Tax avoidance and evasion in a dynamic setting

degl’Innocenti, Duccio Gamannossi; Levaggi, Rosella; Menoncin, Francesco

doi:10.1016/j.jebo.2022.10.028

Cited by 6 publications

(2 citation statements)

References 39 publications

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“…For the governments, it is somewhat similar to an epidemic that they cannot control (Kassa 2021). Tax evasion affects a government's ability to improve the living standards of its citizenry and to allocate a budget for expenditure; it hinders the economic growth of countries, costing an estimated 20% of tax revenue (degl'Innocenti et al 2022). Despite numerous attempts to address this dilemma, it remains a threatening and intractable challenge (Umar et al 2019).…”

Section: Introductionmentioning

confidence: 99%

The Effect of Tax Fairness, Peer Influence, and Moral Obligation on Sales Tax Evasion among Jordanian SMEs

Al-Rahamneh

Bidin

2022

JRFM

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Tax evasion remains a complex issue for tax authorities, policymakers, and researchers. While socio-psychological factors have been researched, their impact on tax evasion among SMEs has not yet been determined. This paper empirically analyses the effects of tax fairness, peer influence and moral obligation, on sales tax evasion among Jordanian SME owners/managers. A survey was used to obtain data from three regions of Jordan (north, middle, south). Random sampling was utilized in selecting the prospective respondents from SMEs in three sectors (trade, service, manufacturing). A total of 212 usable questionnaires retrieved from the SMEs were analysed using Smart-PLS 3.0. The results revealed that tax fairness and moral obligation had a significant negative effect on sales tax evasion behaviour among SME owner-managers. On the other hand, peer influence positively and significantly impacted sales tax evasion behaviour. Thus, policymakers and tax authorities should incorporate these factors in developing effective strategies to reduce tax evasion in Jordan, which could result in an improvement in the country’s overall revenue collection. The findings also contribute to the scarcity of literature about the significance of socio-psychological factors in mitigating tax evasion by examining the effects of tax fairness, peer influence, and moral obligation on sales tax evasion.

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Section: Introductionmentioning

confidence: 99%

The Effect of Tax Fairness, Peer Influence, and Moral Obligation on Sales Tax Evasion among Jordanian SMEs

Al-Rahamneh

Bidin

2022

JRFM

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“…All individuals mostly agree that taxes are a burden so taxpayers tend to manage the amount to be paid through legal ways such as tax avoidance as well as the illegal way by tax evasion (Adiyanta, 2020;Feller & Schanz, 2017). If the two methods are compared, tax avoidance is considered to have less risk and a higher probability of success than tax evasion because it's still a legal action recognized by the court (Degl'Innocenti et al, 2022;Prasetyo & Arif, 2022). Taxpayers also don't need to bear the physical costs that usually arise in tax evasion due to concerns about penalties or fines after committing illegal acts (Blaufus et al, 2016;Litina & Palivos, 2016).…”

Section: Introductionmentioning

confidence: 99%

Who Avoids More? A Cross-country Evidence of Economic Policy Uncertainty and Tax Avoidance

Gunarto,

Adi

2023

IJSSB

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Tax avoidance is a complex problem faced by governments in both developed and developing countries. This study aims to examine the effect of Uncertainty of Economic Policy (EPU) on tax avoidance and see the tendency of higher tax avoidance practices based on the level of the country's economy. This research uses a quantitative approach with an explanatory method. The study sample consisted of 21 purposively selected countries. Data was collected between 1997 and 2015. The data collection method is carried out through secondary data collection from various relevant sources, such as the UNU-WIDER Government Revenue Dataset 2021 and the EPU index of related studies. Data analysis was performed using panel data regression techniques with the help of Eviews 9 software. The results of the analysis showed a significant negative influence between EPU and tax avoidance. In addition, it was also found that developed countries have higher rates of tax avoidance than developing countries. This research provides new understanding for tax authorities in dealing with EPU in order to formulate appropriate policies to reduce tax avoidance practices. The implication of this study is the need for more effective preventive and regulatory measures in tackling tax avoidance in various countries.

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