Tax Evasion Research Articles

Global taxation issues in cryptocurrencies – a synthesis of literature and future research agenda

PurposeThe purpose of the current study is to contribute to the existing body of knowledge by understanding the rationale, benefits and consequences of taxing cryptocurrency transactions. This study investigates where taxation and cryptocurrencies meet from an investment standpoint.Design/methodology/approachA comprehensive bibliometric study was conducted to offer a thorough examination of the published literature in the last decade pertaining to the intersection of cryptocurrencies and taxation across nations. This study provides an analysis of citation patterns, prominent authors, publication trends and thematic clusters by applying VOSviewer and R-studio.FindingsThe results indicate a tendency in the existing literature to address the taxes concerns associated with cryptocurrency transactions. The findings demonstrate that cryptocurrency taxation discrepancies across countries create tax evasion, transaction risks and market uncertainties.Practical implicationsThe report provides a theoretical framework for policymakers and financial experts to create a global cryptocurrency tax regime. The study emphasizes the need to incorporate technology start-ups to mitigate public safety and security risks, strengthen financial systems and provide regulators with necessary supervision.Originality/valueThe study provides an extensive on taxation issues such as tax evasion and money laundering in the context of cryptocurrency. There has been no prior effort to explore this research domain so deeply and provide comprehensive details on cryptocurrency.

Income Tax Fraud Detection with XGBoost and Real-Time ID Authentication

Income Tax Fraud Detection with XGBoost and Real-Time ID Authentication

Cash Demand Sensitivity: Post-Tax Amnesty Shadow Economy Estimation in Indonesia

Indonesia has consistently failed to meet its tax revenue targets in recent years, primarily due to extensive shadow economy activities aimed at tax evasion. This study seeks to measure the sensitivity of cash demand in estimating the shadow economy across Indonesia's 34 provinces during the post-tax amnesty period from 2016 to 2022 and to assess its impact on potential tax revenue losses. Utilizing a quantitative methodology, the research employs panel data regression with a Random Effects Model. The shadow economy is estimated using a monetary approach model based on cash demand sensitivity. The dependent variables include total currency demand and potential tax revenue, while the independent variables comprise tax burden, inflation rate, Gross Regional Domestic Product (GRDP), financial and technological innovation (represented by internet use for financial purposes), and the shadow economy. The findings reveal that the tax burden, inflation, and financial/technological innovations do not significantly influence cash demand, whereas income has a significant positive effect. Moreover, the shadow economy substantially affects potential tax revenue losses. On average, the shadow economy across the 34 provinces amounts to IDR 292.152 billion, with an average potential tax revenue loss of IDR 35.306 billion

Altruism and tax compliance: Unveiling the dual role of charitable giving and social norms in global tax evasion

This study investigates the relationship between altruistic behaviors and tax evasion, using panel data from 172 countries spanning 2011 to 2020. The analysis focuses on three dimensions of altruism—helping strangers, volunteering, and donating to charity—derived from the World Giving Index, while tax evasion is proxied by the size of the informal economy as estimated by the IMF. With a final sample of 1,103 country-year observations, the study employs a fixed effects regression model to account for unobserved, time-invariant heterogeneity across countries and global shocks over time. GDP per capita, sourced from the World Bank, is included as a control variable. The findings reveal a dual relationship: the percentage of individuals helping strangers is negatively correlated with tax evasion, suggesting that strong social norms and intrinsic motivations for altruistic behavior promote tax compliance. In contrast, the percentage of individuals donating to charity is positively correlated with tax evasion, indicating that charitable giving may sometimes rationalize non-compliance through mechanisms like the Crowding-Out Hypothesis or the Compensatory Altruism Hypothesis. Volunteering, however, shows no significant effect on tax evasion. These results underscore the complexity of the relationship between pro-social behaviors and tax compliance. Policymakers are encouraged to promote social norms that foster both altruism and tax compliance while carefully designing tax incentives for charitable giving to prevent unintended consequences. This study contributes to the literature by providing nuanced insights into the interplay between altruistic behaviors and tax evasion on a global scale, highlighting the importance of context in understanding compliance behaviors.

