Fighting Tax Evasion by Discouraging the Use of Cash?

Immordino, Giovanni; Russo, Francesco Flaviano

doi:10.1111/1475-5890.12160

Cited by 15 publications

(5 citation statements)

References 46 publications

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“…Regarding tax evasion, using 2002-2012 data from 25 European countries, Immordino & Russo (2018) found a negative relationship between the evasion rate of VAT and payments with debit and credit cards, thus showing that EPMs make evasion difficult. In an earlier study on the same topic, Immordino & Russo (2014) analyzed a collaborative tax evasion model where buyers and sellers negotiate a price discount for payment in cash in exchange for not issuing an invoice. Based on their results, a combination of two policy instruments could reduce tax evasion: a tax refund for the buyer requesting the invoice, and a tax on cash withdrawals.…”

Section: Informality and Electronic Payment Methods (Epms)mentioning

confidence: 99%

Firm informality during the COVID-19 crisis in Argentina: perception of commercial entrepreneurs and public accountants

Pedroni

2023

estud.gerenc.

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This article analyzes the impact of the COVID-19 crisis on the informality of Argentinian micro-, small-, and medium-sized enterprises based on the perception of commercial entrepreneurs and public accountants from Bahía Blanca (Argentina). Using primary data collected through semi-structured interviews, a qualitative content analysis was performed combining theory-oriented and data-based coding. Despite the widespread use of electronic payments, the findings suggest an increase in income underreporting and the number of unregistered companies, thus supporting the countercyclical behavior of the informal sector during that crisis. The article contributes to a better understanding of informality through a microeconomic-qualitative approach by integrating the perspective of two different actors. Empirical findings are relevant for policymakers seeking to reduce the levels of informality during periods of crisis.

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Section: Informality and Electronic Payment Methods (Epms)mentioning

confidence: 99%

Firm informality during the COVID-19 crisis in Argentina: perception of commercial entrepreneurs and public accountants

Pedroni

2023

estud.gerenc.

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“…Li Yiting and Tang Ruyin [19] pointed out that high inflation will erode the purchasing power of cash, so people will tend to hold less cash, reducing the incentives for people to engage in underground economic activities. Another, Giovanni et al [20] propose the effect on evasion and government revenue of two policy instruments: a tax on cash withdrawals (TCW) and a tax rebate conditional on having the receipt. Their research shows the tax rebate reduces evasion but it is costly if tax evasion is low.…”

Section: The Literature Reviewmentioning

confidence: 99%

Threshold analysis regarding the optimal tax rate and tax evasion. Empirical evidence from Taiwan

Wang¹,

Zhang²

2023

PLoS ONE

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For a long time, governments of all countries have attached great importance to the development of underground economic activities. The reason is that the characteristics of the underground economy are hidden and the information disclosure is not sufficient, which not only distorts the economic data indicators, but more importantly, the existence of the underground economy has led to the loss of a large amount of tax base, affecting the long-term economic development of the country. Whether raising the tax burden rate boosts the tax revenue or expand the scale of the underground economy. In this paper, we use Kuznet Tax Curve (KTC) method to analyze the relationship between GDP and TTR/DTR/ITR. We find that the tax base erosion rate of indirect tax is lower than that of direct tax. In addition, we explore the relationship among economic growth, tax rate and tax revenue and adopt SUR-OLS method and Threshold approach to estimate the response of economic growth on total tax revenue(TTR), direct tax revenue(DTR) and indirect tax revenue (ITR) in Taiwan from 1991-2020. Our empirical research shows that when DTR tax rates are between 12.59% and 13%, an increase in income leads to a decrease, not an increase, in DTR, leading to severe tax base erosion. That is, the relationship between GDP and DTR presents a N-shaped relationship. However, ITR does not exist any tax rate threshold effect. Obviously, with the increase of GDP, ITR also increases. This reflects that the difference of tax structure between direct tax and indirect tax plays a key role in the relationship between tax rate and tax base erosion.

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“…This may be a reflection of the term “one dies and one grows”. Many researchers have documented fighting financial crimes including Ponzi schemes (Fan et al , 2020; Kasim et al , 2020), money laundering (Demetis, 2018; Schneider and Windischbauer, 2008; Simser, 2013; Yamen et al , 2019), corruption (Lino et al , 2022; Stapenhurst and Langseth, 1997), asset misappropriation (Bakri et al , 2017; Karim et al , 2015), financial statement fraud (Rezaee, 2005; Shonhadji and Maulidi, 2021) and tax evasion (Immordino and Russo, 2018; Tsakumis et al , 2007). The Association of Certified Fraud Examiners (ACFE) recorded 39% of fraudsters commit fraud due to lifestyle behaviors beyond their capabilities and environment (ACFE, 2022).…”

Section: Introductionmentioning

confidence: 99%

Consensus on the role of culture in restraining financial crime: a systematic literature review

Maulidiyah

2023

JFC

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Purpose No country is free from financial crime issues. Therefore, this paper aims to discover how to control financial crime from the perspective of national culture. Design/methodology/approach This study conducted a bibliometric approach and systematic literature review analysis of 47 publications in the Scopus database. Findings Bibliometric and content analyses show that national culture is more often associated with tax evasion, money laundering and corruption. The role of national culture is less investigated currently in the schemes of financial statement crime, workplace fraud and cybercrime. Overall, the study concludes financial crime can be prevented by developing a culture that supports anti-fraud measures. These include individualized country profiles, feminism, low power distance, tolerance for uncertainty, short-term orientation and restraint. Originality/value This research provides clear knowledge of the role of the six dimensions of national culture in fighting financial crime. Finally, this study is also valuable for decision-making in designing more effective financial crime prevention programs.

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Fighting Tax Evasion by Discouraging the Use of Cash?

Cited by 15 publications

References 46 publications

Firm informality during the COVID-19 crisis in Argentina: perception of commercial entrepreneurs and public accountants

Firm informality during the COVID-19 crisis in Argentina: perception of commercial entrepreneurs and public accountants

Threshold analysis regarding the optimal tax rate and tax evasion. Empirical evidence from Taiwan

Consensus on the role of culture in restraining financial crime: a systematic literature review

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