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Wang, Yu-Kun, Li Zhang, and We-Me Ho. "Tax amnesty and secondary tax evasion." Acta Oeconomica 70, no. 1 (March 2020): 123–39. http://dx.doi.org/10.1556/032.2020.00007.
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AbstractThough tax amnesties (TAs) are considered as a policy tool to increase revenue for governments, they have generated some puzzles. To solve the puzzles of TA we should not ignore the behavioural aspects of delinquent taxpayers. In this paper, we focus on a relatively neglected but important area of the TA literature. Considering that people who participate in tax amnesty policy (TAP) may not honestly report the whole amounts of evaded tax, thus they commit a secondary tax evasion. We indicate that even considering the risk of abstaining from TA and incurring possible uncertainty of tax evasion penalties, participating in a TA provides a higher level of utility for the delinquent taxpayers. Also, due to a secondary tax evasion usually accompanying with TA, we show that during the initial assessment period of a TAP the tax revenue drastically increases and when the assessment period is approaching the tax revenue stably declines and ultimately converges to a fixed value. Furthermore, we show that if delinquent taxpayers participate in the TAP and the penalties are larger than the expected tax revenue of the government, it increases the tax revenue without reducing the welfare of other taxpayers, so as to achieving Pareto improvement.
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Schlenther, Bernd. "Is the South African effort toward reducing money laundering optimal?" Journal of Money Laundering Control 17, no. 1 (January 7, 2014): 17–33. http://dx.doi.org/10.1108/jmlc-07-2013-0025.
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Purpose – A measure of how much money is laundered is required to determine the effectiveness of any anti-money laundering regime and the reduction of money laundering in targeted areas. In the absence of useful estimates, authorities need to look at the best quality data available to arrive at a meaningful estimate and a consequent target for reduction of money laundering. Since tax crimes are viewed as one of the top three sources of laundered money, an understanding of the underlying predicate offence – tax evasion – may be indicative of the values or volumes involved in order to facilitate a target setting process. It is suggested that a “whole of government approach”, as is advanced by the OECD, is applied between the tax administration and the financial intelligence centre in South Africa. The paper aims to discuss these issues. Design/methodology/approach – By reviewing tax gap and money laundering estimation models and results from South Africa's first tax amnesty, it is proposed that micro analysis methodologies are applied to arrive at an estimate of the size and impact of money laundering which results from tax evasion practices. Findings – By making basic inferences from the results of the 2003 voluntary disclosure programme, it is estimated that a potential revenue gap of between ZAR4 billion and ZAR12 billion exists for personal income tax alone and that the value of personal assets acquired from the proceeds of crime can, at any time, be as high as ZAR1.4 trillion. Originality/value – In the absence of empirical and statistical data, it is necessary for authorities in developing countries to identify and make use of the most relevant and detailed data to assess its effectiveness in identifying, quantifying and reducing money laundering.
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Waris, Attiya, and Laila Abdul Latif. "The effect of tax amnesty on anti-money laundering in Bangladesh." Journal of Money Laundering Control 17, no. 2 (May 6, 2014): 243–55. http://dx.doi.org/10.1108/jmlc-04-2013-0011.
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Purpose – The article aims to rely on the global wealth chains theory to study the effect of tax amnesty on anti-money laundering (AML) in Bangladesh. This theory is an analytical framework intended to identify how wealth is repackaged and disguised to move it out of spheres of state oversight, regulation and taxation. It introduces the law on AML in Bangladesh, pointing out the revised Financial Action Task Force (FATF) recommendation that has expanded the scope of money laundering predicate offences to cover both indirect and direct tax crimes and smuggling in relation to customs and excise duties and taxes. Design/methodology/approach – Interviews in Bangladesh and desk research. Findings – There are some gaps in the scope of the offence, the coverage of predicate offences and the types of property covered by the money laundering offence. There is also an absence of financial penalties available to effectively sanction legal persons. The current money laundering offences are derived from the ordinance issued in 2008 by the caretaker government (2006-2008). The current act contains detailed definitions of money laundering and property and a list of predicate offences and sanctions for the offence. However, there are some gaps in the physical elements of the offence, and the range of its predicate offences remains too narrow. Adding tax evasion to its list of predicate offences will, given the history of money laundering in Bangladesh, aid in combating illegal transfer of assets abroad and recovery of the same and abolish tax amnesty. Originality/value – There is no paper that has analysed the linkages between money laundering and taxation in developing countries, especially Bangladesh.
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Weerasekera, Harini. "Tax Rates and Tax Evasion." South Asia Economic Journal 19, no. 2 (September 2018): 229–50. http://dx.doi.org/10.1177/1391561418794690.
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The study empirically examines the relationship between tax rates and tax evasion for Sri Lanka. This is examined in the context of border tax evasion, where I test for the presence of evasion via the ‘evasion gap’: the discrepancy between exports to Sri Lanka (as reported by Sri Lanka’s trade partners) and imports by Sri Lanka (as reported by Sri Lanka) for products imported by Sri Lanka from its top seven import partners in 2014. The study focuses on two forms of border tax evasion: underreporting and mislabelling. In addition, the study estimates the effect of a policy to bring selected value-added tax (VAT)-exempt products into the VAT net, on the evasion gap. Results from OLS estimation suggest that both forms of evasion are present. The difference-in-difference results of the impact of the policy change on the evasion gap are insignificant, but require post-treatment data to arrive at a more concrete conclusion. JEL: H200, H260
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Sopková, Eva, and Katarína Raškovská. "Tax Evasion of Value Added Tax in the Conditions of the Slovak Republic." Acta academica karviniensia 13, no. 1 (March 30, 2013): 147–58. http://dx.doi.org/10.25142/aak.2013.013.
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Lohvyn, Andrii. "PREVENTION OF OFFENCES IN THE SPHERE OF VALUE ADDED TAX ADMINISTRATION." Administrative law and process, no. 3 (30) (2020): 69–85. http://dx.doi.org/10.17721/2227-796x.2020.3.06.
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In the article the author explored the legal regulation of counteraction to VAT evasion (avoidance by taxpayers of their tax liability by minimizing tax liabilities), which is a specific type of activity of tax authorities. The continuous development of public relations in the field of taxation in Ukraine requires effective application of administrative prevention (counteraction) measures in this area and, of course, the qualitative state of legal regulation of these measures. In the legal literature, administrative prevention measures were mainly studied in terms of conceptual and categorical apparatus and their classification. To date, considering the introduction of electronic administration of value added tax, studies on the use of administrative prevention measures by public authorities in the scientific field have not been analyzed. Taking into account international experience and based on a systematic analysis of the current legislation, the author deals with the legal mechanism for counteracting evasion from paying value added tax by means of introducing electronic administration of value added tax. The author notes that with the introduction of automated monitoring of risk assessment (taking into consideration the criterion of the amount of paid value added tax) (the so-called “tax burden” and/or “tax return”), the state is trying to increase budget revenues. The author concludes that administrative prevention (counteraction) measures used by regulatory authorities, in a sense, are the tools by which it is possible to achieve timely response to the activities of taxpayers aimed at tax evasion. It was substantiated that automated monitoring of compliance of tax invoices with the risk assessment criteria can be considered as a preventive measure, according to which taxpayers’ transactions aimed at forming an illegal tax credit are detected by regulatory authorities. In turn, making decisions if a payer of value added tax meets the Criteria of being a risky payer, and accordingly, further suspension (blocking) of registration of tax invoices of the specified payer, is a measure to counteract evasion from paying value added tax. It was proved that from the legal point of view, the legal mechanism of administrative prevention (counteraction) measures, in particular, those regarding the implementation (conducting) of automated monitoring, should contribute to the avoidance of legal collisions and contradictions that arise between regulatory authorities and taxpayers.
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Horobets, N. S. "Specific Features of Counteracting VAT Evasion: Experience of Ukraine and Foreign Countries." Bulletin of Kharkiv National University of Internal Affairs 91, no. 4 (December 20, 2020): 121–29. http://dx.doi.org/10.32631/v.2020.4.11.
