Tax Evasion, Disclosure, and Participation in Financial Markets: Evidence from Brazilian Firms

Thomas Kenyon

World Development, 2008, vol. 36, issue 11, 2512-2525

Abstract: Summary This paper draws on survey data and qualitative evidence from Brazilian manufacturing firms to examine the scale and consequences of tax evasion at the enterprise level. It discusses the costs and benefits of under-reporting from the entrepreneur's perspective and provides evidence that evasion of sales tax is only weakly correlated with firm size. The paper then shows that medium-sized and large manufacturing firms that evade taxes are less likely to undergo an external audit and more likely to be asked for informal payments by tax officials. It also argues that they may be less likely to participate in markets for equity finance.

Keywords: tax; evasion; equity; markets; Brazil; Latin; America (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0305-750X(08)00159-9
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:36:y:2008:i:11:p:2512-2525

Access Statistics for this article

World Development is currently edited by O. T. Coomes

More articles in World Development from Elsevier
Bibliographic data for series maintained by Catherine Liu ().