Reduce Tax Evasion Research Articles

نمو العمليات الإلكترونية مقابل تراجع النقد المتداول في السوق السعودي

The study aimed to identify the main factors contributing to the increased adoption of electronic transactions, examine the impact of electronic transaction growth on the decline of cash usage, analyze the benefits and challenges associated with the shift towards electronic transactions, assess the role of governments and central banks in promoting this shift, and explore the expected future of financial operations as this trend continues. The study adopted the descriptive-analytical approach, which was deemed suitable for the nature of the study, utilizing a questionnaire tool. The study sample consisted of 180 individuals. The study concluded that technological innovations and developments in digital payment infrastructure significantly contribute to the increased adoption of electronic transactions, with a response average of 3.55, underscoring the importance of electronic payment reliance. Electronic transactions provide multiple benefits, such as security and speed, while the growth of electronic transactions noticeably reduces dependency on cash. Continued growth in electronic transactions is expected to lead to fundamental changes in financial systems, enhancing transparency and reducing tax evasion. Moreover, reliance on electronic payments contributes to improving the quality of life, and electronic payments enhance economic efficiency and reduce costs associated with cash. The study recommended enhancing digital infrastructure, raising awareness of the benefits of electronic payments, and encouraging digital transformation policies in the financial sector.

The Impact of Tax Audit Intensity and Probability of Fraud Detection on Tax Evasion: The Moderating Role of Tax Officials' Service

This study investigates the relationships between tax audit intensity, the probability of fraud detection, and tax evasion while examining the moderating role of tax officials' service. The research reveals that tax audit intensity significantly reduces tax evasion, confirming its effectiveness as a deterrent. However, the hypothesis regarding the probability of fraud detection's impact on tax evasion was rejected, indicating that the likelihood of detection does not directly influence taxpayer behavior in this context. Additionally, the study found no significant moderating effect of tax officials' service on the relationship between tax audit intensity, fraud detection probability, and tax evasion. These findings suggest that while audit intensity is crucial for enhancing compliance, the quality of service provided by tax officials does not substantially alter taxpayer responses to enforcement measures. The results underscore the need for tax authorities to prioritize strengthening audit processes and detection mechanisms while recognizing that service quality, though important for building long-term trust, may not significantly influence immediate compliance behavior. Future research should explore other moderating factors that could impact taxpayer decisions in varying economic and cultural contexts.

A Crucible of IoT Applications and Services and the Gambia Revenue Generation

The study investigated the relationship between Internet of Things (IoT) applications and services and The Gambia revenue generation, tax evasion and tax compliance respectively. It identified the challenges impeding the adoption and implementation of IoT applications and services in the revenue generation processes by the Gambia Revenue Authority (GRA). Both primary and secondary data were used in the study. Questionnaire and interview were used to generate the primary data. The study population (2188) comprised senior and mid-tier management personnel from the Ministry of Finance and Economic Affairs (MoFEA), staff members of The Gambia Revenue Authority, and the corporate taxpayers. The sampling approach used in this study was multistage. Personnel from the MoFEA and GRA were purposively selected, while corporate taxpayers were randomly selected. Their populations were then divided into various strata to ensure fair representation. Respondents were randomly picked from each stratum. To ensure an appropriate sample size, 327 individuals were selected. Data obtained were analysed using multiple regression, correlation coefficient, and simple regression analysis. Qualitative analyses were done on the interview responses. The study revealed that connectivity, networking, and data collection improve revenue generation, while increased IoT adoption and higher data utilisation and infrastructure investment reduce tax evasion and boost tax compliance. However, implementation of the IoT has encountered challenges in the form of technological barriers, financial constraints, and skill gaps. In view of these, investment must be made in enhancing connectivity and networking infrastructure, training staff in data analytics and cyber-security to optimise IoT data usage and boost IoT adoption through inducements and awareness programs. The study concluded that IOT applications and services are in the right direction to revolutionise The Gambia revenue generation.

