Tax Administrations’ Capacity in Preventing Tax Evasion and Tax Avoidance

92 Pages Posted: 2 Jan 2019

See all articles by Frederik Heitmüller

Frederik Heitmüller

Independent; Leiden University; Tax Justice Network

Moran Harari

Tax Justice Network

Markus Meinzer

Tax Justice Network

Date Written: October 17, 2018

Abstract

We explore the role of tax administrations in the fight against inequality through data analysis of a survey consisting of 71 questions that we have designed and sent to the tax administrations of all EU Member States. The survey focuses mainly on the capacity concerning the enforcement of tax policies aiming at combating fiscal fraud and tax avoidance and on specific institutional aspects that can potentially explain a lack of enforcement. The paper explores the data we received from seven respondent jurisdictions and combines it with additional data available through the International Survey on Revenue Administration (ISORA). Our analysis covers, among others, topics such as the protection of whistleblowers, performance and staffing of large taxpayer offices, prosecution activities and the “revolving door”-phenomenon. These topics were chosen based on data gaps we identified in existing datasets available on capacity of tax administrations. Building on (preliminary) analysis of this data, we indicate several issues which we consider as potentially the most critical with regards to countering inequality; we also generate several hypotheses likely to be used in future research.

Keywords: Tax Administration, Tax Evasion, Tax Avoidance, Economic Inequality, Administrative Capacity, Survey

JEL Classification: H26, H83, H87, K34, K42

Suggested Citation

Heitmüller, Frederik and Harari, Moran and Meinzer, Markus, Tax Administrations’ Capacity in Preventing Tax Evasion and Tax Avoidance (October 17, 2018). Available at SSRN: https://ssrn.com/abstract=3300589 or http://dx.doi.org/10.2139/ssrn.3300589

Frederik Heitmüller

Independent ( email )

Leiden University ( email )

Postbus 9500
Leiden, Zuid Holland 2300 RA
Netherlands

Tax Justice Network ( email )

Israel

Moran Harari (Contact Author)

Tax Justice Network ( email )

Markus Meinzer

Tax Justice Network ( email )

38, Stanley Avenue
Chesham, HP5 2JG
United Kingdom

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