Financial constraints and firm tax evasion

Alm, James; Liu, Yongzheng; Zhang, Kewei

doi:10.1007/s10797-018-9502-7

Cited by 73 publications

(58 citation statements)

References 57 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Moreover, other findings [13] suggests that at an international level, tax compliance is related to bureaucracy (inverse relationship) and to the successful control of corruption (positive relationship). Also, there is suggestive evidence [2] that corruption (bribes) increase where there can be found opportunities for tax evasion activities.Also, more corruption enables the existence of more tax evasion, as some studies concluded [3].…”

Section: Problem Statementmentioning

confidence: 99%

The Relationship between Tax Evasion and Corruption. A Cross-country Examination

et al. 2020

View full text Add to dashboard Cite

This article investigates the relationship between tax evasion and corruption, in order to determine if there can be found a significant connection between the two, and in order to test previous research results that found tax evasion as being positively related to corruption. Moreover, the research examines if tax evasion could be predicted based on data regarding corruption. To this extent, theoretical hypothesis on how corruption influences tax evasion were developed and empirically tested. The research was carried on a cross-country data for the 28 European Union's Member States for the period 2012 -2017 and it used IBM SPSS Statistics 20 in order to analyze and interpret the results. The main finding is that corruption is statistically significantly related to tax evasion and that such relationship is a positive one, as highly corrupt countries also register high levels of tax evasion -as measured by the proxy values used. These findings could be of great use for policymakers all around the world, as a policy against corruption could have major implications on tax evasion and vice versa.

show abstract

Section: Problem Statementmentioning

confidence: 99%

The Relationship between Tax Evasion and Corruption. A Cross-country Examination

et al. 2020

View full text Add to dashboard Cite

show abstract

“…"Economic policy" sets the following objectives in the area of tax administration: Simplify tax legislation, to amend parts of tax laws that allow ambiguous interpretation [2], simplify the tax system, reduce direct taxes, shift from direct taxes to indirect taxes in appropriate cases, reassess property tax rates, unify income tax rates, analyze the possibility of introducing an equal tax, strengthen tax revenues of municipalities, set tax revenues of the higher territorial units, ensure strict, direct, fair and effective tax collection, reduce tax evasion [44,45] and create a new system of horizontal financial equalization [39,46].…”

Section: Literature Reviewmentioning

confidence: 99%

The Main Performance and Effectiveness Factors of Sustainable Financial Administration Reform Using Multidimensional Statistical Tools

et al. 2019

View full text Add to dashboard Cite

The tax system reform is a part of Slovakia’s comprehensive tax and levies reform. The reform should contribute to improving and making public finances more efficient. Its implementation into practice, however, is problematic due to attitudes and problems on the part of both the professional public and business entities. The aim of the paper is to help public authorities, and also tax policymakers and business entities to understand the perception of the tax system reform focusing on the most important and key factors of its sustainable effectiveness and performance in the context of its non-macroeconomic especially social, technological and process aspects. The analysis reveals the differences in perceptions of key factors from the viewpoint of the three studied groups. The paper is based on the information of the main actors of tax reform. In extensive empirical quantitative research (N = 1500), the data was obtained through the questionnaire survey carried out in four main districts of Slovakia. The data obtained during six months of 2018 using the questionnaire method were processed by basic statistical methods of descriptive statistics, followed by an analysis of major components and the factor analysis using more sophisticated multidimensional statistical tools. The factor analysis is crucial to the present paper as it has identified five significant indicators of the reform assessment and the functioning of the tax system after tax reform. Subsequently, a correspondence analysis has been applied to the item “electronization/computerization—great user comfort” to find out the differences in its perception by the respondents. The article thus provides a new scientific view on the evaluation of the reform of the financial administration’s management system in the Slovak Republic as well as its functioning in the context of its sustainable effectiveness and performance. The research results offer important and exciting implications and also motives for further investigation on the issue.

show abstract

“…Against this background, corporate taxation increases the cost of capital and limits corporate investment. Hence, tax avoidance might also spur investment and produce some benefits for the economy as well (see Gravelle, 2013), particularly in the case of financial constraints (Alm et al, 2019). This other aspect is generally not accounted for in studies assessing the extent of BEPS.…”

Section: Introductionmentioning

confidence: 99%

How large is the corporate tax base erosion and profit shifting? A general equilibrium approach

Alvarez-Martinez

Barrios

d’Andria

et al. 2021

Economic Systems Research

View full text Add to dashboard Cite

The paper uses the computable general equilibrium model CORTAX to analyse the extent of base erosion and profit shifting (BEPS) in the EU, Japan and the US. Our approach estimates the direct fiscal losses of BEPS and accounts for the second round effects, in particular on the cost of capital and corporate investment. Our central estimates show that the net corporate tax revenue losses in the EU are e36.0 billion per year (7.7% of CIT revenues), e24.0 billion in Japan and e100.8 billion in the US (in both cases representing 10.7% of corporate tax revenues). Our estimates are comparable in size to the global tax revenue losses found using newly reported statistics on foreign affiliates. Our macroeconomic results suggest that eliminating profit shifting would slightly reduce investment and GDP and rise corporate tax revenues, which would positively affect welfare.

show abstract

Financial constraints and firm tax evasion

Cited by 73 publications

References 57 publications

The Relationship between Tax Evasion and Corruption. A Cross-country Examination

The Relationship between Tax Evasion and Corruption. A Cross-country Examination

The Main Performance and Effectiveness Factors of Sustainable Financial Administration Reform Using Multidimensional Statistical Tools

How large is the corporate tax base erosion and profit shifting? A general equilibrium approach

Contact Info

Product

Resources

About