Tax Evasion Research Articles

Digital Forensic Accounting: An Overview

Forensic analysis has become crucial for detecting financial crimes such as fraud, extortion, money laundering, and tax evasion in a rapidly evolving world. This type of analysis is also essential for promoting economic development and enhancing public trust in governments. As fraud strategies advance alongside rapid digital innovations, traditional forensic accounting relies on manual data examination and is increasingly inadequate for addressing sophisticated criminal fraud. The rise in cybercrime underscores digital forensics' need to conduct effective investigations. This study provides an overview of digital forensic accounting, emphasizing the need for forensic accountants to acquire digital forensic skills to conduct thorough investigations. It reviews previous research highlighting the importance of integrating digital technologies into forensic accounting, stressing that this convergence is crucial for enhancing the detection of financial crimes and cyber fraud. Furthermore, the study outlines the basic concepts of both traditional forensic accounting and digital forensics and presents some digital forensic accounting tools that can be utilized in forensic accounting and computer forensics.

The volitional aspect in the emergence of taxpayers’material subjectivity – basic reflections

The article considers the significance of volitivity in the setting up of tax subjectivity (personality) in terms offactual (resp. substantial) taxpayer – the one upon whom the tax obligation rests. The author specifies four methodsof identifying the tax personality – incl. objectivistic, behavioral, equitable, and subjective – in order to outlinethe field of analysis. In case that the object of taxation includes factual and, in particular, economic events orconditions, the will of the subject participating therein as a taxpayer/taxable person (or otherwise) may be, andindeed proves to be, of essential significance. The author argues that the subject who is willing to become a taxpayer/taxable person becomes such a subject even when acting under an error-of-law (phantom taxpayer) or whenacting in bad faith if participating in an event (condition) that objectively is not subject to taxation and yet (s)he/it has submitted the related tax return – unless such subject has quit or lost this status under jurisdiction proceedings.In case that a subject has unconsciously participated as a taxpayer in a third-party tax fraud, whilst (s)he/itshould otherwise have been aware of it, (s)he/it may not be a taxpayer/taxable person anymore, which howevermay only be established through jurisdiction proceedings. To conclude, if a subject is willing to be a factual (substantial)taxpayer, (s)he/it becomes a taxpayer (taxable person) even if (s)he/it has submitted a tax return thatspecifies, in particular, the tax obligation related to events (conditions) not subject to taxation

Совершенствование расследования преступлений в сфере незаконной миграции как фактор противодействия экономической преступности

The article is devoted to the issues of improving the investigation of crimes in the field of illegal migration in connection with the commission of economic crimes by illegal migrants. Criminal groups created from illegal migrants are actively involved in tax evasion and illegal trade in alcoholic beverages. Therefore, improving the quality of the investigation of crimes related to illegal migration is an important factor in countering economic crime.

Особенности возбуждения уголовных дел по налоговым преступлениям, предусмотренным статьями 198 и 199 УК РФ

The article analyzes the peculiarities of the initiation of criminal cases on tax crimes. It is noted that if the facts of nonpayment of taxes by the taxpayer’s counterparties with signs of fictitiousness are revealed, the head or other officials of the taxpayer organization can be held liable for tax evasion (Articles 198, 199 of the Criminal Code of the Russian Federation) only if there is evidence of their collusion with individuals controlling the counterparty or evidence of the counterparty’s control over the head or other officials of the taxpayer organization. In the case of establishing the fictitiousness of an intermediate link, it is necessary to establish who actually exercised control over such a link, where the funds were sent, as well as other circumstances that may contribute to the identification of the final beneficiary. The conclusion is formulated that the initiation of criminal cases after full payment of taxes is not allowed. Timely payment of the additional amounts excludes bringing a person to criminal responsibility. The initiation of a criminal case, which generates unjustified threats to a person, his rights and freedoms, is disproportionate to the consequences in the case of full compensation for the damage caused to the budget system.