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The article is focused on determining specific features of counteracting VAT evasion in Ukraine and foreign countries. It has been found out that the presence of VAT in the tax system of any state is a prerequisite for such a state to become a member of the European Union and it is due to its broad tax base and more neutral impact on economic decision-making on investment and consumption issues. It has been noted that the joint search by the states for the ways to combat VAT evasion is due to the need to minimize the damage caused to the financial and economic interests of the state by such actions, to increase the efficiency of value added tax, to increase the competitiveness level of domestic producers, to stimulate priority economic activities in the state. The content of value added tax as an indirect tax in accordance with the provisions of scientific doctrine has been revealed. Specific features of legal and illegal (tax crime) types of VAT evasion have been studied. The list of the methods to evade value added tax in Ukraine and foreign countries has been provided. The specifics of general and special ways to counteract this action have been revealed. The emphasis has been placed on such methods of counteracting VAT evasion as enshrining legal liability for VAT evasion at the legislative level; exercising tax control over the entities that are registered as value added taxpayers; usage of electronic document management and other opportunities of the digital economy, which allows to identify risks in the activities of taxpayers during their initial registration, etc. It has been concluded that there is no unified approach to the implementation of counteraction to value added tax evasion by state-authorized agencies; and the emphasis has been placed on the feasibility of existence of a basic list of the methods to counteract value added tax evasion.
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Semerád, Pavel. "Value added tax evasion and excise duty fraud on fuel market in the Czech Republic." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 60, no. 2 (2012): 335–40. http://dx.doi.org/10.11118/actaun201260020335.
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This paper deals with analysis of current problems in the motor fuel market. It analyzes bottlenecks in setting the legislative changes in value added tax, excise tax and the legislation concerning fuels. The biggest problem is tax evasions that favor one group of business entities at the expense of another, and also cause that the state loses revenues mainly from indirect taxes. Therefore, attention is directed to quality control of fuels as a means of consumer protection and prevention of tax evasion and ways to combat tax evasion in import, distribution and storage of mineral oils. The examples are the most common errors found in fraudulent companies. Based on the data collected the possible ultimate evasion was estimated. Therefore, I propose that value added tax law should be amended and some other measures to improve supervision by public authorities like tax authorities and customs administration offices should be taken.
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Đurović-Todorović, Jadranka, Marina Đorđević, and Milica Ristić. "ESTIMATING THE DETERMINANTS OF TAX EVASION USING EMPIRICAL DATA." ЗБОРНИК РАДОВА ЕКОНОМСКОГ ФАКУЛТЕТА У ИСТОЧНОМ САРАЈЕВУ 1, no. 16 (October 16, 2018): 11. http://dx.doi.org/10.7251/zrefis1716011d.
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Over the past several decades, tax evasion has shown a tendency for growth in all countries. Analogically to its presence in all tax systems, the tax evasion phenomenon is increasingly present in numerous theoretical, empirical and experimental works. The subject of this paper is the assessment of the basic determinants of tax evasion in the Republic of Serbia. We analyzed the economic and psychological factors, first through the literature review, and then empirically.By the method of multiple regression analysis, we investigated several potential variables related to tax evasion: the number of tax inspectors, the number of controls, the rate of value added tax, and the number of controls with irregularities. The empirical analysis of the annual data of the Ministry of Finance was conducted for the period 2005-2016. The results show that the number of tax inspectors and the number of controls with irregularities have a positive, statistically significant impact on the volume of tax evasion in Serbia. The number of controls, as a variable of economic character, showed a negative, statistically significant influence on the evasion. The influence of the selected independent variable, the value added tax rate, is not statistically significant. If we complement the effects of all factors, this study contributes to the literature that explores the factors of tax evasion. The aim of our research is to draw the tax policy makers’ attention to the importance of the analyzed factors and to contribute to the fight against this inevitable and general problem.
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Tifin, Pierre, Irina I. Ogorodnikova, and Alexander A. Stepanov. "Tax risk zones and the specifics of tax offenses in Russia and France for VAT." Tyumen State University Herald. Social, Economic, and Law Research 6, no. 1 (2020): 158–77. http://dx.doi.org/10.21684/2411-7897-2020-6-1-158-177.
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The predominance of indirect taxation in the formation of Federal budget revenues in the Russian Federation is largely due to the introduction of a value-added tax in 1992. By 2019, the share of VAT in the consolidated budget is about 20 %. But the realities of modern taxation are still associated with tax risks. Tax risk analysis is related to the study of negative financial consequences for both the state and taxpayers, which in turn is due to a number of internal and external factors. Value-added tax in many countries of the world occupies an absolute leading position and is budget-forming, and VAT evasion is fraught both for the country’s economy and budget filling. Digitalization of the tax administration process and the use of IT technologies allowed to increase the revenue of the value added tax, but at the same time failed to eliminate tax violations that occur during its calculation and collection. The introduction of digital tax administration technologies strengthens the state’s position in the field of tax control. Setting the VAT rate from 2019 to 20% as an indirect tax resulted in an increase in the tax burden and did not eliminate the problems that arise with tax offenses in the calculation and collection of tax. This aspect is typical for all countries that apply value-added tax in their tax system. The purpose of this work is to identify the causes of VAT evasion, as well as typical violations in its calculation and collection. Studying, including foreign experience, and adapting it to Russian realities will reduce the tax risks of repeated occurrence of tax offenses and in the future will prevent the fact of tax evasion and minimization, which will be an element of scientific novelty.
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Stavjaňová, Jana. "Value Added Tax Gap in the Czech Republic." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 62, no. 6 (2014): 1427–36. http://dx.doi.org/10.11118/actaun201462061427.
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The paper deals with an estimation of tax evasion of value added tax in the Czech Republic during 2006–2012. For the estimation I have used the concept of tax gap which is based on a comparison of the theoretical tax liability in the economy with the actual tax receipts. According to my results the VAT gap in the Czech Republic gradually increased during the observed period and it is more than CZK 100 billion in the last three years. The most significant growth of VAT gap occurred between the years 2007 and 2008 and between 2011 and 2012 when the reduced VAT rate was increased by 4 percentage points. The second part of the paper focuses on impact of my estimates on tax policy of the Czech Republic. I discuss two different possibilities how the additional revenue gained from VAT gap reduction could be used – either to decrease the government deficit and therefore to meet the Maastricht criteria or to decrease tax burden on labour which influences particularly low income workers.
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Šaćirović, Dženis, Haris Brulić, and Ismet Šaćirović. "Determination of value added tax in police and judicial practice." Ekonomski izazovi 9, no. 18 (2020): 129–39. http://dx.doi.org/10.5937/ekoizazov2018129s.
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In this paper, we want to present the abuse and bad intentions of the so-called phantom (fake) companies and other intermediary or money laundering companies. The subject of this paper is value added tax evasion in police and court practice. The aim of this paper is to present VAT evasion, in accordance with the legal regulations of criminal legislation, pointing out the ways of committing this crime. In this paper, we use the normative method as well as domestic literature. It is presented how and in what way companies have the obligation to pay VAT for a certain period of time in accordance with the Law on VAT. Through this paper, certain examples (research) are presented in detail of how abuse and larger funds occur in an illegal way, which of course leads to damage to the budget of the Republic of Serbia. It is a criminal offense that is reflected in the evasion of taxes, contributions and other prescribed duties.
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Ngumar, Sutjipto. "TAX PLANNING UNTUK PEMBAYARAN PAJAK DENGAN BENAR BAGI PERUSAHAAN DI INDONESIA." EKUITAS (Jurnal Ekonomi dan Keuangan) 4, no. 1 (November 25, 2016): 43. http://dx.doi.org/10.24034/j25485024.y2000.v4.i1.1899.
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This paper explains corporate 's tax planning policy as the tax payer purposes (1) that Taxes which be paid exactly no more nor less (2) To care corparate 's liquidity (3) to get profit normaly. Tax planning does not effort how make making tax evasion, but it is a strategy for tax saving and tax avoidance. The problem is that corporate as the tax payer does not understand about tax regulation, or the corporate just transfers the tax problem to accountancy department, because the manager has not time to understand tax law, eventhough to safeguard for negotiating by customer, the manager does not involve with anyone. The corporate initiative to execute tax planning are (1) Transfering tax value added expense to the buyer or customer (2) To carry out the holding company through accountancy engineering, by Pooling interest and Purchase method. Pooling interest method means no recoqnize value added (goodwill) ; in the other hand purchase method means the assets be counted by market value, so value added (goodwill) will be writen off by depreciation.
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Ismail, Rana, Wafic Rihan, and Faisal Nsouli. "Value Added Tax Evasion and Illegal Recovery Cases in Lebanon." Procedia - Social and Behavioral Sciences 109 (January 2014): 527–30. http://dx.doi.org/10.1016/j.sbspro.2013.12.501.
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Onoja Eneche, Emmanuel, and Ibrahim Ademu Stephen. "Tax Revenue and Nigeria Economic Growth." European Journal of Social Sciences 3, no. 1 (January 1, 2020): 30. http://dx.doi.org/10.26417/ejss-2020.v3i1-81.
