The concept of tax gaps - Corporate Income Tax Gap Estimation Methodologies

Tax Gap Project Group Fiscalis

No 73, Taxation Papers from Directorate General Taxation and Customs Union, European Commission

Abstract: The corporate income tax gap (CIT Gap) is the gap between corporate tax revenues as they “should be” collected and as they “are” collected. The gap is an indication of potential CIT revenue losses. This report defines the CIT gap as encompassing both non-deliberate actions by taxpayers (such as errors or omissions) and deliberate actions (such as fraud, evasion and avoidance) that lead to shortfall in revenues. This report reflects the objective of the Tax Gap Project Group (TGPG) to map and share expertise and good practices. The two main approaches to estimating the tax gap – the top-down and bottom-up methods – have both advantages and disadvantages. The choice of the estimation method depends heavily on the availability of data, resources and purposes of the estimate.

Keywords: corporate taxation; tax gap; european union; tax avoidance (search for similar items in EconPapers)
JEL-codes: H25 H26 H83 (search for similar items in EconPapers)
Pages: 112 pages
Date: 2018-11
New Economics Papers: this item is included in nep-acc, nep-iue, nep-pbe and nep-pub
References: Add references at CitEc
Citations: View citations in EconPapers (9)

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