The corporate income tax gap in South Africa: a top-down approach

Jansen, Ada; Steyn, Wynnona; Ngobeni, Winile; Sithole, Alexius

doi:10.1080/03796205.2021.1956167

Cited by 1 publication

(1 citation statement)

References 8 publications

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“…Currently, more than 23 tax administrations calculate the gap for some of their respective taxes. However, most of the tax gap studies have focused on developed countries and also on the formal sector and large taxpayers (Jansen et al, 2021; OECD, 2018; Poniatowski et al, 2020; Whicker, 2017). Thus, very little is known about tax gaps in developing countries, particularly the informal and small taxpayers.…”

Section: Introductionmentioning

confidence: 99%

Compliance Burden and Tax Gap Among Micro and Small Businesses: Evidence From Ghana

et al. 2022

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The question of how much of the potential tax revenue is actually obtained remains very critical in Ghana’s efforts to improve domestic revenue mobilization. This paper computes and examines tax gap and compliance burden among micro and small businesses which constitute more than 90% of Ghana’s informal economy. Using data on 485 businesses in Ghana, the study finds that while some businesses underpay their taxes, surprisingly others actually pay more than expected. The average tax gap is computed to be about GHC 109.2 (US$19.2). Small businesses are associated with a higher tax gap of 24.9% compared to their micro counterparts. Moreover, we find that as compliance burden increases, the tax gap also increases, albeit significant variation in the effect of compliance burden on tax gap across regions and different tax handles. JEL Classification: H25, H26, H27, H32

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Section: Introductionmentioning

confidence: 99%