Revealing Tax Evasion

This paper examines the pervasiveness of tax evasion among firms in Indonesia and the characteristics associated with higher levels of noncompliance. Tax evasion is estimated through a randomized, double-list experiment embedded in a nationally representative survey of 2,955 registered firms. This revealed whether firms pay all the taxes they owe without them having to disclose this directly. Across both list experiments, around a quarter of the firms indirectly reveal that they have evaded taxes. Firms that do not export, face intense competition from informal firms, and believe tax administration is a major obstacle to their business are the most likely to evade taxes. These findings help to inform the enforcement activities of tax authorities in middle-income countries, which face substantial challenges in estimating levels of tax evasion and identifying noncompliant taxpayers.

Bibliographic Details

Main Authors:	Hoy, Christopher, Jolevski, Filip, Obeyesekere, Anthony
Format:	Working Paper biblioteca
Language:	English en_US
Published:	Washington, DC: World Bank 2024-07-24
Subjects:	TAX EVASION, EXPERIMENT, FIRMS, PUBLIC FINANCE, COMPLIANCE, INDUSTRY, INNOVATION AND INFRASTRUCTURE, SDG 9, DECENT WORK AND ECONOMIC GROWTH, SDG 8,
Online Access:	http://documents.worldbank.org/curated/en/099358407222411531/IDU18ac8f51d1c91e14f751936b1e28e9f364a0b https://hdl.handle.net/10986/41944
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