scholarly journals The Effect of Shadow Economy – Country'S Tax Losses

10.3846/149 ◽  
2011 ◽  
Vol 1 (3) ◽  
pp. 38-41 ◽  
Author(s):  
Jolita Krumplytė
Keyword(s):  
Tax Evasion ◽  
Shadow Economy ◽  
Tax Avoidance ◽  
Tax Revenue ◽  
Tax Administration ◽  
Tax Gap ◽  
The Difference ◽  
Consolidate Budget

The article analyzes the content of shadow economy through the prism of the tax administration. The author provides the limitations of the study and methodologically based relationship between the shadow economy and the tax revenue not to be received to the national consolidate budget. Country’s tax losses (tax gap) is the amount of the tax revenue that is not received to the country's consolidated budget in the tax non-payment effects: tax avoidance and tax evasion. Tax losses (tax gap) is treated as the difference between the amount of potential taxes and contributions that could be collected if the taxpayers correctly calculated and paid on time in accordance with the provisions of the legislation and actually paid taxes and contributions.

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.

scholarly journals The Effect of Corruption and Governance on Tax Revenues

2010 ◽  
Vol 49 (4II) ◽  
pp. 405-417 ◽  
Author(s):  
Tahseen Ajaz ◽  
Eatzaz Ahmad
Keyword(s):  
Developing Countries ◽  
Tax Evasion ◽  
Policy Framework ◽  
Tax Revenue ◽  
Tax Administration ◽  
Public Officials ◽  
Revenue Generation ◽  
Quality Of Governance

Developing countries are typically unable to generate sufficient amount of revenue from taxation because these countries face a number of institutional problems in the process of revenue generation. One of the main problems is corruption in tax administration. The two important components of revenue generation are tax administration and tax system reforms [Brondolo, et al. (2008)]. The main objective of these is to increase the efficiency of tax administrations, specifically by reducing corruption and tax evasion. The second main problem of low revenue generation is political instabilities in developing countries. One of the important characteristics of political instability is unstable and governments and, hence, incoherent policy framework, which hinder in the process of long-term reforms in the system. The quality of governance as a whole is also relevant in this context. It is widely agreed that the presence of tax evasion and corruption of public officials is a social phenomenon that can significantly reduce tax revenue and seriously hurt economic growth and development.

TAX GAP AS A CONSEQUENCE OF UNPAID TAX LI-ABILITIES

2021 ◽  
pp. 375-385
Author(s):  
RADAN KOSTIĆ ◽  
MILAN MIHAJLOVIĆ
Keyword(s):  
Resource Allocation ◽  
Economic Development ◽  
Tax Evasion ◽  
Tax Policy ◽  
Tax Administration ◽  
Special Importance ◽  
Eu Countries ◽  
Tax Gap ◽  
Efficient Resource ◽  
The Subject

Tax evasion and grey economy are present in all countries. It’s es-timated that grey economy in developed EU countries is at around 10-15% of GDP, while it amounts to over 30% of GDP in Serbia. Therefore the subject of this paper is determining basic goals of Serbia’s tax policy, i.e. combating grey economy that complicates efficient resource allocation and slows down economic development, because economic subjects that are prone to tax evasion represent disloyal competi-tion to economic subjects that do business legally. In order to fight tax evasion, or-ganization and work of tax administration are of special importance.

THE SHADOW ECONOMY FACTORS AND CAUSES ANALYSIS BY EXPERT EVALUATION METHOD: CASE OF LITHUANIA

2010 ◽  
Vol 8 (1) ◽  
pp. 122-138
Author(s):  
Jolita Krumplytė
Keyword(s):  
Tax Evasion ◽  
Social Insurance ◽  
Evaluation Method ◽  
Shadow Economy ◽  
Wage Gap ◽  
Tax Administration ◽  
Economic Activities ◽  
Poverty Level ◽  
Study Results ◽  
Governmental Institutions