The Impact of Forensic Accountant Characteristics on Reducing Tax Evasion from the Perspective of External Auditors Working in Audit Firms and Companies in the Republic of Yemen: A Field Study

The study aimed to identify and measure the impact of forensic accountant characteristics on reducing tax evasion from the perspective of external auditors working in audit firms and companies in the Republic of Yemen. To achieve the study's objectives, an electronic questionnaire was used as a data collection tool from a population of 384 external auditors in audit firms and companies using a complete enumeration method. The number of retrieved questionnaires was 329, and the number of questionnaires valid for analysis was 260. The data were analyzed using the SPSS, where multiple regression analysis was used to test the hypotheses. The results of the field study showed a positive impact of forensic accountant characteristics (skills and qualifications) on reducing tax evasion. Skills had a high positive impact on reducing tax evasion, followed by qualifications, especially those holding a CFA certificate. The results also showed no impact of forensic accountant characteristics (experience and behaviors) on reducing tax evasion according to the study population's opinion. The study revealed that the most related dimensions to reducing tax evasion, according to the study population's perspective, are the justifications for tax evasion, followed by tax evasion opportunities, tax evasion capabilities, and then tax evasion pressures. The study recommends the need to establish a specialized professional association concerned with organizing the forensic accounting profession in the Republic of Yemen, adopting the forensic accounting subject within accounting curricula, and activating field training for those performing the duties of forensic accountants.

The possibility of adopting a centralized electronic invoice system and its impact in determining the tax base: An analytical study of the opinions of a sample of academics, professionals and employees of income tax departments - Kurdistan Region of Iraq - Erbil city)

This research aims to demonstrate the extent to which tax departments (income tax) can adopt the central electronic invoice system as one of the modern technological systems that can be used by the tax authority in order to reach a fair tax base for taxpayers. To achieve the research objective, an electronic questionnaire was distributed to a sample of (104) individuals from accounting academics in universities and institutes in Erbil city and professionals and employees of income tax departments. The results were analyzed using the statistical program (SPSS). The research reached several conclusions, including that the central electronic invoice system is an effective tool to enhance transparency and efficiency in the tax system despite potential challenges. In addition, adopting this system will lead to improving the determination of the tax base, reducing tax evasion and stimulating the formal economy. Success in this field requires close cooperation between the government and companies to provide the appropriate technical and legal environment. There is a possibility for tax departments to adopt the electronic invoice system and work on it to develop the process of determining the tax base for taxpayers. The study recommended the necessity of spreading the culture of voluntary commitment to join the electronic invoice system and including the electronic invoice and other accounting programs in the curricula of accounting departments in colleges and institutes and conducting training courses and seminars for the tax community and technical workers on dealing with the electronic invoice system in tax departments.

The Impact of Corporate Social Responsibility on Tax Avoidance in the Listed Companies on the Iraqi Stock Exchange

This study explores the impact of corporate social responsibility on tax avoidance in the Iraqi listed companies on the Iraqi stock exchange. The sample of companies include companies which are listed on the Iraqi Stock Exchange, numbering (33). Data was taken for the years from 2016 to 2021, and the data was analyzed using multiple regression and panel data analysis.The results indicated (corporate social responsibility) that there is a negative relationship between corporate social responsibility and tax avoidness and Iraqi companies suffer from slight levels of tax avoidance through adopting social responsibility practices. We note from the study that there is a weakness in the application of social responsibility accounting. Commitment to corporate social responsibility leads to reduced tax avoidance. Among the conclusions is the clear weakness in the internal control systems of companies in terms of the extent of commitment to social responsibility and attempts to benefit from tax savings to achieve personal gains. The research came out with a set of recommendations, the most prominent of which is the need to strengthen the supervisory role to reduce tax evasion operations, as using social work as a means of tax evasion harms government revenues in the state’s general budget.

Personality Traits and Tax Evasion Attitude: The Moderating Role of Religiosity

Tax evasion remains a significant issue despite regulatory improvements, with informal sectors, income underreporting, and corruption contributing to the problem. Studies typically focus on economic factors but overlook non-economic influences, such as psychological factors, social norms, and religion. This research explores the impact of religiosity on tax evasion, particularly how it affects the relationship between personality traits and tax evasion behaviors. Using a sample of 443 individuals from salaried and self-employed backgrounds, the study employed survey methodology to gather data. The results of analysis revealed that personality traits like conscientiousness, openness to experience, neuroticism, agreeableness, and extraversion significantly influence tax evasion attitudes. Conscientiousness particularly affects self-interest tax evasion, while religiosity moderates the relationship between extraversion and self-interest tax evasion and between conscientiousness and justice of system tax evasion. The findings suggest that incorporating religious values into tax policy could help reduce tax evasion. Policymakers are advised to enhance tax compliance by promoting tax awareness through educational programs, emphasizing community benefits, and collaborating with religious scholars to foster ethical tax practices. The study underscores the importance of considering religiosity and personality traits in developing strategies to combat tax evasion, especially in developing countries.

