The Political Economy of Taxation in Europe

Profeta, Paola; Scabrosetti, Simona

doi:10.7866/hpe-rpe.17.1.5

Cited by 8 publications

(4 citation statements)

References 51 publications

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“…As a result of their confidence in the government's capacity to ensure fair play and protect its citizens, supporters of the current administration are therefore more likely to uphold the law. On the other hand, a taxpayer who backs the opposing party may be more likely to engage in tax evasion because he feels that the government is not on his side and is ineffective (Modugu & Anyaduba, 2014;Profeta & Scabrosetti, 2017). Meanwhile, a report confirmed by the Libyan Audit Bureau has been made public (Libyan Audit Bureau, 2021) the likelihood of taxpayers evading taxes and their willingness to comply with the law are both likely to be affected by the political situation in Libya.…”

Section: Political Instability In This Studymentioning

confidence: 99%

Economic Factors and Tax Evasion in Libya: Moderating Role of Political Instability

Sidik,

Mohamed,

Hassan

2023

The European Proceedings of Social and Behavioural Sciences

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To generate a sufficient amount of tax revenue, which is widely acknowledged by authorities as one of the most significant sources of government revenue and a very reliable source of funding for economic and social development, efficient tax administration and tax collection are essential. Better understanding the factors that contribute to tax evasion and finding effective ways to combat those factors would help governments in both developing and developed countries minimize the negative effects brought on by a decrease in tax revenue. Various economic factors are cited in the literature as having an effect on tax evasion. However, there is a dearth of research into how tax audits and amnesties affect the ability of individuals to avoid paying their fair share of taxes. Accordingly, this study uses political instability as a moderator to empirically examine the impact of tax audit examination and tax amnesty on tax evasion practices of Libya's self-employed taxpayers. The data is gathered using a quantitative approach and a questionnaire. To conduct the survey, 490 taxpayers who are self-employed in Tripoli were given questionnaires. In order to investigate the information collected from respondents, we will use SPSS version 25 and PLS-SEM 0.3. The study's findings would help shed light on how political factors play a part in explaining tax evasion. The current study makes a significant theoretical contribution by examining how political instability in Libya affects the association between economic factors and tax evasion.

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Section: Political Instability In This Studymentioning

confidence: 99%

Economic Factors and Tax Evasion in Libya: Moderating Role of Political Instability

Sidik,

Mohamed,

Hassan

2023

The European Proceedings of Social and Behavioural Sciences

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“…32 Tax administration costs are well recognized as an important determinant of raising revenues (OECD, 2017;Profeta and Scabrosetti, 2017). OECD (2017) states that "Even small increases in compliance rates or compliance costs can have significant impacts on government revenues and the wider economy" (p. 5).…”

Section: Tax Competitionmentioning

confidence: 99%

Economic Integration and Agglomeration of Multinational Production With Transfer Pricing

Kato

Okoshi

2022

Int Economic Review

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Do low corporate taxes always favor multinational production over economic integration? We propose a two-country model in which multinationals choose the locations of production plants and foreign distribution affiliates and shift profits between them through transfer prices. With high trade costs, plants are concentrated in the low-tax country; surprisingly, this pattern reverses with low trade costs. Indeed, economic integration has a nonmonotonic impact: Falling trade costs first decrease and then increase the plant share in the high-tax country, which we empirically confirm. Moreover, allowing for transfer pricing makes tax competition tougher and international coordination on transfer-pricing regulation can be beneficial.

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“…The conclusions of the model show that tax revenue is increasing as the GDP grows. Important factors for tax systems are political variables (Profeta & Scabrosetti, 2017). Other factors also include the wage level (Yilmazkuday, 2017) or tax burden in neighbouring countries (Swank, 2016).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Do Selected Tax Advantages Affect Tax Revenue from the Personal Income Tax?

Krajňák¹

2019

JOC

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The personal income tax, which has a significant influence on total tax revenue, has been part of the Czech tax system since 1993. The main objective of this paper is to evaluate the dependence of tax revenue on the personal income tax based upon a dependent activity related to tax relief for the taxpayer, namely the tax credit for children in the Czech Republic in the period of 2008-2017. Another objective is to analyze the dependence on the valorization of the tax reliefs and tax credit claims. The database of the Czech Statistical Office and the Ministry of Finance of the Czech Republic is used as a source of input data for the analysis. To achieve the objectives of the paper, methods of description, comparison, analysis, synthesis, as well as regression and correlation analyses are used. The results of the analysis show that the tax credit for children has a positive effect on tax revenue. The amount of the tax advantage for children has almost doubled in the last 11 years. On the other hand, general tax relief for all taxpayers has not been valorized since 2008. The existence of a certain non-taxable minimum is typical for personal income tax systems around the world tax, and the valorization in the Czech Republic did not show a negative impact on the tax system's competitiveness. Increasing the amount of deductions might be non-effective from the perspective of the state, but the results of this study show that the effect on personal income tax revenue in the Czech Republic is the opposite. The projected value and uniqueness of the article is not only in the analysis of dependencies of selected tax allowances upon each other, but also in the context of tax revenue and selected macroeconomics indicators.

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The Political Economy of Taxation in Europe

Cited by 8 publications

References 51 publications

Economic Factors and Tax Evasion in Libya: Moderating Role of Political Instability

Economic Factors and Tax Evasion in Libya: Moderating Role of Political Instability

Economic Integration and Agglomeration of Multinational Production With Transfer Pricing

Do Selected Tax Advantages Affect Tax Revenue from the Personal Income Tax?

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