Quoting James Andreoni, `the problem of tax compliance is as old as taxes themselves'. The sources of missing tax revenues have traditionally concerned tax administrations and particularly now in times when public finances are striving. In the quest for analysing the revenue that is foregone, tax administrations have started to produce a report of their tax gap, understood as the difference between the theoretical tax liability and the actual collection, to obtain a measure of the extent of non-compliance. Due to the complexity of the non-compliance behaviour and the lack of visibility of certain types of income, different methods are usually put in place in order to offer a plausible range for the estimates. This dissertation dedicates its two first chapters to providing an alternative method for estimating the income-gap (de fined to be one minus the proportion of reported to actual income) for two populations: the self-employed and the employees. The underlying data used for both cases is publicly available survey data on expenditures and income that is generated on a timely manner. This carries substantial advantages. First, relying on a general purpose survey dataset means that the estimation can be updated more frequently than if it was to rely solely on either the timing of administrative data or on survey data that is speci fically targeted to measure non-compliance. Second, it provides an alternative estimation using an independent source of data which allows for the triangulation of the estimate obtained using administrative sources. Third, it allows tax administrations which do not have readily available administrative data to perform estimations using a type of survey widespread available in most countries. The third chapter of this thesis explores the role of the extrinsic and intrinsic incentives in explaining engagement in the hidden economy defined as undeclared work practices. This chapter contributes firstly to the literature on shadow economy and to the debate of whether crowding effects are found between extrinsic and intrinsic motivations in a tax environment.

This paper will discuss the obstacles governments of developing countries face in regulating related party transactions in this rapidly globalizing world. The first section of this paper will focus on foreign direct investment, its benefits, and the tax incentives instituted by developing countries to attract the capital of multinational corporations. Next, this paper will examine the major obstacles to growth a developing country must combat: shadow economies and corruption. These two enemies of growth hurt a developing country’s ability to attract foreign direct investment, to develop its rule of law and tax administration, and to efficiently allocate its resources with the goal of developing a stable economy. Finally, I will explain the difficulties developing countries must overcome to regulate firm transfer pricing under the current global standard.

In February 2013, eleven Member States agreed to adopt the Commissions' Proposal for a Council Directive implementing enhanced cooperation in the area of financial transaction tax, COM (2013)71 final. This article reviews three thematic areas frequently discussed by practitioners and academia alike on the impact that the Proposal could have on companies operating within participating Member States. This includes the impact on capital and related costs, business strategy and compliance considerations. I ask the question whether the unintentional repercussions could be mitigated by making adjustments to the current Proposal including the expansion of exemptions and the adoption of an implementation framework that takes inspiration from the Value Added Tax System that is already implemented across Member States. (author's abstract) / Series: WU International Taxation Research Paper Series

Tax arrears are a frequent feature in many States and a concern that demands to reflect on the diverse variables that promote, cause or block their reduction. This paper elaborates on some of the variables that could promote or contribute to generate tax arrears and on some aspects of the Peruvian tax system that could help to explain the current level of tax arrears and the tax litigiousness in Peru. Tax Administration pitfalls that contribute to the generation of tax arrears and tax litigiousness are not avoided but are certainly not the core part of this work. / Los atrasos de las deudas tributarias son un fenómeno frecuente en los Estados y una preocupación que exige reflexionar sobre las diversas variables que los incentivan, ocasionan o que impiden su reducción. El presente trabajo reflexiona sobre algunas de las variables que podrían promover, o cooperar con, la generación de atrasos tributarios y sobre algunos aspectos o atributos del sistema tributario peruano que podrían ayudar a explicar el actual nivel de atraso en la deuda tributaria y, en parte, la alta litigiosidad en el sistema. Los defectos atribuibles a la Administración tributaria para producir el atraso y la litigiosidad no se evaden, pero no forman parte central del trabajo.

Revenue collection agencies across the world aim to maximise revenue collection by minimising tax noncompliance. The different types of tax noncompliance are collectively referred to as the tax gap phenomenon, which revenue collection agencies address by means of various enforcement approaches and capabilities. Much like any organisation, the resources required to execute these capabilities are finite and require accurate organisational decision-making in order to make optimal use thereof. Information technology, and specifically decision support systems (DSS), is critical in enabling this decision-making process. Using the Structuration Model of Technology, the information needs, demand and offerings of revenue collection agencies are explored given their objective of narrowing the tax gap phenomenon using DSS. Emphasis is placed on the manner in which IT is used to address taxpayer noncompliance, the way in which IT supports knowledge creation and subsequently also facilitate the decision-making process of tax practitioners, and also the different types of IT offerings made available to decision-makers in the form of DSS. In doing so, this research presents the results of a case study on the South African Revenue Service in which a conceptual decision support system framework is developed aimed at minimising the tax gap phenomenon. The research is conducted as a qualitative single case study and presented through a narrative analysis. The framework is systematically constructed as the research findings emerge and concluded by means of a framework validation and transfer ability test. The research result is a conceptual DSS framework acting as a reference point to other revenue collection agencies with the objective of addressing taxpayer noncompliance through DSS. / Jurisprudence / D. Phil. (Information Systems)