Cultural norms and tax compliance: Evidence from China

Existing studies suggest that formal institutions can effectively constrain corporate tax evasion and increase tax compliance, but little has been said about the role of informal institutions regarding tax compliance. This study empirically examines the long-term effect of Confucian cultural norms on corporate tax compliance using unique cultural and historical data from China. We find that the intergenerational transmission of the Confucian culture can significantly promote the tax compliance of modern firms, thereby effectively reducing tax evasion. Simultaneously, the compliance effect is more pronounced in informal firms, such as small-scale, non-listed, and local firms. In terms of mechanism analysis, the normative effect of the Confucian culture is a key mechanism for explaining variations in corporate tax compliance behaviors under different cultural norms. Overall, this study fills a gap in the research on how informal institutions regulate the behavior of firms to a certain extent, and at the same time supplements the existing literature on understanding the long-term effects of the Confucian culture.

Factors affecting taxpayers to engage in tax evasion on income tax article 25

This research aims to identify the factors that influence tax evasion in Indonesia using a literature review approach. The phenomenon of tax evasion has become a serious issue that negatively impacts state revenue and creates injustice among taxpayers. In this study, the researchers examined six relevant journals to identify and categorize the factors influencing tax avoidance behavior by corporate taxpayers and their perceptions of tax evasion. The results indicate that tax rates, the fairness of the tax system, and subjective norms significantly influence tax evasion behavior. The higher the tax rate and the lower the fairness of the tax system and subjective norms, the greater the tendency for taxpayers to engage in tax evasion. Meanwhile, technology and information, discrimination, and understanding of taxation do not have a significant impact on tax evasion. This research emphasizes the need for the formulation of fairer and more effective tax policies to enhance tax compliance. Further research with a more representative sample is needed to strengthen these findings and to delve deeper into the role of technology and information, as well as the understanding of taxation in reducing tax evasion in Indonesia.

The impact of digital tax administration on local government debt: Based on the revision of the tax collection and administration law

Digital transformation of tax administration, a crucial source of government fiscal revenue, enhances tax collection efficiency and compliance, reduces tax evasion, and increases fiscal revenue, thereby providing more stable funding sources for local governments. This study examines the relationship between digital tax administration and local government debt, using data from Chinese prefecture-level cities from 2009 to 2021. The findings indicate that digital tax administration significantly reduces the level of local government debt. Furthermore, heterogeneity analysis reveals that the impact is more pronounced in the eastern regions and areas with higher levels of informatization. This study aims to provide new perspectives and approaches for the digitalization of tax administration and local government debt management, thereby promoting the modernization of tax governance and the healthy development of local finances.

THE FISCAL CHALLENGES OF THE DIGITAL ECONOMY IN THE EUROPEAN UNION: A BIBLIOMETRIC ANALYSIS

The digital age offers new opportunities for innovation and growth. From a fiscal point of view, it creates opportunities for tax administrations to reduce tax evasion. On the other hand, as business models change, there is international pressure on the tax system. The current rules were developed at the beginning of the 20th century for traditional companies that relied on the principle of corporate taxation where value was created. In the case of digital activities, physical presence is no longer a condition for the provision of services. There are two major questions: Where do we tax? In the case of a company with a low or even non-existent physical presence and what do we tax? in the context of a digital business plan based on knowledge, data and intangible assets. The digital economy is a challenge for all tax regimes, as its rapid development has led to the conclusion that international tax rules are not properly adapted. One objective currently pursued at EU level is to adapt Member States' tax systems to optimize them to meet the challenges of the digital era. The aim of this paper is to identify the model and the most effective instruments for charging the digital economy at the level of the European community, as well as the way in which the directives issued by the European Union manage to harmonize the fiscal policies of each member state for charging and regulating the digital economy. In order to achieve that, we performed a bibliometric analysis on the database Web of Science Core Collection, regarding our study research. This study was performed according to the Preferred Reporting Items for Systematic Reviews and Meta-analysis (PRISMA) statement.