Comparative Analysis of Ethical Measures and Auditing Standards in Managing Tax Evasion: Effectiveness and Impact

This article presents a comparative analysis of the effectiveness and impact of ethical measures versus auditing standards in managing tax evasion. Tax evasion poses significant challenges for both businesses and governments, leading to economic losses and reputational damage. This study investigates two primary strategies for combating tax evasion: the implementation of ethical policies within organizations and the enforcement of auditing standards by regulatory bodies. By evaluating existing literature and empirical data, the article assesses how each approach influences tax compliance and their relative effectiveness. The research design is validated for its reliability in testing the hypotheses and provides consistent results supported by a literature review of existing scholarly work. The research reveals that while both ethical measures and auditing standards are crucial in addressing tax evasion, ethical practices tend to offer more substantial benefits in fostering long-term tax compliance. Enhanced by technological advancements, the auditing process has become more efficient, yet it often encounters resistance and limitations. The findings suggest that integrating strong ethical frameworks within businesses, alongside rigorous auditing practices, is the most effective strategy for managing tax evasion. The study provides valuable insights for policymakers and organizations seeking to improve tax compliance and reduce evasion.

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.

Can the constitutional concentration of power be linked to Africa's energy poverty?

A large majority of Africans do not have access to modern energy. Initiatives at the international, regional, and national levels have been launched to address energy access; yet, Africa, particularly Sub-Saharan Africa, remains volatile. At the same time, Africa is one of the world's poorest performing regions in terms of governance, even though many African nations decentralized power in the 1990s to advance constitutionalism and break free from the highly centralized governance systems left over from the colonial era. The aim of this study is to investigate the impact of constitutional power concentration on energy poverty in 36 African countries using the Entropy Balancing and system GMM methods. The findings reveal that constitutional power concentration worsens energy poverty via corruption, inequality, tax evasion, and government integrity. African policymakers should pursue a more decentralized system of political authority as a policy option for combating energy poverty.

FAKTOR-FAKTOR YANG MEMPENGARUHI PERSEPSI WAJIB PAJAK MENGENAI ETIKA ATAS PENGGELAPAN PAJAK (TAX EVASION)

The purpose of this study is to examine the effect of tax fairness, tax system, tax discrimination, technology and information of taxation on taxpayer perception about the ethics of tax evasion. The data used in this study were primary data. The primary data were obtained from questionnaires distributed to individual taxpayers in Bengkulu City. The number of questionnaires that distributed were 110, but only 108 questionnaires that could be proceed.The data were analyzed by using multiple linear regression analysis with SPSS program. The results of the study showed that the tax fairness had negative effect on taxpayer perception about the ethics of tax evasion, while tax discrimination had positive effect on taxpayer perception about the ethics of tax evasion. In contrast, tax system, technology and information of taxation did not effect on taxpayer perception about the ethics of tax evasion.

Belief in Karma Phala as a Moderator of Machiavellian Traits and Love of Money on Tax Evasion Perceptions

Tax compliance remains a critical issue globally, affecting economic stability and public trust. This study examines the impact of machiavellian traits and love of money on tax evasion perceptions among tax consultants in Bali, Indonesia, moderated by belief in karma phala. Using attribution theory, the research explores how internal traits and belief systems influence ethical behavior. Data from 340 tax consultants reveal that high machiavellian traits and love of money significantly increase tax evasion perceptions, while belief in karma phala mitigates these effects. The findings highlight the importance of ethical training programs and promoting cultural beliefs like karma phala in professional settings. Tax consulting firms are advised to use personality assessments during recruitment, develop strict ethical guidelines, and integrate cultural values to foster integrity. Future research should explore other cultural and psychological factors in tax compliance and assess the long-term effectiveness of ethical training programs across different contexts.

