Does Digitalisation in Public Services Reduce Tax Evasion?

Cristina Strango ()
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Cristina Strango: Faculty of Economics and Business Administration, West University of Timisoara, Timisoara, Romania

Economic Research Guardian, 2021, vol. 11, issue 2, 221-235

Abstract: The aim of this paper is to investigate the impact of digitalisation from public services on tax evasion. The analysis targets the European Union 27 (EU-27) member states over the period 2015-2019 by using panel estimators. The findings prove a nonlinear U-shaped relationship between digitalisation from public services and tax evasion in the former communist EU countries. More precisely, the acceleration of digitalisation in public services reduces the level of tax evasion up to a certain point. Once the acceleration reaches that point, the level of tax evasion increases once again. The impact of digitalization on tax evasion seems to be rather neutral in the non-ex-communist EU group, due to the digitalization process being very advanced.

Keywords: Tax evasion; Digitalisation; EU27; Panel estimations (search for similar items in EconPapers)
JEL-codes: C23 C89 H26 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:wei:journl:v:11:y:2021:i:2:p:221-235

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