Tax evasion, efficiency, and bunching in the presence of enforcement notches

Hungerman, Daniel M.

doi:10.1007/s10797-021-09710-0

Cited by 4 publications

(4 citation statements)

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“…In this paper we study the taxation of the minimum wage in an environment with imperfect enforcement (Kleven et al, 2011;Best, 2014;Almunia and Lopez-Rodriguez, 2018;Slemrod, 2019;Hungerman, 2021) and informality (Kuehn, 2014;Meghir, Narita and Robin, 2015;Rocha, Ulyssea and Rachter, 2018;Ulyssea, 2018Ulyssea, , 2020. When it is possible to hire some workers informally or to underreport wages, the minimum wage is a critical threshold for tax enforcement.…”

Section: Introductionmentioning

confidence: 99%

“…We provide evidence on a policy, a mixture of presumptive taxation and a targeted audit threat, that can recover some tax revenue lost to misreporting. Recent work has also suggested that enforcement notches can be welfare improving (Hungerman, 2021), though firms may respond through revenue manipulation (Di Gregorio and Paradisi, 2021). Indeed, in our case, we find bunching around an enforcement threshold, suggestive of manipulation of reported wages.…”

Section: Introductionmentioning

confidence: 99%

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The minimum wage, informal pay, and tax enforcement

Bíró

Prinz

Sándor³

2022

Journal of Public Economics

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The minimum wage, informal pay, and tax enforcement

Bíró

Prinz

Sándor³

2022

Journal of Public Economics

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“…The standardization of taxation systems and the establishment of a uniform withholding tax rate across different revenue sources in Europe have encountered considerable obstacles and achieved only modest progress (Bhattacharya & Buettner, 2018). Nevertheless, many European nations, including Austria and Portugal, have employed an alternative strategy by leveraging tax receipt data derived from wage withholding tax and income tax statistics, incorporating various modifications throughout the procedure (Wilson & Taylor, 2016;Pereira, 2018). The purpose of wage withholding tax is to closely resemble the final income tax burden for individuals who earn wages.…”

Section: Introductionmentioning

confidence: 99%

Factors Influencing Implementation and Administration of Withholding Taxes in Rwanda. A Case Study of Rwanda Revenue Authority (2018-2020)

MURWANASHYAKA,

TWESIGYE, PhD

2023

strategicjournals.com

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The objective of the study was to assess the factors influencing implementation and administration of withholding taxes by the Rwanda Revenue Authority. RRA has faced numerous problems and challenges with its withholding tax system. It was in the backdrop of these challenges that facilitated the researcher to establish effective withholding taxes as a tool of enhancing revenue collection in Rwanda. a case study of Rwanda Revenue Authority (2018Authority ( -2020. To provide the basis of the study, the researcher relied on the following theories and model: human capital theory, equal sacrifice theory and theory of planned behavior. A descriptive research design was adopted for the study and the target population was all 73 RRA employees in Kigali province domestic tax division. Census approach was adopted. Data was collected from both primary and secondary data using questionnaires and documentation. Data collected was analyzed using SPSS version 21. Data analysis involved statistical computations for averages, percentages, and correlation and regression analysis. Ordinary least squares (OLS) regression method of analysis was adopted to determine the inferential statistics. Regression analysis was used to evaluate the degree of the contribution of indirect taxes on revenue collection in Rwanda and the findings presented in tables and graphs. Starting with the significant factors, the variable "Tax Policy and Regulations" demonstrated a positive and statistically significant influence on withholding tax collection (Beta = 0.374, p < 0.001). Similarly, "Tax Administration and Enforcement" also showed a positive and significant relationship with withholding tax collection (Beta = 0.230, p < 0.001). On the other hand, "Taxpayer Compliance rate" exhibited a positive relationship with withholding tax collection, albeit with a smaller standardized coefficient (Beta = 0.444, p = 0.009). Interestingly, "Taxpayer Education and Awareness" did not show a significant relationship with withholding tax collection (Beta = 0.009, p = 0.893). The regression analysis revealed that tax policy and regulations, tax administration and enforcement, and taxpayer compliance rate are significant factors influencing withholding tax collection, in line with the literature. However, the role of taxpayer education and awareness, while theoretically important, did not emerge as a significant factor in this particular study. This suggested that policymakers and tax authorities should focus on strengthening legal provisions, improving administrative efficiency, and enhancing taxpayer compliance to boost withholding tax collection in the given context. The study also recommended that Rwanda Revenue Authority develop strategies to increase the The Strategic Journal of Business & Change Management.

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“…Tax evasion is a negative phenomenon in Slovakia and throughout the world (Terzic & Berger, 2020;Li et al, 2021;Ermasova, Haumann & Burke, 2021;Alstadsaeter et al, 2022). It is not entirely possible to eliminate tax evasion, but it is possible to reduce the incidence of tax evasion (Ngah, Ismail & Abd Hamid, 2021;Hungerman, 2022;Rashid et al, 2022;Hola, Zidkova, & Arltova, 2022;Mu, Fentaw, & Zhang, 2022;Slemrod & Velayudhan 2022).…”

Section: Introductionmentioning

confidence: 99%

Detection of tax evasion using tax audits in the Slovak Republic

Víghová¹

2022

JESI

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Tax evasion causes a significant shortfall in revenues from the state budget in the Slovak Republic and the European Union. Therefore, the European Union states are looking for ways to detect tax evasion. The most common tax evasion occurs from value-added tax. It is not possible to eliminate tax evasion, but it is possible to effectively see tax evasion and fight against tax evasion through legislation as well as effective tax control. The article aims to point out illegal tax evasion in the area of value-added tax and to point out the fight against tax evasion. Methods of analysis and comparison were used in the research. The study was carried out based on data from the Financial Administration of the Slovak Republic, where the results of control activities were analyzed with a focus on value-added tax as well as the effectiveness of the control activities of individual tax authorities within the Slovak Republic. I drew attention to the most frequently occurring tax evasions of value-added tax. The continuation of the research will be the analysis of tax evasion in corporate income tax. These research results will be published in the following article.

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Tax evasion, efficiency, and bunching in the presence of enforcement notches

Cited by 4 publications

References 20 publications

The minimum wage, informal pay, and tax enforcement

The minimum wage, informal pay, and tax enforcement

Factors Influencing Implementation and Administration of Withholding Taxes in Rwanda. A Case Study of Rwanda Revenue Authority (2018-2020)

Detection of tax evasion using tax audits in the Slovak Republic

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