Breaking the Boundaries in the Digital Age: Open Banking and Tax Evasion

In this paper, we examine the relationship between open banking and tax evasion. As the open banking literature is still evolving, we try to systematically analyze the literature on conventional banking and tax evasion and then extend the discussion in the context of open banking. The popularity of open baking recently raises a question about its relationship with tax evasion. Digital banking and digital taxation contributed positively to mitigating tax evasion in the context of conventional banking. However, in open banking, the customers can decide to what extent they will share any transaction-related data with their bank, while they can also choose to complete direct transactions with third parties. This creates a new challenge in relation to the mitigation of tax evasion, which is the focus of this paper. Due to lack of granular empirical data, we conduct a systematic literature review and a bibliometric analysis to track the development of the relevant academic debates and identify the arguments that have been presented in relation to this topic. This approach is recognized as well suited for emerging topics in finance research, particularly when data are scarce, as evidenced by studies on COVID-19 and biodiversity. We find that the gaps of the current regulatory framework, at both the national and supranational level, have created challenges and uncertainties at multiple levels. Nonetheless, the findings of the study suggest future research directions and offer valuable guidelines for regulators in utilizing open banking.

O PLANEJAMENTO TRIBUTÁRIO DO PRODUTOR RURAL PESSOA FÍSICA: UMA ANÁLISE SOBRE A EVASÃO FISCAL

The agribusiness is one of the most relevant sectors in the economy. In 2022, it represented 24.3% of the Brazilian GDP. Due to its complex production chain, the stage within the gate is essential, as it represents rural activities focused on agriculture and livestock farming. In these activities, rural producers make crucial decisions related to plant and animal production and the allocation of resources for these activities. The general objective of this study is to present tax planning for individual rural producers within the gate as a strategy to avoid the hypothesis of tax evasion. To achieve this, the specific objectives are to conceptualize tax planning applied to individual rural producers, present the strategic use of tax planning for individual rural producers within the gate, and analyze tax evasion by individual rural producers. The methodological approach is based on logical-semantic constructivism, being a qualitative study with bibliographic, legal, and documentary research as instruments. As results, tax planning, or fiscal avoidance, was conceptualized as a strategic tool that uses legal means to reduce the tax burden. As a tool for individual rural producers, it requires continuous effort for its full implementation, as it is embedded in the complex scenario of sector management and taxation. The study also presents tax evasion considering the incidence of Income Tax (IR), Rural Territorial Property Tax (ITR), Circulation of Goods and Services Tax (ICMS), Social Integration Program (PIS), Contribution to Social Security Financing (COFINS), and Rural Worker Assistance Fund (FUNRURAL) on individual rural producers and their ancillary obligations, highlighting the Digital Cash Book of the Rural Producer (LCDPR), eSocial, and EFD-Reinf.

The Right to Use Cash: A Case Study of India

India is facing a shift towards a cashless society using alternative methods for payment transactions based on electronic and digital means. It is a country with the fastest growing economy in the world and a heterogeneous population. The country's digitalisation of money transactions is growing and is applied in all government transactions and has taken a big leap in many spheres of its operations, which brings inclusiveness in society. The important motives behind this is to provide basic banking services to hitherto unbanked masses and to curb black money, tax evasion and the threat of terrorism. However, the peripheral parts of the society like, poor, elderly, physically challenged and others may be deprived of the benefits of financial systems due to their limitations in benefitting from the digital transformation. A cashless society may not be in the interests of these groups and it may result in social exclusion rather than inclusion. However, consumers need to have the right to choose their preferred payment method and there should be adequate availability of cash and ATMs. Eliminating cash would have negative consequences and may have adverse effects on these populations. This paper takes a look into the aspects of the right of the public as a consumer in choosing cash as the payment method of her convenience and choice.

