The Impact of Tax Evasion on the Economy of a Nation

Top PDF The Impact of Tax Evasion on the Economy of a Nation:

An Evaluation of the Impact of Corruption, Tax Burden, and Income on the Size of the Shadow Economy

An Evaluation of the Impact of Corruption, Tax Burden, and Income on the Size of the Shadow Economy

The objective of this research is to examine the effect of corruption, tax burden, income, and tax administration efficiency on the size of the shadow economy. In this study, we have investigated the size of the shadow economy of 50countries. We provide empirical evidence and explanation for the vicious circleof tax evasion and political corruption in which many developing countries, and sometimes even developed countries, often fall into. Also, an important relation between the level of income and tax evasion is identified. In the end, recommendations are made for policy makers. We find that standard prevention policies, thatsometimes have a short-term effect, do not offer a real long-term solution for tax evasion and corruption; instead, policies and measures that impose a strong moral cost on corrupt politicians and on tax evaders can lead to a permanentreduction of both.
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Quantification of the impact of corruption on the extent of tax evasion in Romania

Quantification of the impact of corruption on the extent of tax evasion in Romania

Of course, the model presented is subjective, very approximate and involves a whole range of prerequisites and conditions. However, the conclusion that can be drawn is that in a corrupted environment, the avoidance decision is dependent on the likelihood of detection, the penalty rate and the bribe rate, in a ratio inversely proportional to the volume of tax evasion, and the identified level of the latter is inferior to its real level, which is impossible to determine due to corruption. Each monetary unit paid in the sphere of corruption implies its recovery accompanied by an illicit advantage, superior to the revenues that could be obtained legally. As a result, corruption is one of the causes of the proliferation of the underground economy, exerting a multiplier effect on the level of fraud.
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CONSEQUENCES OF INFORMAL ECONOMY: A CASE OF ALBANIA

CONSEQUENCES OF INFORMAL ECONOMY: A CASE OF ALBANIA

Informal Economy has taken attention of a lot of researchers lately. This has been due to the causes and consequences of policies related to the informal economy. The informal economy is difficult to measure because of its hidden nature. Different methods have been used to measure the informal economy. The methods are classified as direct and indirect methods. Direct method is not easy to use since the individuals that work on informality are not open for the information. Macroeconomic methods help in calculating indirectly the informal economy. In this study analyze the consequences of the informal economy. Tax evasion is calculated based on informal economy. It is shown that the informal economy has an impact on monetary policy, the level of unemployment and the distortion of a country's national statistics. The study is concluded by giving some recommendations for reduction the impact of distorting of informal economy. The policymakers will increase the effectiveness if they take into account the existence of the informal economy.
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Can Tax Reform Work in an Economy Where Tax Avoidance and Evasion are Endemic?

Can Tax Reform Work in an Economy Where Tax Avoidance and Evasion are Endemic?

In this model firms seek to minimise their tax liabilities by purchasing rent- seeking services from a provider who also sells legitimate public services to the government. The provider enjoys economies of scope − its two outputs are produced jointly. Tax reform in this setting can increase both government revenue and the efficiency of the economy because a type of Laffer curve is operational and because such reform can lead to resources being moved out of rent-seeking activity. Later this partial equilibrium framework will be embedded within a conventional general equilibrium model.
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Tax harmonization in the European Union and the eurozone: a multilateral analysis of tax systems

Tax harmonization in the European Union and the eurozone: a multilateral analysis of tax systems

Tax policy management and harmonization have always been a topic of concern for the European Union and its member countries. The European debt crisis rein- vigorated efforts within the EU to coordinate tax policies across the different member nations. Accordingly, the purpose of this research is to take a new look at the effects of past tax policy coordination in Europe. More specifically, we exam- ine countries within the EU and countries that have joined the common currency system (the eurozone) and are evaluating whether these tax systems are more similar, or are becoming more similar, to each other than they are to the tax struc- tures of other countries. In our analysis we use several dimensions that measure the overall tax burden, the importance of different types of taxes within the tax system, the decentralization of tax collection, the tax administration and enforce- ment. We focus on tax collection (in relationship to other economic measures) as well as administration and enforcement because in our opinion although both fac- tors are important in the evaluation of a country’s tax policy, academic research, especially in the economics literature, has been less focused on these particular aspects of tax systems. In the second part of the study, we attempt to isolate factors that impact tax system similarities and differences as well as tax system harmoni- zation within the EU and in eurozone member countries, with the ultimate inten- tion to formulate a number of tax policy strategies.
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The Effect of Justice and Understanding of Taxation on the Perception of the Personal Tax Obligation  about Tax Evasion