What factors influence the individual’s behavior in engaging in income tax evasion? An investigation using SEM and fsQCA

PurposeThe substantial rise in tax evasion raises concerns about its adverse impact on the tax system’s integrity. This article aims to empirically investigate the factors affecting income tax evasion behavior among individuals in India’s National Capital Region (NCR).Design/methodology/approachA cross-sectional design was applied to gather primary data from (N = 548) taxpayers using a “self-administered survey questionnaire.” The hybrid “partial least squares structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA)” approach was applied to analyze the data.FindingsThis research presents a comprehensive model that explains 53.4% of the variance in behavioral intention and accounts for 51.4% in the actual behavior of individuals who participate in income tax evasion. The outcomes show that high tax burden, corruption and complexity of the tax system significantly influence behavioral intention. On the contrary, digitalization and tax morale insignificantly influence behavioral intention. Notably, behavioral intention is significantly associated with the actual behavior of individuals engaging in income tax evasion.Practical implicationsThe outcomes offer valuable implications for practitioners, including policymakers, governments and tax authorities, to effectively curb income tax evasion behavior and help them make informed decisions.Originality/valueThe innovative research model enhances prevailing knowledge by providing empirical insights into the effect of income tax evasion behavior among individuals in India. This study also contributes methodologically by combining PLS (linear) and fsQCA (nonlinear) techniques, demonstrating that both methodologies offer a deeper comprehension of the factors affecting individual behavior to engage in income tax evasion.

From money laundering to illicit finance? The evolving ‘AML’ regulatory regimes for legal professionals in the UK and Australia

ABSTRACT Since the introduction of the global anti-money laundering (AML) regime, the focus of (inter)national concern has broadened, from the laundering of the proceeds of drug trafficking and other organised crimes to a range of crime and security issues captured by the term ‘illicit finance’. These include money laundering, terrorism financing, proliferation financing, tax evasion, corruption, kleptocracy and sanctions evasion. This article considers how this shift from ‘money laundering’ to ‘illicit finance’ has changed the nature of the ‘AML’ regime for legal professionals in the UK, and what lessons this holds for Australia amidst ongoing regulatory reform. It argues that legislation enacted in the UK since 2017, encompassing key themes of transparency and financial sanctions, has expanded the ‘gatekeeper’ role of legal professionals, creating further opportunities to prevent or enable illicit finance and further regulatory obligations (and potential exposure to criminal sanctions). A reformed Australian AML/CTF regime should aim to address all relevant crime and security threats and the various ways that individual actors, systemic factors and regulatory gaps within professional service provision can enable illicit finance. However, it must also recognise and manage the implications of ever-expanding regulatory obligations, and the compliance challenges these obligations can create.

Loss Aversion and Tax Evasion: Theory and Evidence

We consider income-source-dependent tax evasion and show that this is a generalisation of the well-known endowment effect. We show that loss aversion, moral costs, mental accounting and risk preferences play a role in explaining key features of source-dependent tax evasion. We provide evidence of the first direct link between subject-specific loss aversion and tax evasion, which is central to most successful modern theoretical accounts of tax evasion. We provide some evidence that risk aversion strengthens the cautionary effect of loss aversion and risk loving behaviour attenuates, or reverses, it. However, the underlying effect is also influenced by the source of income. Evasion is increasing in the tax rate and decreasing in the audit penalty, as predicted. Our study provides novel theoretical insights; proposes new methods in the estimation of the underlying behavioural parameters; and confirms the central predictions of the theory, while pointing out challenges for further developments that existing theory is unable to account for. JEL: C91, C92, D82, D91, G21

The Role of Tax Judiciary in Reducing Tax Evasion

The Role of Tax Judiciary in Reducing Tax Evasion

Arab domination and fiscal tensions in the Delta under the Marwānids: An official investigation regarding the punishment of a reluctant taxpayer

Abstract From the end of the seventh century CE, Egypt was increasingly destabilised by taxpayer protests, which culminated in significant armed revolts in the following century. In this article, we present the edition, translation, and analysis of papyrus P. Utah Inv. 114 that uniquely documents an incident in the northern Delta, dating to the late seventh or the early eighth century CE. The death of a taxpayer, at the hands of a Christian official in a case of tax evasion, triggered an administrative investigation by the Arab-Muslim authorities. The resulting report not only shows how local authorities addressed cases of tax resistance, but offers new insights into the legal procedures implemented by provincial authorities. The document also allows for a better understanding of Arabic administrative terminology. Finally, it contains the earliest recorded use of the term ‘Arabs’ to refer to the group of conquerors, attributing a moral and religious significance to the term.

