Staffordshire University logo
STORE - Staffordshire Online Repository

Firm Level Determinants of Tax Evasion in Transition Economies

ABDIXHIKU, Lumir, KRASNIQI, Besnik, PUGH, Geoff and HASHI, Iraj (2017) Firm Level Determinants of Tax Evasion in Transition Economies. Economic Systems, 41 (3). pp. 354-366. ISSN 0939-3625

[img] Text
MANUSCRIPT_Abdixhiku_Krasniqui_Hashi_Pugh.docx - AUTHOR'S ACCEPTED Version (default)
Available under License Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0).

Download (146kB)

Abstract or description

Business tax evasion is an important issue for governments. Yet, the factors that determine business tax evasion have not been sufficiently examined in the literature in general, and in transition contexts in particular. To address this gap, this study uses the WB/EBRD Business Environment and Enterprise Performance Survey (BEEPS) database with a sample of over 12,692 firms from 26 transition economies. Applying various modelling strategies, we argue that tax evasion is a function of firm level and institutional level variables. We contribute to the literature by providing robust evidence showing that the perceived tax burden has a positive impact on tax evasion. We also find that the tax evasive behaviour of firms is positively influenced by low trust in government and in the judicial system as well as by higher perceptions of corruption and by higher compliance costs. We find that smaller firms, individual businesses and firms in sectors that are less visible to the tax administration are more likely to get involved in evasive behaviour. Overall, institutional factors play an important role in determining firms’ tax evasion behaviour in transition economies. This finding has important policy implications.

Item Type: Article
Faculty: School of Business, Leadership and Economics > Accounting, Finance and Economics
Depositing User: Geoff PUGH
Date Deposited: 31 Jan 2017 10:19
Last Modified: 24 Feb 2023 13:46

Actions (login required)

View Item View Item

DisabledGo Staffordshire University is a recognised   Investor in People. Sustain Staffs
Legal | Freedom of Information | Site Map | Job Vacancies
Staffordshire University, College Road, Stoke-on-Trent, Staffordshire ST4 2DE t: +44 (0)1782 294000