Tax evasion, education and shadow economy

The aim of the paper is to evaluate the influence of education on tax evasion. This study proposes a theoretical model, in which an agent can choose to allocate his labor effort between two production technologies. Higher levels of education lead to more skilled and specialized workers, and the tax authority can observe the use of advanced tools and equipment. The main result is that an increase in the general level of education leads to a labor effort substitution effect, showing that higher education can reduce tax evasion and the size of the shadow economy. Both static and dynamic estimation techniques are employed to test the theoretical findings, using a sample of 133 countries, over the period 2001–2020. The empirical analysis confirms the significant negative association between education and shadow economy.

Blockchain Technology and Reducing Tax Evasion

Blockchain Technology and Reducing Tax Evasion

Taxation with information: Impacts of customs data exchange on tax evasion in Pakistan

A key challenge for developing countries is improving border taxes enforcement. This study examines whether the Electronic Data Exchange project between Pakistan and China can reduce tax evasion at the Pakistan border. This data exchange significantly reduced the trade gap in consumer goods between China’s reported exports to Pakistan and Pakistan’s reported imports from China, compared to non-consumer goods. These results are consistent with the weak self-enforcing incentives of value-added tax at the consumer stage. Moreover, the data exchange primarily reduced the trade gap by limiting the underreporting of prices rather than reducing the underreporting of quantities, partly fulfilling the project’s original intention. Further exploratory analysis reveals that the data exchange contributed to a reduction in export prices, indicating that Chinese exporters might have been absorbing a portion of the tax burden. This study suggests that using export declarations to improve tax enforcement might not increase tax revenue, as importers and exporters could alter their behavior strategically.

The role of the Common Reporting Standard (CRS) in reducing tax evasion “Applied research on a sample of financial institutions”

The role of the Common Reporting Standard (CRS) in reducing tax evasion “Applied research on a sample of financial institutions”

The Effectiveness of Receipt-Based Taxation Systems: Case Studies and Analysis

Receipt-based taxation systems have emerged as a promising alternative to conventional taxation systems in recent years. Despite the simplicity of the concept, their implementation and effectiveness across different countries remain not fully understood. This research aims to analyze the effectiveness of receipt-based taxation systems through case studies and cross-country analysis. The research methodology includes a comprehensive literature review, quantitative data analysis, and in-depth case studies of several countries that have adopted this taxation system, such as Brazil, South Korea, and Greece. Key success factors and implementation challenges are identified, including taxpayer compliance, information technology integration, and supportive regulations. The findings indicate that receipt-based taxation systems can increase tax revenue and reduce tax evasion when implemented properly. However, the success of these systems heavily depends on a country's economic, social, and political context. This study provides valuable insights for policymakers and researchers in the field of taxation by identifying best practices and lessons learned from the experiences of these countries. Additionally, the research explores the potential impact of receipt-based taxation on economic growth, business competitiveness, and administrative costs. It also discusses the role of digital technologies in facilitating the implementation and monitoring of such systems. Overall, this study contributes to the understanding of innovative taxation approaches and offers practical recommendations for countries considering the adoption or refinement of receipt-based taxation systems.

Does the level of e‐government affect value‐added tax collection? A study conducted among the European Union Member States

AbstractThe digitalization of the economy and state administration are important economic research topics. This paper focuses on value‐added tax and its collection from the e‐government perspective, more precisely, the digitalization of tax administration. Research has examined the digitalization of tax collection and its effect on tax evasion only to a limited extent. Our paper examines the impact of the level of e‐government expressed by the e‐government Development Index on value‐added tax (VAT) evasion as measured by the VAT gap. A dynamic panel regression model on the European Union (EU) Member States data between 2003 and 2020 showed that more developed e‐government reduces the VAT gap, that is, improves VAT collection. In addition to the e‐government level, the VAT share in tax revenues also reduces tax evasion. On the other hand, the factors that increase the VAT gap are the final consumption of households and the standard rate. Apart from these results, VAT evasion in original and new EU Member States was found to be affected by different factors. This fact should be considered when deciding the tax policy.