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This study examines the relationship between Tax Revenue and Nigeria Economic Growth. In order to achieve this objective, data was gathered through secondary means. Tax Revenue is proxy by Petroleum Profit Tax, Value Added Tax and Companies Income Tax, while Economic Growth is proxy by Gross Domestic Product. Data collected were analyzed with the aid of the Stata computer software. The study revealed that Petroleum Profit Tax (oil tax revenue) has a positive but no significant relationship with Nigeria Economic Growth, while Value Added Tax and Companies Income Tax (non-oil Tax Revenue) have significant relationship with Nigeria Economic Growth. The study recommends that government should minimize the wide spread corruption and leakages prevalent in tax administration in Nigeria, and transparently and judiciously account for tax revenue generated through the provision of more quality public goods and services, and need not to increase the rates of Value Added Tax and Companies Income Tax in the short run, but to closely monitor the operations of companies engaged in petroleum operations to minimize tax evasion, and as well as support the development of entrepreneurial activities in order to significantly increase Tax Revenue so as to sustain the significant relationship of VAT and CIT (non-oil tax) revenue with Nigeria Economic Growth.
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Onoja Eneche, Emmanuel, and Ibrahim Ademu Stephen. "Tax Revenue and Nigeria Economic Growth." European Journal of Social Sciences 3, no. 1 (January 1, 2020): 30. http://dx.doi.org/10.26417/ejss.v3i1.p30-44.
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This study examines the relationship between Tax Revenue and Nigeria Economic Growth. In order to achieve this objective, data was gathered through secondary means. Tax Revenue is proxy by Petroleum Profit Tax, Value Added Tax and Companies Income Tax, while Economic Growth is proxy by Gross Domestic Product. Data collected were analyzed with the aid of the Stata computer software. The study revealed that Petroleum Profit Tax (oil tax revenue) has a positive but no significant relationship with Nigeria Economic Growth, while Value Added Tax and Companies Income Tax (non-oil Tax Revenue) have significant relationship with Nigeria Economic Growth. The study recommends that government should minimize the wide spread corruption and leakages prevalent in tax administration in Nigeria, and transparently and judiciously account for tax revenue generated through the provision of more quality public goods and services, and need not to increase the rates of Value Added Tax and Companies Income Tax in the short run, but to closely monitor the operations of companies engaged in petroleum operations to minimize tax evasion, and as well as support the development of entrepreneurial activities in order to significantly increase Tax Revenue so as to sustain the significant relationship of VAT and CIT (non-oil tax) revenue with Nigeria Economic Growth.
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Lobodina, Z., A. Kizyma, and L. Marushchak. "Estimating the fiscal and regulatory role of value added tax." Galic'kij ekonomičnij visnik 67, no. 6 (2020): 129–36. http://dx.doi.org/10.33108/galicianvisnyk_tntu2020.06.129.
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The impact of value added tax (hereinafter – VAT) on the socio-economic development of the state is investigated in this paper. Here it is considered as a tool of the mechanism of budgetary resources formation and regulation of taxpayers’ welfare and activities. It is determined that, in addition to the reduction of tax rate, the public authorities and local governments should provide favorable conditions for doing business, implement measures for anticorruption and market anti-monopoly. To compensate for the expences of budgetary resources occurring as a result of possible reduction in the value added tax rate, it is necessary to look for alternative sources of pumping up the state budget. Such situation could weaken Ukraine's competitiveness, increase distrust of potential investors, and deactivate attracting investments into the country's economy. In order to stimulate certain economic activities, to increase the volume or the level of availability of certain goods (services)consumption, the tax legislation provides certain preferences for value added tax, particularly – lowering the tax rate, tax exemptions, , tax credit, tax benefits. In addition, the regulatory impact of VAT as a financial instrument on the taxation system is revealed in this paper. The peculiarities of VAT administration in Ukraine and foreign countries are highlighted, the dynamics, tendencies of receipt and reimbursement of VAT in Ukraine are considered. The reasons for tax refund arrears are given and ways to improve VAT administration are proposed. Analysis of the assessment of VAT fiscal efficiency is carried out, the indicators of the assessment of this tax fiscal efficiency are determined. Despite the permanent increase in the absolute amount of this tax and its share in gross domestic product (hereinafter – GDP) and state budget revenues, the fiscal role of VAT is weakened due to such problems as regressive impact on low-income populations, tax evasion and minimization of tax liabilities, growth of volumes of VAT refunds at the expense of budgetary resource.
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Štieberová, Ivana. "The Limit of Tax Audit and Its Impact on the Status of Taxable Entities." Public Governance, Administration and Finances Law Review 2, no. 1 (June 30, 2017): 43–55. http://dx.doi.org/10.53116/pgaflr.2017.1.5.
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Tax audit is a significant control mechanism nowadays, particularly in the context of increasing tax evasion and tax fraud. Taxable entities are obliged to tolerate the performing of tax audit for a certain statutory period. But what if the tax audit exceeds this statutory time limit? What impact does it have on the status of the taxable entity? Regarding the length of the tax audit, we will deal with the impact of the interest on value added tax refund on the status of the taxable entity. Will this interest contribute to its improvement?
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Kireenko, Anna P., and Svetlana K. Sodnomova. "THE VALUE ADDED TAX TRANSFORMATION AND MODERN PRACTICES OF IMPROVING ITS COLLECTION." Tyumen State University Herald. Social, Economic, and Law Research 6, no. 3 (2020): 273–94. http://dx.doi.org/10.21684/2411-7897-2020-6-3-273-294.
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This article deals with the history and current practice of handling the value added tax (VAT). The authors have analyzed the main advantages and disadvantages of VAT: the prevailing negative impact on the cash flows of VAT payers; the complexity of the tax, which increases the costs of its collection from the state and from taxpayers; the low ratio of actual VAT income to potential; the inability to prevent certain types of tax fraud. The authors explain their thesis that the prospects for the VAT development are connected, firstly, with overcoming the inherent tax deficiencies, and secondly, with the transformation of tax under the influence of the external environment. This article studies the directions of tax transformation and the objective prerequisites for applying a single standard tax rate to a wide tax base. The data on the structural transformation of the economy in developed countries and Russia and its impact on VAT are analyzed. Particular attention is paid to the alternative tax collection practices: reverse payment mechanism, split-payment mechanisms, and single window method. The experience of using tax lotteries as a method of increasing the collection of value added tax is analyzed in detail. The considered mechanisms for collecting VAT effectively reduce tax evasion arising from the overestimation of VAT deductions, but can not deal with the concealment of income. All the new methods are associated with an increase in the costs of tax administration and approval, require an increase in reporting for taxpayers, introduce new responsibilities for the exchange of data with tax authorities, including the transfer of accounting data and invoice information (including in real time). The reverse payment mechanism and the split payment method, change the nature of VAT collection, canceling fractional payments, which are usually considered as the main advantage of VAT.
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Sharma, Devilal. "An Experience Of Executing Value Added Tax (Vat) In Pokhara." Janapriya Journal of Interdisciplinary Studies 3 (July 31, 2017): 34–46. http://dx.doi.org/10.3126/jjis.v3i0.17895.
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Indirect taxes have a dominant role in the whole tax structure of developing countries like Nepal. VAT has been in operation for the last Eighteen years; still it is facing a number of challenges owing to poor administration, lack of good faith and honesty, rampant corruption, political instability, the problems of non-issuance of bill, narrow coverage, etc. For the improvement in effective VAT implementation, various areas including proper billing system, efficient tax administration, intensive billing enforcement, wide coverage, computerization, etc. VAT registrants are involving in VAT fraud. In this situation IRD has the various challenges to control the VAT evasion and implement the policy in effective and efficient way. The study is focused on the effectiveness of the VAT implementation of VAT collection policy in real field. Hence, its main objective is to analyze the effectiveness of the VAT implementation. For efficient implementation VAT officials have to perform effectively. The IRO Pokhara is working hard to collect more and more VAT so far as possible from its working area. Many taxpayer educations program in different places and compulsorily registration campaign to VAT program have been organized by IRO, Pokhara. The effectiveness of IRO, Pokhara and its officials seemed as satisfactory. With regard to fairness, friendliness with VAT registrants and overall effectiveness is at satisfactory level. Most of registrants are satisfied with the administrative mechanism of VAT in Nepal as well as with the availability of VAT document and information and its clarity. But in case of getting VAT refund in cash VAT registrant are not satisfied. Except in case of VAT refund in cash most satisfaction level of VAT registrants toward present VAT collection policy and practice seems to be at a satisfactory level. The market monitoring and investigation is the main tool that IRO, Pokhara is applying to control the VAT evasion. Similarly taxpayer education, current year audit and tax audit, billing enforcement, and e-base tax system are the other the major tools and techniques obtained by IRD to control the VAT evasion. Janapriya Journal of Interdisciplinary Studies, Vol. III (December 2014), page: 34-46
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Kukalova, Gabriela, Olga Regnerova, Daniela Pfeiferova, Ivana Kucharova, and Dana Mejstrikova. "Securing Orders as a Tool in the Fight against Tax Evasion: Czech Republic Case Study." SHS Web of Conferences 92 (2021): 02036. http://dx.doi.org/10.1051/shsconf/20219202036.
