Search results

The purpose of this paper is to explore the association between tax evasion and financial instability. The discussion also examines the effects of tax evasion for financial instability.

This paper is an exploratory study on the effect of tax evasion on financial instability

The paper shows that tax evasion can reduce the tax revenue available to governments to manage the economy and can weaken the government’s ability to promote stability in financial systems, whereas on the contrary, taxpayers who evade taxes feel they can use the evaded tax money to rather improve their own financial stability.

This paper presents the first attempt to carefully examine the association between tax evasion and financial instability.

This paper aims to examine the impact of carbon emissions (carbon dioxide [CO₂]) reduction on tax evasion behaviour.

This study uses data from 200 countries from 2000 to 2017. The empirical analysis is based on various methodological tools, including ordinary least-squares model, fixed- and random-effects models. In addition, GMM and linear mixed model has been used for robustness purposes.

The results show that carbon emissions reduction significantly affects tax evasion behaviour; when carbon emissions decrease, tax evasion behaviour increases. This indicates that the reduction of CO₂ emissions is linked to significant costs, placing a financial burden on companies and leading them to evade taxes to counterbalance these costs.

This study has important implications, as it highlights that the efforts made by countries to minimize CO₂ emissions are associated with high costs and may lead to increased tax evasion, potentially contributing to countries’ budget deficits. The results provide valuable insights for policymakers and stakeholders to implement effective environmental and fiscal regulations that contribute to a sustainable and eco-friendly future. These regulations can help maintain a balance between improving economic growth and ensuring the protection of the environment.

To the best of the authors’ knowledge, this is the first paper to test the impact of carbon emissions on tax evasion using macro-level data.

This paper aims to bring into surface two major socioeconomic problems of Greece, tax evasion and shadow economy.

It examines the determinants and the factors that led to the formation and expansion of tax evasion and subsequently of black economy. Empirical data and related research are used to provide a clearer view of the existing situation.

Tax evasion and shadow economy are proved to remain two of the most severe problems that torture Greek economy. The factors that contribute the most to the formation of these phenomena are the lack of tax awareness, the tax burden, the structure of the tax system, the role of the state, the level of approvement of public authority, self-employment, unemployment and the level of organization of the economy. Except from the negative characteristics, positive ones are also identified, and certain policies are suggested so as to combat tax evasion and black economy.

The paper highlights two major issues that constitute the deadly weakness of the Greek economy, providing a holistic view of the current situation, identifying the roots of the problem and suggesting specific measures.

This paper aims to examine the Nigeria’s approach for tackling tax evasion, the limitations of double tax conventions for that purpose, the benefits of multilateral instruments/standards for automatic exchange of tax information and Nigeria’s ability to participate in such arrangements.

This paper is a library-based research, deploying content analysis with respect to books, law reports, law journals and newspapers.

Nigeria has taken significant steps to deal with domestic tax evasion by tightening anti-money laundering legislation, principally by making tax evasion a predicate offence and by imposing relating reporting obligations on financial institutions and a wide range of designated non financial institutions (DNFI's), but cross-border tax evasion remains a big problem owing to a limited network of double tax conventions (DTCs) and inherent limitations of the machinery in limiting exchange of information to distinct requests. Nigeria’s ability to benefit from new international standards providing for automatic exchange is compromised by the absence of robust rules with respect to taxpayer confidentiality and data protection.

Because the research focused on Nigeria, the findings of the study might not be applicable to other jurisdictions.

Given the devastating effects of tax evasion on development in Nigeria and the priority accorded to the eradication of the problem in the sustainable development goals, this paper meets a need to determine the extent of sufficiency of Nigeria’s legal and regulatory framework in enabling the country to tackle tax evasion.

The purpose of this study is to investigate the relationship between tax evasion and certain demographic factors such as location, engagement of tax agent, size and type of small- and medium-sized enterprises (SMEs) industry in Malaysia.

In this study, using proprietary tax audit data from the Inland Revenue Board of Malaysia (IRBM) on the 2011 tax returns of SMEs, the authors run a multiple regression analysis to examine the impact of location, agent, type of industry, size of enterprise and type of tax evasion on SMEs’ tax evasion in Malaysia.

The authors find that tax evasion among SMEs in Malaysia is the highest when the business is located in a suburban environment and has no tax agent. Tax evasion is also influenced by the size of the SME (micro or medium).

This study gives insight that the IRBM can use to aid its collection department in profiling SMEs that have a higher tendency to evade paying tax.

This study aims to evaluate effects of tax system reforms on tax obstacles to investment in Egypt and tax evasion. It also aims to analyze differences in burden of tax obstacles and extent of tax evasion among different types of enterprises after applying tax reforms.

The study uses data from Productivity and Investment Climate Surveys 2004 and 2008. A number of indices are constructed to measure incidence and severity of tax obstacles. Two indicators are constructed to estimate incidence and extent of tax evasion. The study adopts a descriptive analytical comparative approach to evaluate changes and differences in severity of tax obstacles, and their effects.

The results obtained show that tax reforms have resulted in a significant decrease in severity of tax obstacles. However, they are still major obstacles. The overall decrease hides differences in the burden of these obstacles. Reforms were not enough to address needs of small enterprises. The extent of tax evasion decreased. However, it is still a problem as tax obstacles are still major obstacles.

There is a need for more detailed data about problems enterprises face in each phase of interaction with tax administrators and managers’ suggested solutions.

The study evaluates the actual effects of a major economic reform, on the microeconomic level during an important period rather than exploring enterprises’ expectations. The results show that there is a need for more reforms targeting small enterprises.

