Firms' Characteristics and Tax Evasion

2021 ◽  
pp. 428-451
Author(s):  
Md. Harun Ur Rashid ◽  
Anika Morshed
Keyword(s):  
Tax Evasion ◽  
Negative Relationship ◽  
Least Square ◽  
Bank Loan ◽  
Government Ownership ◽  
Cross Sectional ◽  
Tax Rate ◽  
External Auditors ◽  
The Government ◽  
Enterprise Survey

The study investigates whether the firms' characteristics, including ownership structure, audit, and familiarity affect tax evasion. The study has used the ordinary least square (OLS) to analyze cross-sectional data of 85 countries between 2007 and 2015 collected from the world enterprise survey. The study finds that the domestic, foreign, and government ownership in the firm increases tax evasion, whereas proprietorship and female ownership decreases the tax evasion. Further, the results show that familiar firms with international recognition are less inclined to evade tax. Similarly, the negative relationship between audit and tax evasion implies that the government should make it compulsory to check the financial statements of the firms by the external auditors, which, in turn, reduces the firms' tax evasion. Moreover, the firms that face more financial constraints evade more tax than the firms with access to the bank loan and solvent ones. The tax authorities should also consider reducing the corporate tax rate as the higher tax rates stimulate the firms to evade more tax.

scholarly journals Governmental Taxation of Households Choosing between a National Currency and a Cryptocurrency

Games ◽  
2021 ◽  
Vol 12 (2) ◽  
pp. 34
Author(s):  
Guizhou Wang ◽  
Kjell Hausken
Keyword(s):  
Central Bank ◽  
Tax Evasion ◽  
National Currency ◽  
Tax Rate ◽  
Digital Currency ◽  
Output Elasticity ◽  
Penalty Factor ◽  
The Government ◽  
Parameter Values ◽  
High Output

: A game between a representative household and a government was analyzed. The household chose which fractions of two currencies to hold, e.g., a national currency such as a Central Bank Digital Currency (CBDC) and a global currency such as Bitcoin or Facebook’s Diem, and chose the tax evasion probability for each currency. The government chose, for each currency, the probability of detecting and prosecuting tax evasion, the tax rate, and the penalty factor imposed on the household when tax evasion was successfully detected and prosecuted. The household′s fraction of the national currency, the government’s monitoring probability of the national currency, and the penalty factor imposed on the global currency, increased in the household′s Cobb Douglas output elasticity for the national currency. The household′s probabilities of tax evasion on both currencies increased in the government’s Cobb Douglas output elasticity for the national currency. The government’s taxation on both currencies decreased in the output elasticity for the national currency. High output elasticity for the national currency eventually induced the government to tax that currency more than the global currency. The household′s probability of tax evasion on the global currency increased in the government’s output elasticity for that currency. The household was less (more) likely to tax evade on the national (global) currency if the government valued taxation and penalty on the national (global) currency. The results are illustrated numerically where each of the eight parameter values were varied relative to a benchmark.

Spatial pattern and determinants of diagnosed diabetes in southern India: evidence from a 2012–13 population-based survey

2020 ◽  
pp. 1-16
Author(s):  
Somdutta Barua ◽  
Nandita Saikia ◽  
Rayhan Sk
Keyword(s):  
Spatial Pattern ◽  
Negative Relationship ◽  
Population Based ◽  
District Level ◽  
Least Square ◽  
Southern India ◽  
Diabetes Prevalence ◽  
Cross Sectional ◽  
Diagnosed Diabetes ◽  
Population Based Survey

Abstract The diabetes epidemic is expanding rapidly in India, with 69.2 million people living with diabetes in 2015. This study assessed the spatial pattern and determinants of diagnosed diabetes prevalence in the districts of six states and one union territory (UT) in southern India – a region that has a high prevalence of diabetes. Using cross-sectional population-based survey data from the 2012–13 District Level Household and Facility Survey-4, the prevalence and magnitude of diagnosed diabetes at district level for the population aged 18 years and above were computed. Moran’s I was calculated to explore the spatial clustering of diagnosed diabetes prevalence. Ordinary Least Square (OLS) and Spatial Lag (SL) regression models were carried out to investigate the spatial determinants of diagnosed diabetes prevalence. The prevalence of diagnosed diabetes was found to be substantially higher than that of self-reported diabetes in southern India (7.64% vs 2.38%). Diagnosed diabetes prevalence in the study area varied from 10.52% in Goa to 4.89% in Telangana. The Moran’s I values signified positive moderate autocorrelation. Southern India had 14.15 million individuals with diagnosed diabetes in 2012–13. Bangalore had the highest number of persons with diagnosed diabetes, and Palakkad had the smallest number. In the OLS and SL models, the proportion of people with secondary education and above, wealthy and Christian populations were found to be significant determinants of diagnosed diabetes prevalence. In addition, in the OLS model, the proportion of Scheduled Tribe population showed a negative relationship with diagnosed diabetes prevalence. In order to prevent or postpone the onset age for diabetes, there is a need to raise awareness about diabetes in India.