The Effect of Justice and Understanding of Taxation on the Perception of the Personal Tax Obligation about Tax Evasion

Adiasa (2013), understanding taxation regulations is a process where taxpayers understand and know about regulations and laws as well as tax procedures and apply them to carry out taxation activities such as paying taxes, reporting tax returns, and so on. If taxpayer understanding of taxation is high, taxpayer behavior will get better so the smaller taxpayer will carry out tax evasion actions (Mutia, 2014). This shows that understanding taxation has a negative effect on tax evasion. This variable is supported by several previous research results (Dharma et al., 2016; Herlangga and Pratiwi, 2017). The results of a study conducted by Herlangga and Pratiwi (2017) with taxpayer objects located in the Pratama Tax Service Office East Ilir, found that understanding taxation had a negative and significant effect on tax evasion. A good understanding of taxation possessed by taxpayers can reduce tax evasion because taxpayers who understand the regulations, tax payment procedures, provisions in taxation, and tax sanctions, taxpayers will not carry out tax evasion. Taxpayers can get tax knowledge and understanding from tax officials themselves, radio, television, print media and the internet. Similar results were obtained by Dharma et al. (2016) found that understanding taxation had a negative and significant effect on tax evasion. The higher the level of understanding of taxation, the lower the perception of tax evasion. However, research conducted by Bahari (2016), with taxpayers who are in the Pratama Tax Service Office GunungKidul found that understanding taxation has no effect on tax evasion. According to Bahari (2016) although taxpayer has or has never made a mistake in filling out the tax return and has a good or not understanding of taxation, it does not affect taxpayer to carry out tax evasion.
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The impact of the extent of surgical resection on survival of gastric cancer patients

The impact of the extent of surgical resection on survival of gastric cancer patients

The remaining 101 patients were divided into two groups based on the volume of the performed gastric resection (total and subtotal) and compared based on overall survival and perioperat[r]

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Relativism and Immutability of Values and the Impact of this on the Upbringing of Offspring

Relativism and Immutability of Values and the Impact of this on the Upbringing of Offspring

To face external challenges and social changes it is necessary to soundly and integrally build the character of the juveniles, and this formation is not achievab[r]

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The Impact of Project Management Methodologies on Project Success: A Case Study of the Oil and Gas Industry in the Kingdom of Bahrain

The Impact of Project Management Methodologies on Project Success: A Case Study of the Oil and Gas Industry in the Kingdom of Bahrain

The above results are in line with what Joslin and Muller (2015) found except for the supplemented PMMs in which this study found that there is no significant relationship with project success. Also, Joslin and Muller (2015) found that “22.3% of project success can be explained by applying the relevant PMM elements throughout the project life cycle” whereas this study, according to the regression analysis, revealed that 28.1% of project success can be explained by applying the relevant PMM elements. That is, one unit change in applied relevant PMMs has 32.3% impact on project success. Also, the study showed that one unit change in comprehensive PMMs has 27% impact on project success. Furthermore, the results support the findings of Wells (2012) in which the experience of the project professionals in selecting and applying the relevant PMMs contributes to the management of projects.
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Tax havens or tax hells? A discussion of the historical roots and present consequences of tax havens

Tax havens or tax hells? A discussion of the historical roots and present consequences of tax havens

According to Bernard Bouzon (Economics Faculty of the University of Coimbra, FEUC, Integrated Cinema Cycle, Debates and Colloquia at the FEUC 2008-2009, “Global Economy, Commoditization and Collective Interests: People, Commodi- ties, Environment and Tax Havens”, (DOC TAGV / FEUC, 2009)), taxation is the main tool available to states to compensate for disparities in income distribution. In its latest report, ATTAC, 2013 (Association pour la Taxation des Transactions pour l’Aide aux Citoyens) analyzed fiscal and judicial responsibilities, financial opacity and instability, the creation of speculative capital, the massive deregula- tion of funding, and international institutions and government intentions, iden- tifying several international-level fiscal options. It concluded that the feasibility of either a declaration of the invalidity of transactions or the creation of worldwide taxation would depend mainly on political will.
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The Impact of Peerwise Approach on the Academic Performance of Medical Students