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Research background: Combating tax evasion is part of tax administration in most countries. As globalization progresses, tax evasion and tax fraud are growing. All this has a negative impact on tax revenues of state budgets. Globalization is helping to apply similar practices by states against tax evasion. Within the EU, it is mainly about harmonization and common procedures for VAT. Revenues from VAT are a significant revenue of the state budget also in the Czech Republic, therefore various tools are used in the constant fight against VAT fraud. Purpose of the article: The aim of the article is to evaluate the effectiveness of securing orders in the fight against VAT fraud in the Czech Republic. Methods: Data for the monitored period 2014 - 2018 were obtained from documents of the Financial Administration of the Czech Republic. The analysis of securing orders and the estimation of the costs of their issuance is performed based on the stated data. Subsequently, the effectiveness of issued securing orders in the monitored period is evaluated. Findings & Value added: In the context of globalization, a number of studies deal mainly with the causes and effects of tax arrears, tax evasion and the tax gap. This paper discusses the fight against tax evasion, focusing on a specific instrument - securing orders. Based on the analyzes, an estimate is made of the costs of issuing securing orders. Subsequently, the effectiveness of securing orders is evaluated as one of the instruments in the fight against VAT fraud.
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Лебедева, Екатерина, and Ekaterina Lebedeva. "ENTERPRISE TAX SECURITY: MANAGING BUSINESS WITHOUT CONSEQUENCES." Russian Journal of Management 7, no. 3 (October 29, 2019): 16–20. http://dx.doi.org/10.29039/article_5db87fbb461c22.90717641.
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The search for optimization of taxation of commercial enterprises often leads to the choice of illegal schemes of evasion of value added tax and income tax. For example, the choice of the scheme of splitting business in order to understate income by distributing them to artificially created organizations, transferred to special tax regimes, which leads to the receipt of an unreasonable tax benefit by the enterprise in the form of a reduced tax rate and VAT exemption. This article formulates the main methods of proving the unjustified receipt of tax benefits by the regulatory authorities and the possible negative consequences of such tax optimization for the enterprise.
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Švecova, Ļubova. "TAX FRAUD PHENOME: QUALIFICATION DUE TO CRIMINAL LAW IN FIELD OF VAT." Administrative and Criminal Justice 3, no. 76 (September 30, 2016): 29. http://dx.doi.org/10.17770/acj.v3i76.2862.
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In the present article the author has considered in a concentrated form the essence of the tax fraud phenomenon, the responsibility for which is determined by the legislation, both in administrative and criminal order – in accordance with 218 (tax avoidance) and 177 (fraud) acts. The aim of the present research is to consider the problems of tax violation, to systematize the issues related to the qualification of criminal acts in the area of taxation at establishing the fact of fraud with value added tax. The author systematized the elements of criminal acts’ compounds - fraud and tax evasion, the importance of the aspect of separating fictitious and real transactions during their classification, as well as addressed issues related to the offense ascertaining at the stage of its ending, in case of fraud with value added tax. There have been no previous investigations found on researching the phenomenon of tax fraud in Latvia through the prism of analysis of prevalence cause, types on manifestation of the phenomenon and ways of preventing and dealing with it. While researching the phenomenon of tax fraud, the author intends to examine the problem in greater details. The main conclusion, which relates to fraud with value added tax, is the fact that the Law system on Value Added Tax itself enables the unfair taxpayer to commit fraud. The lack of clear approach and criteria for the qualification of tax fraud has a negative impact on the effectiveness of preventing and dealing with this criminal act.
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Wilks, Daniela C., José Cruz, and Pedro Sousa. "“Please give me an invoice”: VAT evasion and the Portuguese tax lottery." International Journal of Sociology and Social Policy 39, no. 5/6 (June 10, 2019): 412–26. http://dx.doi.org/10.1108/ijssp-07-2018-0120.
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Purpose The Portuguese tax authority implemented a lottery to encourage citizens to request invoices as a strategy to fight value-added tax (VAT) evasion. As the law does not require citizens to request sales invoices with the consumers’ tax number, doing so is a form of voluntary cooperation in tracking down tax evaders. The purpose of this paper is to understand why ordinary citizens decide to join forces with tax authorities in the fight against VAT evasion by requesting invoices with their tax identification number. Design/methodology/approach An empirical study was conducted to explore the underlying motivation for Portuguese consumers to request sales invoices with their personal tax identification. The study combines quantitative and qualitative data. Findings The results from this study show that rewarding citizens is clearly a factor to be considered in any policy to maximize citizens’ cooperation in tracking down tax evaders. They indicate that fiscal benefits have a stronger effect on the request of invoices than the lottery and that it is necessary to promote good governance and justice. Practical implications Findings should be used to inform a cost-effective public policy that takes into account citizens’ concerns and combine deterrent measures and rewards in the form of tax benefits, rather than tax lotteries. Originality/value This paper provides new insights into VAT lotteries, which seem to be increasingly favored by policy makers but are an area under-researched. By recommending a course of action to maximize citizens’ cooperation in tracking down tax evaders, the paper provides useful practical implications and is a contribution for the study of VAT evasion policies.
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Krzikallová, Kateřina, and Filip Tošenovský. "Is the Value Added Tax System Sustainable? The Case of the Czech and Slovak Republics." Sustainability 12, no. 12 (June 17, 2020): 4925. http://dx.doi.org/10.3390/su12124925.
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The value added tax is an important part of revenues of the European Union and its Member States. The aim of the paper is to statistically analyse the extent of positive impact of selected legislative measures introduced in the fight against tax evasion and discuss subsequently the sustainability of the current value added tax system in the European context. The analysis was conducted for the Czech and Slovak Republics, two traditionally strong trading partners, and for an important commodity, copper. In the analysis, regression methods applied to official time series data on copper export from the Czech Republic to Slovakia were employed together with appropriate statistical tests to detect potential significance of the new legislative tools, the value added tax control statement and reverse charge mechanism. Moreover, the study considers fundamental economic factors that affect foreign trade in parallel. Based on the analysis, there is sound evidence that the major historical turnaround experienced by the time series took place due to the then forthcoming legislative measures that were to restrain the possibility of carousel frauds. The results confirm the positive impact of the measures and also suggest the necessity of more systematic changes in the tax system.
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COSTEA, Ioana Maria. "Transpunerea Directivei PIF și evaziunea fiscală la TVA." Analele Universitării din București Drept 2020, no. 2020 (January 13, 2020): 9–24. http://dx.doi.org/10.31178/aubd.2020.02.
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Our study proposes a two-step analysis of the concept of VAT fraud, a time limit represented by the adoption of Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union’s financial interests by means of criminal law. Through our analytical approach, which uses the comparative method meticulously under the auspices of the limited interpretation imposed by criminal law, specific hypotheses are revealed regarding the forms of tax evasion in the European Union framework for the operation of value added tax. Equally, the study seeks to identify the blind spots of national law and the directions for refining tax evasion legislation.
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Kireenko, A. P., E. N. Nevzorova, and D. Yu Fedotov. "Sector-Specific Characteristics of Tax Crime in Russia." Journal of Tax Reform 5, no. 3 (2019): 249–64. http://dx.doi.org/10.15826/jtr.2019.5.3.071.
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The article discusses the hypothesis that fiscal crime has some sector-specific characteristics, which tend to become more pronounced as new technologies emerge and develop. These characteristics should be taken into account when devising policies targeted at fighting tax evasion. To test this hypothesis, we analyzed quantitative (the level of economic crime in Russia in general and for different types of economic activity) and qualitative characteristics of crime (structure, dynamics and nature of crime). We also conducted analysis of the correlation between these indicators and the structure of costs and financial performance of organizations. The research relies on crime statistics, which reflect the scale of tax evasion better than financial statistics (since the latter are influenced by a large number of factors and are subject to significant change even within one year). Pearson’s and Spearman’s correlation coefficients were used for verification. Sectors of economy were ranked in descending order according to the corresponding economic crime rates and loss to gross value added in the sector. The findings show that unlike the cases of tax evasion, the number of economic crimes does not closely correlate with the structure of costs. Most tax crimes and corporate tax evasion in particular are recorded in sectors with lower labour costs, social security contributions and other prime costs but with higher depreciation of fixed assets (capital intensive industries). Thus, the results of this study contradict the findings of international scholars that shadow economy is larger in highest paying industries. It is shown that the sectors with higher losses are characterized by higher crime rates, that is, the loss in many cases is connected to tax evasion and related economic crime. The research has brought to light certain sector-specific characteristics of tax evasion, which means that these characteristics should be taken into account in governance and policy-making as well as in further research on this topic.