Analisis Empiris Agresivitas Penghindaran Pajak Dalam Konteks Tanggung Jawab Sosial Perusahaan Dan Tata Kelola Perusahaan

The issue of tax avoidance remains intriguing for further investigation in empirical studies. This research was conducted to re-examine the influence of corporate social responsibility and corporate governance on aggressive practices in tax evasion. The data source is from manufacturing companies in the consumer goods industry sector listed on the Indonesia Stock Exchange between 2017 and 2021. This research used 168 companies with a purposive sampling method. Data analysis uses multiple linear regression using statistical software for social sciences. The research results show that the variables of corporate social responsibility, the presence of independent commissioners, and institutional ownership have a significant negative impact on aggressive practices in tax evasion. On the other hand, there is no significant influence of the audit quality variable on tax evasion. Therefore, the higher the level of corporate social responsibility disclosure, the proportion of the presence of an independent board of commissioners, the quality of audits, and the proportion of institutional ownership, the level of aggressive practices in tax evasion tends to decrease.

Rule of Law and Tax Evasion in Nigeria: Moderating Role of Public Trust in Government

Tax evasion problems impact on revenue generation by the government of Bayelsa State, Nigeria. This study explores empirically the moderating role of public trust in government on the relationship between rule of law and tax evasion in Bayelsa State, Nigeria. The specific objectives were to investigate the relationship between legal certainty and tax evasion in Bayelsa State, Nigeria; the relationship between equity before the law and tax evasion in Bayelsa State, Nigeria; the relationship between fairness and tax evasion in Bayelsa State, Nigeria and the moderating influence of public trust on the link between rule of law and tax evasion in Bayelsa State, Nigeria. The study anchored on the theories of economic deterrence and reasoned action and cross-sectional research design with data collected from primary and secondary sources. The Primary data comprised of structured questionnaires from a sample of 218 respondents (taxpayers) in Bayelsa State, Nigeria after validity and reliability tests while the data obtained from the respective taxpayers were analysed by using structural equation model. The finding indicated is a negative and significant link between legal certainty and tax evasion in Bayelsa State, Nigeria; a negative and significant link between equity before the law and tax evasion in Bayelsa State, Nigeria; a negative and significant link between tax fairness and tax evasion in Bayelsa State, Nigeria; and public trust in government negatively and significantly impact on the relationship between rule of law and tax evasion in Bayelsa State, Nigeria. From the findings of this study, we concluded that pubic trusts in government negatively and significantly impact on the relationship between rule of law and tax evasion in Bayelsa State, Nigeria. We recommended amongst others that public trust in government is observed to be a key driver of tax compliance and reduction in tax evasion, consequently the government needs to authentically fight against corruption and also ensure that the deployment of the country’s resources is transparent and there is accountability. When Nigerians have an optimistic perception of the government, citizens and taxpayers are more likely to comply with government rules in general and taxes in particular.

Tax culture and its relationship with tax evasion in Ecuador

Introduction: taxes are mandatory contributions that all Ecuadorians who have an economic activity of goods or services must pay to the state so that it can in turn properly manage that money for the benefit of the people.Objective: to characterize aspects related to tax culture and tax evasion in Ecuador.Method: a review of the available bibliography in databases such as SciELO, Scopus and ClinicalKey was carried out, from which a total of 13 related articles were consulted, empirical methods such as logical history and analysis and synthesis were used.Results: taxes are the main means of income for the State with which the population benefits from public education, free hospital care, security, justice, public works and aid to the most needy. Currently, it can be seen that in most countries tax evasion is a problem of enormous importance. Fiscal policy is the generator of legal instruments that allow effective tax collection. Tax education and culture in taxpayers in general is still scarce in certain sectors of the Ecuadorian economy.Conclusions: tax or fiscal evasion depends on the degree of tax culture and this in turn on the tax awareness that exists in taxpayers regarding compliance with the payments of the different taxes

The development of the Tax Management of Merchants in the EP-Municipal Wholesale Market Company in the Pishilata Urban Parish of the city of Ambato