A Study of the Factors Affecting Rental Income Tax Administration Effectiveness in Zambia

Even the largest tax plan in the world is useless if it is not implemented well. Efficient tax administration ensures a high level of tax compliance. However, measuring the effectiveness of tax administration based solely on the amount of taxes collected is overly simplistic. Instead, a much stronger criterion for assessing the effectiveness of tax administration is taking into account the size of the compliance gap. The goal of this study is to determine the effectiveness of rental income tax administration by examining the characteristics of the tax system that influence it, such as diversity, equality, convenience, simplicity, and security. Both primary and secondary data were used in this study. Primary data was collected from taxpayers in Kabulonga Main, Lusaka, while secondary data was collected from various sources including the Zambia Revenue Authority, State Valuation Department, Lusaka City Council, and selected real estate agencies. Descriptive statistics were used to analyze the data. The study aimed to determine whether taxpayers' perceptions of the characteristics of the tax system, as identified in the theoretical and empirical literature, could influence the effectiveness of the administration of the rental income tax. The Zambia Revenue Authority was found to have perpetuated phenomena that encourage non-compliance behavior among aggrieved taxpayers, which was indirectly used as a measure of tax administration effectiveness in this study. The results showed that the characteristics of the tax system, particularly equality, diversity, convenience, simplicity, and security, have a positive impact on the effectiveness of tax administration. Based on these findings, the study recommends that the Zambia Revenue Authority work more closely with all stakeholders, incorporate user-friendly features into its tax filing website to promote inclusivity and compliance, improve the authority's ethical profile, increase taxpayer trust in the system, and reduce the tax rate on rental income to alleviate the tax burden. Additionally, active taxpayer education and enforcement of tax laws and policies should be implemented to reduce tax evasion and improve tax compliance.

Determining the loss of mining sector tax revenue: Evidence from Mongolia

In recent years, due to significant tax revenue losses, transfer pricing has become an issue of concern for tax authorities, policymakers, and academics. In this study, the authors aim to analyze transfer pricing and its impact on fiscal revenue in the case of Mongolia, a developing country with a mining-dominated economy. In our research, we used the arm's length principle to determine transfer pricing and estimate the loss of corporate income tax due to transferring pricing; moreover, we compared the operating profit margin of Mongolia’s mining companies with the Far East and Central Asia Oceania countries. We found that Mongolia has lost about 44.4 billion MNT in corporate income tax revenue from the mining sector over the past seven years, estimated by adjusting the total operating revenue by an average of 10.5% for coal companies and 16.4% for copper companies. This result shows that mining companies are avoiding taxes by mispricing, which negatively affects the budget revenue in Mongolia. This research will contribute to the implementation of the common principles of transfer pricing and reduce tax evasion in Mongolia and similar countries with a mining-dominated economy.

Contribution of Tax Reform on Reduction of Tax Evasion in Rwanda

The study aimed to explore the contribution of tax reform on reduction of tax evasion in Rwanda, guided by objectives to examine contribution of personal income tax reform, identify contribution of corporate income tax reform and assess contribution of value added tax reform. The research design was qualitative, targeting 2700 taxpayers were from Rubengera sector. The systematic sampling method are taxpayer, resulting in a sample size of 348 respondents drawn using purposive sampling. Close ended/structured questionnaires were used to primary data, which was then analyzed using the Statistical Package for Social Science (SPSS). The data was analyzed the findings of using both descriptive and inferential statistics show a strong and positive association between tax reform and tax evasion at personal income tax reform (PIT) will help with reduction of tax evasion with the mean score is notably higher at 2.74, indicating a more positive perception of the reform's effectiveness. Still, the wider standard deviation of 1.404 suggests greater variability, corporate income tax reform (CIT) combined with value added tax(VAT) will help with reduction of tax evasion with no significant correlation between VAT reforms and corporate income tax reforms or their effectiveness and the corporate income tax reform (CIT) respondents gave an average score of 2.73 on the effectiveness of these reforms in reducing tax evasion, with a standard deviation of 1.422, indicating variability in opinions. The results show that the study stated that tax reforms reduced tax evasion significantly and made the following recommendations: The Rwanda Revenue Authority (RRA) should offer comprehensive training to all taxpayers, focusing particularly on educating them about the substantial changes resulting from the tax reforms, especially the new requirements and their perceptions of the impact and effectiveness of these reforms in curbing tax evasion. The consistent nature of these results emphasizes the importance of considering a variety of viewpoints when assessing the outcomes of tax reform efforts. To ensure the continuous effectiveness of Rwanda's tax system, it's imperative to regularly review and adjust it in accordance with the current economic landscape. The study's findings underscore the substantial impact of tax reforms on reducing tax evasion. The research concludes by suggesting further investigations to evaluate the influence of tax reform on tax revenue contribution in Rwanda.