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Shahini, Ledjon, and Arben Malaj. "How can We Measure the VAT Fraud and Evasion? Case of Albania." European Journal of Economics and Business Studies 2, no. 1 (August 30, 2015): 40. http://dx.doi.org/10.26417/ejes.v2i1.p40-49.
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Taxation is one of the most important fiscal instruments which in many case is used to recover the economy performance of a country. It is the main budget revenue and its role in decreasing budget deficit is undisputed. The intensity of the instrument efficiency is depended although by the level of tax evasion in the country. At this point, knowing the level of tax evasion from one side is one of the most important topics that fiscal policy could work and from the other side improving the tax administration system is a purpose for public financial stability. The focus of the paper will be only on the value added tax (VAT) as the main tax revenue component in Albania with about 37 % of total tax revenue. In the absence of a comprehensive analysis between VAT that should have been paid by all taxpayers and real VAT collected, the divergence between them could be considered as VAT evasion, or known as VAT gap, which will be our objective measurement. Calculations will be based on the data from the national accounts (Supply-Use Tables), more concretely on the use side of the economy. All the variables of final demand are treated at a very detailed level specifying the VAT ratio by product and the threshold level for each component of final use. Estimations are done for year 2011 as the latest year where the Supply Use Tables are available for Albania.
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Storm, Ansia, and Katrina Coetzee. "Towards Improving South Africa's Legislation On Tax Evasion: A Comparison Of Legislation On Tax Evasion Of The USA, UK, Australia And South Africa." Journal of Applied Business Research (JABR) 34, no. 1 (December 29, 2017): 151–68. http://dx.doi.org/10.19030/jabr.v34i1.10106.
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The fight against tax evasion in South Africa is an ongoing battle. The tools available to law enforcement boil down to legislation and the enforcement thereof. The purpose of the study that was done for this article was to compare available legislation of the United States of America, United Kingdom, Australia and South Africa to determine if South Africa’s legislation can be improved. This was done by studying the relevant literature and legislation of all four countries. The findings, that there is some clauses that can be added to improve South Africa’s legislation, were confirmed by analyzing the legislation available. In theory, the results have proven that although South Africa’s legislation can compete with that of the United States of America, United Kingdom and Australia, there is some improvement that can be considered. This is of value to the individuals and professionals who deal with the offence of tax evasion on a daily basis, ensuring that the reviewed legislation will deter perpetrators or that the charges brought against them in the court of law will ensure harsher punishment.
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NAZARENKO, Y. A. "TAX MECHANISMS AND CAPITALIZATION OF ENTERPRISES." Economic innovations 21, no. 3(72) (September 20, 2019): 87–97. http://dx.doi.org/10.31520/ei.2019.21.3(72).87-97.
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Topicality. Increasing the level of capitalization of the economy is of strategic importance for Ukraine, since market transformation in Ukraine is inherently capitalization of the economy. All this necessitates further investigation of the mechanisms of capitalization of enterprises, including tax mechanisms. Aim and tasks. Analyze the value added tax and customs duties on exports of raw materials, identify their advantages and disadvantages in the context of capitalization of enterprises, develop proposals for improving the administration of these tax instruments. Research results. Value Added Tax (VAT) is the main budget-forming tax in Ukraine. In addition to VAT, there are also other value added taxes - personal income tax and income tax, as these are taxes on part of value added in the form of wages and income. In 2018, the share of value added tax in the total tax revenue in Ukraine was 72%. The conceptual plan of the VAT is reasonable and transparent, but in its implementation there are a number of problems: the complexity of its calculation in terms of costs when buying goods, works and services, VAT refund takes a lot of time and effort, the possibility of so-called "pits" when suppliers After receiving VAT from the buyer, they disappear and tax is not paid to the budget. According to various estimates, due to tax evasion, Ukraine's budget loses up to 25% of net VAT revenues. In the EU, this figure averages only 10%. Global tax trends confirm the dynamics of indirect tax growth, where VAT plays a key role. VAT refusal is not appropriate for Ukraine. The most appropriate approach is to bring the content of the VAT into line with its name and to improve its administration. In this regard, it is proposed to: 1) include in the reporting indicators of the enterprise the indicator "gross value added". This will ensure conceptual unity in the calculation of the results of economic activities at the micro, meso and macro levels and the ability to directly calculate VAT. As part of the improvement of VAT administration, a set of measures is proposed to reduce VAT privileges, to solve the problem of "tax pits", to release contributions of foreign investors to the authorized capital of the enterprise in the form of fixed assets from the payment of VAT. The introduction of a tax on the export of raw materials ensures the formation of new and development of existing value chains, as well as the achievement of the goal of the government of the country - to increase the amount of income of business entities, consumers and the state. Due to the export duties of sunflower seeds, Ukraine is making billions of dollars in exports of sunflower oil (about $ 4 billion in 2017). The abolition of this duty may lead to an increase in processing capacity, a reduction in jobs, and a loss of part of the global sunflower oil market. All this necessitates the adoption of appropriate measures to protect the domestic processing sector: firstly, to negotiate with the EU on the maintenance of customs duties on sunflower seed export, and secondly, to cancel VAT refunds on sunflower seed export. Conclusion. The conceptual plan of the VAT is reasonable and transparent, but its implementation has a number of problems with regard to its calculation, compensation and administration. Global tax trends confirm the dynamics of indirect tax growth, where VAT plays a key role. VAT refusal is not appropriate for Ukraine. The most appropriate approach is to bring the content of the VAT into line with its name and to improve its administration. Introduction of a tax on export of raw materials ensures the formation of new and development of existing value chains.
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Dobrovič, Ján, Rastislav Rajnoha, and Petr Šuleř. "Tax evasion in the EU countries following a predictive analysis and a forecast model for Slovakia." Oeconomia Copernicana 12, no. 3 (September 27, 2021): 701–28. http://dx.doi.org/10.24136/oc.2021.023.
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Research background: Tax evasion is an urgent challenge for governments, as reaching sufficient level of tax revenues enable adequate sustainable economic development. The motivation for the research was thus the identification of the situation in the EU countries.
Purpose of the article: The main research objective was to identify the extent of tax evasion in the EU countries, with a subsequent specific focus on the econometric predictive models and a forecast of their future development in the case of Slovakia as the poorest performing country of the V4 in this area.
Methods: The research was primarily based on testing selected statistical indicators in the field of tax evasions expressed on the basis of the VAT gap. The data for the research was obtained from the EUROSTAT database and the international system VIES for the period between 2000 and 2017. In addition to panel graphs, the research hypotheses were tested primarily using a cluster analysis, t-test, time series analysis, and an analysis of the time series trend with 4 basic models: linear trend, quadratic trend, growth curve model, and S-curve model. On the basis of the Mean Absolute Percentage Error (MAPE), the S-Curve model was selected as the determining model of predicting tax evasion.
Findings & value added: Based on the results of the cluster analysis, the EU countries were divided into five reference groups by the VAT gap value, using the VAT gap percentage share on the overall GDP value. The research also provides a unique methodological framework and a unique econometric model for predicting the future VAT gap in Slovakia as the poorest performing country of the V4 in this area, which is applicable to other V4 and EU countries. The research results also enable policy-makers in the EU countries and specifically also in Slovakia and other V4 countries to compare themselves explicitly with the reference countries of the EU in terms of tax evasion and subsequently adopt adequate measures to improve the effectiveness and performance in this field.
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Kowal, Anna, and Grzegorz Przekota. "VAT Efficiency—A Discussion on the VAT System in the European Union." Sustainability 13, no. 9 (April 23, 2021): 4768. http://dx.doi.org/10.3390/su13094768.
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The effectiveness of the tax system can be analysed in various ways. According to the authors one of manifestations of such effectiveness is resistance to tax evasion. This phenomenon is influenced by multiple factors, with few being the level of VAT rates and the number of rates in force in the country concerned. The aim of the considerations is therefore to analyse how the standard VAT rate as well as the number of rates affect the effectiveness of this tax. The research was based on a literature query in the field of value added tax in the European Union. In addition, the problem of tax evasion was indicated and the aggregated data on the size of the tax gap in the Member States were presented. Then, there are the results of the research for 27 European Union countries for 2011–2019. The efficiency of VAT collection was modelled using square function, determining the significance of the parameters of this function, as well as the value of abscissa, which made it possible to group the countries based on how they maintained the efficiency of VAT collection over the analysed period of time. The final part of the study concentrates on the relationship between the efficiency of tax collection and the amount of both the basic rate and the number of rates. The conclusions of the research are as follows: a tax system with a small number of reduced rates, and preferably with one relatively low standard rate, is the system least susceptible to tax fraud. The research also shows a positive correlation between the value of the basic VAT rate along with the number of preferential rates and the scale of the tax gap, i.e., in countries with a higher standard VAT rate and a greater number of preferential rates, the tax gap is greater. The study will enable further investigation into the strategy of determining the optimal VAT rate and the process of its unification. Proposed changes may contribute to increasing the efficiency of VAT administration in EU countries, reducing the shadow economy, tax fraud and positively influencing economic growth.
