated at 20 per cent for 2001. Mostly because of a composition effect, this means that fraud was higher at the top of the income distribution, thus having a regressive impact. Inequality statistics and top income concentration estimates should, therefore, be revised upwards. Originality/value This is the first paper to estimate the distributive impacts of tax evasion in Spain, and one of very few internationally.

Shadow economy and tax evasion in the EU

2015 ◽  
Vol 18 (1) ◽  
pp. 34-51 ◽  
Author(s):  
Friedrich Schneider ◽  
Konrad Raczkowski ◽  
Bogdan Mróz
Keyword(s):  
European Union ◽  
Tax Evasion ◽  
Shadow Economy ◽  
Alternative Methods ◽  
Statistical Research ◽  
Content Type ◽  
Eu Countries ◽  
Self Employment ◽  
European Union Countries ◽  
The Eu

Purpose – The main purpose of this paper is to explore size of the shadow economy of 31 European Countries in 2014 and size of the shadow economy of 28 European Union countries over 2003-2014 (in per cent of official GDP). An additional objective is to identify tax evasion, as the problem of all the EU countries, answering the questions how better combat the tax fraud. Design/methodology/approach – Estimates of the shadow economy for all 28 European Union countries and other three countries from Europe, i.e. Norway, Switzerland and Turkey – MIMIC method was applied. Findings – The average size of the shadow economy in 28 EU countries was 22.6 per cent in 2003 and decreased to 18.6 per cent (of official GDP) in 2014. We also consider the most important driving forces of the shadow economy. The biggest ones are with 14.6 per cent unemployment and self-employment, followed by tax morale with 14.5 per cent and GDP growth with 14.3 per cent. The proportion of tax evasion (accounting for indirect taxation and self-employment activities) was on average 4.2 per cent (of official GDP) in Poland, 1.9 per cent in Germany and 2.9 per cent in the Czech Republic. Research limitations/implications – The MIMIC statistics do not address a large part of the wholly illegal economy (of typically criminal nature) and, accordingly, it is not an absolute magnitude of the whole unofficial economy. However, it does not seem that other, alternative, methods of measuring the unofficial economy are better in individual terms. Practical implications – Current statistical research should lead to practical acceptance in the framework of need for developing better organizational & legal ways for multi-level governance within the European Union, leading to effective methods of counteracting – in particular intra-Union fraud. In addition, the presentation of a review of typology of the main theories and studies regarding the unofficial economy aspects relating to tax evasion constitutes a practical review of the pursued research areas. Social implications – Safeguarding the national economy as a whole, by seeking ways of reducing the scope of shadow economy. Originality/value – Both regarding presentation of the latest shadow economy estimates and typology of its main studies and theories.

scholarly journals Tax evasion and self-employment in a high-tax country: evidence from Sweden

2009 ◽  
Vol 41 (19) ◽  
pp. 2419-2430 ◽  
Author(s):  
Per Engström ◽  
Bertil Holmlund
Keyword(s):  
Tax Evasion ◽  
Self Employment

Heterogeneity and Distributional Issues in Self-Employment Income Tax Evasion: Evidence from Linked Administrative-Survey Data in Italy

2021 ◽  
Author(s):  
Martina Bazzoli ◽  
Paolo Di Carlo ◽  
Francesco Figari ◽  
Carlo V. Fiorio ◽  
Marco Manzo
Keyword(s):  
Survey Data ◽  
Tax Evasion ◽  
Income Tax ◽  
Self Employment

Attitudes toward Tax Evasion and the Choice of Self-Employment

2017 ◽  
pp. 39-53
Author(s):  
Vasanthakumar N. Bhat
Keyword(s):  
Random Sample ◽  
Tax Evasion ◽  
Self Employment

It is generally believed that self-employment offers ample opportunities for tax evasion. Therefore, this paper examines whether attitudes toward tax evasion has any influence on the choice of self-employment. Our analysis, based on a random sample of Americans, indicates that an individual who believes that tax evasion is “not wrong and a bit wrong” is more likely to be self-employed as compared to an individual who believes that tax evasion is “wrong and seriously wrong.” This decision is not affected by gender. In addition, our analysis finds that a self-employed person earns more income than a person who works for someone else. However, an individual who believes that tax evasion is “wrong and seriously wrong” earns more than an individual who believes that tax evasion is “not and a bit wrong”. Moreover, a self-employed person who believes that tax evasion is “not and a bit wrong” earns less than all other people, with all other parameters being the same.