The purpose of this study is to evaluate the influence of justice, culture and love of money on ethical perceptions about tax evasion. As well as gender will strengthen the influence of justice, culture and love of money on ethical perceptions about tax evasion.

The primary data were collected and analyzed using a popular component-based model called partial least square (PLS). PLS consists of two sub-models, measurement model or outer model and structural model or inner model. The measurement model shows how real or observable variables are latent variables to be measured. While the structural model shows the level of estimation between latent or construct variables.

The statistical analysis showed that neither the coefficient of gender (moderating variable) nor the interaction between gender and the exogenous variable are significant. Solimun (2010) explained that such moderating variable is called homologizer moderation (potential moderation). Homologizer moderation refers to variable that may potentially become a moderating variable influencing relationship between predictor (exogenous) and dependant variable (endogenous). This variable has no interaction with predictors or can be said to be insignificant on the dependent variable. In this study, gender is a potential moderating variable (homologizer moderation). Gender can potentially become a moderating variable influencing relationship between justice, culture and love of money and ethical perception on tax evasion. Gender does not have interaction with justice, culture and love of money or significant influence toward ethical perception on tax evasion.

There are very few studies on tax evasion from an ethical point of view so this study is not only important but also interesting because it shows that tax evasion is a classic problem taking place in nearly all countries that apply taxation system; cultural difference results in different views on ethical perceptions on tax evasion (Basri, 2015); this study uses the local wisdom of Balinese people, namely, Tri Hita Karana and thus, this study becomes relatively new; justice is one of the non-economic variables of tax compliance behavior (Darmawan, 2012), so that the researcher is interested in conducting further research on the effect of justice toward ethical perception on tax evasion; there are very few studies discussing love of money (Hnisz et al., 2013); therefore, research on the effect of love of money toward ethical perception on tax evasion is of necessity and the findings of previous studies that are inconsistent. The researcher predicted that there are contingency factors that influence the relationship between justice, culture and love of money toward ethical perceptions on tax evasion. As suggested by Baridwan (2012), gender, the moderating variable in this study, refers to masculine and feminine character as a dimension of social culture; this study is carried out in the Tax Service Office (KPP Pratama) of Badung Utara because during the 2015 tax year, KPP Pratama Badung Utara was one of the KPPs in Bali DGT Regional Office which experienced a decline in realization of revenues and a sharp decline in growth.

The purpose of this study is to examine Christian views on the ethics of tax evasion.

To achieve this objective, data were gathered from the most recent World Values Survey, which included 60 countries. The sample size exceeded 30,000. Various demographic variables were also examined, such as gender, age, marital status, education level, income level, social class, position on the political spectrum and others.

This study found that although there was widespread opposition to tax evasion, it could be justified sometimes. Not all Christian sects had the same view of tax evasion. Some sects were less severe in their opposition than others. This study ranked the various sects from least to most opposed.

The present study expands the religions literature by showing that differing Christian sects have opinions on the ethics of tax evasion that differ significantly, and that it cannot be said categorically that the more conservative Christian sects are either more opposed or less opposed to tax evasion than are the liberal or moderate sects.

This paper aims to use an econometric model to estimate tax evasion from the size of the underground economy and examined the factors that trigger it.

The study used time series data sourced from world development indicators and Bank of Ghana covering the period 1990-2015 to estimate tax evasion from the underground economy using an autoregressive distributed lag model drawing on the currency demand approach.

The results confirmed the existence of a large underground economy and a high incidence of tax evasion in Ghana. The Ghanaian situation has been aggravated by an underground economy-triggering factor of mobile money activities, which increased by 83.1 per cent in 2015. Tax evasion averaged 20.78 per cent of GDP over the period. The study, thus, concludes that the increased number of mobile money activities, high tax burden and unemployment contribute to the worsening of the tax evasion problem in Ghana.

The study is one of the premier attempts to introduce electricity power consumption variables in the currency demand model to estimate tax evasion from the size of the underground economy. The authors hypothesize that the emergence of mobile money activities in its current form triggers underground and tax-evading activities. The study, thus, calls for the formalization and regulation of the operations of mobile money activities in emerging economies as a way of managing the underground economy, which incubates tax evasion.

The purpose of this study is to examine the impact of public governance quality on tax evasion levels in old (pre-2004) and new (post-2004) European Union (EU) members before and after the 2004 EU-enlargement.

This study uses panel data of 28 EU countries over the period 1996-2015. Tax evasion is measured using an updated version of the shadow economy size based on the light intensity, as calculated by (Medina and Schneider, 2018). The World Bank’s worldwide governance indicators are used as a measure of public governance.

The results indicate that new EU members have higher tax evasion levels compared to the old ones before and after the 2004 EU enlargement. The findings also report that the public governance quality is superior in old members throughout the 1996-2015 period. Furthermore, the authors found that after the EU enlargement, tax evasion levels decreased in both EU groups; however, the authors noticed an improvement in the public governance quality in new members and a deterioration in old ones. Additional analysis confirms the impact of public governance quality as an effective tool for reducing tax evasion behavior in both EU groups before and after the EU enlargement.

The findings are potentially useful for EU policymakers in identifying the most effective tools that can minimize tax evasion levels in EU countries. Additionally, the results are alarming as they show the negative consequences of the EU enlargement in old EU members. Thus, policymakers should consider them when setting their rules and regulations to reduce the significant differences between both EU groups to prevent member states from potentially exiting the EU.

To the best of the knowledge, this is the first study that examines the tax evasion behavior and public governance quality in the EU before and after the EU enlargement.