Introduction: tax culture corresponds to the responsibility that taxpayers have in relation to the payment and declaration of their taxes based on social awareness.Objective: to evaluate the knowledge of the tax culture of the merchants of the Wholesale Sector of the Pishilata Parish.Method: a quantitative, observational, descriptive and cross-sectional study was carried out to determine the level of knowledge of the tax culture of the merchants of the Wholesale Sector of the Pishilata Parish of the city of Ambato during 2022. The study population is made up of 1,850 merchants from the city of Ambato, a sample of 322 people was defined by simple random samplingResults: 53.7 % of the sample studied were female. 75.16 % of the sample agrees that it is the payment of a percentage of income. 87.58 % of the sample agrees that the declaration of VAT is one of the duties; if the payment of taxes were voluntary, 82.61 % of taxpayers would choose not to do so; 49.38 % claim not to see effective and efficient results from investment in state works with the income obtained from taxes.Conclusions: Legal knowledge about taxation must be reinforced with the topics chosen by merchants because tax evasion is an effect of the lack of tax culture in taxpayers

Corporate relation extraction for the construction of knowledge-bases against tax fraud

Corporate relation extraction for the construction of knowledge-bases against tax fraud

The Adani Group : Bounce Back, Strategic Recovery and Market Resilience Post Hindenburg Research Report

The Hindenburg Report criticized the market capitalization of Adani Group companies, leading to a significant drop in value in the Indian stock market. However, Gautam Adani’s wealth surged, the Adani Group’s cash reserves reached an all-time high, and their EBITDA growth soared by 47% in FY24. The conglomerate faced allegations of tax fraud, corruption and environmental violations, following the Hindenburg Research Report in January 2023. The public was flooded with information about the Adani Group’s commercial endeavors. This study examined the group’s strategic shifts, financial performance, and market perception in response to the allegations. The recent news focused on the issues and their impact on the market. The study also highlights major controversies surrounding the company, such as environmental violations, land acquisition issues and allegations of tax evasion. The study has analyzed media data to gain insights. The Adani Group despite initial setbacks, has successfully mitigated risks and rebuilt investor confidence through debt reduction, project abandonment and operational streamlining. Despite challenges, the group’s financial health remains strong. However, ongoing efforts are needed to maintain sustainability and confidence of stakeholders.

НАЛОГОВАЯ РЕФОРМА 2025 ГОДА – ФАКТОР ПОВЫШЕНИЯ ДОХОДОВ ФЕДЕРАЛЬНОГО БЮДЖЕТА И РОСТА ЭКОНОМИЧЕСКОГО ПОТЕНЦИАЛА РОССИИ

The article discusses the provisions of the 2025 tax reform on the main types of taxes (corporate income tax, personal income tax, excise taxes, mineral extraction tax, VAT, simplified taxation system). Particular attention is paid to changing the legal regulation of corporate income tax (an increase in the rate from 20% to 25%), personal income tax (the introduction of differentiated tax rates), and the unified tax system (setting up a simplified taxation system aimed at creating conditions for the transition to a general taxation regime for taxpayers using the unified tax system). The article analyzes the measures provided for in the framework of the tax reform, established in order to create equal conditions for competition, aimed at suppressing indirect tax evasion schemes, and at distributing the tax burden in various sectors of the economy, including rental industries. The introduction of a deposit tax starting in 2024, its impact on the dynamics of projected budget revenues in 2024 and subsequent years, as well as the relationship between an increase in the key rate of the Central Bank of the Russian Federation and an increase in the non-tax base (tax deduction) on income from deposits, which reduces the amount of tax on deposits, is being studied. The article examines the impact of changes in the average key rate in 2024–2027 in accordance with the scenarios of the main directions of the unified state monetary policy for 2025 and the period 2026–2027 (basic, disinflationary, pro-inflationary, risky) on the updating of instruments to combat inflation in 2025–2027. This is necessary in the context of the importance of taking into account the implementation of the tax reform in 2025, when a number of its measures may contribute to price increases, and the deterioration of the geopolitical background may lower the exchange rate of the national currency: all this can “accelerate” inflation. It reflects the clarification of the legislatively established amount of budget allocations when forming the federal budget for 2025–2027 based on the projected inflation rate (consumer price growth index), taking into account the inertia of steady inflation and its impact on budget allocations.