Shadow economy and tax evasion. The Achilles heel of Greek economy. Determinants, effects and policy proposals

2017 ◽  
Vol 20 (4) ◽  
pp. 386-404 ◽  
Author(s):  
Georgios L. Vousinas
Keyword(s):  
Tax Evasion ◽  
Shadow Economy ◽  
Holistic View ◽  
Content Type ◽  
Black Economy ◽  
Self Employment ◽  
Role Of The State ◽  
Greek Economy ◽  
Policy Proposals

Purpose This paper aims to bring into surface two major socioeconomic problems of Greece, tax evasion and shadow economy. Design/methodology/approach It examines the determinants and the factors that led to the formation and expansion of tax evasion and subsequently of black economy. Empirical data and related research are used to provide a clearer view of the existing situation. Findings Tax evasion and shadow economy are proved to remain two of the most severe problems that torture Greek economy. The factors that contribute the most to the formation of these phenomena are the lack of tax awareness, the tax burden, the structure of the tax system, the role of the state, the level of approvement of public authority, self-employment, unemployment and the level of organization of the economy. Except from the negative characteristics, positive ones are also identified, and certain policies are suggested so as to combat tax evasion and black economy. Originality/value The paper highlights two major issues that constitute the deadly weakness of the Greek economy, providing a holistic view of the current situation, identifying the roots of the problem and suggesting specific measures.

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.

Turkish Muslims in a German city: Entrepreneurial and residential self-determination

2015 ◽  
Vol 12 (1) ◽  
pp. 1-12
Author(s):  
Sarah Hackett
Keyword(s):  
Residential Patterns ◽  
Academic Literature ◽  
Self Employment ◽  
German City ◽  
Post War ◽  
Oral History Interviews ◽  
The City ◽  
Insight Into ◽  
Term Objective

Drawing upon a collection of oral history interviews, this paper offers an insight into entrepreneurial and residential patterns and behaviour amongst Turkish Muslims in the German city of Bremen. The academic literature has traditionally argued that Turkish migrants in Germany have been pushed into self-employment, low-quality housing and segregated neighbourhoods as a result of discrimination, and poor employment and housing opportunities. Yet the interviews reveal the extent to which Bremen’s Turkish Muslims’ performances and experiences have overwhelmingly been the consequences of personal choices and ambitions. For many of the city’s Turkish Muslim entrepreneurs, self-employment had been a long-term objective, and they have succeeded in establishing and running their businesses in the manner they choose with regards to location and clientele, for example. Similarly, interviewees stressed the way in which they were able to shape their housing experiences by opting which districts of the city to live in and by purchasing property. On the whole, they perceive their entrepreneurial and residential practices as both consequences and mediums of success, integration and a loyalty to the city of Bremen. The findings are contextualised within the wider debate regarding the long-term legacy of Germany’s post-war guest-worker system and its position as a “country of immigration”.

Entrepreneurship as Social Status: Turkish Immigrants’ Experiences of Self-Employment in Finland

2008 ◽  
Vol 5 (1) ◽  
pp. 53-62 ◽  
Author(s):  
Östen Wahlbeck
Keyword(s):  
Social Status ◽  
Fast Food ◽  
Economic Hardship ◽  
Social Aspects ◽  
Food Sector ◽  
Turkish Immigrants ◽  
Self Employment

The article discusses the experiences of self-employment among immigrants from Turkey living in Finland. The immigrants are mainly active in the restaurant and fast food sector in Finland, primarily in small kebap and pizza businesses. The article argues that both economic and social aspects explain the experiences of self-employment. Despite economic hardship, the freedom and social status connected to entrepreneurship is highly valued. Self-employment provides a positive self-understanding and a good social status, which the immigrants from Turkey find it difficult to achieve by any other means in Finnish society

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