The Impact of Peerwise Approach on the Academic Performance of Medical Students

The prime objective of this study conducted on year 2 MBBS students at Cyberjaya University College of Medical Sciences (CUCMS) is to evaluate the relationship between PeerWise usage to[r]

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Impact of Bisphosphonates on the Osteoclast Cells of Osteogenesis Imperfecta Patients

Impact of Bisphosphonates on the Osteoclast Cells of Osteogenesis Imperfecta Patients

In present study we have demonstrated that precursor osteoclast apoptosis was increased as shown by high capases3 positive precursor osteoclast cells and high percentage of apoptotic [r]

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The Impact of Anthropogenic Activities on The Indicators of Environmental Pollution

The Impact of Anthropogenic Activities on The Indicators of Environmental Pollution

It is also necessary to note the impact of lead, which also adversely affects the biological activity in the soil, inhibiting the activity of biological catalysts and violating microorganisms’ metabolism. Lead is well absorbed and stored by plants that slows their growth and leads to gradual destruction. Using an animal feed, containing 3 mg or more of lead per 1 kg of dry weight, results in its accumulation in animal tissues (Scherbo, 2002; Chusovitina, 2010).

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Experimental Analysis of the Impact of Particles on the Cavitating Flow

Experimental Analysis of the Impact of Particles on the Cavitating Flow

The purpose of this paper is to present an analysis of the impact of solid particles on the development of cavitating flow conditions around a hydrofoil. Experimental studies have been conducted in a cavitation tunnel with three different mixtures of particles and water. We used particle-like properties such as are found in river water, and with increasing mass concentration. We performed measurements of torque and the relative noise in the hydrofoil. The point in the formation of vapour phase on the hydrofoil and the pronounced frequency effect were determined by measuring the relative noise. Based on the analysis the results show that the particles increase the intensity and extent of cavitation.
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Tax Toleration and Tax Compliance: How Government Affects the Propensity of Firms to Enter the Unofficial Economy

Tax Toleration and Tax Compliance: How Government Affects the Propensity of Firms to Enter the Unofficial Economy

and the top left part of (16). All determinants of t ij in the regression are highly signi…cant statistically and have signs consistent with the underlying theoretical model, 39 apart from log Payroll Tax Rate which is correctly signed but has a p-value of only 0:2. More important, the substantive e¤ects implied by the ordered logit regression coe¢cients are large. Institutional Services B exerts the biggest in‡uence on Tax Toleration. B is also the only independent variable in Table 2 requiring ordinal representation by dummy indicator variables for response categories. Recall that B scale values range over ten ordered categories spanning 1 to 4 by increments of 1/3. Coe¢cients of the indicator dummies increase monotonically with the scale values but to conserve space only estimates for the lowest B = 1:33 and highest B = 4:0 scale categories are reported in Table 2. (B = 1 is the omitted category. It includes 2% of the 3686 cases and its e¤ect is absorbed by the logit cut-point constants.)
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EFFECTIVNESS OF  PALESTINIAN INCOME TAX RATES IN FACING TAX EVASION.

EFFECTIVNESS OF PALESTINIAN INCOME TAX RATES IN FACING TAX EVASION.

Palestinian Public budget has suffered for a long time from high amount of deficit reach to 387 million US dollar in 2016 budget which represents about 3.5% of GDP. Based on this paper measurement the budget deficit is less than the estimated amount of tax evasion, it was measured by 568 million US dollar in 2015. So facing the deficit of public budget needs fiscal policies lead to reduce tax evasion. In 2013, Palestinian Legislator adopted a new income tax law by increasing number of tax brackets and increases the upper tax rate from 15% to 20%, this law was effective in 2014. As a result, the average of estimated tax evasion is increased by 49.5%. While adopting 2011 income tax law has reduced the average of estimated tax evasion by 6% than previous period. From beginning 2016, the number of tax brackets decreased to 3 with applied upper tax rate of 15% and increasing the range of each tax bracket from 40000 NIS to 75000 NIS for each. The last change effects will be cleared within next few months.
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The imperative of culture: a quantitative analysis of the impact of culture on workforce engagement, patient experience, physician engagement, value-based purchasing, and turnover

The imperative of culture: a quantitative analysis of the impact of culture on workforce engagement, patient experience, physician engagement, value-based purchasing, and turnover

