Responses of Firms to Tax, Administrative and Accounting Rules: Evidence from Armenia

Zareh Asatryan and Andreas Peichl

No 6754, CESifo Working Paper Series from CESifo

Abstract: Using panel data on the full population of corporate tax returns from Armenia, we study behavioral responses of firms to three size-dependent regulations. We find: i) a strong response to an accounting notch where IFRS becomes mandatory; ii) a moderate response to an administrative notch below which the frequency of filing taxes declines; and iii) no response to the VAT registration threshold notch. Exploiting tax audits, we provide evidence suggesting that income under-reporting drives the bunching response of firms. Additional evidence suggests that firms respond to audits by compensating additional reported income by a 0.90 dollar increase in deductions.

Keywords: small and medium enterprises; size-dependent regulation; value added tax; tax administration; tax accounting; tax evasion (search for similar items in EconPapers)
JEL-codes: H25 H26 O12 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-acc, nep-iue and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo1_wp6754.pdf (application/pdf)

Related works:
Working Paper: Responses of firms to tax, administrative and accounting rules: Evidence from Armenia (2016)
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:ces:ceswps:_6754

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().