scholarly journals An Analysis of Yield Gap and Some Factors of Cocoa (Theobroma cacao) Yields in Ghana

2013 ◽  
Vol 2 (4) ◽  
pp. 117 ◽  
Author(s):  
Aneani F. ◽  
Ofori-Frimpong K.
Keyword(s):  
Sampling Technique ◽  
Least Square ◽  
Yield Potential ◽  
Cluster Sampling ◽  
Yield Gap ◽  
Cross Sectional ◽  
Cocoa Production ◽  
Experimental Yield ◽  
The Government ◽  
Cocoa Yield

<p>Although cocoa productivity has recently been increasing in Ghana, it is still low compared with that of other countries such as Cote d’Ivoire and Malaysia. This situation has been attributed to the low adoption of cocoa production technologies. The study was aimed at analysing the yield gap as well as some cocoa yield factors. Cross-sectional socio-economic survey was conducted in six (6) cocoa growing districts: Nkawie, Goaso, Enchi, Oda, Twifo Praso/Assin Fosu and Hohoe. A structured questionnaire was employed in the collection of data from 300 respondents who were randomly chosen with multi-stage cluster sampling technique. The yield gaps and their proportion to yield potentials were estimated using data from the survey and on-station trials. The findings indicated an experimental yield gap of 1 553.4 kg ha<sup>-1</sup>, accounting for 82.1% of the experimental yield potential whereas farmer-based yield gap was 1 537.2 kg ha<sup>-1</sup>, also accounting for 82.0% of the farmer (survey) yield potential. The Ordinary Least Square (OLS) regression analysis indicated that frequency of spraying fungicides against black pod disease, spraying insecticides against capsids, weeding of cocoa farms, cocoa variety planted by farmer, area of cocoa farm and total cocoa production variables had a significant impact on cocoa yield. It is recommended that the Government should encourage cocoa farmers, through pragmatic measures, to adopt improved technologies for enhancing productivity instead of focusing on excessive land expansion which eventually leads to low productivity.</p>

scholarly journals A CERTIDÃO NEGATIVA DE DÉBITO E A DECISÃO DE PAGAR TRIBUTOS

2014 ◽  
Vol 18 (1) ◽  
pp. 59
Author(s):  
Nelson Leitão Paes
Keyword(s):  
Tax Evasion ◽  
Firm Behavior ◽  
Pharmaceutical Products ◽  
Partial Equilibrium ◽  
Necessary Condition ◽  
National Accounts ◽  
Tax Rate ◽  
The Public ◽  
Partial Equilibrium Model ◽  
The Government

O artigo expõe que, para atender a previsão de exigência de regularidade fiscal do artigo 205 do Código Tributário Nacional, foi criada a Certidão Negativa de Débito (CND). Aponta que a CND é condição necessária para as firmas participarem do sistema de compras governamentais e representa um estímulo para as firmas manterem as suas obrigações tributárias razoavelmente em ordem. Para avaliação dos efeitos deste mecanismo sobre o cumprimento da obrigação tributária, constrói um modelo simples de equilíbrio parcial, verificando que, quanto mais tributado for o setor e/ou menor for a exposição do seu faturamento ao setor público, menores serão as exigências do governo para concessão da CND. Com base na solução do modelo e em dados das contas nacionais de 2006, identifica os setores em que o governo deveria ser mais exigente na emissão da certidão, como os serviços às empresas, construção, produtos farmacêuticos e serviços de informação. Constata, por fim, que os setores menos afetados pela CND são as empresas de eletrodomésticos, fumo, mineração e metalurgia.Palavras-chave: Evasão fiscal; CND; comportamento da firmaNEGATIVE DEBT CERTIFICATE AND THE DECISION TO PAY TAXESAbstract: The article exposes that, to attend the prevision of demand of tax regularity from the article 205 of the Nationaltributary Code was created the Negative Debt Certificate (CND in Portuguese).Points out that CND is a necessary condition to firms participate of the government shopping system and represents an incentive to firms maintain their tributary dutiesreasonably in order. In order to evaluate the effects of this mechanism about the fulfilment of tax obligation, it was constructed a simple partial equilibrium model, understanding that, the higher is the tax rate to the sector and/or the lower isthe exposure of its revenues to the public sector, the smaller the governments requirements for granting CND will be.Based on the solution of the model with the aid of Brazilian national accounts of 2006, identifies sectors where the government should be more rigid to give the CND, like services to firms, construction, pharmaceutical products and information services. Finally, it notes that, the sectors less affected by CND are appliances companies, cigarettes producers,mining and metallurgy.Keywords: Tax evasion, CND, firm behavior.