In the scientific literature the shadow economy is defined as a complex multifaceted set of phenomena, whose existence is determined by various factors and causes. The article examines the shadow economy through tax administration perspective. The author’s chosen object of the research encompasses economic activities, results of which such as tax evasion or concealment are not included in the official records. The shadow economy factors and reasons are economic, legal-administrative and social- psychological. Most of the time scientific research analyses the following shadow economy factors and causes: ▪ burden and rise of direct and indirect taxes and compulsory social insurance contribution; ▪ too stringent (or insufficient) legal and administrative regulation; ▪ weak government and a high level of corruption in the governmental sector; ▪ the income inequality (a high poverty level); ▪ the legislative gaps; ▪ the tax administration system deficiencies; ▪ irrational country’s economic policy; ▪ tax morale; ▪ insufficient government attention to social policy or irrational its development. The article presents the empirical study results about Lithuanian shadow economy factors and causes. The survey was carried out by experts – Lithuanian State Tax Inspection staff which has experience in inspecting taxpayers and conducting tax investigations. 702 experts took part in the research. According to experts’ estimations, companies and individuals enter into shadow economic activity mainly because they do not have any other way out (otherwise they won’t be able to stand up to competition, individuals won’t be able to make a living, etc.) as well as because other economy players pull them in. Experts also estimate that the most important Lithuanian shadow economy causes are the following: too big tax burden (in the case of illegal work – significant gross and net wage gap), gaps in legislation, frequent law changes, distrust of country’s government, dissatisfaction with the quality of work of governmental institutions. The main causes of the sprawl of the shadow economy – the inability to compete without being involved in the shadow economy, the lack of unified declaration of income and insufficient control of state institutions.

What's in a Name?

2022 ◽  
pp. 228-242
Author(s):  
Larissa Batrancea
Keyword(s):  
Tax Evasion ◽  
Ethnic Diversity ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Factors Influencing ◽  
The Difference ◽  
The Impact ◽  
Complex Matter

The topic of tax behavior always stirs attention among scholars, professionals, national and international authorities, organizations, and citizens alike since it is a complex matter. There are four types of tax behavior acknowledged in the literature, namely voluntary tax compliance, enforced tax compliance, tax avoidance, tax evasion. The complexity of tax behavior stems from the fact that there are a manifold of factors influencing it, from economic to psychological ones. The chapter surveys relevant sources on tax behavior in the quest for eliciting the impact of ethnic diversity on tax compliance. At the same time, the difference between countries are also addressed.

scholarly journals Study On Budget Revenue Collection, Shadow Economy and Tax Losses Caused By It

2017 ◽  
Vol 27 (2) ◽  
pp. 1-18 ◽  
Author(s):  
Claudia Florina Radu ◽  
Florin Cornel Dumiter ◽  
Lavinia Dudas ◽  
Stefania Master Jimon
Keyword(s):  
Tax Evasion ◽  
Shadow Economy ◽  
Tax Avoidance ◽  
Underground Economy ◽  
Tax Burden ◽  
Revenue Collection ◽  
The Law ◽  
Necessary Evil ◽  
Budget Revenue

Abstract Tax avoidance is a phenomenon faced by all countries, to a lesser or greater extent, and we can say that it has begun to manifest itself since the introduction of taxes. It is known that generally taxes are not pleasing to taxpayers, especially when their level is high. However, it is important for individuals, as a whole, not to evade from their tax obligations. In this context taxes can be regarded as a necessary evil to ensure the resources needed for state functioning. But often some taxpayers are looking for ways to avoid taxes, engaging either in tax evasion to the shelter of the law or in fraudulent evasion. In this paper we present some of the aspects that motivate individuals to pay taxes. Also we analyze the situation of budgetary revenues in Alba County and also the evolution of the main income of consolidated general budget in Romania. In the end of the paper we intend to draw a parallel between shadow economy, tax burden and tax losses due to shadow economy for a sample of 32 countries. In this way we can see where underground economy and tax losses have the highest values and where are required measures to mitigate them.

scholarly journals Pengaruh Pengetahuan dan Pemahaman Peraturan Perpajakan, Penghindaran Pajak dan Sanksi Perpajakan Terhadap Kepatuhan Wajib Pajak

2018 ◽  
Vol 10 (2) ◽  
pp. 156-167
Author(s):  
Davidya Febri ◽  
Tri Sulistyani
Keyword(s):  
Data Collection ◽  
Tax Evasion ◽  
Random Sampling ◽  
Sampling Methods ◽  
Tax Avoidance ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
The Third ◽  
The Difference ◽  
Program Version

