Simulating Tax Evasion with Utilitarian Agents and Social Feedback

2010 ◽  
Vol 2 (1) ◽  
pp. 16-30 ◽  
Author(s):  
Attila Szabó ◽  
László Gulyás ◽  
István János Tóth
Keyword(s):  
Tax Evasion ◽  
Tax Compliance ◽  
Social Feedback ◽  
Social Approach ◽  
Market Sector ◽  
Compliance Level ◽  
Legal Position ◽  
Series Of Experiments ◽  
Market Leader

This article discusses the TAXSIM model for the simulation of tax evading behavior in a computational model of a single market sector. The rate of tax evasion is an agreement between an employer and an employee that is made to reduce costs. The agents’ expectations and satisfaction are results of the agents’ individual learning, based on their own experiences and on those in their social network. This way the emerging social approach to tax evasion feeds back to individual behavior. The series of experiments reported in this chapter analyze scenarios in which 1) the quality of governmental services increases permanently, 2) a market leader unilaterally adopts the legal position, and 3) multi-national companies with tax allowances enter the market. In addition, we show that in this model, the level and efficiency of tax audits alone cannot control and explain the emerging tax compliance level.

scholarly journals TAX COMPLIANCE DAN TAX EVASION: TANTANGAN DEMOKRATISASI WAJIB PAJAK

2017 ◽  
Vol 9 (2) ◽  
pp. 59
Author(s):  
Supriyati Supriyati
Keyword(s):  
Service Quality ◽  
Tax Evasion ◽  
Legal Aspect ◽  
Tax Compliance ◽  
Partial Least Square ◽  
Least Square ◽  
System Service ◽  
Compliance Behavior ◽  
Taxation System

Abstract. This study focuses on tax compliance behavior that is emphasized in the viewpoint of government and individualistic taxpayers. Taxpayer compliance has always been an interesting issue and is still debatable in previous research. The democratic involvement of taxpayers still creates a reluctance to pay taxes so that non-compliance efforts still occur. This research tries to test the aspect of legality, modernization of tax system, service quality of tax officer and intellectual taxpayer toward taxpayer compliance and tax evasion. This research is a primary research conducted through the distribution of questionnaires in the convinience of taxpayers registered in the East Java tax office. Respondents of this study as many as 252 individual taxpayers. Testing is done by using Partial Least Square (PLS). The results showed that the variables of legality and service quality of tax authorities have an effect on taxpayer compliance, and taxpayer compliance also affects tax evasion. whereas, the variable modernization of taxation system and intellectual taxpayer have no significant effect on taxpayer complianceKeywords: Legal Aspect; Intellectual; Tax Compliance; Tax evasion Abstrak. Penelitian ini berfokus pada perilaku patuh pajak yang ditekankan pada sudut pandang pemerintahan dan individualistik wajib pajak. Kepatuhan wajib pajak selalu menjadi isu yang menarik dan masih menimbulkan perdebatan pada penelitian sebelumnya. Keterlibatan wajib pajak secara demokratis masih menimbulkan keengganan untuk membayar pajak sehingga upaya ketidakpatuhan masih saja terjadi. Penelitian ini mencoba menguji aspek legalitas, modernisasi sistem perpajakan, kualitas layanan aparat pajak dan intelektual wajib pajak terhadap kepatuhan wajib pajak dan penggelapan pajak. Penelitian ini merupakan penelitian primer yang dilakukan melalui penyebaran kuesioner secara convinience pada wajib pajak yang terdaftar di kantor pajak wilayah Jawa Timur. Responden penelitian ini sebanyak 252 wajib pajak orang pribadi. Pengujian dilakukan dengan menggunakan Partial Least Square (PLS). Hasil penelitian menunjukkan bahwa variabel legalitas dan kualitas layanan aparat pajak berpengaruh terhadap kepatuhan wajib pajak, dan kepatuhan wajib pajak juga mempengaruhi penggelapan pajak. sedangkan, variabel modernisasi sistem perpajakan dan intelektual wajib pajak berpengaruh tidak signifikan terhadap kepatuhan wajib pajak.Kata Kunci: Aspek Legal; Intelektual; Kepatuhan Pajak; Penggelapan Pajak

scholarly journals Tax Compliance for Sustainable Development by Private Health Practitioners in Malaysia