scholarly journals Impact of democracy on literacy rate

2020 ◽  
Vol 9 (7) ◽  
pp. 204-211
Author(s):  
Md Arif Hosen ◽  
Sujan Chandra Paul ◽  
Md Harun Or Rosid
Keyword(s):  
Positive Relationship ◽  
Civil Liberties ◽  
Negative Relationship ◽  
Least Square ◽  
Literacy Rate ◽  
Significant Positive Relationship ◽  
Ordinary Least Square ◽  
Significant Negative Relationship ◽  
The Government ◽  
The Impact

This study investigates the impact of democracy indices on the literacy rate. Panel Data of 134 Countries from 2007-2018 were collected from the website the World Bank and Gapminder. This study uses Ordinary Least Square (OLS), Pooled Ordinary Least Square (POLS), Driscoll-Kraay (DK), Second Stage Least Square (2SLS), Generalized Methods of Moments (GMM) methods. This research has found that political participation index and political culture index has a significant positive relationship with literacy rate in all the method. The functioning of the government index has a significant positive relationship and electoral process and the pluralism index has a significant negative relationship with literacy rate in all the methods except the GMM method. The civil liberties index has a significant negative relationship with literacy rate in POLS and in the other models, there is no significant relationship between the civil liberties index and literacy rate.

scholarly journals Government Ownership and Value of Listed Firms in Kenya: A Panel Data Evidence

2015 ◽  
Vol 2 (2) ◽  
pp. 45-50
Author(s):  
Fredrick Onyango Odhiambo ◽  
Nixon Oduor Omindi
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Negative Relationship ◽  
Quadratic Term ◽  
Government Ownership ◽  
Policy And Practice ◽  
Listed Firms ◽  
Q Model ◽  
The Government ◽  
And Performance

This study examines the relationship between government ownership and performance of listed firms on the Nairobi Securities Exchange. The quadratic term of government ownership is included in the model to test for the effect of increasing government ownership levels on performance. We use panel data techniques on 102 firm-year observations between 2003 and 2013 for all the listed firms in which the government directly owns some shares. We find no relationship between government ownership and performance at lower levels of government ownership. We find a negative relationship between government ownership and performance at higher levels of government ownership. We estimate, through differentiation of the Tobin’s Q model, that government ownership has a negative effect on performance when government ownership exceeds 41%. The study concludes that lower government ownership levels do not affect firm performance but as the ownership rises, government ownership has a detrimental effect on firm performance. We provide implications of these results for policy and practice. JEL Classifications Code: G34

An Examination of Taxpayers Attitude towards Income Tax: A Case of Bangladesh

2021 ◽  
Vol 6 (2) ◽  
pp. 95-110
Author(s):  
Md. Shahbub Alam
Keyword(s):  
Tax Evasion ◽  
Income Tax ◽  
Quantitative Research ◽  
Negative Relationship ◽  
Tax Compliance ◽  
Primary Source ◽  
Primary Data ◽  
National Bureau ◽  
Quantitative Research Methods ◽  
The Government

Objective - Taxation is the government's primary source of revenue, but it is unable to raise this revenue from the general public. The major goals of this article are to determine the taxpayers' attitudes toward income tax in Bangladesh, as well as the factors influencing taxpayers' behavioral intentions regarding tax evasion and avoidance. Both qualitative and quantitative research methods were used in this study. Methodology/Technique - The respondents' primary data was acquired by a standardized written questionnaire and a face-to-face viva. To complete the job, the study used purposeful random sampling, which resulted in the selection of 150 individuals from various occupations. After gathering data, it was examined using several statistical methods. Findings - The study's findings reveal a significant negative relationship between taxpayer attitudes regarding tax evasion and tax compliance behavior, as well as the fact that taxpayer attitudes and conduct differ by occupation, resulting in diverse tax evasion and avoidance trends. Novelty - This study will aid the government authority and the National Bureau of Revenue in monitoring taxpayer attitudes and improving tax collection by reducing taxpayers' negative attitudes toward taxes and getting more people to file tax returns. Type of Paper - Empirical. Keywords: Taxpayers; Attitude; Income tax; Bangladesh. JEL Classification: H21; H24: H26.

