THE MODEL OF TAX EVASION, ITS CORRECTIONS AND COHERENCE TO THE PRACTICAL TAX ADMINISTRATION

Fuente: Redalyc
Saved in:
Bibliographic Details
Main Author: Aurelija Anciūtė
Format: Artículo científico
Language:en
Published: Vilniaus Universitetas 2010
Subjects:
Online Access:
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1876467693043843072
author Aurelija Anciūtė
author_facet Aurelija Anciūtė
contents THE MODEL OF TAX EVASION, ITS CORRECTIONS AND COHERENCE TO THE PRACTICAL TAX ADMINISTRATION Aurelija Anciūtė Rūta Kropienė Economía y Finanzas Tax evasion risk management comparative statics tax audit probability In this paper, a theoretical model of tax evasion, proposed by Allingham and Sandmo, is briefly presented. This model tries to explain the taxpayer’s decision to reveal only part of the taxable income and to evade taxes in this way. The main parameters of the model are personal income, the rates of tax and penalty, probability of the tax audit. By the method of comparative statics it is possible, at least partially, to evaluate the influence of changes of the model’s parameters on a person’s decision to evade tax. As some of the assumptions of the Allingam–Sandmo model differ from taxation rules in practice or the model’s conclusions do not match the actual taxpayers’ behaviour, in this paper some criticism and improvements of the proposed model are reviewed. A comparison of the model’s assumptions and actual aspects of the tax administration in Lithuania is also provided. This article contains also a model of tax evasion with regard for the peculiarities of tax administration in Lithuania and the possible corrections of tax audit probability function. 2010 artículo científico 2424-6166 https://www.redalyc.org/articulo.oa?id=692273742004 en http://www.redalyc.org/revista.oa?id=6922 Ekonomika application/pdf Vilniaus Universitetas Ekonomika (Lituania) Num.4 Vol.89
format Artículo científico
id redalyc_692273742004
institution Redalyc
language en
publishDate 2010
publisher Vilniaus Universitetas
spellingShingle THE MODEL OF TAX EVASION, ITS CORRECTIONS AND COHERENCE TO THE PRACTICAL TAX ADMINISTRATION
Aurelija Anciūtė
Economía y Finanzas
Tax evasion
risk management
comparative statics
tax audit probability
THE MODEL OF TAX EVASION, ITS CORRECTIONS AND COHERENCE TO THE PRACTICAL TAX ADMINISTRATION Aurelija Anciūtė Rūta Kropienė Economía y Finanzas Tax evasion risk management comparative statics tax audit probability In this paper, a theoretical model of tax evasion, proposed by Allingham and Sandmo, is briefly presented. This model tries to explain the taxpayer’s decision to reveal only part of the taxable income and to evade taxes in this way. The main parameters of the model are personal income, the rates of tax and penalty, probability of the tax audit. By the method of comparative statics it is possible, at least partially, to evaluate the influence of changes of the model’s parameters on a person’s decision to evade tax. As some of the assumptions of the Allingam–Sandmo model differ from taxation rules in practice or the model’s conclusions do not match the actual taxpayers’ behaviour, in this paper some criticism and improvements of the proposed model are reviewed. A comparison of the model’s assumptions and actual aspects of the tax administration in Lithuania is also provided. This article contains also a model of tax evasion with regard for the peculiarities of tax administration in Lithuania and the possible corrections of tax audit probability function. 2010 artículo científico 2424-6166 https://www.redalyc.org/articulo.oa?id=692273742004 en http://www.redalyc.org/revista.oa?id=6922 Ekonomika application/pdf Vilniaus Universitetas Ekonomika (Lituania) Num.4 Vol.89
title THE MODEL OF TAX EVASION, ITS CORRECTIONS AND COHERENCE TO THE PRACTICAL TAX ADMINISTRATION
topic Economía y Finanzas
Tax evasion
risk management
comparative statics
tax audit probability
url https://www.redalyc.org/articulo.oa?id=692273742004