Tax Evasion Research Articles

Illicit Financial Flows and the Petroleum Sector in Cameroon: Hitches and Policy Considerations

Cameroon depends to a large extent on the extraction of petroleum resources for their exports and tax revenue. However, this sector has been prone to generate illicit financial outflows over the years, causing the State to lose billions of dollars to this activity. In 2019, it was estimated that Cameroon lost over 7 billion US dollars which was approximately 4,200 billion XAF to IFFs. The loss was attributed to multinational companies operating in the oil, mining and gas sector in Cameroon. This study therefore aims at examining how the regulatory frameworks in the petroleum sector have been able to curtail the rise of IFFs in this sector. The paper also sheds light on the role of transparency in curtailing illicit financial flows, the catalysts of IFFs, the effects of and the hitches faced in curtailing IFFs in petroleum sector in Cameroon. The study underscores the fact that though the Cameroonian government has made laudable efforts through enactment of laws and putting in place regulatory structures to curtail this activity, lack of transparency, limited State participation in petroleum contractual arrangements, corruption, weak regulatory frameworks, tax evasion, trade mispricing and tax heavens remained the principal hitches to IFFs. Based on these findings, this study recommends strengthening of transparency mechanisms for oil licenses and contract awards, increased in State participation in oil contractual arrangements, citizen’s inclusivity during the negotiation processes and signing of oil contracts, regular publication of oil data and revenue to the public amongst others.

Analisis Faktor-Faktor yang Memengaruhi Tindakan Penggelapan Pajak (Studi Literatur Tahun 2018-2023)

The purpose of conducting this research is to (1) elucidate the commonly researched factors in academia and presumed variables influencing tax evasion; (2) explain the phenomena that drive research in the realm of tax evasion; (3) attempt to delineate the relevance of the phenomenon addressed in tax evasion-related research concerning the research timeline. This study adopts a qualitative descriptive research design with a literature review approach. The data used in this research consist of research articles on tax evasion from the period 2018-2023 indexed by Sinta. The research findings indicate that there are a total of 45 factors suspected to influence tax evasion, and the dominant issues/phenomena in tax evasion research from 2018-2023 are those from previous years. Additionally, the researcher identified other issues/phenomena driving tax evasion research from 2018-2023 beyond the existing research articles.

An Empirical Analysis on the Effect of Taxpayers' Educational Level and Marital Status Factor on Their Attitudes and Behaviors Towards Taxes

The primary source of funding for government expenditures is taxation. For this reason, it is crucial to understand what influences taxpayers' attitudes and behaviors about taxes and tax evasion. The reasons why taxpayers pay taxes or why they do not pay taxes can be brought to the desired level with the help of measures to be taken by the tax administration with the correct determination of these factors. This study is discussed within the framework of the positive or negative effects of taxpayers' personal situations on their attitudes and behaviours towards taxes. In this context, the attitudes and behaviours of taxpayers towards taxes are affected by many demographic variables. The study includes the findings of the research conducted by face-to-face surveys with 525 taxpayers operating in Istanbul. In this context, various analyses were applied with T-tests and ANOVA tests by taking into account the factors of education level and marital status of taxpayers. According to the findings of the study, it is concluded that marital status is a significant demographic variable regarding attitudes and behaviours towards taxes. Additionally, various differences have been identified in the attitudes and behaviours of taxpayers towards taxes in terms of educational level.

Tax colletion and the use of ICT through the referenced payment: the perspective of taxpayers in Texcoco, State of Mexico, in 2019

In Mexico, the Tax Administration has committed to the use of Information and Communication Technologies (ICT) to avoid tax evasion and avoidance, which is why the Mexican government has proposed an information system to comply with tax obligations. This work aimed to evaluate the advantages and disadvantages of a new system called Referenced Payment. 110 taxpayers in the municipality of Texcoco, State of Mexico, were surveyed through directed sampling. The type of research was basic and the research approach was mixed and descriptive. SPSS software version 15.0 for Windows was used to systematize and analyze the data collected in the surveys. The results show a positive acceptance by taxpayers despite being a system that changed the way in which, for many decades, calculations and payments had been made to the treasury in Mexico.

