Determining factors affecting tax evasion in the Mercosur region

Abstract

Theoretically, fiscal revenue maximisation remains the administrative goal of any country. Undoubtedly, tax evasion has reduced the government’s tax revenues and its ability to offer public goods. Moreover, tax evasion has adverse effects on a country's economic development. It garbles the overall tax system of the country and reduces the government's tax revenues through its expenses on law enforcement. Therefore, tax evasion is an important phenomenon to study, particularly in developing countries. Variables included in tax noncompliance studies are complex tax systems, tax information, penalties, reporting requirements, the probability of audit, tax rates, age, level of education, gender, income levels, and others. After reviewing the literature, it appears that existing studies yield mixed findings, which necessitate further empirical investigations, particularly in developing countries. The present study empirically investigates the sociodemographic, economic, and cultural factors as determinants of tax evasion in developing countries, particularly in the MERCOSUR region. The study employs the Panel Autoregressive Distributed Lags (ARDL) technique for the period 1990-2022. By comparing the findings of the MG, PMG, and DFE estimators, the Hausman test results indicate that the PMG is the most consistent and efficient estimator for this dataset. Consequently, the long-run analysis is based on the PMG estimator, which reveals that the age of the taxpayer, economic development, culture and democracy have statistically significant relationships with tax evasion. While the source of income from agriculture and education has a positive relationship, this relationship is statistically weak in the MERCOSUR region. A limitation of the study is that data is not easily available for developing countries, unlike those in OECD countries. Socio-political determinants of personal income tax evasion should be further explored.

Ngokwemfundiso, ukukhulisa imali engenayo yezimali kusalokhu kuyinjongo yokuphatha yanoma yiliphi izwe. Akungabazeki ukuthi ukugwema intela kuye kwehlisa imali engenayo yentela kahulumeni kanye nekhono lakhe lokunikeza izimpahla zomphakathi. Ngaphezu kwalokho, ukugwema intela kunemiphumela emibi ekuthuthukisweni komnotho kwanoma yiliphi izwe. Kuphazamisa uhlelo lwentela oluphelele lwezwe. Kwehlisa imali engenayo yentela kahulumeni ngezindleko zakhe zomthetho. Ngakho-ke, ukugwema intela kuyinto ebaluleke kakhulu okufanele ifundwe, ikakhulukazi emazweni asathuthuka. Izinto ezifakiwe ezifundweni zokungalandeli imithetho yentela izinhlelo zentela eziyinkimbinkimbi, ulwazi lwentela, izinhlawulo, ukubika, amathuba okucwaningwa kwamabhuku, amazinga entela, ubudala, izinga lemfundo, ubulili, amazinga emali engenayo, njll. Ngemva kokubuyekeza izincwadi, kubonakala sengathi izincwadi ezikhona zinikeza imiphumela exubile, okuholela ophenyweni olwengeziwe olusekelwe ebufakazini, ikakhulukazi emazweni asathuthuka. Lolu cwaningo luhlola ngobuciko izici zezenhlalo kanye nezomnotho, kanye namasiko, njengezinto ezibangela ukugwema intela emazweni asathuthuka, ikakhulukazi esifundeni sase-MERCOSUR. Lolu Cwaningo Lusebenzisa Indlela ye-Panel Autoregressive Distributed Lags (ARDL) yesikhathi sika-1990-2022. Ngokuqhathanisa okutholakele kwabalinganisi be-MG, PMG kanye ne-DFE, imiphumela yokuhlolwa kwe-Hausman ikhombisa ukuthi i-PMG iyisilinganiso esivumelana kakhulu nesisebenza kahle salolu lwazi. Ngenxa yalokho, ukuhlaziywa kwesikhathi eside kusekelwe kusilinganiso se-PMG, esiveza ukuthi iminyaka yomkhokhi wentela, intuthuko yezomnotho, isiko kanye nentando yeningi kunobudlelwano obubalulekile ngokwezibalo nokugwema intela. Ngenkathi umthombo wemali engenayo evela kwezolimo kanye nemfundo unobudlelwano obuhle, lobu budlelwano buwubudlelwano obubuthakathaka ngokwezibalo esifundeni sase-MERCOSUR. Umkhawulo wocwaningo ukuthi idatha ayitholakali kalula emazweni asathuthuka njengalawo asemazweni e-OECD. Izinto ezibangela ukugwema intela yengeniso yomuntu siqu ngokwezenhlalo kufanele zihlolwe kabanzi. Amagama angukhiye

Teoreties bly die verhoging van fiskale inkomste die administratiewe doelwit van enige land. Daar is geen twyfel dat belastingontduiking die regering se belastinginkomste en sy vermoë om openbare goedere te verskaf, verminder het nie. Boonop het belastingontduiking negatiewe uitwerking op die ekonomiese ontwikkeling van enige land. Dit ontwrig die hele belastingstelsel van die land. Dit verminder die regering se belastinginkomste vir sy regskoste. Daarom is belastingontduiking 'n baie belangrike ding om te bestudeer, veral in ontwikkelende lande. Onderwerpe wat in belasting-nie-nakomingskursusse gedek word, is komplekse belastingstelsels, belastinginligting, boetes, verslagdoening, ouditgeleenthede, belastingkoerse, ouderdom, opvoedingsvlak, geslag, inkomstevlakke, ens. Nadat die literatuur nagegaan is, blyk dit dat die bestaande literatuur gemengde resultate verskaf, wat lei tot meer bewysgebaseerde ondersoeke, veral in ontwikkelende lande. Hierdie studie ondersoek sosiale en ekonomiese faktore, sowel as kultuur, krities as faktore agter belastingontduiking in ontwikkelende lande, veral in die MERCOSUR-streek. Hierdie studie gebruik die Panel Autoregressive Distributed Lags (ARDL) metode vir die tydperk 1990-2022. Deur die bevindinge van die MG-, PMG- en DFE-beramers te vergelyk, toon die resultate van die Hausman-toets dat die PMG die mees konsekwente en doeltreffendste beramer van hierdie inligting is. Gevolglik is die langtermyn-ontleding gebaseer op die PMG-skatting, wat aan die lig bring dat die belastingbetaler se ouderdom, ekonomiese ontwikkeling, kultuur en demokrasie 'n statisties betekenisvolle verband met belastingontduiking het. Terwyl die bron van inkomste uit landbou en onderwys 'n positiewe verband het, is hierdie verhouding statisties swak in die MERCOSUR-streek. 'n Beperking van die studie is dat data nie so geredelik beskikbaar is in ontwikkelende lande soos in OESO-lande nie. Die sosiale determinante van persoonlike inkomstebelastingontduiking moet verder ondersoek word.