Tax administration reforms and the fight against tax evasion: Recent evidence from Greece

Athanasios O. Tagkalakis 02 December 2014

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Introduction

Greece is currently implementing an ambitious, EU-IMF financed, fiscal adjustment programme, the so-called Economic Adjustment Programme (EAP). One of the goals of the EAP is to boost revenue performance by tackling tax evasion through improvements in tax administration. These involve greater autonomy for the tax authority, intensification of tax audits, and greater emphasis on risk-based auditing techniques targeting individuals and firms more liable to evade taxes.

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Topics:  Europe's nations and regions Taxation

Tags:  tax evasion, Greece, tax administration reforms, tax audits

Trying to glimpse the ‘grey economy’

Charles A.E. Goodhart, Jonathan Ashworth 08 October 2014

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It is a remarkable fact that the ratio of currency to GDP in the UK has been rising, despite the greater use of card and online payments (see Figure 1). The currency-to-GDP ratio now stands at 16.1%, compared to 13.3% in Q4 2007. Currency in circulation per adult person is now equal to around £1,300 in the UK. In some other equivalent cases – e.g. holdings of US dollars, euros, and Swiss francs – this might be because more currency is being hoarded abroad, but this is not likely to be the case for the UK. So what is fuelling this rise in currency usage, if not the grey economy?

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Topics:  Europe's nations and regions Frontiers of economic research Global crisis

Tags:  global crisis, underground economy, shadow economy, hidden economy, grey economy, black economy, measurement, Currency, UK, tax evasion, GDP, GDP measurement, national accounts

Tax evasion and austerity-plan failure

Francesco Pappadà, Yanos Zylberberg 03 February 2014

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Austerity plans in southern European countries (Greece, Portugal, Spain, and Italy) have so far yielded mixed results (Salto 2013). On the one hand, the primary budget balances of these countries have improved, and their risk premiums are now stabilised at a much lower level than during the crisis peak.

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Topics:  Financial markets Taxation

Tags:  VAT, transparency, tax evasion, Greece, credit, austerity, European sovereign debt crisis

Tax incidence in the presence of tax evasion

Wojciech Kopczuk, Justin Marion, Erich Muehlegger, Joel Slemrod 30 September 2013

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As many countries struggle with large deficits, some are looking to respond by cracking down on tax evasion. For example, Greece’s medium-term fiscal program assumes an improvement in tax collection of 1.5% of GDP. Achieving such a result generally involves increasing deterrence, by upping enforcement and raising penalties.

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Topics:  Taxation

Tags:  tax evasion

Public-debt crises and bad equilibria: Lessons from the GIIPS Countries

Maurizio Bovi 02 December 2011

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All the GIIPS countries (Greece, Italy, Ireland, Portugal and Spain) have been hit by the current government debt crisis (see eg Manasse and Trigilia 2011). Yet not all these countries have comparably sized shadow economies or levels of institutional inefficiency (widespread corruption, intrusive bureaucracy, excessive regulations, etc).

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Topics:  Institutions and economics

Tags:  institutions, tax evasion, public debt

Can financial sector reform help bring informal firms into the formal sector?

Thorsten Beck, Chen Lin, Yue Ma 13 October 2010

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While the global crisis has amply demonstrated the economic fragilities that a highly evolved financial sector can create, it is important not to “throw the baby out with the bath water”. The financial sector is critical to the economy. The important connection between financial development and growth is supported by a growing literature (Levine 2005).

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Topics:  Development Taxation

Tags:  taxation, tax evasion, financial development, informal sector

Treasury vs dodgers: A tale of fiscal consolidation and tax evasion

Maurizio Bovi 30 May 2010

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A number of European countries – Portugal, Italy, Greece, Spain, and, most recently, Ireland – face public debt sustainability problems (Cabral 2010). They also share a problem of significant tax evasion.

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Topics:  Europe's nations and regions

Tags:  tax evasion, Fiscal crisis, Eurozone crisis

Lessons from the Russia’s 2001 Flat Tax Reform

Yuriy Gorodnichenko, Jorge Martinez-Vazquez , Klara Sabirianova Peter 19 February 2008

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Tax evasion is a pervasive worldwide phenomenon. It is widely believed that high personal income tax rates are partially responsible for high levels of tax evasion everywhere, especially in emerging markets. High personal income tax rates are also often associated with negative effects on the real side of the economy. Indeed, the high elasticity of taxable income with respect to tax rates typically reported in the public finance literature implies sizable deadweight losses in the presence of high personal income tax rates (e.g., Feldstein, 1995).

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Topics:  Taxation

Tags:  Russia, flat tax, tax evasion