Exploring Tax Strategies: Leverage and Firm Size Effect in Manufacturing Firms

The purpose of this study is to examine how leverage and firm size affect tax evasion in manufacturing companies that are listed on the Indonesia Stock Exchange (IDX) between 2021 and 2023. The lawful use of tax laws to lower tax obligations is known as tax avoidance. This practice has a substantial impact on state revenue, particularly in Indonesia where tax receipts are rising but the tax ratio stays low. Secondary data from financial reports of industrial firms is used in this study. By calculating business size using the natural logarithm of total assets and assessing leverage using the debt-to-asset ratio (DAR), it applies quantitative research approaches. The research results show that leverage has a significant influence on tax avoidance, where firms with higher levels of debt tend to carry out more tax reduction strategies because of the tax deduction from interest expenses. In contrast, firm size does not show a significant effect on tax avoidance, indicating that both large and small firms adopt similar tax avoidance measures. Managerial implications These findings emphasize the importance of regulatory oversight of corporate leverage and considering firm size in designing tax policies aimed at minimizing tax avoidance practices.

Comparative Study of Law Enforcement Against Taxation Crimes in Indonesia and Malaysia

This research conducts a comparative study of law enforcement strategies aimed at combatting taxation crimes in Indonesia and Malaysia. The study examines the legal frameworks, enforcement mechanisms, and institutional capacities of tax authorities in both countries. Through an analysis of relevant laws, regulations, and enforcement practices, the research evaluates similarities and differences in approaches to tackling tax evasion, fraud, and non-compliance. Additionally, the study explores the role of collaboration between tax authorities and other government agencies, as well as international cooperation in addressing cross-border tax crimes. By identifying effective strategies and areas for improvement in law enforcement against taxation crimes, the research aims to contribute to the development of more robust and coordinated efforts to combat tax evasion and ensure compliance with tax laws in Indonesia and Malaysia.

ISSUING FICTITIOUS INVOICES: HISTORY, MODERNITY AND PROSPECTS

The article deals with problematic issues concerning decriminalizing a criminal offence and issuing and using fictitious invoices (Article 216 of the Criminal Code). Special attention is paid to the arguments justifying the independence of this norm from a predicate, decriminalized crime (art. 215 – false entrepreneurship). The authors emphasize that the issuance of fictitious invoices is one of the main reasons for the growth of the shadow economy. In general, this affects the rights of bona fide businesses, hindering the development of entrepreneurship. The initial introduction of this rule, as an auxiliary to «pseudo-entrepreneurship», currently does not correspond to reality, since it is an independent composition and a necessary condition for committing an offense in the form of tax evasion and money laundering.

Pengaruh Tunneling Incentive Dan Mekanisme Bonus Terhadap Tax Avoidance: Systematic Literature Review

The importance of taxes in economic development for developing countries, with a focus on tax avoidance as the main obstacle in achieving optimal tax revenues. The aim of this research is to review the influence of bonus mechanisms and tunneling incentives on tax avoidance in companies. This research method uses the Systematic Literature Review (SLR) method to analyze journals and articles published between 2017 and 2024, with a focus on the themes of tax, tunneling incentives, bonus mechanisms and tax avoidance. Of the 59 articles that have been selected, only 57 articles are used as research sources in this journal. The development of the number of publications related to the influence of bonus and tunneling incentive mechanisms on Tax Avoidance is still fluctuating from 2017 - 2024. It can be concluded that bonus mechanisms and tunneling incentives have different roles in influencing tax avoidance. various research sources: incentive tunneling variables can reduce tax avoidance, while bonus mechanism variables can increase tax avoidance. Tax evasion is a complex problem that requires clear consideration and law enforcement by the government and business world to ensure legal and fair tax payment practices.

Foreign experience in enforcing tax liabilities

This paper is devoted to the study of foreign experience in the field of legal regulation of tax liabilities enforcement through the prism of comparing the approaches of different countries with the provisions of the tax legislation of Ukraine. The author traces the development of national legislation in recent years in the system of tax administration, which is reflected in the improvement of Ukraine's position in the Doing Business ranking, including the easing of the taxation system after the start of large-scale military aggression. The scientific study of foreign experience in the field of regulation of tax liabilities enforcement is aimed at examining various legislative and practical approaches to implementing effective mechanisms into the tax legislation of Ukraine. The author traces the development of the Republic of Georgia in terms of improving the efficiency of tax compliance. A comparative analysis of the experience of France and Ukraine regarding the procedure for collecting tax debt and the role of the tax authority in deciding on the further operation of the enterprise or its liquidation is made. The peculiarities of tax administration in the United States and approaches to tax debt repayment are identified. Innovative amendments to the tax legislation of Poland to counteract tax evasion are investigated. The author describes Italy's experience in tax administration and measures to collect tax debt. The author formulates the types of enforcement of tax liabilities in Ukraine and other countries, determines their effectiveness and consideration in the development of national legislation. The author substantiates the need to improve the national regulatory framework for ensuring the fulfilment of tax obligations by introducing new innovative approaches to improve taxpayers' tax discipline.

