Doing Business and Tax Evasion: Evidence from Asian Countries

Md. Harun Ur Rashid, Afzal Ahmad, Muhammad Saleh Abdullah, Monir Ahmmed and Serajul Islam

SAGE Open, 2022, vol. 12, issue 4, 21582440221131280

Abstract: The study examines the relationship between doing business factors and tax evasion in Asian countries. To this end, Ordinary Least Square (OLS), along with a fixed and random effect model, was used to analyze the 5-year data (2011–2015) of 35 Asian countries obtained from the global competitiveness report and World Development Indicators. The findings indicated that a high level of corruption, a high tax rate, limited access to finance, strict tax regulation, government instability, and poor ethics promote tax evasion. Extending the socio-economic theory, the findings of the study provide the tax administration and governments of Asian countries with insights into the mechanism by which certain business factors influence tax evasion. Moreover, the study offers some valuable guidelines for formulating suitable economic policies that engender a reduction in tax evasion.

Keywords: tax evasion; doing business; Asian countries; corruption; constrained access to finance; tax regulations (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:12:y:2022:i:4:p:21582440221131280

DOI: 10.1177/21582440221131280

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