Pengaruh Money Ethics dan Tax Morale terhadap Persepsi Mahasiswa Mengenai Tax Evasion dengan Hedonisme sebagai Variabel Moderasi

This research raises the issue of the phenomenon of tax evasion amidst the increase in tax revenue realization in the last three years. This study aims to determine the effect of money ethics and tax morale on student perceptions of tax evasion with hedonism as a moderating variable. The object of this research is the cadre of the Mojokerto National Student Movement (GMNI) organization. This study uses a quantitative approach with primary data sources and uses a survey method through google form with a Likert scale measuring instrument. The population in this study were 115 cadres of the Mojokerto GMNI organization. The sampling technique used purposive sampling to get 65 respondents. The data analysis technique uses descriptive statistical analysis with the Structural Equation Modeling- Partial Least Square (SEM-PLS) method. The test tool used is SmartPLS software version 4.1.0.2 with outer model and inner model. The results showed that money ethics has a positive and significant effect on student perceptions of tax evasion, tax morale has a negative and significant effect on student perceptions of tax evasion, and hedonism is able to moderate the influence of money ethics and tax morale on student perceptions of tax evasion.

Unravelling the Zheyun Ye football scandal: A crime script analysis of the modus operandi to commit money laundering and tax fraud

Unravelling the Zheyun Ye football scandal: A crime script analysis of the modus operandi to commit money laundering and tax fraud

The non-linear effect of income on the shadow economy

This paper aims to explore the correlation between individual income and tax evasion. We develop a novel theoretical model based on the argument that the level of public goods provision and the perceived fairness of public services significantly influence an individual's attitude towards taxation. The model reveals a concave pattern, indicating the presence of an income threshold. Initially, as an individual's income increases, tax evasion decreases due to the perceived fairness of their contributions relative to the benefits received from public services. However, beyond this threshold, the tax burden is perceived as unfair, leading to an increase in tax evasion as income levels rise. We also proof that this income threshold is influenced by the tax rate and enforcement system. We also conduct a panel data analysis on a sample of 35 OECD countries from 2007 to 2020 to support the theoretical findings. The empirical investigation confirms a U-shaped relationship between income and the underground economy. Our findings suggest that policymakers should introduce measures to improve the quality of public goods provision, considering the potential adverse effect of higher income on economic growth. This study is the first to theoretically investigate the non-linear relationship between income and tax evasion while also providing empirical evidence.

The effect of materialism on unethical behaviour: The mediating role of self‐control

AbstractSelf‐enhancement values (power, achievement, and hedonism) have been found to be important predictors of ethical behaviour; however, the link between materialism (also a kind of self‐enhancement value) and unethical behaviour and its underlying mechanisms have received limited attention from researchers. The present research examines the effect of materialism on unethical behaviour and the mediating role of self‐control across five multi‐method studies with Chinese samples. Using Chinese data from the Sixth World Values Survey, we confirmed that materialism was positively related to a variety of unethical behaviours such as fare evasion, theft, tax evasion, bribery, domestic violence, and violence against others (Study 1). In follow‐up experiments, priming materialism increased unethical behaviour (Studies 2 and 3). Moreover, through a questionnaire survey, we found that self‐control played a mediating role between materialism and unethical behaviour in specific social contexts (Study 4). Finally, the manipulation of high materialists' self‐control reduced their unethical behaviour, further verifying the mediating role of self‐control (Study 5). Our findings indicate that materialists tend to have lower levels of self‐control, thus they are more likely to engage in unethical behaviours. This research supports the hot/cool system model of self‐control and deepens our understanding of how materialism might lead to unethical behaviour.

Procedure for coordination of legislative norms of financial and tax law within the framework of public law regulation

