Interaction Between Tax Compliance and Tax Administration in Lithuania： Tax Evasion Aspect

Tax payers and tax administrators are the main structural groups in tax system. They interact and have an impact on each other＇s actions following by tax compliance or tax non-compliance. However, no wider study encompassing both tax payers and tax administrators has been conducted in Lithuania. Since a survey of all participants in the tax system would require substantial time, human, and financial resources, during the first study, only one group, tax payers, was surveyed. During the second study, tax administrators were surveyed along with the tax payers. The present study has the following objectives： to describe the problem of tax evasion in the context of attitudes and behaviours of participants in the tax system; to estimate the tax compliance and evasion situation in Lithuania on the basis of attitudes and behaviours of tax payers; to establish how tax administrators estimate the tax compliance （evasion） situation in Lithuania; to assess the relationship between tax administrators and tax payers; to determine similarities and differences of their attitudes; to assess the key aspects of tax evasion; and to identify measures for the solution of this problem.

TAX EVASION:MODELS WITH SELF-AUDIT

Different from traditional tax audit, supervision with self-audit is a combination of audit by the taxpayer himself and audit by the tax authority. This paper mainly studies a taxpayer＇s optimal policy of tax evasion under supervision with self-audit and its related properties, in order to deduce some effective suggestions and theoretical bases to restrain tax evasion. Assuming that only a certain proportion of evaded tax can be discovered when the audit is executed, the authors first formulate a static model with self-audit. This model is divided into two stages. At the first stage, taxpayers declare their taxes, then the tax authority chooses audit objects, based on a known probability, and announces the result; if the taxpayer is chosen, he will enter the second stage, during which he has a chance to pay the evaded tax and the corresponding late fees and then is audited by the tax authority. The authors show the existence and uniqueness of the optimal amount of tax evasion at the first stage and the optimal proportion to self-expose at the second stage. The authors also discuss the related properties of the interior solution, and do elasticity analyses on some parameters. Besides, the authors extend the static model into the corresponding two-period model, and study the existence and uniqueness of the solution of the extended model. Finally, under the assumption that tax evasion can only be discovered with a certain probability when the audit is executed, the authors formulate another static model with self-audit and investigate its properties.

Determinants of Tax Evasion Intention using the Theory of Planned Behavior and the Mediation role of Taxpayer Egoism

This study evaluates the mediation role of taxpayer egoism in the nexus between tax evasion intention(TEI)and its determinants.TEI is measured as a composite variable(for mediation in the PROCESS macro)and then as a latent variable(for mediation in Analysis of Moment Structure Software AMOS).Further,the stringent assumptions of mediation analysis by Baron and Kenny(Strategic,and Statistical Considerations 51:1173-1182,1986)are challenged via assertions by Hayes(Introduction to Mediation,Moderation and Conditional Process Analysis:A Regression-Based Approach,The Guilford Press,2018).The proxies for TEI are the respondents'ethical attitudes toward taxation Determinants of tax evasion intention are grouped into perceived behavioral control attitude and subjective norms as per theory of planned behavior(TPB)and extant literature.The detailed variables adopted from the literature include tax awareness,tax information,tax complexity,perceived power of authority,tax morals,tax fairness,and trust in government.A totalof 151 responses were collected Mediation analysis was done via bootstrapping in the PROCESS macro and through AMOS.A plethora of studies focus on determinants of tax evasion,tax compliance and their intentions However,none combine analysis via the two tools highlighted.Further,few challenge the old way of conducting mediation analysis The data provide statistical support for egoism's mediation in the effect of four determinants on tax evasion intention.It further confirms that many of the old preconditions for mediation are unnecessary given modern-day bootstrapping analysis.Insight into determinants of TEI and egoism have been provided However,this study uses cross-sectional data Future studies must use longitudinal data or experimental manipulation to infer more specific effects.