Assessing Model of Tax Evasion and Firm’s Value: Moderating Role of Corporate Governance and Company Characteristics

This study aims to examine the effect of tax evasion and corporate governance on firm value. This model uses governance and company characteristics as moderating variables of the relationship between tax evasion and firm value. This study uses panel data consisting of 18 companies in the mining sector from 2016 to 2020. The approach used is panel data using Eviews 12. This research proves that tax evasion does not have a significant direct effect on firm value. This research finds that family management and ownership concentration have a significant influence on firm value. Family management has a direct negative impact on firm value. Ownership concentration and leverage have a direct positive effect on firm value. Return on assets and company size do not have a significant influence on firm value. Governance and company characteristics are found not to moderate the relationship between tax evasion and firm value. This research presents an initial study that focuses on the relationship between tax evasion efforts and firm value in mining companies, using six analyzed models.

Reform of Stock Market Activity in Ukraine

The article examines in detail measures to improve stock market activity in Ukraine, their prerequisites, and consequences. Currently, exchange trading takes place exclusively in the electronic system. The activities of the exchanges are aimed at administering the electronic trading system to ensure its functioning. The mechanisms for carrying out exchange trades have been unified, and the procedure for conducting trades, accreditation, monitoring the execution of contracts, and sanctioning violators has been improved, making it impossible to engage in shadow deals or hide sums to avoid taxes. The exchange acts as a guarantor of the execution of transactions. These measures should contribute to the transparency and formalization of economic transactions, increasing their reliability. Additionally, these improvements are expected to enhance investor confidence, attracting both domestic and international investments. By reducing the opportunities for fraudulent activities and tax evasion, the Ukrainian stock market can achieve greater stability and credibility. Furthermore, the standardization and modernization of trading procedures can streamline operations, making the market more efficient and accessible. This, in turn, could lead to increased market participation and liquidity, fostering a more vibrant and dynamic financial environment. Overall, these reforms are crucial for the sustainable development of Ukraine's stock market and its integration into the global financial system.

Monitoring of the BEPs actions plan implementation in the context of fiscal regulation: scientific substantiation of the methodology

Since January 2017, Ukraine has joined the OECD's Inclusive Framework and committed itself to implementing the BEPS Minimum Standard. The national tax system is similar in structure to the tax systems of developed countries. At the same time, the country's recognition of generally accepted standards for combating aggressive tax planning requires significant adaptation of the legal framework. Monitoring of the legislative process of implementing the BEPS Action Plan is an important area of further development of state regulation in the tax area and an effective means of achieving the proper quality of tax legislation and creating a modern and efficient tax system. The regulatory assessment of the state of national legislation will facilitate a detailed understanding and analysis of possible positive effects, achievement of results in the fight against tax evasion and base erosion, and avoidance of legal conflicts and contradictions. Monitoring the legislative process of implementing the BEPS Action Plan measures allows us to identify the necessary areas for improving the national legislative system and track the positive and negative effects of the application of legislative norms. Monitoring of regulatory legal acts is a tool for the development of future-oriented legislation, as it involves the study of legislation to obtain information necessary for assessing, forecasting, controlling and formulating recommendations for improving the regulatory framework and ensuring its optimal condition. As a member of the OECD Inclusive Framework, Ukraine has implemented the BEPS Action Plan Minimum Standard through significant adaptation of the national tax legislation and its approximation to the provisions of international tax instruments. Monitoring of the legislative process of implementing the BEPS Action Plan is an important area of development of state regulation in the tax area and an effective means of achieving the proper quality of national tax legislation and further development of an effective tax system.