The article explores the peculiarities of harmonizing legislative norms of financial and tax law within the framework of public legal regulation. It is established that the norms of financial and tax law shape the rules for managing the financial system and taxation, contributing to a balance between the state’s needs for financial resources and the preservation of economic stability for citizens and businesses. The demarcation of norms of financial and tax law by the subject of regulation is characterized, emphasizing the common method of legal regulation. It is determined that the norms of financial law regulate budgeting, financial planning, state debt, financial accounting, financial stability, and additional sources of funding. Norms of tax law cover tax rates, tax incentives, tax accounting and reporting, and combating tax evasion. It is noted that due to the common features and subject of legal regulation, conflicts arise between the norms of financial and tax law. It is established that the public legal regulation of conflicts between the norms of financial and tax law involves a systematic and organized process aimed at harmonizing legislative norms and resolving conflicts through the activities of the executive authorities of Ukraine. The competencies of central executive authorities that contribute to the harmonization of norms of financial and tax law are characterized. It is determined that the Cabinet of Ministers of Ukraine, the Ministry of Finance, the State Tax Service, the Ministry of Justice, and the National Bank of Ukraine play a key role in resolving conflicts and coordinating strategies in the financial and tax sectors. It is noted that central executive authorities coordinate and cooperate for systematic conflict management and the achievement of harmony in financial and tax legislation. The efficiency of harmonizing norms of financial and tax law is ensured by creating an Interdepartmental Committee, conducting consultations and discussions, as well as adopting and implementing harmonized subordinate legislative acts. Attention is drawn to the fact that the effectiveness of harmonizing norms of financial and tax law is determined by the efficiency of the procedure for developing harmonized subordinate legislative acts conducted by central executive authorities.

Peranan Audit Forensik Dalam Mencegah Kejahatan Keuangan Perbankan Dengan Menggunakan Teknologi Informatika

Financial crime is any activity that involves fraudulent or criminal behavior to gain personal financial gain. This is a criminal activity carried out by individuals or groups involved in financial crime activities, such as: money laundering, terrorism financing, fraud, tax evasion and identity theft. Financial crime has become a big problem and is detrimental to many parties, using increasingly sophisticated techniques, which requires a solution. In this research the author will focus on discussing banking financial crimes using information technology, because they seriously damage the reputation of financial institutions, destroy public trust, and cause significant financial losses. Banking must have a strategy to protect various technologies, information and data simultaneously, which requires coordination with all stakeholders in Indonesia. The aim of writing this journal is to determine trends, patterns, factors that influence, anticipate and punish banking financial crimes using information technology. The research uses qualitative methods with data collection methods using literature studies. The object of this research is secondary data in the form of banking financial crimes using information technology committed by perpetrators of banking financial crimes. The role of forensic audit is the best way to prevent and detect banking financial crimes using information technology in Indonesia. Forensic audit has the ability to provide statements based on its expertise.

Moderating effect of taxpayer perception on the relationship between electronic taxpayer education and turnover tax compliance among SMEs in Eldoret town, Uasin Gishu County

Taxpayer education has not best added extraordinary impact on big Small and Medium Enterprises (SMEs) marketplace performances but has also advanced well timed and coherent turnover tax compliance. Previous research has indicated that the turnover tax compliance among the SMEs have remained low. That is attributed to lack of tax compliance by SMEs via tax evasion, moving or briefly shutting down businesses. The study sought to assess the impact of electronic taxpayer education on turnover tax compliance amongst small and medium enterprises in Eldoret Town, Uasin Gishu County. The study was supported via monetary deterrence theory. Explanatory studies design was used focused on 68712 registered small and medium enterprises inside Eldoret town. Systematic sampling changed into used to pick out a sample of 397 SMEs. Questionnaires were used as the main facts series tool. Statistical Program for social sciences software was used to investigate quantitative facts both descriptively and inferentially. Findings from the study indicated that electronic taxpayer education had positive and significant effect on TOTC (Turnover Tax Compliance) of SMEs in Eldoret town (β1 = 0.600, p = 0.000<0.05). With a positive and significant effect of (β4=0.422, p=0.003<0.05), taxpayer perception moderates turnover tax compliance of SMEs in Eldoret town. The study concludes that electronic taxpayer education has a significant effect turnover tax compliance of SMEs in Eldoret town. The study therefore recommends that policy makers should focus on providing tax education programs for SMEs. This is to address the specific needs and challenges faced by SMEs in complying with tax regulations.

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.