Abstract: Current uncertainty for the future of the health care landscape is placing an increasing amount of pressure on leadership teams to be prepared to steer their organization forward in a number of potential directions. It is commonly recognized among health care leaders that culture will either enable or disable organizational success. However, very few studies empirically link culture to health care-specific performance outcomes. Nearly every health care organization in the US specifies its cultural aspirations through mission and vision statements and values. Ambitions of patient-centeredness, care for the community, workplace of choice, and world-class quality are frequently cited; yet, little definitive research exists to quantify the importance of building high-performing cultures. Our study examined the impact of cultural attributes defined by a culture index (Cronbach’s alpha = 0.88) on corresponding performance with key health care measures. We mapped results of the culture index across data sets, compared results, and evalu- ated variations in performance among key indicators for leaders. Organizations that perform in the top quartile for our culture index statistically significantly outperformed those in the bottom quartile on all but one key performance indicator tested. The culture top quartile organizations outperformed every domain for employee engagement, physician engagement, patient experience, and overall value-based purchasing performance with statistical significance. Culture index top quartile performers also had a 3.4% lower turnover rate than the bottom quartile performers. Finally, culture index top quartile performers earned an additional 1% on value-based purchasing. Our findings demonstrate a meaningful connection between performance in the culture index and organizational performance. To best impact these key performance outcomes, health care leaders should pay attention to culture and actively steer workforce engagement in attributes that represent the culture index, such as treating patients as valued customers, having congruency between employee and organizational values, promoting employee pride, and encouraging the feeling that being a member of the organization is rewarding, in order to leverage culture as a competitive advantage.
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The impact of arm position and pulse pressure on the validation of a wrist-cuff blood pressure measurement device in a high risk population

The impact of arm position and pulse pressure on the validation of a wrist-cuff blood pressure measurement device in a high risk population

There is no study comparing the accuracy of these posi- tions. Moreover, while most validation studies included normal healthy subjects, extrapolation of their results to the average hypertensive population in routine clinics who often have multiple comorbidities is unreasonable. Therefore, this study focused on the validation of a wrist-cuff BP monitor in a high risk population and included an evaluation of the impact of arm position and pulse pressure (PP) on the validity of the BP measurement. This study attempted to maintain the main concepts of the above mentioned protocols but expand on their flexibility.
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Implications of the introduction of the Common Consolidated Corporate Tax Base for tax revenues in Romania

Implications of the introduction of the Common Consolidated Corporate Tax Base for tax revenues in Romania

In 2006, a number of specialists (Brøchner et al., 2007) said that EU-wide the ne- cessary consensus for a major reform in the CIT system (the introduction of har- monized rules) will not be achieved, because the CIT harmonization will generate antagonistic effects for individual member states, while the scale of changes in GDP (around 5 percentage points), the welfare level (about 0.8 percentage points) and tax revenue (about 2 percentage points) will be quite broad. Instead, strengthe- ned coordination between a number of countries that are relatively homogeneous (in terms of economic development level, tax rates and rules for determining the tax base) in the CIT was held to be a viable solution. Such an approach will lead to less radical policy changes but smaller gains from harmonization. Conclusions of the study made by Jeans Brøchner, Jesper Jensen, Patrik Svensson and Peter Birch Sørensen have proved correct. In 2006-08, the representatives of some member countries (UK, Ireland, Poland, Latvia) came out against total CIT harmonization and also against the introduction of the CCCTB. Some of those politicians claimed the need to maintain national sovereignty in taxation and others have complained about the tax losses will be recorded. Since the unanimous support of member states for CIT harmonization is unlikely to be achieved, the European Commission decided that the proposal for a Directive which will introduce the CCCTB could be the subject of enhanced cooperation between member states, provided that there are at least eight participating countries (DG ECOFIN, 2008).
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Research on the impact of mass fractions of multi-element granular structure on the mixing process

Research on the impact of mass fractions of multi-element granular structure on the mixing process

A majority of real granular mixtures with which we have to deal in an industry, for example in a feed mixer, are multi-element heterogeneous systems. Particularly in this field the mixing processes have not been well mastered yet. According to the researches, so far, a significant impact on the course of the process is exerted by the proportions of mass or volumetric systems in the mixture (Boss, 1987). Further- more, there are many parameters characteristic for the mix- ture, such as for example distribution of the size of the grains, shape, moisture content, coefficient of dynamic visco- sity, angle of repose, or density, though it has been shown that only two parameters: the diameter of grains and density have a significant impact on the quality of the mixture after blen- ding (Boss, 1987). Recognition of the principles governing the mixing process is one of significant scientific problems.
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