Record Details
The Influence of Tax Composition on Tax Evasion
ScholarsArchive at Oregon State University
| Field | Value |
|---|---|
| Title | The Influence of Tax Composition on Tax Evasion |
| Names |
Ivlieva, Anastasiia
(creator) Schroeder, Elizabeth (advisor) |
| Date Issued | 2015-06-09 (iso8601) |
| Note | Graduation date: 2015 |
| Abstract | Tax evasion is one of many problematic issues associated with tax systems that negatively affect state’s ability to provide public goods and services. This study seeks to examine the impact of tax composition on tax evasion using information about 150 countries from 1999 to 2007. The paper adopts neoclassical theoretical framework based on the assumption that individuals maximize their utility function by making rational decisions regarding tax compliance while accounting for external factors. The results were obtained by performing fixed-effects regressions in which the main dependent variable, tax evasion, was approximated by the size of the shadow economy. The findings suggest that an increase in the ratio of income taxes to consumption taxes is expected to increase tax evasion in the group of OECD countries, which partially supports the main hypothesis and fully supports the hypothesis about differences in the influence of tax composition on tax compliance in highly developed and developing nations. Moreover, an increase in the ability of country's citizens to participate in selecting their government as well as in freedom of speech and expression is associated with declining tax evasion. These results are discussed in the work together with policy implications based on the findings. |
| Genre | Research Paper |
| Topic | Tax Policy |
| Identifier | http://hdl.handle.net/1957/56374 |
