The aim of this contribution is to quantify the influence of selected methods on elimination of value added tax gap in the Czech Republic within the researched period 2015-2016. To find a possible share of influence of the VAT control statement on tax fraud following priority methods were set:...

Although naming-and-shaming (shaming) is a commonly used tax enforcement mechanism, little is known about the efficacy of shaming tax evaders. Through two experiments, this study examines the effects of shaming tax evaders on third-party observers’ perceptions of retributive justice and tax...

This theoretical paper studies the relation between tax audits and labour market outcomes (job creation and unemployment) in an economy that contemplates penalties for firms that evade taxes and rewards for firms that comply with tax rules. Intuitively, the simultaneous presence of penalty and...

We consider income-source-dependent tax evasion and show that this is a generalization of the well-known endowment effect. We show that loss aversion, moral costs, mental accounting, and risk preferences play a key role in explaining key features of source-dependent tax evasion. We provide...

The digitalization of transaction processes through tools such as electronic invoicing (e-invoicing) aims to improve tax compliance and reduce administrative costs. Another important aspect of digitalization is its potential to reduce tax evasion. We analyze the impact of the widely introduced...

This paper develops a simple model to explore whether a higher detection probability for offshore tax evaders-e.g., because of improved exchange of information between countries and/or due to digitalization of tax administrations-renders it optimal for governments to introduce a voluntary...

This Study contains Value Added Tax (VAT) Gap estimates for 2018, fast estimates using a simplified methodology for 2019, the year immediately preceding the analysis, and includes revised estimates for 2014-2017. It also includes the updated and extended results of the econometric analysis of...

This paper aims to identify the determinants of revenue underreporting and their temporal evolution from a business perspective in formal firms located in an emerging country with high inflation (Argentina). We propose a conceptual model and we estimate it empirically using a logistic regression...

In this paper I study whether citizens' tax morale (and, more broadly, citizens' attitudes towards the state) can be affected by past institutions, focusing on the role of historical fiscal capacity. Exploiting the features of the tax collection system of a pre-unification state in XIX Century...

This paper, the first of two on global oil theft and fraud, discusses the prevalence, methods, and consequences of global oil theft, valued at US$133 billion per year and equivalent to 5-7 per cent of the global market for crude oil and petroleum fuels. However, the impact of oil theft is...

This paper investigates the effect of electronic payments technology on firms’ tax compliance in a large developing economy. We consider India’s demonetization policy which, by limiting the availability of cash, led to a large increase in the use of electronic forms of payments. Using...

We consider the regulation of a monopoly facing consumers that may evade payments, an important issue in public utilities. To maximize total surplus, the regulator sets the price and socially costly transfers, ensuring that the monopoly breaks-even. With costly effort, the firm can deter...

Educators worry that high-stakes testing will induce teachers and their students to focus only on the test and ignore other, untested aspects of knowledge. Some counter that although this may be true, knowing something is better than knowing nothing and many students would benefit even by...

In an environment with extensive corruption where much of the population evades paying their full taxes due, we tackle the question of optimal taxation when constituencies with opposing objectives (the poor and the rich) push tax policy in different directions. We think in terms of a government...

We explore cheating in a die roll task in response to information about tax evasion in a large-scale experiment on a representative sample of the Italian population. We thus generalise laboratory findings on conditional behaviours (cooperation, cheating) to uncover their real-world bearing in...

While it is well-recognized that there are differences in the trade values reported by exporters and importers, a literature has emerged linking this trade gap to tariff evasion. These efforts, however, lack a structural theoretic underpinning and limit their product-level investigations to a...

Ownership of real estate through corporations in offshore tax havens creates opportunities for tax evasion and money laundering and may have undesirable effects in housing markets. In this paper, we study offshore ownership of real estate in the United Kingdom by combining several data sources:...

While it is well-recognized that there are differences in the trade values reported by exporters and importers, a literature has emerged linking this trade gap to tariff evasion. These efforts, however, lack a structural theoretic underpinning and limit their product-level investigations to a...

Collaborative evasion of taxes and social security fees is prevalent in household services, when a household hires a service provider and no third party is involved. However, evidence on the determinants of collaborative tax evasion in general and the household context in particular is lacking....