Does good governance moderate the relationship between blockchain technology use and tax evasion? Evidence from STOXX 600

PurposeThis paper aimed to shed light on the relationship between blockchain technology intensity and tax evasion and whether this relationship is moderated by good governance.Design/methodology/approachData from a sample of 50 European companies selected from the STOXX 600 index between 2010 and 2019 were used to test the model via panel data and multiple regression. Here, we used the generalized least squares method estimated on panel data. A multivariate regression model was used to analyze the moderating effect of good governance on the association between blockchain technology intensity and tax evasion. For the robustness analyses, we included the comparative study of legal systems. We performed an additional analysis by testing the dynamic dimension of the data set using the generalized method of moments to control for the endogeneity problem.FindingsExpectedly, the results showed a negative relationship between blockchain technology intensity and tax evasion. Furthermore, the findings suggest that the moderating variable negatively affects the relationship between blockchain technology and tax evasion.Originality/valueTo our knowledge, this study supports the existing literature. Firstly, it expands the scientific debate on tax evasion. Secondly, it extends the scope of the agency theory, which is used to explain the phenomena associated with tax evasion. This study is one of the first to examine the moderating effect of good governance on the association between blockchain technology intensity and tax evasion.

The Effects of Financial Rewards and Penalties on Tax Evasion and Whistleblowing Intentions in Accra, Ghana

The study investigates the influence of financial rewards and penalties on individuals’ intentions to report tax evasion. The research, involving 402 respondents in Ghana’s Accra Metropolitan District, uses regression analyses and statistical mediation to analyze cross-sectional survey data. Ghana’s Whistleblower Act of 2006 and the Revenue Administration Act of 2016 establish penalties for tax offenses and mechanisms to encourage truthful reporting. While the Act provides protections for whistleblowers, it faces hurdles such as a lack of confidence and cultural reluctance. The findings show that financial rewards have a limited impact on whistleblowing and tax evasion intentions, while penalties have a significant influence. This supports the deterrence theory of punishment, suggesting that individuals are deterred from engaging in illegal behavior when threatened with punishment. The study also highlights the role of financial rewards in shaping whistleblowing intention but suggests a combination of financial rewards and enforceable penalties to encourage whistleblowing and discourage tax evasion. The findings suggest integrating a model incorporating financial reward and penalties into tax laws, making it mandatory for individuals to report tax evasion, with failure resulting in punishment. This model could serve as a deterrent to individuals who would otherwise not report tax evasion activities.

The Impact of Tax Understanding, Gender, and Love of Money on Tax Evasion with Religiosity as a Moderating Variable

Objective: This study aims to examine whether tax understanding, gender, and love of money influence tax evasion and whether religiosity can moderate the effects of tax understanding, gender, and love of money on tax evasion. Theoretical Framework: The study integrates the theory of planned behavior, attribution theory, and tax understanding to explore the factors influencing tax evasion behavior, emphasizing the role of religiosity as a potential moderator. Method: A quantitative approach was employed with a sample of 280 individual taxpayers in DKI Jakarta, selected using purposive sampling. Primary data were collected through questionnaire surveys. Results and Discussion: Findings indicate that tax understanding significantly influences tax evasion, as higher tax understanding reduces the propensity for tax evasion. Gender does not affect tax evasion, while love of money positively influences tax evasion behavior. However, religiosity does not moderate the relationships between tax understanding, gender, love of money, and tax evasion.. Research Implications: The study sheds light on the complex interplay between psychological factors and tax compliance behavior, providing insights for policymakers and tax authorities to design more effective interventions Originality/Value: This research contributes to the literature by examining the moderating role of religiosity in the relationship between psychological factors and tax evasion, offering new perspectives for understanding tax compliance behavior

Pengaruh Good Corporate Governance Dan Corporate Social Responsibility Pada Tax Avoidance

Good corporate governance and CSR are the foci of this research since they may have an impact on tax evasion. Quantitative studies based on secondary sources are used in this investigation. For the years 2019–2022, forty-three businesses operating in the food and beverage manufacturing subsector and listed on the Indonesian stock market (IDX) made up the study's population. The 88 samples were obtained using the purposive sampling approach that relies on criteria. Using SPSS version 22.0, the data was analysed using multiple linear regression analysis. This research found that tax evasion is reduced when management ownership is applied. When it comes to avoiding taxes, the board of directors is not on board. Tax evasion is negatively impacted by institutional ownership. When it comes to tax evasion, the Independent Board of Commissioners is a drag. Tax evasion is negatively impacted by the Audit Committee. Tax evasion is impacted negatively by corporate social responsibility. Companies are less likely to evade paying taxes if there is more management and institutional ownership as well as an independent board of commissioners, audit committee, and CSR initiatives.

