Tax Evasion – from Its Roots to Its Branches (original) (raw)
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Consequences and Evidence of Tax Evasion and Avoidance
2019
Tax is a major source of government income and it contributes for the general advancement and success of an economy or a nation. The government, in-order to initiate welfare and development programmes which are meant to improve a company’s situation, raises revenue in terms of income tax, customs duty, VAT etc. Although, recently it was found that the country had been facing a massive problem with tax evasion. Tax evasion or tax avoidance happens when individuals intentionally fail to pay their tax obligation. This results in revenue loss which may affect the proper functioning of other sectors of the economy. This study explores the tax evasion concepts, covers the reasons and factors responsible and also examines the possible remedies to reduce the problem for the betterment of the economy. For this purpose, the data have been collected from secondary sources.
Economic-Political Causes of Tax Evasion (Theoretical Background)
Optimization of Organization and Legal Solutions concerning Public Revenues and Expenditures in Public Interest (Conference Proceedings), 2018
This paper is focused on tax issues, with an emphasis placed on the identifi cation of primary causes of the economic-political nature of the emergence of tax evasion and non-compliance with tax obligations. The aim of the Authoresses is to provide in the context of this paper a brief overview of the economic-political background leading to detection of the real causes of the emergence and existence of tax evasion and non-compliance with tax obligations. In carrying out complex analysis of the causes leading to the emergence of tax evasion and non-compliance with tax obligations, it is necessary to also accept the nature of non-economic determinants. Instability or turbulence of the conditions in the context of the economic milieu (e.g., frequent changes in the tax code) signifi cantly increase the complexity of the disclosure of the real underlying cause of tax evasion and non-compliance with tax obligations. The apparent underlying cause of the emergence and existence of tax evasion is inherently taxation, that is, the introduction of taxes as such and the obligation to pay them. The decisive factors leading to the creation of tax evasion and non-compliance with tax obligations include the factors of economic-political 1 This paper has been written as a partial output of the APVV-16-0160 research project, Tax evasions and tax avoidance (motivation factors, formation and elimination), as well as the output of the VEGA 1/0375/15 research project, Tax evasion and tax frauds and possibilities of their prevention (by means of tax law, commercial law and criminal law). 2 Doctor, Researcher at Pavol Jozef Šafárik University in Košice, Faculty of Law. Within her research and teaching activities, she pays special attention to assorted micro-and macroeconomic issues from the interdisciplinary perspective. She is the author of more than 80 reviewed scientifi c outputs in the form of articles in journals, chapters in monographs, conference papers. She is a member of the Information and Organization Centre for Research into Public Finances and Tax Law in the Countries of Central and Eastern Europe.
Tax Evasion and its Effects on the Economy
JMC Research Journal, 2019
Tax evasion happens when individuals, organization or agency purposely do not adhere to their tax obligation. The loss of tax revenue caused by tax evasion seriously hampers the proper functioning of the public sector by creating problems in its ability to finance its expenses. The study investigates the opinion of the tax professionals regarding the tax evasion in Nepal with the focus on the factors responsible for the tax evasion and possible remedies to decrease the problem of tax evasion. The main objective of the study is to identify the causes of income tax evasion and assess the impact of tax evasion in Nepal. To collect the information regarding tax evasion in Nepal a well-designed questionnaire with five-point Likert scale has been used. Their opinion reveals that high tax rates, corruption in public sector units, multiple tax rates and inefficient tax authorities are the main causes of tax evasion in Nepal.
RePEc: Research Papers in Economics, 2011
© CAF, 2011 por Besfamille, Martín. Todos los derechos reservados. Pequeñas secciones del texto, menores a dos párrafos, pueden ser citadas sin autorización explícita siempre que se cite el presente documento. Los resultados, interpretaciones y conclusiones expresados en esta publicación son de exclusiva responsabilidad de su(s) autor(es), y de ninguna manera pueden ser atribuidos a CAF, a los miembros de su Directorio Ejecutivo o a los países que ellos representan. CAF no garantiza la exactitud de los datos incluidos en esta publicación y no se hace responsable en ningún aspecto de las consecuencias que resulten de su utilización.