scholarly journals structure of company ownership and tax avoidance in Indonesia

2021 ◽  
Vol 8 (3) ◽  
Author(s):  
Wima Rakayana ◽  
Made Sudarma ◽  
Rosidi Rosidi
Keyword(s):  
Ownership Structure ◽  
Quantitative Research ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Government Ownership ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Company Policy ◽  
The Government ◽  
Positive Effect

This study aims to explain the effect of ownership structure (family, government, institutional, foreign, managerial, public) on tax avoidance in Indonesia. This study employed quantitative research with regression analysis, regression method using the annual report on companies listed on the Indonesian stock exchange from the 2017-2019 period with a sample of 93 companies. The tax avoidance was measured using the Cash Effective Tax Rate. The results of this study indicate that the government ownership structure and foreign ownership structure have a positive effect on tax avoidance in Indonesia. Firm size emphasizes the influence of the independent variables on the dependent variable. Family, institutional, managerial, public ownership structures have no influence on tax avoidance. This study indicates that the ownership structure of the company can influence company policy in tax avoidance.

Compliance Costs and the Tax Avoidance-Tax Evasion Decision

1988 ◽  
Vol 16 (1) ◽  
pp. 31-66 ◽  
Author(s):  
James Alm
Keyword(s):  
Tax Evasion ◽  
Tax Avoidance ◽  
Individual Choice ◽  
Tax Base ◽  
Tax Rate ◽  
Legal Method ◽  
Tax Reduction ◽  
Tax Complexity ◽  
Net Revenue ◽  
The Government

The analysis of the individual's choice of illegal tax evasion has typically ignored an alternative, legal method by which taxes can be reduced: tax avoidance. This article analyzes the joint individual choice of evasion and avoidance; it also examines optimal government policy in such a world. Its principal conclusion is that the existence of another channel for tax reduction alters many of the conclusions of the simpler evasion literature. Specifically, government policies that reduce evasion may not increase the tax base because avoidance may increase instead, and tax rate reductions may be a powerful tool for generating tax base increases because reductions make both evasion and avoidance less attractive. In addition, optimal government choices depend critically upon its objectives. The government selects larger values for its instruments when its goal is net revenue maximization or when those individuals who evade are not valued highly in its welfare function. It also appears that greater tax complexity generates more tax revenues.

scholarly journals ASYMMETRY OF TAXATION OF TNK ACTIVITIES IN CONDITIONS OF UNEQUALITY OF ECONOMIC DEVELOPMENT

2021 ◽  
Vol 2 (37) ◽  
pp. 105-115
Author(s):  
A. Maksymenko ◽  
V. Kozak
Keyword(s):  
Economic Development ◽  
Income Tax ◽  
Negative Relationship ◽  
Developed Countries ◽  
Corporate Income Tax ◽  
Tax Burden ◽  
Less Developed Countries ◽  
Tax Rate ◽  
The Government ◽  
The Impact

Abstract. The unevenness of economic development significantly dynamizes the vector orientation and clearly shows the nature of economic contradictions, which acquire their concentrated form in the asymmetry of taxation of TNCs. Research shows the relationship between corporate income tax rates and country risk ratings. It has been established that for European countries the negative relationship (positive slope) between the corporate income tax rate and the level of risk for the country prevails. The results of the study confirm the hypothesis that the greater the risk in countries, the higher the corporate income tax rate set by the government. Using econometric methods, the impact of tax legislation of countries on the activities of TNCs was analyzed and it was found that in less developed countries, the tax system to a lesser extent stimulates the business activities of TNCs. At the same time, both less developed countries (Vietnam) and highly developed countries (Japan and Germany) have great potential for improving tax policy. It is proved that in developed countries the greatest directly proportional influence on the indicative turnover of TNCs is exerted by such indicators as the level of tax burden in relation to GDP, corporate tax rate, the rate of deduction of enterprises for social security. The rate of indirect taxes has an inversely proportional effect. The most significant tax factors that determine the dynamics of profits of the respective TNCs are the level of tax burden in relation to GDP. Keywords: tax burden, taxation of TNCs, tax regulation, income tax. JEL Classification H20, F23 Formulas: 0; fig.: 4; tabl.: 2; bibl.: 17.

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