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Pomeranz, Dina. "No Taxation without Information: Deterrence and Self-Enforcement in the Value Added Tax." American Economic Review 105, no. 8 (August 1, 2015): 2539–69. http://dx.doi.org/10.1257/aer.20130393.
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Claims that the VAT facilitates tax enforcement by generating paper trails on transactions between firms contributed to widespread VAT adoption worldwide, but there is surprisingly little evidence. This paper analyzes the role of third-party information for VAT enforcement through two randomized experiments among over 400,000 Chilean firms. Announcing additional monitoring has less impact on transactions that are subject to a paper trail, indicating the paper trail's preventive deterrence effect. This leads to strong enforcement spillovers up the VAT chain. These findings confirm that when taking evasion into account, significant differences emerge between otherwise equivalent forms of taxation. (JEL D83, H25, H26, K34, O17)
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Alla, Mikel. "Characteristics of the VAT in Albania." European Journal of Social Sciences Education and Research 1, no. 1 (May 1, 2014): 228. http://dx.doi.org/10.26417/ejser.v1i1.p228-233.
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The value added tax (taxe sur la valeur ajoutee - TVA) was "invented" by a finance expert of France called "Maurice Laure" (1917-20 April 2001). The system of "Laure" is designed to April 10, 1954. He "invented" a tax on consumption, which was called the VAT (TVA). His idea was quickly adopted because it compels taxpayers at all levels of the production process, for self-management and self-calculating the tax, instead of putting the burden on sellers, or the tax authorities make the tax assessments. The tax legislation for the VAT in Albania has changed constantly . The VAT in Albania is regulated by the Law No. 7928 dated 27.04.1995 "On the VAT" . This law was amended to date from about 30 other laws . in the design of the fiscal policy of Albania , are taken into consideration the behavior of taxpayers and their ability to the tax evasion . Albanian state is trying to harmonize the fiscal legislation with those of the other countries of the European Union. This paper aims to show the main characteristics of the VAT in Albania . At the end of this paper, I will give my conclusions of the issue .
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van der Zee, Kirsten, Nicole Vellios, Corné van Walbeek, and Hana Ross. "The illicit cigarette market in six South African townships." Tobacco Control 29, Suppl 4 (March 11, 2020): s267—s274. http://dx.doi.org/10.1136/tobaccocontrol-2019-055136.
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BackgroundWe estimate the size of the illicit cigarette market in low socioeconomic areas in South Africa before and after a tax increase. In 2018, the real excise tax increased by 3% and the value-added tax (VAT) rate increased from 14% to 15%. Thus, the real tax on cigarettes increased by 4%.MethodsA total of 2427 smokers were interviewed over two rounds of data collection (1234 before the tax increase and 1193 after). Data were collected in six townships across four of South Africa’s nine provinces. Smokers were asked about their most recent cigarette purchase. Cigarettes purchased for R1 (US$0.08) or less per stick are presumed illicit, based on a threshold price, which includes production costs and taxes.ResultsIn 2017 and 2018 respectively, 34.6% and 36.4% of smokers in the sample purchased illicit cigarettes. The increase in the proportion of illicit purchases was not statistically significant. Smokers with relatively low socioeconomic status, those who have low levels of education and those who are older or unemployed are most likely to purchase illicit cigarettes.ConclusionsThe illicit cigarette trade in South African townships is widespread. The government should implement an independent track and trace system to curb tax evasion. This would reduce the availability of illicit cigarettes, improve public health and increase excise tax collection.
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NAZARENKO, Y. A. "TAX ON THE WITHDRAWAL OF CAPITAL AS A MECHANISM TO INCREASE THE CAPITALIZATION LEVEL OF ENTERPRISES." Economic innovations 21, no. 2(71) (June 20, 2019): 83–90. http://dx.doi.org/10.31520/ei.2019.21.2(71).83-90.
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Topicality. Increasing the level of capitalization of the economy is of strategic importance for Ukraine, since market transformation in Ukraine is inherently capitalization of the economy. All this necessitates further investigation of the mechanisms of capitalization of enterprises, including tax mechanisms.Aim and tasks. Analyze tax on the withdrawal of capital and experience of its use in Estonia, identify its benefits and potential risks, propose improvements to its legislative support.Research results. The corporate income tax system is designed in such a way that dividends can be paid even if no profit is received. In the future, these dividends derived from one of the schemes are deposited on offshore accounts. According to conservative estimates of experts of the Institute for Social and Economic Transformation, the losses of the budget of Ukraine from offshore schemes amount to UAH 50-65 billion a year. The chances of tax evasion are great. Large Ukrainian companies, with the help of auditors, can reduce their tax burden from 18% to 3-4%. The main disadvantages of the income tax collection system are the discretion of the administration (the decision-making power of the officials at its discretion) and corruption. Many experts and businessmen see the solution to this problem by replacing the income tax with tax on the withdrawal of capital. This will ensure that business profits are not taxed as long as they are not paid out to the owners in the form of dividends and equivalent payments, that is, they are not taken out of business. Estimates of the negative short-term impact on budget revenues differ. The most optimistic estimates range from 0.5% to 1.2-1.3% of GDP. It is likely that the use of capital deduction will lead to a decrease in tax revenues, but such a sharp fall as the situation in Estonia in Ukraine is not likely to be, since the new tax will be paid by "loss-making" enterprises, and the operations used today for tax evasion will be taxed. Estimates of the negative short-term impact on budget revenues differ. The most optimistic estimates range from 0.5% to 1.2-1.3% of GDP. It is likely that the use of tax on the withdrawal of capital will lead to a decrease in tax revenues, but such a sharp fall as the situation in Estonia in Ukraine is not likely to be, since the new tax will be paid by "loss-making" enterprises, and the operations used today for tax evasion will be taxed.Analysis of the draft Law of Ukraine on tax on the withdrawal of capital allows to determine a number of proposals for its improvement in the part of enterprises that have accumulated losses in the amount exceeding their own capital or in the amount of UAH 100 million; exemption from tax on interest on the deposit, if they remain on it; defining the norms of the shortage that the enterprise can attribute to the property provided free of charge; deviation of the contractual value of the taxpayer's property upwards or downwards from ordinary prices; the unification of the tax rate on the withdrawal of capital with the tax rate on personal income.Conclusion. Tax on the withdrawal of capital forms a self-regulating economic system, that is, if dividends are not paid and invested in the development of an enterprise, then production increases, which in turn leads to an increase in value added tax and wage tax. The introduction of this tax will provide a number of positive consequences: growth of business activity, acceleration of modernization of enterprises, redistribution of the tax burden on all taxpayers, reduction of the tax burden; simplification of control and simplification of tax accounting, reduction of methods of tax minimization, shadowing of the economy.
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Olufemi, ASAOLU Taiwo, OLABISI Jayeola, AKINBODE Sakiru Oladele, and ALEBIOSU Omolabake Naimot. "Tax Revenue and Economic Growth in Nigeria." Scholedge International Journal of Management & Development ISSN 2394-3378 5, no. 7 (October 2, 2018): 72. http://dx.doi.org/10.19085/journal.sijmd050701.
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<p>The study examined the relationship between tax revenue and economic growth in Nigeria. The study adopted a descriptive and historical research design; secondary data for twenty-two years (1994 -2015) were collected from various issues of the Central Bank of Nigeria (CBN) statistical bulletin and annual reports. Tax revenue as an independent variable was measured with Value Added Tax (VAT); Petroleum Profit Tax (PPT); Company Income Tax (CIT) and Custom and Excise Duties (CED) while the dependent variable was Economic Growth (EG) proxied by the Gross Domestic Product (GDP). Analysis was performed on data collected using Auto Regressive Distributed Lag (ARDL) Regression and other post estimations (Jarque-Bera test; Breusch-Godfrey LM and Ramsey Reset Test) to determine the existence of relationship between the variables. The results of the study showed that VAT and CED had a significant relationships with economic growth (p<0.05), while CIT has negative significant relationship with economic growth (P<0.05). However, PPT had no significant relationship with economic growth. The study concluded that the role of taxation in nation’s building is irreplaceable. Taxation remains a strong socio political and economic tool for economic prosperity. It is therefore recommended that government should engage in a complete re-organization of tax administrative machinery to reduce incidence of tax evasion and avoidance to the barest minimum in order to improve tax revenue and bring more people and establishments into the tax net. Also, tax revenue should be judiciously utilized to provide enabling environment for business survival and economic growth in Nigeria.</p>
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Souza, Francisco Santana de. "ICMS tributary administration." Revista Ibero-Americana de Estratégia 3, no. 1 (December 12, 2007): 35–44. http://dx.doi.org/10.5585/ijsm.v3i1.49.
