Financial crime, corruption and tax evasion: a cross-country investigation

Amara, Ines; Khlif, Hichem

doi:10.1108/jmlc-10-2017-0059

Cited by 22 publications

(36 citation statements)

References 9 publications

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Section: Moderating Effect Of the Strength Of Auditing And Reporting Standards On The Association Between Corruption And Money Launderingmentioning

confidence: 99%

“…Corruption may harm the level of transparency in one country (Amara and Khlif, 2018). Corruption may decrease the capability of any country to enforce laws and penalize individuals that commit financial crimes (Amara and Khlif, 2018). Reganati and Oliva (2018, p. 405) suggest that "corruption and money laundering are two intrinsically linked types of crime".…”

Section: Moderating Effect Of the Strength Of Auditing And Reporting Standards On The Association Between Corruption And Money Launderingmentioning

confidence: 99%

“…Money laundering represents a widespread phenomenon and a global problem worldwide for both developed and developing countries (Habib et al, 2018;Amara and Khlif, 2018). Money laundering has become of increasing concern to policymakers in recent years, mainly because of its connections with terrorism (Norton, 2018).…”

Section: Introductionmentioning

confidence: 99%

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Strength of auditing and reporting standards, corruption and money laundering: a cross-country investigation

Amara

Khlif

Ammari

2020

MAJ

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Purpose This paper aims to investigate the relationship between the strength of auditing and reporting standards (SARS) and money laundering, and test whether the SARS moderates the association between corruption and money laundering. Design/methodology/approach The sample consists of 348 country-year observations over the period 2015–2017. Data on money laundering are collected from Basel Anti-Money Laundering Reports for 2015–2017, while data on SARS and corruption are collected from the Global Competiveness Reports for the same years. Findings The findings of this study suggest that the SARS is negatively associated with money laundering, while corruption has an insignificant effect on the same variable. The effect of corruption on money laundering becomes positive and significant after removing the SARS. This result implies that the SARS and corruption represent two concurrent forces influencing money laundering phenomenon with a prevailing negative effect for the SARS. When testing for the moderating effect of SARS on the positive association between corruption and money laundering, findings show that the positive association remains stable under low SARS environments, while it is mitigated under high SARS. This moderating effect is further confirmed when using an interaction variable between the SARS dummy variable and corruption as this interaction variable has a negative effect on money laundering. Originality/value The findings emphasize the role played by the SARS in reducing money laundering and mitigating the positive association between corruption and money laundering. These results may have policy implications for governments aiming to combat this phenomenon.

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Section: Moderating Effect Of the Strength Of Auditing And Reporting Standards On The Association Between Corruption And Money Launderingmentioning

confidence: 99%

Section: Moderating Effect Of the Strength Of Auditing And Reporting Standards On The Association Between Corruption And Money Launderingmentioning

confidence: 99%

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Strength of auditing and reporting standards, corruption and money laundering: a cross-country investigation

Amara

Khlif

Ammari

2020

MAJ

Self Cite

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“…Measurement of tax evasion using shadow economy has been widely used by several studies (Amara and Khlif, 2018;Cebula, 1997;Khlif and Guidara, 2018). According to Smith (1994), shadow economy is the production of goods and services both legal and illegal that are missed from the calculation of Gross Domestic Product (GDP).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…That makes companies to have no legal rights, so corruption can mitigate these risks by bribing corrupted officials to act as law enforcers (Goel and Saunoris, 2014). In addition, Amara and Khlif (2018) added that high levels of corruption could form a favorable environment for the development of financial crime in the form of illegal economic activities which would result in higher tax evasion. Picur and Riahi-Belkaoui (2006) conducted empirical research from 30 developed and developing countries, the results showed that the highest tax compliance in a country was marked by high control of corruption and low bureaucracy.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

The Strength of Audits, Reporting Standards and Corruption, on Tax Evasion: A Cross-Country Study

Hudori¹,

Mustikasari²

2020

IJEBA

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Purpose: The study aims to examine the influence of audits, reporting standards and corruption on tax evasion on selected countries. Design/Methodology/Approach: Tax evasion is measured using the shadow economy estimation and a tax evasion survey from the IMD World Competitiveness Yearbook by using a sample of 132 countries in th eperiod 2008-2015. Data were analyzed using Ordinary Least Square regression (OLS) and multilevel mediation analysis. Findings: The results showed that improving audit quality and reporting standards reducing the level of corruption can significantly reduce tax evasion. We also find that corruption mediates the effect of the strength of audit and reporting standards on tax evasion. Practical Implications: Result implies that in order to reduce tax evasion, the government must reduce the level of corruption first through strengthening audits and reporting standards. At the end, it is hoped that no more corrupted officials will facilitate the company to manipulate financial statements. Originality/Value: This research provides a clearer view by building a conceptual framework on how corruption mediates the effect of audit power and reporting standards on tax evasion.

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Political Connections, Corruption, and Tax Practices

Khlif

Amara²

2022

Global Encyclopedia of Public Administration, Public Policy, and Governance

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Financial crime, corruption and tax evasion: a cross-country investigation

Cited by 22 publications

References 9 publications

Strength of auditing and reporting standards, corruption and money laundering: a cross-country investigation

Strength of auditing and reporting standards, corruption and money laundering: a cross-country investigation

The Strength of Audits, Reporting Standards and Corruption, on Tax Evasion: A Cross-Country Study

Political Connections, Corruption, and Tax Practices

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