The purpose of this study was to determine the effect of knowledge and understanding of taxation regulations, tax avoidance and taxation sanctions simultaneously and partially on taxpayer compliance. To find out the difference in knowledge and understanding of taxation regulations,  tax  avoidance,  taxation  and  compliance sanctions  on  private  taxpayers  of private employees with ASN's personal taxpayers. In this study using the population of all individual taxpayers registered in the Tegal City KPP with a sample of 100 respondents. The sampling technique using simple random sampling. Methods of data collection by distributing questionnaires. The data is processed using SPSS program version 23. The results of this study conclude that the first hypothesis is that there is the influence of knowledge and understanding of tax regulations, tax avoidance and taxation sanctions simultaneously on taxpayer compliance with a significant value of 0,000. The second hypothesis  is  that  there  is an  influence  of  knowledge  and  understanding  of  taxation regulation partially to taxpayer compliance with the significant value equal to 0,011. The third hypothesis is that there is no partial tax avoidance effect on taxpayer compliance with a significant value of 0.069. The fourth hypothesis is that there is a partial effect of taxation sanctions on taxpayer compliance with a significant value of 0.030. The fifth hypothesis is that  there  are  differences  in  knowledge  and  understanding  of  taxation  regulations,  tax evasion,  tax  sanctions  and  compliance  with  private taxpayers  private  employees  with taxpayers personal ASN. While for both groups of taxpayers both private and ASN employees do not differ or there is no difference in preferences on tax sanctions.

scholarly journals The Impact of Tax Administration on Revenue Generation in Gombe State, Nigeria

2018 ◽  
Vol 5 (8) ◽  
pp. 86
Author(s):  
Emmanuel Stephen N
Keyword(s):  
Tax Evasion ◽  
Pearson Correlation ◽  
Rank Correlation ◽  
Tax Avoidance ◽  
Primary Source ◽  
The State ◽  
The Body ◽  
Tax Administration ◽  
Revenue Generation ◽  
The Impact

Taxes<em> have been the bedrock of revenue generation to any government. The administration of tax is very important to any government as it is the body responsible for implementing and governing the tax laws and other tax related to assessment, collection and remittance of tax. This study is aimed at ascertaining the effect of tax administration on revenue generation in Gombe state. The study uses survey research design. The primary source of data collection was adopted, which analysed using descriptive statistics was made up of frequencies and simple percentages. Cronbach's Alpha diagnose was carried out to seek for reliability of the questions contained in the questionnaire Three Hypotheses were presented in this research and were tested using Spearman’s Rank correlation, Pearson correlation and linear regression. Research findings indicated that Tax Administration in the state is not efficient and effective. The study revealed further that revenue generated in the state is low to meet its objectives due to low level of enlightenment of tax payers and incidents of tax evasion and tax avoidance. To this end, the study recommends, among others, that authorities should embark on more enlightenment campaign of citizens on the significance of paying Personal Income Tax, the quality and efficiency of tax workers should be improved so that more effective administration will be achieved and automation of the system.</em>

scholarly journals When tax practitioners file their personal tax returns: Do attitude, social norms, and perceptual control matter?

2021 ◽  
Vol 9 (3) ◽  
pp. 50
Author(s):  
Siti Nurfarhana Mohamad Dzulkifli ◽  
Seri Ayu Masuri Md Daud
Keyword(s):  
Tax Evasion ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Sampling Technique ◽  
Tax Revenue ◽  
Self Assessment ◽  
Tax Practitioners ◽  
Compliance Behavior ◽  
Tax Returns ◽  
Personal Tax

Tax revenue is a key source of income for most countries in the world. To maximize tax revenue, it is critical that taxpayers comply with relevant tax laws particularly in a self-assessment filing system. Alas, many countries are still grappling with tax evasion or even tax avoidance issue. A key challenge is tax compliance behavior remains a complex and perplexing topic. While a lack of tax knowledge is pertinently attributable to unintentional non-compliance, the causes of intentional non-compliance are far from clear. This study aims to investigate the factors associated with intentional tax non-compliance by ruling out the variation in tax knowledge explanation. In so doing, this study employs a sample of respondents deemed conversant with tax knowledge. More specifically, this study surveys 104 tax practitioners in Malaysia using a convenience sampling technique and utilizes the theories of planned behavior and free trait to explore how they behave when filing their personal tax returns. The findings suggest only subjective norms is significantly linked to their tax compliance behavior. This study extends the literature on the role of individual factors on tax compliance behaviour among tax practitioners acting in a different persona.

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