The Effect of the Cash Receipt System on Preventing Tax Evasion from Consumers' Perspective (in Korean)

Eunbi Ko () and Heonjae Song ()
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Eunbi Ko: Department of Economics, University of Seoul
Heonjae Song: Department of Economics, University of Seoul

Economic Analysis (Quarterly), 2018, vol. 24, issue 1, 99-126

Abstract: This paper studies the effect of the cash receipt system on preventing tax evasion by analyzing consumers?? behavior about the income tax deduction for cash receipt. The estimation results show that consumers ask self-employed to issue the cash receipt by 340??1,160 thousand KRW in order to reduce their effective income tax rate by 0.1%p which is defined by the ratio of labor income tax to yearly wage. This result can be interpreted as a supportive evidence that the cash receipt system is effectively working in preventing tax evasion of the self-employed.

Keywords: Cash receipt system; Tax evasion; Legalization of taxable income; Credit card income deduction; Labor income tax (search for similar items in EconPapers)
JEL-codes: H26 H31 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:bok:journl:v:24:y:2018:i:1:p:99-126

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