Revenue losses due to tax non-compliance pose a substantial risk for all governments, including the South African government. As part of its risk management system, the South African Revenue Service has identified the small, medium and micro enterprise sector as one of the seven high-risk areas and indicated that non-compliance in this sector remains high. The first focus area of any tax compliance risk management system is to ensure registration for the relevant taxes payable. The objective of this study was to establish whether any demographic factors could be used to select small businesses to investigate whether they are meeting their registration compliance requirements for income tax, Value-Added tax as well as the employee related taxes. In order to achieve the research objectives of the study, two sequential research methods were applied. During the first phase of the research, a literature review was conducted to develop a heuristic model consisting of two levels. The first level described the factors that could influence the tax compliance behaviour of a small business. The second level of the heuristic model describes the different taxes a small business could be liable for and when it must register for each of those taxes. During the second phase, the variables influencing registration compliance were statistically analysed for each of the taxes to determine if they significantly influence the compliance status. The study found that several factors have an impact on the registration compliance of small businesses. The demographic factors were analysed separately for each of the three different tax groups used in the study. The results indicate that in the majority of cases all three tax groups share the same demographic factors that would either have a positive or negative impact on the compliance of the entity. Profiles for the most compliant business type (per tax type) and the least compliant business type (per tax type) were compiled. The results of the study can be used by the South African Revenue Service to target their compliance and information actions to help improve registration compliance by small businesses. / Taxation / M. Com. (Accounting)

Revenue collection agencies across the world aim to maximise revenue collection by minimising tax noncompliance. The different types of tax noncompliance are collectively referred to as the tax gap phenomenon, which revenue collection agencies address by means of various enforcement approaches and capabilities. Much like any organisation, the resources required to execute these capabilities are finite and require accurate organisational decision-making in order to make optimal use thereof. Information technology, and specifically decision support systems (DSS), is critical in enabling this decision-making process. Using the Structuration Model of Technology, the information needs, demand and offerings of revenue collection agencies are explored given their objective of narrowing the tax gap phenomenon using DSS. Emphasis is placed on the manner in which IT is used to address taxpayer noncompliance, the way in which IT supports knowledge creation and subsequently also facilitate the decision-making process of tax practitioners, and also the different types of IT offerings made available to decision-makers in the form of DSS. In doing so, this research presents the results of a case study on the South African Revenue Service in which a conceptual decision support system framework is developed aimed at minimising the tax gap phenomenon. The research is conducted as a qualitative single case study and presented through a narrative analysis. The framework is systematically constructed as the research findings emerge and concluded by means of a framework validation and transfer ability test. The research result is a conceptual DSS framework acting as a reference point to other revenue collection agencies with the objective of addressing taxpayer noncompliance through DSS. / Jurisprudence / D. Phil. (Information Systems)

Revenue losses due to tax non-compliance pose a substantial risk for all governments, including the South African government. As part of its risk management system, the South African Revenue Service has identified the small, medium and micro enterprise sector as one of the seven high-risk areas and indicated that non-compliance in this sector remains high. The first focus area of any tax compliance risk management system is to ensure registration for the relevant taxes payable. The objective of this study was to establish whether any demographic factors could be used to select small businesses to investigate whether they are meeting their registration compliance requirements for income tax, Value-Added tax as well as the employee related taxes. In order to achieve the research objectives of the study, two sequential research methods were applied. During the first phase of the research, a literature review was conducted to develop a heuristic model consisting of two levels. The first level described the factors that could influence the tax compliance behaviour of a small business. The second level of the heuristic model describes the different taxes a small business could be liable for and when it must register for each of those taxes. During the second phase, the variables influencing registration compliance were statistically analysed for each of the taxes to determine if they significantly influence the compliance status. The study found that several factors have an impact on the registration compliance of small businesses. The demographic factors were analysed separately for each of the three different tax groups used in the study. The results indicate that in the majority of cases all three tax groups share the same demographic factors that would either have a positive or negative impact on the compliance of the entity. Profiles for the most compliant business type (per tax type) and the least compliant business type (per tax type) were compiled. The results of the study can be used by the South African Revenue Service to target their compliance and information actions to help improve registration compliance by small businesses. / Taxation / M. Com. (Accounting)