IDEAS home Printed from https://ideas.repec.org/a/mul/je8794/doi10.1429-75053y2013i1p91-118.html
   My bibliography  Save this article

The estimate of the tax gap: An application in Tuscany

Author

Listed:
  • Leonardo Ghezzi
  • Letizia Ravagli
  • Stefano Rosignoli
  • Nicola Sciclone

Abstract

The methods generally used to estimate the loss of revenue from tax evasioncan be divided into two types: the macroeconomic approach (or top-down) and the micro (orbottom-up). The first is based on a comparison between fiscal data from Ministry of Financeand aggregate data from national accounts; the second compares the income declared by thetaxpayer at a micro level with those obtained through sample surveys or those observed afterthe auditing activity of the tax authorities.This paper presents some preliminary results of the tax gap estimate in Tuscany forthree kinds of levies. As regards the personal income tax (IRPEF) we use a micro approachby comparing the tax estimated in the survey on Income and Living Conditions (EU-SILC)(where the gross income is bound to National Accounts) and fiscal data from Ministry of Finance.In order to estimate the tax evasion on the regional tax on productive activities (IRAP)we use a macro approach which compares the aggregate tax base from regional input-outputtables and the one from Ministry of Finance. Finally we propose an estimate of tax evasionon the municipal property tax (ICI) by comparing the revenues estimated in the Italian landregister (Catasto) and those resulting from the municipalities' balances (Certificati Consuntividi Bilancio).

Suggested Citation

  • Leonardo Ghezzi & Letizia Ravagli & Stefano Rosignoli & Nicola Sciclone, 2013. "The estimate of the tax gap: An application in Tuscany," Politica economica, Società editrice il Mulino, issue 1, pages 91-118.
  • Handle: RePEc:mul:je8794:doi:10.1429/75053:y:2013:i:1:p:91-118
    as

    Download full text from publisher

    File URL: https://www.rivisteweb.it/download/article/10.1429/75053
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://www.rivisteweb.it/doi/10.1429/75053
    Download Restriction: no
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Massimo Bordignon & Alberto Zanardi, 1997. "Tax Evasion in Italy," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 56(3-4), pages 169-210, December.
    2. Friedrich Schneider (ed.), 2011. "Handbook on the Shadow Economy," Books, Edward Elgar Publishing, number 13432.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dominik H. Enste, 2018. "The shadow economy in industrial countries," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-11, November.
    2. repec:ces:ifodic:v:14:y:2017:i:4:p:19267788 is not listed on IDEAS
    3. Luigi, Bernardi, 2002. "Tax systems and tax reforms in Europe: Italy," MPRA Paper 18045, University Library of Munich, Germany.
    4. Guerino Ardizzi & Carmelo Petraglia & Massimiliano Piacenza & Gilberto Turati, 2014. "Measuring the Underground Economy with the Currency Demand Approach: A Reinterpretation of the Methodology, With an Application to Italy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 747-772, December.
    5. Ligita Gasparėnienė & Rita Remeikienė & Colin C. Williams, 2022. "Unemployment and the Informal Economy," SpringerBriefs in Economics, Springer, number 978-3-030-96687-4, September.
    6. Kastlunger, Barbara & Lozza, Edoardo & Kirchler, Erich & Schabmann, Alfred, 2013. "Powerful authorities and trusting citizens: The Slippery Slope Framework and tax compliance in Italy," Journal of Economic Psychology, Elsevier, vol. 34(C), pages 36-45.
    7. Emilio Colombo & Alessandra Michelangeli & Luca Stanca, 2014. "La Dolce Vita : Hedonic Estimates of Quality of Life in Italian Cities," Regional Studies, Taylor & Francis Journals, vol. 48(8), pages 1404-1418, August.
    8. Abdullah Yahia Moqbile Ahmed, 2017. "The Impact of Exposure to Advertisement Online on Purchase Decision Empirical Study of Saudi Customers in Western Region," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(7), pages 366-386, July.
    9. C. Williams, Colin & Bezeredi, Slavko, 2017. "Tackling The Illegal Practice Of Under-Reporting Employees’ Wages: Lessons From The Republic Of Macedonia," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 8(3), pages 243-258.
    10. Friedrich Schneider, 2012. "The Shadow Economy and Tax Evasion: What Do We (Not) Know?," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(02), pages 03-12, July.
    11. Luigi Bonaventura, 2011. "Enforcement of regulation, irregular sector, and firm performance: a computational agent-based model," Netnomics, Springer, vol. 12(2), pages 99-113, July.
    12. Anastasiya Luzgina, 2017. "Problems of corruption and tax evasion in construction sector in Belarus," Post-Print hal-01705894, HAL.
    13. Schneider Friedrich, 2015. "Schattenwirtschaft und Schattenarbeitsmarkt: Die Entwicklungen der vergangenen 20 Jahre," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 16(1), pages 3-25, March.
    14. Schneider Friedrich & Buehn Andreas, 2017. "Shadow Economy: Estimation Methods, Problems, Results and Open questions," Open Economics, De Gruyter, vol. 1(1), pages 1-29, March.
    15. Martin Halla, 2011. "The Link between the Intrinsic Motivation to Comply and Compliance Behaviour: A Critical Appraisal of Existing Evidence," Chapters, in: Friedrich Schneider (ed.), Handbook on the Shadow Economy, chapter 11, Edward Elgar Publishing.
    16. Hoseini, M., 2014. "Misreporting in the Value-Added Tax and the Optimal Enforcement," Discussion Paper 2014-061, Tilburg University, Center for Economic Research.
    17. Friedrich Schneider & Gorana Krstić & Milojko Arsić & Saša Ranđelović, 2015. "What Is the Extent of the Shadow Economy in Serbia?," Contributions to Economics, in: Gorana Krstić & Friedrich Schneider (ed.), Formalizing the Shadow Economy in Serbia, edition 127, chapter 0, pages 47-75, Springer.
    18. Kaplanhan, Fatih & Korkut, Cem, 2014. "Merkezi Yönetimin Vergi Gelirlerini Yerel Yönetimlere Dağıtımı (Küreyerelleşme) [Disturbition of Tax Revenue of Central Government to Local Governments (Glocalization)]," MPRA Paper 76170, University Library of Munich, Germany, revised 10 Jan 2017.
    19. Friedrich Schneider & Andreas Buehn & Claudio E. Montenegro, 2011. "Shadow Economies All Over the World: New Estimates for 162 Countries from 1999 to 2007," Chapters, in: Friedrich Schneider (ed.), Handbook on the Shadow Economy, chapter 1, Edward Elgar Publishing.
    20. Dominik H. Enste, 2011. "Who is Working Illicitly and Why? Insights from Representative Survey Data in Germany," Chapters, in: Friedrich Schneider (ed.), Handbook on the Shadow Economy, chapter 9, Edward Elgar Publishing.
    21. Ceyhun Elgin & Friedrich Schneider, 2016. "Shadow Economies in OECD Countries: DGE vs. MIMIC Approaches," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 30(1), pages 51-75.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mul:je8794:doi:10.1429/75053:y:2013:i:1:p:91-118. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.rivisteweb.it/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.