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This work aims to analyze the essential tools for the management of the ICMS (Value-Added Tax on Sales and Services). It was developed a calculation procedure of this tax which permits to demonstrate the importance of correctly perform fiscal and accounting entries. In order to demonstrate this calculation procedure, it was used Financial Mathematics concepts of simple interest and simple trade discount together with article 33, 1989 of ICMS Law of the State of São Paulo. It was concluded that it is essential to have a precise ICMS tributary administration, in order to firstly avoid contentious administrative tributary which would imply additional and unnecessary costs to the organization and secondly to use tax evasion correctly in order to avoid excessive taxes payment. Thus, the appropriate use of both instruments will reflect into a positive cash flow for the organization.
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Kazemier, Brugt, Michel van Veen, and Sander IJmker. "The unobserved economy and the Dutch national accounts after the benchmark revision 2015." Central European Economic Journal 6, no. 53 (December 23, 2019): 1–24. http://dx.doi.org/10.2478/ceej-2019-0002.
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AbstractIn 2018, Statistics Netherlands carried out a general benchmark revision of their national accounts statistics. The base year was 2015. Special attention was paid to the exhaustiveness of the estimates. Among other, these include estimates for illegal activities and tax evasion. In the first step, the main (illegal and off the record) activities that were not included in the regular data sources underlying the national accounts were identified. In the second step, estimates were made for each identified activity, based on the scarce information data sources available, supplemented with assumptions. This paper describes the second step. The value added of illegal activities in 2015 was estimated at 4.8 billion euros, which is 0.7% of gross domestic product (GDP). The explicit adjustment for tax evasion was about 3.9 billion euros, which is slightly <0.6% of GDP.
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Martynenko, Valentyna. "Scenario approach in forecasting tax revenues of the state budget of Ukraine." Economics ecology socium 3, no. 3 (September 30, 2019): 27–34. http://dx.doi.org/10.31520/2616-7107/2019.3.3-4.
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Introduction. State revenue management stands first in the areas of government regulation, which is provided by the regulation of fiscal policy. It is achieved by optimizing the amount of nationwide taxes and their tax rates, with the least amount of tax evasion. It is also important to ensure the implementation of the budget process, which is based on budget planning and forecasting, the effectiveness criterion of which is the reliability of the forecast. The compulsory component of extrapolation of time series – the most used forecasting method – is the scenario approach, so the research of possibilities of its implementation is relevant.
Aim and tasks. The aim of the article is to introduce a scenario approach in forecasting tax revenues of the state budget of Ukraine. The main tasks set to achieve this aim are: modeling the dependence of tax revenues on macroeconomic indicators; trend analysis and extrapolation of time series of macroeconomic indicators; development of forecast scenarios of state budget revenues from state taxes.
Results. It is proved that comprehensive stimulation of the production of gross value added, especially in the sphere of material production, as a basis for economic growth, will have a positive impact on the growth of output of goods and services, as well as will provide an increase in the revenues from value added tax (VAT) and excise tax to the state budget. Provision at the state level of further growth of the minimum wage and the deployment of social programs, as well as stimulating the legalization of shadow incomes of individuals in order to stimulate incomes of the population will lead to revenue increase from the personal income tax to the state budget. Creating favorable conditions for doing business by creating a business environment free from corruption, legalizing the shadow income of legal entities in order to maximize the profit of gross profit, mixed income will lead to an increase in corporate income tax revenues and subsoil use fee to the state budget of Ukraine.
Conclusions. Over the next 5 years, aggregate tax revenues to the state budget will increase, regardless of the forecast scenario. The largest contribution to tax revenue growth can be provided by excise tax. The dynamics of the remaining taxes will also be increasing. Because the extrapolation of time series and scenario analysis are applied and universal methods of forecasting, they can be used in forecasting tax revenues of both consolidated and local budgets of Ukraine. Prospects for further research of the author will be relevant to these areas.
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Bidabad, Bijan. "Money laundering detection system (MLD) (a complementary system of Rastin banking)." Journal of Money Laundering Control 20, no. 4 (October 2, 2017): 354–66. http://dx.doi.org/10.1108/jmlc-04-2016-0016.
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Purpose This paper aims to define a new system for detecting money-laundering activities by comparing tax payments (especially value-added tax) data to banking transactions data. Design/methodology/approach A money laundering detection (MLD) system provides the necessary bases for detecting deception and fraud. Though MLD is a complementary system of the Rastin Banking system, it can also be installed and executed separately. Findings The underground economic activities can be detected and traced by comparing banking information and transaction information in MLD system. It needs to force the direct transactors or other related forms of transaction to perform their money operations through the banks. In the next step, the tax information of transactors (in a chain of transactions) can be compared with them, and the incompatibility of the two sets of data will explore money-laundering operations. Research limitations/implications This system is novel and needs to be more elaborate to remove further practical problems and specific cases. Practical implications MLD system provides necessary protection for those who perform legal economic activities by detecting financial criminals. Social implications Money laundering harms individual and public rights as well as economies. Financial crimes, tax evasion, smuggling, conspiracy, embezzlement and various other offences are included in the general definition of money laundering, so detecting them will lead to important economic improvements in the society as well as international community. Originality/value MLD system provides structural and electronic bases for computerized tax data and banking data comparison.
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Sejkora, Frantisek, and Martina Mlazovsky. "The Perceptions of Entrepreneurs on the Registration of Sales in Czech Republic." SHS Web of Conferences 92 (2021): 02056. http://dx.doi.org/10.1051/shsconf/20219202056.
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Research background: Compliance with tax laws can be considered a global problem facing all tax administrations to a greater or lesser extent. Individuals take various steps to minimize tax liability, which is rational economic behavior. If the tax liability is minimized as part of an individual’s infringement, it is tax evasion. Many countries have begun to implement various tools using advanced technologies to address these leaks. Especially in European countries, there has recently been a trend in preventing sales cuts by introducing a sales registration system. Purpose of the article: Electronic registration of sales is a relatively new project in the Czech Republic. The main reasons for the introduction of electronic sales records were better tax collection and also the leveling of the market environment by reducing the share of the gray economy. The aim of the article is to analyze the perception of entrepreneurs to this new tool on the basis of a questionnaire survey. The research was carried out in the area of “Accommodation, food and beverage service activities”. This sector is considered to be one of the most problematic due to the presence of the shadow economy and is also one of the most important sectors in terms of the number of business entities. Methods: The data were analyzed by the chi-square test of independence and descriptive statistics. Findings & Value added: The results show a negative attitude of entrepreneurs to this new tool.
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Volosovych, Svitlana, and Yurii Baraniuk. "Tax control of cryptocurrency transactions in Ukraine." Banks and Bank Systems 13, no. 2 (June 23, 2018): 89–106. http://dx.doi.org/10.21511/bbs.13(2).2018.08.
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The current global financial market is witnessing the activation of cryptocurrency as a payment instrument and a means of accumulation. However, the risks of money laundering, terrorism financing and tax evasion that cryptocurrency transactions imply lead to the need to implement their state regulation, an important component of which is tax control.Therefore, the purpose of the article is to substantiate the value orientations when forming the system of cryptocurrency transactions tax control in Ukraine taking the positive experience of developed countries into account. The scientific results of the study consist in the emphasizing structural, functional, systemic and institutional approaches to understanding tax control, which became the basis for identifying the features of cryptocurrency transactions as a tax control object.It was revealed that the lack of personalization of the agreement parties, the relatively high level of information security, free international turnover and a decentralized payment system are the factors of the cryptocurrency market further development. On the other hand, this leads to the loss of tax revenues for Ukrainian budgetary system, taking into account the forecasted trends in the development of the cryptocurrency market by 2022 through methods of sums, least squares and expert estimates. Given the institutional approach to the understanding of tax control, an institutional structure of the cryptocurrency transactions tax control in Ukraine is proposed.It is established that domestic state institutions are able to carry out tax control over these transactions. It is also determined that introducing fiscal control will result in the receipt of additional revenues by budgets, reduction of shadow economy, counteraction to cybercrime and terrorism financing.The practical importance of the results is in the need to form an effective system of cryptocurrency transactions tax control as a function of public administration.It has been determined that transactions on cryptocurrency supply, on the determining exchange rates and transactions on cryptocurrency disposal should be an object of tax control in Ukraine. Mining transactions, receipt of income (profits) in the cryptocurrency are subject to general taxes, depending on the taxpayer’s legal status, in particular, personal income tax, corporate income tax and a unified social tax (UST). Taking into account the EU recommendations on the non-application of value added tax in the cryptocurrency transactions taxation, it is not appropriate to implement it in this area. Establishing tax control over cryptocurrency transactions will expand the powers of state authorities that are empowered to control observing financial discipline by economic agents in Ukraine and the financial capabilities of state and local budgets.
