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The VAT-Evading Firm and VAT Evasion: An Empirical Analysis

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  • Kent Matthews
  • Jean Lloyd-Williams

Abstract

It has been claimed that an increase in the ratio of VAT reclaimed to VAT paid is an indicator of increasing non-compliance. By examining this ratio, this paper evaluates the potential for VAT non-compliance in the Restaurant and Take-out, Clothing and Footwear, Furniture and Floor-coverings, and Hairdressing markets. Estimates of aggregate expenditure are used to estimate potential gross VAT payments. These are compared with actual gross payments as an indicator of the extent of non-compliance.

Suggested Citation

  • Kent Matthews & Jean Lloyd-Williams, 2001. "The VAT-Evading Firm and VAT Evasion: An Empirical Analysis," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(1), pages 39-49.
    • Handle: RePEc:taf:ijecbs:v:8:y:2001:i:1:p:39-49
    DOI: 10.1080/13571510151075251
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    References listed on IDEAS

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    Cited by:

    1. Andrew Feltenstein & Jorge Martinez-Vazquez & Biplab Datta & Sohani Fatehin, 2022. "A general equilibrium model of Value Added Tax evasion: an application to Pakistan," International Economics and Economic Policy, Springer, vol. 19(3), pages 537-556, July.
    2. Leopoldo Fergusson & Carlos Molina & Juan Felipe Riaño, 2019. "Consumers as VAT “Evaders”: Incidence, Social Bias, and Correlates in Colombia," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 21-67, April.
    3. Ionel Bostan & Cristian Popescu & Costel Istrate & Ioan-Bogdan Robu, 2017. "The Impact of Taxation of the Domestic Economic Transactions on the Vat Collection Through Electronic Fiscal Devices," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 19(45), pages 581-581, May.
    4. Colin C. Williams, 2014. "Confronting the Shadow Economy," Books, Edward Elgar Publishing, number 15370.
    5. Antonio Gómez Gómez-Plana & Pedro Pascual Arzoz, 2011. "Fraude fiscal e IVA en España: incidencia en un modelo de equilibrio general," Hacienda Pública Española / Review of Public Economics, IEF, vol. 199(4), pages 9-52, December.
    6. O. Bundau & M. Neamtu & D. Opris, 2007. "Rent seeking games with tax evasion," Papers 0706.0664, arXiv.org.

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