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.

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 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 KINERJA PELAYANAN PENGELOLAAN SAMPAH BERDASARKAN PENDAPAT PEDAGANG DAN PENGELOLA PASAR DI PASAR TALANG, KECAMATAAN GUNUNG TALANG KABUPATEN SOLOK

2019 ◽  
Vol 15 (1) ◽  
pp. 58
Author(s):  
Susilawati Susilawati ◽  
Hadi Wahyono
Keyword(s):  
Waste Management ◽  
Poor Performance ◽  
Management Service ◽  
Waste Generation ◽  
Factors Affecting ◽  
Service Effectiveness ◽  
Traditional Markets ◽  
Main Factors ◽  
Range Interval ◽  
Individual Role

Market waste is one waste generation from commercial areas that influence the municipal waste generation. Thus it is necessary to manage effectively and efficiently in order to be sustainable in environmental, social and economical. Talang market is one of the traditional markets in Solok Regency which has an area of ± 3.30 Ha, is the largest and most crowded market in Solok Regency. This market operates every Wednesday with 420 merchants. The problem is there is still a lot of waste disposed in the open air, not all of them be transported to landfill. In addition, there is still a lot of waste scattered in the corners of kiosks and market hallway after the market operates. The purpose of this study is to examine the performance and factors that influence the performance of waste management services based on the opinion of traders and market managers in Talang Market, Gunung Talang District, Solok Regency. This research uses descriptive statistical method with quantitative approach. Analyze technique is done by scoring and factor analysis with tangible variable, reliability, responsiveness, assurance, empathy, finance, social and environment with 208 respondents. The result of this research is the performance of waste management service of Talang Market has bad category with the score of 2.58 in range interval 2-2,667. The main factors affecting the performance are operational technical factors. Other important factors are financing factor and service quality, service effectiveness factor, individual role factor, personnel quality factor, service guarantee factor and waste minimization factor at source. Recommendation from the research that is in according with the main factors as well as the less and poor performance that is required optimization of transportation, transfer, collection, warehousing, the ability of personnel and increase the participation of individuals in waste management. 

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 Compliance within a Regulatory Framework in Implementing Public Road Construction Projects

2018 ◽  
Vol 18 (4) ◽  
pp. 1-23 ◽  
Author(s):  
Noah Mwelu ◽  
Peter R Davis ◽  
Yongjian Ke ◽  
Susan Watundu
Keyword(s):  
Construction Projects ◽  
Public Procurement ◽  
Road Construction ◽  
Poor Performance ◽  
Regulatory Framework ◽  
Cross Sectional ◽  
Factors Affecting ◽  
The Public ◽  
Public Road ◽  
Infrastructure Project

The construction industry faces a lack of compliance with policy that in Uganda public road construction projects affects the attainment of Government goals and disrupts infrastructure project delivery. For decades, public entities have been known for a lack of compliance that manifest in: poor performance, poor personnel management, poor resource utilization and unprofessionalism. In Uganda, this has resulted in several restructures aimed at improving service delivery. Despite this, compliance remains an issue. The purpose of this study is to establish factors affecting compliance within a public procurement regulatory framework in public road construction projects and foster economic development. A cross-sectional research design including a structured self-administered questionnaire survey and PLS-SEM data analysis by SmartPLS3 was conducted. The research reveals that three factors positively affect compliance with a regulatory framework that govern public road construction projects; sanctions on staff, inefficiency of the public procurement regulatory framework and contractors’ resistance to non-compliance. While a further three factors have little positive effect on compliance; familiarity, monitoring activities and professionalism. Hence, the research contributes to construction management by showing that sanctions, perceived inefficiency and contractors’ resistance significantly enhance compliance within a public procurement regulatory framework.

scholarly journals Gaming the System: An Investigation of Small Business Owners’ Attitudes to Tax Avoidance, Tax Planning, and Tax Evasion

Games ◽  
2019 ◽  
Vol 10 (4) ◽  
pp. 46 ◽  
Author(s):  
Diana Onu ◽  
Lynne Oats ◽  
Erich Kirchler ◽  
Andre Julian Hartmann
Keyword(s):  
Tax Evasion ◽  
Small Businesses ◽  
Tax Avoidance ◽  
The Body ◽  
Future Research ◽  
Small Business Owners ◽  
Tax System ◽  
Personal Norms ◽  
Legal Principle ◽  
Compliance With The Law

To a large extent, the body of research that looks at individuals’ compliance with the law focuses on the dichotomy between compliance as rule-following and noncompliance as rule-breaking. However, a fascinating case of noncompliance is that where individuals selectively follow existing rules in order to circumvent the legal principle, this behaviour has been termed ‘creative compliance.’ In the current study, we investigated the psychological underpinnings of ‘creative compliance’ by assessing the attitudes of tax avoidance (significant minimisation of tax liability perceived to be legal) and tax evasion (illegal tax minimisation) of 330 owners of small businesses. We found that tax avoidance and tax evasion were perceived as qualitatively distinct by respondents and that they were predicted by different factors. While both tax avoidance and tax evasion were associated with weak personal norms to contribute to the tax system, tax avoidance was associated with a perception that the tax system is unfair, and that tax law has ‘loopholes’ that can be exploited, while tax evasion was predicted by the perception that evasion is a trivial crime. Overall, we provide insight into the under-investigated behaviour of ‘creative compliance’ and propose future research directions.

