causes of tax evasion and tax avoidance pdf

Causes of tax evasion and tax avoidance pdf

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Tax avoidance – Addressing tax evasion and tax avoidance in developing countries

Supply-Side Tax Policy : Its Relevance to Developing Countries

Books by Tejvan Pettinger

Tax avoidance – Addressing tax evasion and tax avoidance in developing countries

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Introduction Most developed countries are characterized by a broad base for direct and indirect taxes with tax liability covering the vast majority of citizens and firms. Developing countries, in contrast, are confronted with social, political and administrative difficulties in establishing a sound public finance system. As a consequence, developing and emerging countries are particularly vulnerable to tax evasion and avoidance activities of individual taxpayers and corporations. This can be considered one of the primary reasons for large differences in the ability to mobilize own resources between developed and developing countries. Nonetheless, tax revenue has increased over time in many low-income countries.

Tax Evasion and the Impact on Economic Growth. Acta Universitatis Danubius. Shkendije Demalijaj Ukaj 1. Abstract: The level of taxation is very important for the development of current and future of a country and fiscal policy should always be considered as an important factor in the behavior of participants and their ability to tax evasion and informality. Government fiscal policies can trigger tax increase under pressure, especially in situations such as economic crisis, inflation, unemployment, instability, when the burden of this obligation grows, its effects are considered to take them to tax evasion and informality Dragomir. However, these reasons do not relate to all the great presence of this phenomenon in Kosovo, taking into account the recent economic crisis has not reflected in the economy of Kosovo and the Kosovo tax burden is among the lowest in the region, but leading cause of tax evasion and informality can be considered above the corruption of public administration officials including tax and customs officials, insufficient staff for his fighting, weak rule of law, as well as lower fiscal culture for paying taxes. For this reason the scope of this paper will be the theoretical treatment of the informal economy and tax evasion in view of tax avoidance, meaning, characteristics and their effects on the economy and possible recommendations on these viewpoints.

Supply-Side Tax Policy : Its Relevance to Developing Countries

The purpose of this article is to make a clear-cut distinction between tax evasion and neighbouring notions, present the theoretical justifications for the determinants of tax evasion, discuss some methodological issues related to the measurement of tax evasion and, finally, review the main results related to this topic and provide suggestions for future research. Tax evasion empirical research has been the subject of numerous studies during the past decade in developed and emerging economies. This paper shows that evidence is still limited, several approaches to measure tax evasion remain unexplored, results are mixed and four categories of variables have been identified in tax evasion literature, including demographic, cultural and behavioural, legal and institutional, and economic variables. This literature review represents a historical record and an introduction for researchers who aim to examine this topic in the future. Emerald Group Publishing Limited. Report bugs here. Please share your general feedback.

tax avoidance—An action taken to lessen tax liability and maximize after-tax income. tax evasion—The failure to pay or a deliberate underpayment of taxes.

Books by Tejvan Pettinger

It is very important for every country to be aware of the causes of a phenomenon as complex as tax evasion, since it is the only way to find a strategy for combatting it. The issue is extremely complex, but undoubtedly, it is an exercise, which all countries must undertake. In a previous comment, [1] we pointed out the importance and seriousness of tax evasion currently existing in Latin America and likewise, the significant inequality in the distribution of income, stressing the scarce redistributive capacity of the tax policy. We said that in many countries there is no institutionalized and systematized estimation of evasion, with adequate periodicity and dissemination of the results.

No one likes to pay taxes. But taxes are the law. The terms "tax avoidance" and "tax evasion" are often used interchangeably, but they are very different concepts. Basically, tax avoidance is legal, while tax evasion is not. Businesses get into trouble with the IRS when they intentionally evade taxes.

The main purpose of this paper is to investigate factors that influence taxpayers to engage in tax evasion. The researcher used descriptive and explanatory research design and followed a quantitative research approach. To undertake this study, primary and secondary data has been utilized.


  • Exequiel A. 20.05.2021 at 04:41

    More about this item Keywords tax evasion ; fiscal fraud ; state budget and public finance ; All these keywords.


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