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on Informal and Underground Economics |
| By: | FISCALIS Tax Gap Project Group |
| Abstract: | The corporate income tax gap (CIT Gap) is the gap between corporate tax revenues as they “should be” collected and as they “are” collected. The gap is an indication of potential CIT revenue losses. This report defines the CIT gap as encompassing both non-deliberate actions by taxpayers (such as errors or omissions) and deliberate actions (such as fraud, evasion and avoidance) that lead to shortfall in revenues. This report reflects the objective of the Tax Gap Project Group (TGPG) to map and share expertise and good practices. The two main approaches to estimating the tax gap – the top-down and bottom-up methods – have both advantages and disadvantages. The choice of the estimation method depends heavily on the availability of data, resources and purposes of the estimate. |
| Keywords: | corporate taxation, tax gap, european union, tax avoidance |
| JEL: | H25 H26 H83 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:tax:taxpap:0073&r=iue |
| By: | John D'Attoma; Clara Volintiru; Antoine Malezieux |
| Abstract: | This paper brings an important empirical contribution to the academic literature by examining whether gender differences in tax compliance are due to higher prosociality among women. We conducted a large cross-national tax compliance experiment carried out in Italy, U.K., U.S., Sweden, and Romania, and assessed tax compliance as reported income as a percentage of total earned income in the experiment. We uncover that women declare a significantly higher percentage of their income than men in all five countries. While some scholars have argued that differences in honesty between men and women is actually being mediated by the fact that women are more prosocial than men, we find that women are not more prosocial than men in all countries. Furthermore, though overall women tend to be more prosocial on average than men, SVO has no mediation effect between gender and tax compliance. We conclude then that although differences in prosociality between men and women seem to be context dependent, differences in tax compliance are indeed much more consistent. |
| Keywords: | behavioral economics, tax compliance, gender |
| JEL: | A10 C90 C92 D64 H26 H30 H41 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7372&r=iue |
| By: | Iswahyudi, Heru |
| Abstract: | Since its introduction in 1983, Value Added Tax (VAT) has played an increasingly important role as one of the major sources of revenue for the Indonesian government. In the last two and a half decades, however, there is declining trend in its collection performance as a percentage of Gross Domestic Product. This study aims to explore the determinants of this declining trend in VAT revenue using macroeconomic data. These determinants are decomposed into three broad categories: tax expenditure policy, taxpayers’ noncompliance, and the share of aggregate consumption in the economy. It finds that the performance of VAT collection could mainly be explained by tax expenditure policies and the extent of noncompliance with tax laws. It is proposed that avenues of approach for reform could be directed toward reducing the scope of VAT exemptions, establishing a systematic approach in data collection and analysis to closely monitor trends and changes in taxpayers’ behavior, simplifying the tax system by setting a single rate that is imposed on a single type of consumption tax, and improving audit effectiveness by building trust between tax authority and taxpayers. |
| Keywords: | Indonesia, Value Added Tax, Tax Expenditure, Tax Revenue, Tax Noncompliance |
| JEL: | H2 H20 H25 H26 H6 |
| Date: | 2018–11–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:89876&r=iue |
| By: | Julien Albertini (Univ Lyon, Université Lumière Lyon 2, GATE UMR 5824, F-69130 Ecully, France); Anthony Terriau (Univ Lyon, Université Lumière Lyon 2, GATE UMR 5824, F-69130 Ecully, France) |
| Abstract: | In developing countries, informality is mainly concentrated on younger and older workers. In this paper, we propose a dual labor market theory that highlights how frictions and taxation in the formal sector as well as educational choices interact to shape the informality rate over the life-cycle. We develop a life-cycle model with search frictions, skill heterogeneities, and endogenous educational choices. We carry out a numerical analysis and show that our model reproduces remarkably well the life-cycle patterns of informality, non-employment and formal employment in Argentina. We analyze several public policies and show that an educational grant reduces both informality and non-employment and may be fully financed by the extra tax revenues generated by the increase in formal employment and wages. Lowering taxes may achieve similar results but is detrimental for the government budget, in the case of Argentina, despite increasing the base on which they are levied. |
| Keywords: | Informality, Search and Matching, Life-cycle, Public policy, Laffer curve |
