Brazilian Evidence on Tax Evasion and Enforcement: A Case Study of Global North–South Comparison

This study investigates the differences observed in the rate of tax evasion between the Global North and South countries, with special focus on Brazil, by comparing key parameters of their tax systems, namely, tax burden, audit cost, and fines. This is achieved by extending and applying Graetz, Rein...

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Bibliographic Details
Main Author: Clemente, Felippe (Author)
Contributors: Lírio, Viviani Silva ; Aransiola, Temidayo James
Format: Electronic Article
Language:English
Published: 2021
In: Criminal justice review
Year: 2021, Volume: 46, Issue: 4, Pages: 450-465
Online Access: Presumably Free Access
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Keywords:
Global north–south comparison
Tax evasion
Brazil
Description
Summary:This study investigates the differences observed in the rate of tax evasion between the Global North and South countries, with special focus on Brazil, by comparing key parameters of their tax systems, namely, tax burden, audit cost, and fines. This is achieved by extending and applying Graetz, Reinganun, and Wilde’s model using data from tax authorities from European and Latin American countries, which produced parameters that are used for Bayesian games. The results show that tax evasion is directly associated with tax burden and audit cost, but the effect of fines is unclear. Overall, findings pointed to shortcomings in the tax system of Latin American countries that create the avenue for high tax evasion.
ISSN:1556-3839
DOI:10.1177/07340168211038040