A Study of the Impact of Underground Economy on Integral Tax Burden in the Proportional Growth Model under Uncertainty

Abstract

Economic processes are naturally characterized by imprecise and uncertain relevant information. One of the main reasons is existence of an underground economy. However, in existing works, real-world imprecision and uncertainty of economic conditions are not taken into account. In this paper we consider a problem of calculation of a taxation base to assess tax burden for proportionally growing economy under uncertainty. In order to account for imprecision and uncertainty of economic processes, we use the theory of fuzzy sets. A fuzzy integral equation is used to identify an integral tax burden taking into account the contribution of the underground economy for a certain financial (tax) year. It is also assumed that dynamics of gross domestic product are modeled by fuzzy linear differential equation. An optimal value of tax burden is determined as a solution to the considered fuzzy integral equation. An example is provided to illustrate validity of the proposed study.

Determinación de multas fiscales atendiendo a los principios de proporcionalidad y equidad utilizando lógica difusa

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