| JEL: | E26 O17 J64 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:gat:wpaper:1834&r=iue |
| By: | José Mª Durán-Cabré (Universitat de Barcelona & Institut d'Economia de Barcelona (IEB)); Alejandro Esteller-Moré (Universitat de Barcelona & Institut d'Economia de Barcelona (IEB)); Mariona Mas-Montserrat (Universitat de Barcelona & Institut d'Economia de Barcelona (IEB)); Luca Salvadori (Universitat Autònoma de Barcelona & Institut d'Economia de Barcelona (IEB)) |
| Abstract: | La brecha fiscal es un concepto de importancia creciente en el ámbito de las administraciones tributarias que indica la diferencia entre la recaudación impositiva efectiva y la que debería obtenerse de haber un cumplimiento fiscal perfecto. Su estimación ofrece una información muy relevante sobre el tamaño relativo y la naturaleza del incumplimiento fiscal, así como sobre su evolución a lo largo del tiempo. En este artículo se destaca su utilidad como herramienta de gestión de la propia administración tributaria y para mejorar su rendición de cuentas ante la sociedad, señalándose también sus posibles debilidades metodológicas y las cauciones a la hora de interpretar sus resultados. Asimismo, se presenta la metodología y los resultados obtenidos al estimar la brecha fiscal de Cataluña, a partir de microdatos de los tres impuestos relacionados con la riqueza (patrimonio, sucesiones y transmisiones) más importantes que administran las comunidades autónomas españolas de régimen común. INGLÉS: The tax gap can be defined as the difference between the total amount of taxes collected by tax authorities and the total tax revenues that should be collected according to the tax code and under perfect tax compliance. The estimation of the tax gap offers very useful information about the relative size and nature of non-compliance, as well as its evolution over time. In this paper we point out that the tax gap is a valuable instrument not only to define the enforcement strategies of the tax administration but also to enhance the accountability of this public authority. Nonetheless, the methodology employed to estimate the tax gap and consequently the interpretation of the results of this assessment are subject to limitations that are discussed in the paper. Moreover, we present the methodology to estimate the tax gap in Catalonia for the three most important taxes related to wealth (wealth tax, inheritance and gift tax and transfer tax) administered by the Spanish regions and, finally, we provide the results from the estimations obtained employing microdata. |
| Keywords: | Tax Gap, Tax Administration, Brecha Fiscal, Administración Tributaria |
| JEL: | H26 H83 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:doc2018-15&r=iue |
| By: | Roxana Barrantes (Departamento de Economía de la Pontificia Universidad Católica del Perú); Daniela Ugarte |
| Abstract: | A pesar de todos sus beneficios, el uso y la apropiación de Internet por adultos mayores sigue siendo menor en comparación de otros adultos. Pero los adultos mayores constituyen una categoría analítica bastante amplia, tanto por edad como por trayectoria previa. En este artículo, se hace énfasis en la historia laboral y educativa que configura una combinación de capitales económicos, culturales y sociales, a la Bordiex, para explicar el uso de internet y la intensidad de uso en los adultos mayores entre 60 y 75 años en Lima y el Área Metropolitana de Buenos Aires. Utilizando datos cualitativos y cuantitativos, este artículo discutirá cómo los adultos mayores que se retiran de empleos de la economía informal se encuentran en desventaja en comparación a los que vienen de trabajos más calificados y demandantes. La exclusión de la sociedad de la información se extiende más allá de la jubilación para las personas que provienen de empleos menos productivos. JEL Classification-JEL: B55, J26, O33 |
| Keywords: | Adultos mayores, Apropiación de Internet, Brecha generacional, Economía informal, Trayectorias tecnológicas |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:pcp:pucwps:wp00466&r=iue |
| By: | Jhonatan Quemba |
| Abstract: | El presente documento tiene por objetivo realizar un análisis sobre la informalidad laboral en el sector rural colombiano y encontrar la mejor definición para lograr una acertada medición. Con el fin de tener niveles de comparación con la informalidad rural, se investiga la informalidad en otras regiones del mundo, así como la total nacional. Los resultados muestran que, aunque los niveles de informalidad total y rural han bajado principalmente por la reforma tributaria de 2012, el 85% de la población ocupada rural es informal, un nivel muy alto comparado con el de regiones de ingresos bajos como África central o Asia meridional. La investigación presenta las causas estructurales e institucionales que han generado estos niveles tan bajos. |
| Keywords: | informalidad, informalidad rural, empleo informal, sector rural |
| JEL: | C25 J01 J21 J31 J42 |
| Date: | 2018–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:col:000176:016356&r=iue |