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Xhango, Edvin. "Description of Fiscal Legislation and Changes in Years in Albania." European Journal of Economics and Business Studies 4, no. 1 (April 30, 2016): 91. http://dx.doi.org/10.26417/ejes.v4i1.p91-96.
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The development of the appropriate tax law was very important but also very difficult for countries coming from a centrally planned economy. In this paper, the author discusses the framework of tax law drafted from 1993 until 2014. In the study we present as the legislation has changed in these years and have influenced legal solutions to improve business data; thus affecting the development of the economy. We have identified legal definitions that provide the right solutions for business as well as for the economy of the state. We have selected the popular items and the articles that encourage business to develop informal economy. For this study is the ratio of Value Added Tax and Income tax on gross domestic product, which from 1998 until 2014 is almost the same. Noting that Albania is the country with the size of informal economy 34-47%, the result is about the legal framework of deficiencies. Given the above results, we have studying business interests to develop the informal economy. For this aid comes in the study of Busato and Chiarini, 2004, by which it can be determined the cost of product development business to the informal economy. Calculations showed that the cost of the development of the informal sector is much lower than the fiscal burden. Based on the results we conclude that the legal framework needed to improved in terms of avoidance of tax evasion opportunities as recognition of all invoiced costs, increasing penalties for not declaring the income and improve the work of the tax administration.
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Bechko, P. К., V. Р. Bechko, N. V. Lysa, and T. V. Shumylo. "The efficiency of the tax system and areas for improvement." Collected Works of Uman National University of Horticulture 2, no. 97 (December 28, 2020): 287–98. http://dx.doi.org/10.31395/2415-8240-2020-97-2-287-298.
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Market conditions, deepening of European integration processes have significantly affected the functioning of the national economy and the current tax system. The main source of state revenue are taxes, which form the budgets of all levels. At the same time, the numerous reforms of the tax system are ineffective due to imperfect tax legislation and inefficient mechanisms of administration of taxes and fees. economic objects of all organizational and legal forms of the national economy. In recent decades, there has been an increased interest of scientists in solving problems of building a domestic effective model of the tax system. First of all, this is due to the fact that the development of the tax system provides a strategic direction of development of the country, contributes to the effectiveness of innovation and investment model of economic growth of the national economy. one of the important prerequisites for improving the economic situation in the country, as taxes are used by the state not only for fiscal purposes, but also serve as the main lever of economic development. The purpose of the study is to highlight current issues and areas of improvement of the tax system of Ukraine in terms of its effectiveness, able to ensure fair taxation. Important importance is attached to the effective use of transfer pricing mechanisms — an algorithm of actions of the State Tax Service to improve control over transfer pricing has been developed and approved. Given this, the tax burden on taxpayers is significantly reduced by fiscal authorities spending less time on the administration of taxes and fees. Analyzing the above, we can conclude that today the problem of reforming the tax system of Ukraine in order to fill the budgets of all levels with taxes and fees. Adherence to the principle of fairness in taxation is important. In today's reality, the largest share of taxes is paid by the final consumer in the administration of indirect taxes in particular: value added tax and excise tax. Requires a review of the base and rates of collection of resource taxes and payments. The shadow sector of the economy occupies a prominent place in the structure of GDP. The application of tax minimization schemes has a negative impact on the national economy. In view of this, tax evasion schemes should be minimized at the state level.
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Phillips, Emir. "Tax Reform Consequent upon an Embedded Single-Rate Vat Just Might Prevent Injustice While Revivifying a Geriatric Uncle Sam." Journal of Public Management Research 1, no. 1 (August 24, 2015): 1. http://dx.doi.org/10.5296/jpmr.v1i1.7710.
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<p class="1"><span lang="EN-US">Economists and legislators have proposed many theories and plans for overhauling the corporate tax system (and the U.S. tax system as a whole); however, this Article argues that any viable proposal should begin with the enactment of a value added tax (VAT).</span></p><p class="1"><span lang="EN-US">As a result of the IRC's unworkably complex corporate section, the United States economy has been hindered by high compliance costs and the loss of business overseas. Overall, a substantial federal VAT is the best option in terms of compliance and administration costs as well as reducing opportunities for federal tax evasion. But merely placing a VAT on top of the existing system would merely send us in reverse by further increasing the variable and substantial fixed costs of administration and compliance. A mere changing of the marginal rates or deduction rules would be insufficient to deal with the systematic problem caused by the yawning federal deficit and the arcane IRC. A VAT rate set too low would impose substantial costs per dollar of additional revenue. Thus, Congress should enact either a federal VAT (15%) capable of significantly reducing the federal deficit or none at all.</span></p>
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Zawadzka, Danuta. "VALUE ADDED TAX EVASION – IDENTYFYING THE CAUSES OF PHENOMENON IN POLAND AND DETERMINIG THE EFFECTS OF ITS OCCURANCE." Zeszyty Naukowe Uniwersytetu Szczecińskiego Finanse Rynki Finansowe Ubezpieczenia 87 (2017): 41–51. http://dx.doi.org/10.18276/frfu.2017.3.87/2-04.
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Zawadzka, Danuta. "VALUE ADDED TAX EVASION – IDENTYFYING THE CAUSES OF PHENOMENON IN POLAND AND DETERMINIG THE EFFECTS OF ITS OCCURANCE." Zeszyty Naukowe Uniwersytetu Szczecińskiego Finanse Rynki Finansowe Ubezpieczenia 87 (2017): 41–51. http://dx.doi.org/10.18276/frfu.2017.87/2-04.
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Harelimana, Jean Bosco, and Patrick Gayawira. "Impact of electronic billing machine (ebm) on vat compliance among small and medium sized -enterprises in rwanda." Journal of Management and Science 10, no. 1 (February 20, 2020): 87–109. http://dx.doi.org/10.26524/jms.2020.9.
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This study aimed at assessing the impact of Electronic billing machine on VAT compliance on Small and Medium -Size Enterprises in Rwanda. The main challenge in the administration of Value Added Tax (VAT) in many countries, has mainly been tax evasion by non-issuance of tax invoices especially by small to medium taxpayers. Electronic Billing Machines (EBMs) enable revenue authorities to monitor formal business transactions and thus offer the potential to improve VAT compliance, however , because firms can choose not to issue receipts or issue false receipts, EBMs have limited benefits to VAT collections. Descriptive method was used to collect data, data gathered was analyzed, interpreted and presented. A sample size of 159 people grouped into Medium taxpayers, Small taxpayers and staff of RRA Musanze station was randomly selected from a population of 709 VAT registered taxpayers located in Tax centre of Musanze. Primary and secondary data was used in this research. Given the findings of this study, there is positive relationship between the adoption of mandatory usage of EBMs and VAT compliance indicators with a correlation coefficient of 0.586 . It was established that after the adoption of EBMs, late filing and non-filing rate of VAT has reduced by 14% and 20% respectively, timely payment of VAT liabilities has increased by 20%, reporting of sales has increased by 737 %, VAT collections were increased by 732 % and voluntary VAT registration has increased by 346 %. To improve VAT compliance through EBMs. RRA is recommended to come up with plan integrating EBMs within broader tax compliance frameworks that create the environment which will best ensure taxpayers’ voluntarily compliance.
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Sęk, Małgorzata. "Informal Economy and VAT." Kwartalnik Prawa Podatkowego, no. 1 (March 30, 2017): 37–49. http://dx.doi.org/10.18778/1509-877x.01.03.
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The aim of this paper is to discuss the interconnections between informal economy and Value Added Tax (VAT), as well as measures applied in the European Union (EU) Member States and other countries to counter VAT evasion and VAT fraud related to informal economy. It is shown in the article, that VAT and informal economy are strongly interconnected. VAT may be the cause for growth of the informal economy. But on the other hand, some VAT-related measures may be introduced to reduce or at least stop further growth of informal economy. Examples of such measures conclude the findings.