Tax evasion and debt in a dynamic general equilibrium model

The literature has long analysed optimal taxation policies in economies where tax evasion is widespread.Nevertheless,very little has been produced on the relationship between public debt,tax evasion,and long-term economic growth.In this article,we investigate the relationship between sovereign debt sustainability and tax evasion by computing under which conditions the debt/GDP ratio is endogenously mean reverting in the context where tax evasion may increase the public debt and public expenditure is used to finance public and merit goods.For a log utility consumer,the level of tax evasion has no effect on the mean reverting conditions while the same is not true for more general functional forms.Finally,we conclude that allowing for tax evasion is not a suitable policy to make the debt/GDP ratio stable over time,especially in low-growth economies.

A self-employed taxpayer experimental study on trust,power,and tax compliance in eleven countries

The slippery slope framework explains tax compliance along two main dimensions,trust in authorities and power of authorities,which influence taxpayers’compliance attitudes.Through frequentist and Bayesian analyses,we investigated the framework’s assumptions on a sample of 2786 self-employed taxpayers from eleven post-communist and non-post-communist countries doing business in five economic branches.After using scenarios that experimentally manipulated trust and power,our results confirmed the framework’s assumptions regarding the attitudes of the self-employed taxpayers;trust and power fostered intended tax compliance and diminished tax evasion,trust boosted voluntary tax compliance,whereas power increased enforced tax compliance.Additionally,self-employed taxpayers from post-communist countries reported higher intended tax compliance and lower tax evasion than those from non-post-communist countries.Our results offer tax authorities insights into how trust and power may contribute to obtaining and maintaining high tax compliance levels amid global economic challenges,downturns,and increasing tax compliance costs.

International VAT Fraud： The Carousel Game

The EU market＇s free circulation principle severs the VAT chain at the EU States＇ borders, thus, encouraging VAT fraud. The increased ＂transit traffic＂ from outside the EU with final destination in EU countries also contributes to VAT fraud. To examine this issue, we model some different collusive features of these frauds, on which basis we explore their effects on the international trade and the domestic market.

Perceptions of trust and power are associated with tax compliance:A cross-cultural study

The slippery slope framework(SSF)of tax compliance postulates that taxpayers’compliance behaviour depends on the two dimensions:trust in authorities and power of authorities.In an attempt to overcome common-method biases,the present study tests the main assumptions of the SSF with a sample of 44 countries/regions.Country/region-level trust and power indices are calculated based on experimental data involving 14,509 participants and related to shadow economy estimates and–as an alternative indicator of non-compliance–corruption indices.The results indicate that both trust and power are negatively related to the size of the shadow economy and the extent of corruption.These results emphasise the importance of both SSF dimensions in combating tax evasion and counterproductive behaviour within a society in general.

Undertaking Solidarity and Firmness:Progress and Prospect in the Reform of Administration of Tax Collection

Over the past two decades,China's tax law reform has become a highly valued and distinguished area for earnestly advancing Chinese socialist rule of law construction.With the establishment of the principle on strengthening legality of imposing tax,as well as new settings regarding China's social and economic development,the administration and management of tax collection and protection of taxpayers'well-being gradually and vigilantly attain responsiveness from top national legislators and scholars.Meanwhile,the efforts exerted by tax administers on fighting tax evasion have been elevated on both international and domestic grounds.For example,a focal area is the evaluation and collction of presumptive tax which is a common routine for administers around the world.Moreover,the current laws and regulations on administering tax collection invite a rigorous process of revision and modification with contermporary conceptions of taxpayers'well-being.This article argues that,through the example of presumptive tax collection,the administration and management of tax collection should adhere to the basic principles of protecting taxpayers and advancing the goals of de-administrating arduous procedures to conform to new trends of social and economic development.It also proposes that the vigor and dynamics of tax collection efforts should coincide with national goals of reformulating the individual income tax collection mechanisms,solidifying the national conversion of business tax to value-added tax,matching with the new wave of bankruptcy of certain enterprises,and so forth.