Tax Culture in the Tax Evasion of Micro-Enterprises During the Post-COVID-19 Period, in Southern Peru

Purpose: This research aimed to analyze the effect of tax culture on tax evasion by microentrepreneurs of the trade associations of the department of Tacna, southern Peru, during the post-COVID-19 period. Method: The research is basic, descriptive, and relational. The survey technique was applied through the questionnaire instrument to 167 microentrepreneurs affiliated with the trade associations of the commercial area of the city of Tacna. The quantitative data analyzed by reports of the National Superintendence of Tax Administration (SUNAT) and Micro and Small Business (REMYPE), and the data processed in SPSS v.26. Results and conclusion: The findings of this study are significant, revealing that forms of tax evasion are primarily related to hidden income and the issuance of payment vouchers. Notably, 68% of microentrepreneurs meet their obligations on time, while 22% submit their tax affidavits late. These results underscore the deficiency in the tax culture of the microenterprise sector, which is mainly due to the lack of interest in the training and advice of accounting professionals. Research implications: It is evident that some taxpayers need to comply with their tax obligations, a crucial issue that needs to be addressed. The study highlights that the poor tax culture is associated with morals and ethics. Originality/value: Good tax practices of microentrepreneurs contribute to the fulfillment of fiscal obligations in southern Peru.

Political Economy of Tax and Digital Transformations in Pakistan (Special Invited Lecture)

1. THE NEED FOR A COORDINATED TAX AND SUSTAINABLE GROWTH STRATEGY I The 1985 National Tax Reform Commission (NTC) recommended a coordinated set of policies on tax policy, administration, and digital transformation to take the tax/GDP ratio from around 14 percent as it was then, to 20 percent by 1990, to underpin a sustainable growth path. The interim report of the NTC called the CBR “the most corrupt of Pakistani institutions.” The final report paid a great deal of attention to the interrelationships between tax evasion, smuggling and corruption. 1 The report emphasised a coordinated approach to reforming all taxes and administration, and that a tax-by-tax approach with tax administration determined separately would not do. Unfortunately, the report was shelved as Pakistan extracted geographic rents from the war against the Soviets in Afghanistan. While the NTC could not have imagined that the tax/GDP ratio would decline after three decades of interactions and support from the IFIs, that the country would find itself on the brink of default consequently, or the depths to which rent-seeking and corruption might plumb. A coordinated approach to multilevel tax policy and administration should also address key political economy challenges if Pakistan is to overcome the current economic crisis and move towards resilient and sustainable growth in the medium term. This is especially critical given the unprecedented “perfect storm” of the pandemic, climate shocks and once in a century floods, and ongoing disruptions in global value chains. The contrast with India is striking. With a general government tax/GDP ratio well above “the tipping point” of around 15 percent, India has been able to run a greater general deficit and much higher overall debt level than Pakistan (see Table 1 and Chart 1), without running into a potential debt crisis. It is important to stress that India by a Constitutional Amendment to harmonise the VAT across subnational jurisdictions has begun to address faults inherited from the pernicious 1935 Government of India Act, that still influences revenue assignments in Pakistan. The increasing geo-political importance of India, and the country’s greater resilience and attractiveness for FDI provide important contrasts and lessons for policy makers in Pakistan.

Blockchain Technology and Reducing Tax Evasion

Blockchain Technology and Reducing Tax Evasion

The Impact of Tax Legislative Disruptions on the Increase of Informal Economic Activities in Egypt

The study examines how legislative instability in tax laws affects the growth of informal economic activities in Egypt. It suggests that unclear or unsustainable tax regulations drive a shift towards the informal sector, fueled by benefits like tax evasion and reduced compliance costs. To encourage voluntary integration, the study proposes measures such as transparent tax laws, awareness campaigns on tax compliance benefits, and simplification of procedures. It advocates for policymakers to prioritize creating an environment conducive to integration over punitive measures. By fostering a fair tax system and addressing underlying factors driving informality, Egypt can boost tax revenue, ensure fairness, and promote sustainable growth. Employing a descriptive-analytical approach, the study analyzes secondary data from official reports, academic literature, and relevant publications. This method allows for a systematic examination of tax legislative disruptions' impact on informal economic activities. It facilitates understanding the dynamics of tax regulations and their effects on informality by analyzing diverse information sources. This approach ensures reliable insights into the relationship between tax laws and the informal economy in Egypt.