International Business and Management, 2013
Tax revenues are major and important income sources for governments in most countries. Sufficient tax revenues make many government projects possible and help elected officials and politicians to remain in office longer if the government implements programs and projects demanded by the public. In today’s globalizing economic environments, there is increasing demand for a variety of public services and programs. However, the rate of increase in the tax revenues to finance these public services and programs falls short of the necessary public spending. The potential tax revenue of a country based on its legal or tax law is much larger than the tax revenues that are actually collected. Due to the lack of full tax compliance, government budgets are rarely balanced in most countries, and the gap between revenue and spending is increasing. The main question is why taxpayers evade taxes. To understand tax evasion, one can examine what factors cause taxpayers to evade taxes. If factors that affect tax evasion are identified, policies can be developed to prevent tax evasion. The purpose of this study is to investigate factors related to tax evasion behavior using survey data collected in Turkey. Factor analysis and multiple regression techniques are employed. The results show that taxational and fiscal factors, economic factors, demographic factors, administrative factors, and other factors have statistically significant effects on tax evasion behavior.
Tax Evasion: Impact of Internal and External Factors, An Individual Tax Payer Perception
2020
This study aims to determine the perception of taxpayers on tax evasion that is influenced by internal factors and external factors of taxpayers. As the locus of control theory that a person's actions are influenced by internal factors of the person himself and external factors around the person. Tax evasion is known as a factor causing the non-achievement of state revenue from taxes so far. The MSME was used as a respondent in this study because of its large number in Indonesia and grow the country's economy. The results found that ethics and understanding of taxation as internal factors have an influence on tax evasion, as well as tax justice as an external factor also has an influence on tax evasion. From a comparative analysis, internal factors have a stronger influence than external factors. This result can be used by the Directorate General of Taxes in minimizing tax evasion by fostering individual enthusiasm in complying with tax regulations.
FACTORS INFLUENCING TAX EVASION
© © U Un ni iv ve er rs si it ty y o of f P Pr re et to or ri ia a I would like to extend my gratitude to: our Lord, without whom nothing is possible; my wife, Gerda, for her motivation, support and assistance whilst also busy with her Master"s degree and looking after our baby son, Hannes; my parents for all their motivation; and my supervisor for her assistance and guidance throughout this study. -i -ABSTRACT FACTORS INFLUENCING TAX EVASION by JAN HERCULAAS VENTER STUDY LEADER: MS H DU PREEZ DEPARTMENT: TAXATION DEGREE: MAGISTER COMMERCII Taxation and tax evasion is an observable fact that occurs in all societies. In South Africa, tax evasion is one of the most sinister forms of crime and millions of rands are sidetracked by tax criminals. Studies from various countries indicate that it is not unusual for about half of the possible tax revenues to remain uncollected.
More tax evasion research required in new millennium
Crime, Law and Social Change, 1999
Scholarly communication across disciplines is much harder than within disciplines. This article highlights the pervasive phenomenon of tax evasion and discusses the different theoretical models and research approaches that have been used to study the problem in the last two decades. Much of this research has been conducted in the U.S. Policy approaches suggested by this research may therefore have limited applicability in other countries. With theoretical models from a variety of disciplines available to use, and many unanswered questions remaining, international comparisons and multi-method approaches should be useful to the many policymakers and academic researchers interested in understanding the puzzle of tax compliance.
Tax Evasion, Prevention Measures and Detection Procedures - The Case of the Republic of Serbia
Proceedings of the 7th International Scientific Conference - FINIZ 2020, 2020
The subject of research is to determine the knowledge and understanding of the importance of tax evasion (TE) and prevented measures in the Republic of Serbia. The main findings of executed research in 2019 were: 1) the majority of respondents were aware of TE, 2) working illegally is the most common way of TE, 3) the majority of respondents said that they hadn't received the bill after every shopping, 4) all respondents stressed that some party should be penalized for not possessing the bill after shopping, 5) the majority of respondents answered that adequate tax propaganda was the way of educating tax payers, 6) the majority of respondents would not report any notice of any form of TE. The state and tax authorities should take measures in order to create win-win climate for all stakeholders in order to reduce TE.