The Effect of Audit Burden on Subsequent Tax Evasion

The Effect of Audit Burden on Subsequent Tax Evasion

APPRAISAL OF INFLUENCE OF TAX-PRO MAX ADOPTION ON TAX ADMINISTRATION IN NIGERIA

This study aimed at appraising influence of the adoption of Tax-Pro Max on tax administration in Nigeria. It determined how Tax-Pro Max adoption had effect accountability for taxes, curb tax avoidance and evasion and reduction in fraudulent malpractices. Survey research design and judgemental sampling techniques were employed for the study. The population for the study consisted of Federal Inland Revenue Service (FIRS) Officials, Corporate Taxpayer, Tax Consultants and Accountants, Auditors, Managers and Owners of SMEs who were in Ibadan, Oyo State. The sample size selected for the study was 200 based on stratified random sampling technique. Data were collected with the aid of a structured questionnaire which use 4 likert-scale for measurement. Data gathered through 179 questionnaires retrieved from the respondents were used for the analysis. Descriptive statistics of percentages, mean and standard deviation were used to analyze respondents’ opinions to the questionnaire using 4 Likert scales while linear regression was used for hypotheses testing. Regression analysis results confirmed that TaxPro Max adoption enhance tax remittance accountability, curb tax avoidance and evasion and reduce tax fraudulent malpractices with (F value = 1501.79, p = .000), (1170.05, p = .000) and (F value = 1314.7, p = .000) respectively. These results showed that TaxPro Max adoption significantly influence tax administration in Nigeria. The study recommends that government should enactment laws which will regulate the operation of TaxPro Max system in Nigeria to avert unnecessary legal dispute and strengthen legitimacy of the system.

The Impact Of Tax Avoidance On Firm Value

Taxes are crucial because the government uses them to fund public welfare and development. Tax revenue in 2022 demonstrates an equally dispersed economic recovery in Indonesia across a number of industries. However, due to a number of factors, including instances of tax avoidance and corporate practices that exploit technicalities in tax laws, Indonesia's tax collection has fallen short of its proper amount. This study sought to ascertain how tax evasion affected the company value of coal mining businesses that were listed between 2018 and 2021 on the Indonesia Stock Exchange. Panel data regression analysis techniques are employed in the data analysis method using the Eviews version 12 software. Choosing model estimates the Chow test, Hausman test, Langrange multiplier test, normality test, panel data regression test, and hypothesis testing is how data testing is done. The analysis concluded that there is no relationship between tax avoidance and corporate value.

DIGITAL TRANSFORMATION OF THE TAX SYSTEM OF UKRAINE

In the article examines the importance of introducing modern digital technologies into the tax system of Ukraine during the war for its adaptation to current challenges and development in the post-war period. The use of such innovations makes it possible to make life easier for taxpayers, reduce corruption and increase the efficiency of tax authorities. The key advantages of digitalization, which directly affect the quality of tax administration, are considered. The introduction of the latest technologies allows to automate the collection, processing and analysis of tax data, to improve the process of compiling and submitting tax reports, facilitates electronic interaction between tax authorities and taxpayers, contributes to the efficiency of tax administration, allows to significantly reduce the time required for conducting tax audits and detecting violations, fight against tax fraud. The benefits of digitization of the tax system for both the tax service and taxpayers have been determined. The services are designed for both parties, allow to improve interaction, increase transparency and reduce the time and costs of fulfilling tax obligations. The programs, mobile application and comprehensive service developed by the State Tax Service of Ukraine for the work of state bodies, entrepreneurs and citizens were analyzed. The considered digital resources allow citizens to quickly and conveniently receive information, and business structures to quickly, qualitatively and timely fulfill their tax obligations, to form and submit various forms of reporting, as well as to communicate with state control bodies as remotely and comfortably as possible. Advantages and risks of digitization in the tax system are considered. Although the digitalization of the tax system in Ukraine has significantly improved the interaction between the state and taxpayers, the process faces certain challenges. This includes data security issues, the possibility of cyber threats, and the need for citizens and businesses to adapt to new digital tools. It has been established that digitalization has a positive effect on the cooperation of the DPS of Ukraine and taxpayers.