Firm-level determinants of business tax evasion in emerging economies: the case of Argentina

Determinantes microeconómicos de la evasión tributaria empresarial en economías emergentes: el caso de Argentina

Florencia Verónica Pedroni (), Anahí Briozzo () and Gabriela Pesce ()
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Florencia Verónica Pedroni: Universidad Nacional del Sur (Argentina)
Anahí Briozzo: Universidad Nacional del Sur (Argentina)
Gabriela Pesce: Universidad Nacional del Sur (Argentina)

Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, 2022, vol. 34, issue 1, 83-117

Abstract: This paper aims to identify the determinants of revenue underreporting and their temporal evolution from a business perspective in formal firms located in an emerging country with high inflation (Argentina). We propose a conceptual model and we estimate it empirically using a logistic regression based on pooled data 2010-2017 of the World Bank Enterprise Surveys. The findings show that revenue underreporting is a multicausal phenomenon where taxes lose importance in the light of other determinants such as: corruption, regulation and bureaucracy, quality of public and government services, detection probability, sector informality and political instability. Moreover, the outcomes recognize companies’ characteristics with a greater propensity to underreport sales (smaller size, selling in domestic market, from manufacturing sector, without external financing, with male entrepreneurs). Our empirical evidence is relevant for the formulation of public policies aimed at reducing revenue underreporting.

Keywords: informal sector; revenue underreporting; tax; corruption; bureaucracy; institutional quality; emerging economy; sector informal; subdeclaración de ingresos; impuestos; corrupción; burocracia; calidad institucional; economía emergente (search for similar items in EconPapers)
JEL-codes: D22 E26 H26 H32 M21 O17 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:pab:rmcpee:v:34:y:2022:i:1:p:83-117

DOI: 10.46661/revmetodoscuanteconempresa.5277

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