2021 ◽  
Vol 16 (3) ◽  
pp. 305-325
Author(s):  
Norlaila Md Zin ◽  
◽  
Noratikah Arifin ◽  
Eley Suzana Kasim ◽  
Mohd Haizam Mohd Saudi ◽  
...  
Keyword(s):  
Sustainable Development ◽  
Tax Evasion ◽  
Tax Compliance ◽  
Significant Loss ◽  
The Body ◽  
Current Evidence ◽  
Public Governance ◽  
Compliance Cost ◽  
Health Practitioners

Tax non-compliance leads to tax evasion and low tax collection, which ultimately may hamper the achievement of Sustainable Development Goals (SDGs). Prior studies suggest that tax compliance is influenced by taxpayers’ attitude, quality of public governance and cost of tax compliance. However, studies that focus on tax compliance among health practitioners are still sparse. Given that potential tax evasion among private health practitioners may lead to a significant loss in government revenue, this study aimed to examine the factors influencing tax compliance among private health practitioners. Data was gathered through a survey involving 271 health practitioners in Malaysia. The findings indicated that only the quality of public governance had a significant relationship with tax compliance while attitude of taxpayers and cost of tax compliance did not significantly influence tax compliance among private health practitioners. This study contributes to the body of knowledge by providing current evidence of tax compliance among health practitioners. By highlighting the importance of educating health practitioners on tax compliance, the study also provides guidance to regulators in planning for more effective tax education and awareness programs. Keywords: tax compliance, attitude of taxpayer, quality of public governance, tax compliance cost, health practitioners

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 Information Sharing, Bank Penetration and Tax Evasion in Emerging Markets

Risks ◽  
2020 ◽  
Vol 8 (2) ◽  
pp. 38
Author(s):  
Duc Hong Vo ◽  
Ha Minh Nguyen ◽  
Tan Manh Vo ◽  
Michael McAleer
Keyword(s):  
Emerging Markets ◽  
Information Sharing ◽  
World Bank ◽  
Tax Evasion ◽  
International Comparisons ◽  
Tax Compliance ◽  
Policy Implications ◽  
Remote Areas ◽  
Data Requirements

Tax evasion, which is typically considered an illegal activity, is a critical problem and is considered a barrier to economic growth. A review of the literature shows that tax and social security contributions, regulations, public sector services, the quality of institutions and tax compliance, play important roles in determining the degree to which firms attempt to evade taxes. Measuring tax evasion is problematic due to data requirements and inadequacies. Few tax evasion indices have been estimated but it appears that they cannot be used for international comparisons across countries. This important issue has largely been ignored in the literature, in particular for emerging markets. Consequently, this paper is conducted to develop a new tax evasion index (TEI) using the most substantial and recent data from the standardized World Bank Enterprises Survey 2006–2017. In addition, using the newly developed TEI, the paper examines the importance and contribution of information sharing and bank penetration to the degree of tax evasion in emerging markets. The paper uses a sample of 112 emerging markets from 2006–2017 and the Tobit model in estimation. The empirical findings from the paper indicate that the average TEI during the 2006–2017 period for emerging markets is 0.62, with a range of (0.25, 0.75). In addition, we find that information sharing and bank penetration negatively affect the degree of tax evasion, as proxied by the TEI, in emerging markets. The empirical results also confirm the view that large firms are considered to have adopted good tax compliance practices, while firms located in remote areas are more likely to evade taxes. Policy implications have emerged on the basis of the empirical findings from the paper.