scholarly journals СОЦІАЛЬНО-ВІДПОВІДАЛЬНІ АСПЕКТИ АДМІНІСТРУВАННЯ ПОДАТКІВ: ВАЖЕЛІ ПРОТИДІЇ УХИЛЕННЮ ВІД ОПОДАТКУВАННЯ

2021 ◽  
pp. 39-47
Author(s):  
Ганна Сергіївна Ліхоносова ◽  
Катерина Романівна Мартиненко
Keyword(s):  
Informal Sector ◽  
Informal Economy ◽  
Tax Evasion ◽  
The State ◽  
Practical Significance ◽  
Tax Administration ◽  
Socially Responsible ◽  
Tax System ◽  
Independent Analysis ◽  
The Stability

No country in the world, no matter how hard it tries, could not, cannot and will not be able to get rid of the informal economy. The reality is that today, according to various experts, from one third to more than half of Ukraine's GDP is created in the informal sector of the economy. The informal economy in Ukraine is not a separate phenomenon, but the result of a systemic economic crisis, it affects all areas of economic activity, including the efficiency of the tax system, which in turn affects the stability and power of the state. For its part, one of the signs of the effectiveness of the tax system is the scale of the use of tax evasion schemes. The purpose of the article is to study the processes of tax administration from the standpoint of providing socially responsible service of the state fiscal service of Ukraine, the use of levers to combat tax evasion, provide recommendations for reducing the informal sector and the main schemes of tax evasion in Ukraine. The subject of the study is the informal sector and methods of preventing one of the consequences - tax evasion. Methods used in the study: systems analysis, economic and statistical methods, information processing, the method of logical generalization of results, expert assessments, etc. Presenting main material. The article examines the main trends in employment in the informal sector of the national economy. The essence of the concept of tax evasion and the reasons for it were revealed. The most common schemes as a result of which the budget of Ukraine suffers the greatest losses are indicated, during which proposals to improve tax administration as a significant lever for minimizing tax offenses in the field of tax evasion within the informal sector of the economy were identified. The practical significance of the obtained results lies in the possibility of using the developed recommendations for independent analysis of the economic situation in Ukraine. Conclusions and further prospects of the study. An analysis of various tax evasion mechanisms has shown that most of them are due to lack of control by fiscal authorities, weak level of development of the system of electronic administration of goods and funds between businesses and the inability to properly calculate and pay taxes. Therefore, from the proposed recommendations to reduce the amount and loss of the budget from tax evasion schemes within the informal sector of the economy, we can highlight that consistency is key. First of all, according to the priorities arising from the current rating, these are measures aimed at combating aggressive tax planning. This should be followed by the completion of VAT administration reform and, importantly, a further significant reduction in the share of the state, which should provide fiscal space for a significant reduction in income tax and abolition of labor tax, but this takes more time due to various problems in the country.

scholarly journals Combating Fiscal Fraud and Empowering Regulators

2021 ◽  
Keyword(s):  
Money Laundering ◽  
Tax Evasion ◽  
Business Models ◽  
Rapid Change ◽  
Tax Avoidance ◽  
Profit Shifting ◽  
Tax System ◽  
New Business ◽  
International Tax ◽  
The Impact

This book showcases a multidisciplinary set of work on the impact of regulatory innovation on the scale and nature of tax evasion, tax avoidance, and money laundering. We consider the international tax environment an ecosystem undergoing a period of rapid change as shocks such as the financial crisis, new business forms, scandals and novel regulatory instruments impact upon it. This ecosystem evolves as jurisdictions, taxpayers, and experts react. Our analysis focuses mainly on Europe and five new regulations: Automatic Exchange of Information, which requires that accounts held by foreigners are reported to authorities in the account holder’s country of residence; the OECD’s Base Erosion and Profit Shifting initiative and Country by Country Reporting, which attempt to reduce the opportunity spaces in which corporations can limit tax payments and utilize low or no tax jurisdictions; the Legal Entity Identifier which provides a 20-digit identification code for all individual, corporate or government entities conducting financial transactions; and the Fourth and Fifth Anti-Money Laundering Directives, that criminalize tax crimes and prescribe that the Ultimate Beneficial Owner of a company is registered. Working from accounting, economic, political science, and legal perspectives, the analysis in this book provides an assessment of the reforms and policy recommendations that will reinforce the international tax system. The collection also flags the dangers posed by emerging tax loopholes provided by new business models and in the form of freeports and golden passports. Our central message is that inequality can and has to be reduced substantially, and we can achieve this through an improved international tax system.

scholarly journals Literature Review of Antecedents of Corporate Tax Avoidance in Indonesia

2021 ◽  
Vol 3 (3) ◽  
pp. 243-248
Author(s):  
Yuliana ◽  
Agus Munandar
Keyword(s):  
Literature Review ◽  
Tax Evasion ◽  
Audit Quality ◽  
Public Awareness ◽  
Tax Avoidance ◽  
Journal Articles ◽  
Corporate Tax ◽  
The Public ◽  
Research Findings ◽  
Positive Effect

Taxes are critical for the country's development because they generate revenue used to expand the Indonesian economy. The Corona Virus outbreak has shocked the public during the government's campaign to raise public awareness about the importance of paying taxes. Despite the Covid-19 pandemic, the company continues to pay taxes and thus avoids spending taxes. The purpose of this study is to examine the factors that may influence tax evasion by Indonesian manufacturing firms. This study employs qualitative research in conjunction with a literature review or a method of literature review. The researchers identified and analyzed 18 peer-reviewed journal articles over three years (2019-2021). According to the research findings, firm size, leverage, committee composition, and audit quality all have a significant positive effect on tax avoidance. Because researchers consider businesses to be taxpayers, it's natural that if the objective is to maximize profits, this tax avoidance action will become more aggressive during the pandemic.

Sign in / Sign up

Export Citation Format

Share Document