nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2019‒07‒22
four papers chosen by
Catalina Granda Carvajal
Universidad de Antioquia

  1. Methodological provision for the assessment of audit risk during the audit of tax reporting By Victoria Tarasova; Yuri Mezdrykov; Svetlana Efimova; Elena Fedotova; Dmitry Dudenkov; Regina Skachkova
  2. How Clean is our Taxpayer Register? Data Management in the Uganda Revenue Authority By Mayega, Jova; Ssuuna, Robert; Mubajje, Muhammad; I. Nalukwago, Milly; Muwonge, Lawrence
  3. The Mobile Phone, Information Sharing and Financial Sector Development in Africa: A Quantile Regressions Approach By Simplice A. Asongu; Nicholas M. Odhiambo
  4. Le secteur informel en Afrique de l'Ouest : enjeux et perspectives By Omar Thiam

  1. By: Victoria Tarasova (PRUE - Plekhanov Russian University of Economics [Moscow]); Yuri Mezdrykov (PRUE - Plekhanov Russian University of Economics [Moscow]); Svetlana Efimova (PRUE - Plekhanov Russian University of Economics [Moscow]); Elena Fedotova (PRUE - Plekhanov Russian University of Economics [Moscow]); Dmitry Dudenkov (PRUE - Plekhanov Russian University of Economics [Moscow]); Regina Skachkova (PRUE - Plekhanov Russian University of Economics [Moscow])
    Abstract: The problematics and the goal of the research: The lack of theoretical foundations as well as the practical necessity for organizations to create a methodology for assessing the audit risk in carrying out the audit of tax reporting, determined the research objective: the development of theoretical and practical recommendations regarding the methodological provision for the assessment of audit risks as well as the methodology for establishing the relationship between the adequate tax reporting and the managerial decisions of owners on the basis of tax audit results. Methods used: a method based on the theory of fuzzy sets and the basics of the theory of information asymmetry. Results achieved: the development of a methodology for assessing an audit risk in carrying out the audit of tax reporting and establishment of relationship between the theory of information asymmetry and the effectiveness of the users' managerial decisions. The conclusions of the research: practical implementation of the methodology in organizations with different taxation systems has proved the relationship between the theory of information asymmetry and optimization of the users' managerial decisions. The practical benefits from the obtained results make it possible to increase the efficiency of organizations' activities and to confirm to the tax authorities the timeliness of the calculation and payment of taxes. These methods are the basis for the development of a theory for assessing audit risks in carrying out tax audits Keywords: methodological provision, qualitative assessment, audit risk, tax audit, tax reporting, asymmetric information.
    Date: 2018–09–30
  2. By: Mayega, Jova; Ssuuna, Robert; Mubajje, Muhammad; I. Nalukwago, Milly; Muwonge, Lawrence
    Abstract: Revenue administrations collect large amounts of data on individuals and firms in the course of their work. Increasingly, this data is digitised. The use of digital technologies has the potential to greatly improve the efficiency and effectiveness of tax administration, by: Reducing the cost of routine operations for both taxpayer and tax collector; Reducing the need for face-to-face interactions between taxpayers and tax collectors,thereby shrinking opportunities and incentives for collusion and corruption; Making it possible to select taxpayers for audit easily and cheaply on the basis of riskanalysis; Opening up new opportunities to undertake statistical analysis to assess theeffectiveness of existing operational procedures, and to design improvements. The Uganda Revenue Authority (URA) uses automated digital processes to a higher degree than most tax administrations in Africa. These processes nevertheless suffer from a range of problems. We report here on an assessment that the URA undertook of one important aspect of its own data management practices: the management and accuracy of one of its most important data bases, the taxpayer register. We discovered considerable problems of inaccurate data and, primarily as a result of the activities of tax agents, a high level of duplication of the same telephone numbers and email addresses, and possession of multiple taxpayer identification numbers. These inaccuracies reflect a number of factors, including inadequate design of registration forms and procedures, and the low priority given to verification and the accuracy of the register.
    Keywords: Economic Development, Finance, Governance,
    Date: 2019
  3. By: Simplice A. Asongu (Yaoundé/Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa)
    Abstract: This study investigates linkages between the mobile phone, information sharing offices (ISO) and financial sector development in 53 African countries for the period 2004-2011. ISO are private credit bureaus and public credit registries. The empirical evidence is based on contemporary and non-contemporary quantile regressions. Two main hypotheses are tested: mobile phones complement ISO to enhance the formal financial sector (Hypothesis 1) and mobile phones complement ISO to reduce the informal financial sector (Hypothesis 2). The hypotheses are largely confirmed. This research adds to the existing body of literature by engaging hitherto unexplored dimensions of financial sector development and investigating the role of mobile phones in information sharing for financial sector development.
    Keywords: Information sharing; Banking sector development; Africa
    JEL: G20 G29 L96 O40 O55
    Date: 2019–01
  4. By: Omar Thiam (Bem Dakar)
    Abstract: Faced with the real opportunities of African economies (high growth, increased direct investment abroad, infrastructure development..), the sub-Saharan economies remain marked by a dualism, on the one hand a dynamic and complex informal economy, and on the other hand a highly formalized sector with its constraints. This dichotomy is a source of limits and strong economic impacts (decrease of productivity, loss of tax revenue, endemic public deficit, brake on foreign investment, etc.) thus limiting their attractiveness and competitiveness. In the light of research carried out in recent years in some Francophone countries, more than ever, a structural but gradual transformation of the ecosystem would be a considerable asset to secure growth, participate actively in the world trade, provide quality jobs for young people, and improve the dynamics of sub-Saharan countries.
    Abstract: Face aux opportunités réelles des économies africaines (croissance économique, augmentation des investissements directs à l'étranger, développement des infrastructures…), les économies subsahariennes restent marquées par un dualisme, d'abord une économie informelle dynamique et complexe, et d'autre part un secteur très formalisé avec ses contraintes. Cette dichotomie est source de limites et d'incidences économiques fortes (baisse de productivités, perte de recette fiscale, déficit publique endémique, frein aux investissements étrangers…) limitant ainsi leur attractivité et compétitivité. À la lumière de travaux réalisés ces dernières années dans quelques pays francophones, plus que jamais, une transformation structurelle mais progressive de l'écosystème serait un atout considérable pour sécuriser la croissance, participer activement aux échanges mondiaux, offrir des emplois de qualité aux populations jeunes et dynamiques des pays subsahariens.
    Keywords: productivity and informal,Informal sector,large informal,small informal,secteur informel,gros informel,petit informel,productivité et informel
    Date: 2018–12–01

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