scholarly journals Assessing the Effect of Tax Administration on Smes Tax Compliance Level in Kogi State

2020 ◽  
Vol 3 (1) ◽  
pp. 15
Author(s):  
Emmanuel Eneche Onoja ◽  
Ademu Usman Odoma
Keyword(s):  
Sample Size ◽  
Tax Evasion ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Small Scale ◽  
Tax Revenue ◽  
Tax Administration ◽  
Chi Square ◽  
Compliance Level ◽  
Chi Square Test

Effective tax administration is important for tax revenue generation. It has been observed that the loss of revenue caused by widespread of tax evasion and tax avoidance in Nigeria is due to inefficient and inept tax administration. The most common problem faced by taxpayers is to understand the instructions in the tax pack. This study assesses the burden of tax administration on taxpayers’ compliance level in Kogi State. The population of this study comprises of registered small scale businesses taxpayers in Kogi State, with a sample size of three hundred and seventy eight (378). Questionnaire was used to generate the data while One Sample chi-square test was used to test the null hypotheses. The result shows that administrative tax compliance costs have a significant effect on tax compliance level in Kogi State. The study recommends that the tax authority should make tax administration less complex in the area of tax procedures, tax rules and tax computation to enhance the level of tax payment in the State.

scholarly journals Assessing the Effect of Tax Administration on Smes Tax Compliance Level in Kogi State

2020 ◽  
Vol 3 (1) ◽  
pp. 15
Author(s):  
Emmanuel Eneche Onoja ◽  
Ademu Usman Odoma
Keyword(s):  
Sample Size ◽  
Tax Evasion ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Small Scale ◽  
Tax Revenue ◽  
Tax Administration ◽  
Chi Square ◽  
Compliance Level ◽  
Chi Square Test

Effective tax administration is important for tax revenue generation. It has been observed that the loss of revenue caused by widespread of tax evasion and tax avoidance in Nigeria is due to inefficient and inept tax administration. The most common problem faced by taxpayers is to understand the instructions in the tax pack. This study assesses the burden of tax administration on taxpayers’ compliance level in Kogi State. The population of this study comprises of registered small scale businesses taxpayers in Kogi State, with a sample size of three hundred and seventy eight (378). Questionnaire was used to generate the data while One Sample chi-square test was used to test the null hypotheses. The result shows that administrative tax compliance costs have a significant effect on tax compliance level in Kogi State. The study recommends that the tax authority should make tax administration less complex in the area of tax procedures, tax rules and tax computation to enhance the level of tax payment in the State.

Quality of management schools, strength of auditing and reporting standards and tax evasion

2018 ◽  
Vol 13 (2) ◽  
pp. 149-162 ◽  
Author(s):  
Hichem Khlif ◽  
Achraf Guidara
Keyword(s):  
Tax Evasion ◽  
Tax Compliance ◽  
High Strength ◽  
Policy Implications ◽  
Reporting Standards ◽  
Content Type ◽  
Global Competitiveness ◽  
Legal Enforcement ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between the quality of management schools and tax evasion and tests whether the strength of auditing and reporting standards moderates such a relationship. Design/methodology/approach Tax evasion is measured using the macro-indirect approach based on Schneider, Buehn and Monterngro (2010). The quality of management schools is collected from The Global Competitiveness Report for 2014-2015. Findings On the basis of sample of 137 countries, the authors document that the level of tax evasion is negatively associated with the quality of management schools and the strength of auditing and reporting standards. When the authors distinguish between low- and high-strength of auditing and reporting standards countries, the authors find that the negative and significant association remains stable only for high-strength of auditing and reporting standards countries. Practical implications These results imply that the quality of management schools through its output (managers, fiscal controllers, auditors and businessmen) may increase the tendency of individuals in a given country to comply with tax rules and that legal enforcement may affect the ethical behaviours of these actors with regard to tax evasion. Originality/value The empirical findings have policy implications for governments with high levels of tax evasion since they highlight the importance of the quality of higher educational system in shaping tax compliance behaviour.