This online appendix contains supplementary information for the article “Tax Evasion and Illicit Cigarettes in California: Prevalence and Demand-Side Correlates” by James E. Prieger, to be published in Crime, Law & Social Change

While there are various studies on the relationship between law enforcement and tax compliance, a study that empirically examines the relationship between them within an actual tax administration’s strategy map is lacking in the literature. In response, we set out to examine an identified...

Does political alignment affect tax evasion rates? Theoretically, a better attitude toward the government could lower motivation for tax evasion through the reciprocity concept in tax morale, and if political alignment is correlated with attitude toward government, then political alignment is...

In a July 2020 report, the Congressional Budget Office estimated that modest investments in the IRS would generate somewhere between $60 and $100 billion in additional revenue over a decade. This is qualitatively correct. But quantitatively, the revenue potential is much more significant than...

Business income is systematically underreported and accounts for a sizeable share of the US tax gap. In this paper, I examine the importance of tax evasion in the entrepreneurial sector for the effects of tax reforms. In particular, I analyze the long-run effects of switching from a progressive...

Should attorneys be punished for aiding and abetting tax evasion? The impulsive reply, as well as the politically correct answer, is “yes.” However, closer reflection reveals that the answer is not so cut and dried. This paper reviews the major ethical arguments that take the position that...

Several studies have examined the relationship between attitude toward tax evasion and social class. However, those studies were limited to a single country. The results have been mixed. In some cases, tax evasion was found to be more acceptable among members of the lower social classes. In...

The present study aimed to adopt the extended theory of planned behavior (TPB) to determine the intentions of owner-managers in SMEs towards engaging in sales tax compliance. The study distributed a total of 660 questionnaire copies through systematic random sampling to the mangers/owners of...

This second of two papers on global oil theft discusses ways to reduce oil theft, misappropriation, and fraud. At US$133 billion per year, oil is the largest stolen natural resource globally, while fuel is the most smuggled natural resource. Oil theft equates to 5-7 per cent of the global market...

This paper studies labour market tax avoidance in the 2010s in Hungary, following major labour market tax reforms in the beginning of the decade. First we show that aggregate time series are broadly consistent with a "whitening" process, in which a higher fraction of incomes are declared....

This study develops a computable general equilibrium model for Nigeria, which accounts for informality, tax evasion, and fuel smuggling. By studying the impact of fuel subsidy reform on consumption, tax incidence, and fiscal efficiency, it shows that the presence of illicit activities...

We investigate effects of tax reporting institutions on evasion and incidence using an experimental double auction market setting. We find that 28% of the sellers are truthful when only sellers report, but that 88% and 64% of them are truthful under costless and costly third-party reporting by...

Tax compliance has become a very popular academic research topic. Understandably so, as all modern societies face the challenge of limiting tax evasion and the losses this phenomenon causes to government revenues. Given the increase of duties in the aftermath of the economic downturn, increasing...

The study discusses issues of tax compliance in Russia. Special attention is devoted to the possibility of using the term “compliance” (“комплаенс” – in Russian) and the instruments of enforcing and encouraging law-abiding behavior by obliged persons, both natural and legal

We consider the regulation of a monopoly facing consumers that may evade payments, an important issue in public utilities. To maximize total surplus, the regulator sets the price and socially costly transfers, ensuring that the monopoly breaks-even. With costly effort, the firm can deter...

This paper analyzes the relationship between cash and tax evasion by studying the effects of two measures to fight evasion: accessing taxpayers’ banking data to check the consistency with reported income and discouraging the use of cash with thresholds on payments. We show that variation in...

Using two experiments, this study examines taxpayers' decisions on how much income to report in the presence of tax auditors and post-reporting tax advisers, respectively. In the first experiment, we examine taxpayers' compliance in the presence and absence of corrupt auditors. In the second...

We study the short-term effect of the introduction of the mandatory disclosure programme for aggressive tax arrangements by focusing on the one introduced in May 2018 under Council Directive 2018/288/EU (or DAC6). Employing bilateral data on cross-border deposits, we study the effect of this new...