Well-being and inequality in comparative perspective: the case of Poland and Ukraine

2019 ◽  
pp. 32-55
Author(s):  
Natalia Kovalisko ◽  
Serhii Makeev
Keyword(s):  
Tax Evasion ◽  
Shadow Economy ◽  
Free Market ◽  
Well Being ◽  
Household Surveys ◽  
Cheap Labour ◽  
Catching Up ◽  
Public Opinion Polls ◽  
Opinion Polls

Socio-economic trajectories of Poland and Ukraine have been considerably diverging since the last decade of the 20th century. The former has been advancing and catching up with Western European countries in terms of the quality of life — whereas in Ukraine, the 1990s recession gave way to unsustainable economic growth, which interrupted in the second half of the 2000s and in the 2010s. The comparison of official statistics, along with the data of household surveys and public opinion polls, makes it possible to conclude that a progressive and sustainable transition from a command economy to free market, as exemplified by Poland, is accompanied by moderate deepening of economic inequality. However, an abnormal transition (deviating from the “Polish rule”) entails excessive concentration of wealth and gives rise to corruption as a mechanism of income redistribution among different categories of population. This also results in a more noticeable stratification of opportunies for meeting vital and existential needs. Owing to a large proportion of shadow economy and undeclared work, Ukrainians remain a source of cheap labour in both the domestic and international labour markets; in addition, a persistent subculture of tax evasion is being formed in this country.

The fate of formaldehyde in sugar manufacture and in products

2015 ◽  
pp. 692-696
Author(s):  
Remi Aubry ◽  
Laurence Gasnot
Keyword(s):  
Sugar Industry ◽  
Common Knowledge ◽  
Microbial Populations ◽  
Optimal Dosage ◽  
Consumer Health ◽  
Microbiological Activity ◽  
Specific Process ◽  
Beet Sugar ◽  
Series Of Experiments

A study was carried out in six beet sugar factories in France during the 2012/13 sugar campaign. The objective was to assess the optimal dosage of formaldehyde solutions at specific process stages and in different existing factory set-ups in order to obtain the desired effect on microbial populations, without interference with the quality of the products. In addition harmlessness regarding consumer health was to be demonstrated. A series of experiments was conducted resulting in new data allowing refreshment of common knowledge and references existing regarding the use of formaldehyde solutions in the sugar industry. The effectiveness and convenience for controlling microbiological activity in beet sugar manufacture was assessed. Formaldehyde reduces sugar losses and protects in-process products without harming their further use, such as for ethanol production.

Tax compliance and social desirability bias of taxpayers: experimental evidence from Indonesia

2021 ◽  
pp. 1-18
Author(s):  
Endra Iraman ◽  
Yoshikuni Ono ◽  
Makoto Kakinaka
Keyword(s):  
Experimental Evidence ◽  
Social Desirability ◽  
Tax Evasion ◽  
Tax Compliance ◽  
Computer Assisted ◽  
Social Desirability Bias ◽  
Lower Income ◽  
Tax Returns ◽  
List Experiment ◽  
Experiment Technique

Abstract Identifying taxpayers who engage in noncompliant behaviour is crucial for tax authorities to determine appropriate taxation schemes. However, because taxpayers have an incentive to conceal their true income, it is difficult for tax authorities to uncover such behaviour (social desirability bias). Our study mitigates the bias in responses to sensitive questions by employing the list experiment technique, which allows us to identify the characteristics of taxpayers who engage in tax evasion. Using a dataset obtained from a tax office in Jakarta, Indonesia, we conducted a computer-assisted telephone interviewing survey in 2019. Our results revealed that 13% of the taxpayers, old, male, corporate employees, and members of a certain ethnic group had reported lower income than their true income on their tax returns. These findings suggest that our research design can be a useful tool for understanding tax evasion and for developing effective taxation schemes that promote tax compliance.

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